Incentive - May 2008 - (Page 18)

COVER STORY that specializes in selling reward programs television and radio. “It takes a good thirto media companies. But it has been slow ty years for any media to wind down,” going. “The media industry is well says Gordon Borrell of the media consultbehind other industries in their undering firm Borrell Associates, in Williamsstanding of how a properly administrated burg, Va. “Newspapers had a precipitous incentive program works,” he says. “It’s a decline in the 1990s, but what set that in chaotic selling environment. There is a motion was the rise of television in the perceived lack of 1960s.” The scary time to take a step time for traditional back and see, ‘what media people, he are our objectives?’” predicts, will be Michelle Smith, when the generation vice president of weaned on today’s business development Internet grows up to for incentive compabe the high-income ny O.C. Tanner, in earners. Salt Lake City, To survive, media agrees: “The media salespeople need to industry as a whole undergo what has been slow to Andrews calls a “catadopt strategic, longegorical shift” in term incentive strategy. Rather than programs. This is selling the same page unfortunate, especialspace or airtime to ly given incentive the same advertisers programs’ ability to (lumping in a few Michael Day and Creative Travel Planners put together extra digital products help companies and a trip to Africa on safari for KGO-AM Newstalk Radio employees successfulfor good measure), ly navigate through stressful times.” salespeople and sales teams will need to Times are tough indeed for those in the become “consultants” who can advise business of selling traditional media prodclients on a complete marketing package ucts. The marketing information group that may include print, video, audio, TNS Media Intelligence reported that in online and event components. They need 2007 overall ad spending on television to evolve, he says, “from selling a commoddropped by 1.7 percent, by 3.5 percent for ity to selling value, from being reactive to radio outlets, and by 5.6 percent for newsbeing proactive. All of those things can be papers. Over the same period, Internet ad managed through incentives.” revenue rose 16 percent to more than $11 billion, or 7.6 percent of the total market ONLINE POLL share, and those numbers don’t include Are your sales incentives for shortsearch advertising, a fast-growing category that has stolen significant local advertising term immediate goals, long-term business from classified sections. ongoing goals, or both? And the future looks no brighter for the print world: according to the Internet s Short-term . . . . . . . . . . . . . . . . .45% Advertising Bureau, consumers already spend 22 percent of each day online, and s Long-term . . . . . . . . . . . . . . . . . .13% this percentage is almost guaranteed to s Both . . . . . . . . . . . . . . . . . . . . . . . . . . .27% grow. Although to date newspapers have s Neither . . . . . . . . . . . . . . . . . . . . . . . . .9% suffered the greatest losses to online and Visit www.incentivemag.com/poll for alternative advertising outlets, the proliferation of video and audio on the Internet this month’s question means the worst may be yet to come for Incentive Making a Case for Rewards Internally, many media companies run short-term spiffs that are designed to boost revenue for a month, a week, or even a day; many also honor top earners with salesperson-of-the-year awards. What is lacking at most of these businesses is an overriding plan that effectively coordinates segmented reward initiatives with company-wide business values as well as longer-term goals like retention or increasing market share. “What tends to happen is that when a new product gets rolled out, rewards might not be used to incent the right kind of behavior,” explains Ressie Pate, vice president of media sales at MediaAscent. “It becomes the incentive war.” One problem for incentive professionals is convincing upper management to take the risk on a more ambitious program. Michael Day, president of Michael Day Media Incentives in northern California, has been planning travel incentives for radio stations and other news companies for over 20 years, and recently opened a division for cable television and Internet groups. “There is certainly more receptivity than ever at the local station level, but those local stations need approval from corporate—where there is a natural reticence to approve budgets.” To get around this reluctance, Andrews offers prospective clients a short-term travel promotion, where the number of participants (and thus the budget) isn’t set until the number of qualified advertisers is determined. To work, the promotion needs to be creative enough that it cuts through the clutter of the many competing claims on the target’s attention. His company’s “Before I Die Days”—an advertiser incentive that takes participants on an exceptional one-day experience, like driving a Formula 1 race car, hiking the Grand Canyon or placing a highstakes bet in Las Vegas—is flexible enough to work for a single advertiser. If the media company is happy with the result, he might propose a quarterly program, building up to a three-year curriculum that integrates training as well as substantial tracking and reporting. 18 | | May 2008 | incentivemag.com http://www.incentivemag.com/poll http://incentivemag.com

Table of Contents Feed for the Digital Edition of Incentive - May 2008

Incentive - May 2008 Contents Editor's Note: Turn to Incentives in Hard Times In The News: At IMRA Conference, Trade Show Talk; In Utah, Team-Building Trauma Cover Story: Can Incentives Save the Media Business? Incentive Interview: Our New Columnist, Christi L. Gibson Case Study: Architecture Firm WESKetch Builds a Recognition Plan Incentives in a Recession: Advice on Adjusting Your Plan Office Bullies: The Scourge of the Workplace Can Be Reined In Original Research: Incentive Sales IQ Report Recognition@Work: Stop Driving Your Top People Away Incentive Primer: Ways to Foster Creativity in Your Organization Travel News Puerto Rico: Shining Star's Trendy Makeover Mexico: Cancun and Cabo Still Have It Potentials Here and Now Luggage and Leather Goods Gift Cards: F&B Advertiser Index Last Word: Stanley Bing Gives Wimpy Bosses a Nuggie

Incentive - May 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.