PMPs SURGE ON SAFETY/FRAUD CONCERNS: During the back half of 2016 concerns over brand safety and bot fraud came to the forefront of digital advertising. Nowhere has the scrutiny been more intense than around Open Exchanges for programmatic transactions. Due to the nature of these platforms there’s no way for networks to insure brands that their ads are being viewed by humans in a non-offensive content environment. As a result by Q4’16 the industry began a major transfer of programmatic spending from Exchanges to PMPs (which are 1-1 programmatic relationships between publishers and brands). As you can see in the attached Digiday article and in the graphs below, a transformative shift is occurring. While PMPs still have a ways to go to catch up with the Exchanges in terms of overall spend, there’s a clear trend line forming. And once in-app PMP utilization catches up to web-based delivery I’d expect to see the shift towards PMPs accelerate even faster.
DON’T CONFUSE AMAZON WITH A RECORD LABEL: Given Amazon’s recent push into original TV programming there’s a logical question as to whether or not they would try to run the same play on the music side by becoming a de facto record label. However, that idea was roundly squashed by Amazon’s VP of Music Steve Boom in an on-stage interview at TechCrunch’s Disrupt conference. During the segment Mr. Boom said Amazon was happy being a distribution platform for music, with Amazon Music embedded in its Echo platform and also packaged within its Prime subscription offering. The two strategies give Amazon enough of a toe hold to stay relevant in the digital music game, but admittedly won’t dominate a very crowded streaming playing field. Amazon also sees some advantages in offering on-demand at a discount, with current subscription pricing in the $4-8/mo range, compared to the $5-10/mo industry standard. Not sure if you can blame Amazon for being non-committal on this, as they have quite a few other strategic initiatives on the front burner right now.
SALES ISN’T AS EASY AS IT LOOKS: Do you ever find yourself in this situation? You’re having a conversation with a family member or neighbor about what you do for a living, and you realize they think your media sales job boils down to a series of high end client dinners, sporting events, concerts, golf, etc.. If only sales was that easy. What they don’t understand is for every ounce of “fun with clients” there’s a pound of sweat equity required to develop that client in the first place. Sales is hard, plain and simple. Especially the first half of the sales process when the seller must identify a new prospect, get a foot in the door, conduct a consultative needs analysis, create a proposal which reflects the client’s KPIs, and present it in a way that’s compelling enough to purchase. All of this must be done successfully in order to enjoy that steak dinner or round of golf with your established client. So what are the keys to getting there . . . to being a successful salesperson? While you could look through libraries of books devoted to this question, I thought the attached LinkedIn article from an executive level Sales Consultant named Ali Hanif was a good place to start. Mr. Hanif breaks down the challenge of sales into four buckets; (1) the requirement to Perform or be out of a job, (2) the ability to thrive during near-constant Change, (3) the importance of Defending your client base despite the need to develop new biz, and (4) the requirement to be Connected nearly 24/7 so you can be there when your clients are ready to transact. Does this sound easy? Of course not. Maybe that’s why successful salespeople are generally paid well to spend half their time entertaining clients, because the other half of their job is so daunting.
Have a great Wednesday guys!
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