Sales, Mgmt. Execs Largely Optimistic About Revenue Growth
Digital Revenue A Driving Force
January 16, 2014 at 11:02 AM (PT)
Media management executives remain bullish on 2014 revenues, MEDIA SALES TODAY reports. A just-released ADMALL LOCAL MEDIA SALES FORECAST found that nearly half (49.1%) of executive managers and sales managers predict a revenue increase of 6-10% in 2014, 20% percent expect revenue increases of more than 10%; 40.3% expect increases of 1-5%; 5.3% expect little or no change in sales, while another 5.3% predict revenue declines.
Other interesting tidbits:
* Digital is expected to account for 19.1% of overall revenue, on average, by 2015 -- up from 12.2% in NOV. 2013.
* Nearly 56% of media salespeople are selling mobile advertising – up from 37.5% last year
* Nearly 40% of media companies are now selling digital marketing services
* The top three digital marketing products sold by local media companies are SEO, ad retargeting and website development
"Local media companies that can serve their advertisers as full-service marketing consultants are better positioned for long-term profitability,” SALES DEVELOPMENT SERVICES Pres./CEO C. LEE SMITH said. “Pursuit of increasingly competitive revenue streams like digital marketing services can improve the bottom line, so long as it does not distract from retention of their core business."
One notable areas of concern is advertiser churn; 39% of managers and 37% of account executives believe it is more difficult to replace lost accounts than it was a year ago. “One troubling finding from the study is that 31% of media salespeople feel it’s getting harder to make money in media sales than it was just a year ago – potentially leading salespeople to leave the industry,” ADMALL VP/Sales BARRY SHAWGO noted. “This is likely one factor explaining why nearly one-fourth of AEs surveyed report three or fewer years of experience in the advertising sales or marketing fields."
The full report will be available at the KEY EXECUTIVES MEGA-CONFERENCE FEB. 24th-26th in LAS VEGAS; and the BORRELL LOCAL ONLINE ADVERTISING CONFERENCE MARCH 3rd-4th in NEW YORK CITY.