Less (Time Wasted on Agencies) is More (Profit)
We totally saw this coming...
This would then allow media salespeople to focus on their most profitable results-driven business and everyone should be happy... with the possible exception of the media buyers, since this would allow the salespeople to stop wasting time trying to drop rates to please them and actually go out and sell a profitable marketing plan to direct clients -- which means those low ticker tape spot rates will rarely ever clear.
Half as many salespeople but higher commissions.With a lot of radio schedules being purchased by agency buyers who negotiate all effective creativity and results-based marketing ideas out of their purely transactional media buys -- why bother with the human element? Let these technical buyers log in to a website where they can view market ad rates on a stock-report-style electronic tickertape and make their media purchases via an automated system at whatever cost per point they'd like to request.
It's one option under study at Citadel, where CEO Farid Suleman believes as much as half of revenues would come in anyway, with or without a salesperson. So they're studying ways to possibly reduce the number of AEs and pay those who remain higher commissions. Faced with little growth in radio dollars, Suleman says everything needs to be on the table.
This would then allow media salespeople to focus on their most profitable results-driven business and everyone should be happy... with the possible exception of the media buyers, since this would allow the salespeople to stop wasting time trying to drop rates to please them and actually go out and sell a profitable marketing plan to direct clients -- which means those low ticker tape spot rates will rarely ever clear.
Labels: Advertising, Industry, Rates, Trendwatch
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