When we do custom research for media sellers like Spotify, Microsoft and Google, the results range from the expected to the shocking. Recently a custom research assignment revealed a truth for this particular media seller that we realized is a truth for most media sellers: smaller ad budgets have more power than you think.
Let’s Break That Down.
Of course most media sellers put a lot of energy and resources into the big ad spenders. That’s where the revenue is, where you get the big gains that can get your quarter off to a great start. But it’s likely that a combination of medium-sized budgets, en masse, will get you over your revenue goals for the quarter. And if you’re not focusing on these advertisers, giving them support and resources on a similar level as your big spenders, you’re jeopardizing a steady and reliable revenue stream.
We’ve got some suggestions for expanding your base effectively to these medium-sized advertisers.
- Get Help.
Consider getting your marketing team behind the idea. Contacting and prospecting directly to medium-sized advertisers requires a different approach than the way you solicit big-budget companies. Expanding the marketing focus to this sector will give the effort legitimacy and a place in the business strategy discussion. It will also give the effort a serious chance at success, with budget and resources to bring it to life.
- Be Selective.
Not all medium-sized advertisers are right for you. For one thing, an advertiser may be selling in a category that’s not growing. Using limited resources to pursue an opportunity here doesn’t make sense. But a medium-sized advertiser in a category that’s growing means they could become a big ad spender. Also be selective in pursuing medium-sized advertisers that are a good fit with the insights and strengths you offer. For example, let’s say you’re a sports news site. In the last several months your analytics have shown a sharp increase in female visitors, coming on the heels of the passion that Megan Rapinoe generated during the Women’s World Cup games. A medium-sized advertiser may be more likely to take a risk on this unconventional opportunity, especially if you’ve got the stats to support the recommendation.
- Train Up.
Most media sellers have a Chief Insights Officer, generally reserved for the biggest ad spenders. Few media sellers have a team of any size coming up behind the Chief Insights Officer. It’s time to get the next level involved and letting them cut their teeth on the medium-sized ad budgets is a great place to start.
At a time when incremental growth is the norm and the hockey stick growth line less common, it pays to keep your eyes open for opportunities that can bump the bottom line.