Database
Means Business
Scott Stines - IDEAS
Magazine - November
1999
When someone says "database marketing" do you immediately think of consumer applications that drive circulation? You aren't alone. A recent survey of 40 newspaper marketing professionals attending an American Press Institute (API) seminar revealed that most of the focus was on building and maintaining consumer databases. While nearly all (95%) of the newspapers represented had subscriber and advertiser databases, fewer than 50% maintained non-advertiser databases.
There are several reasons why maintaining a complete business database (advertisers and non-advertisers) will grow in importance over the next few years. While, on average, 20% of a newspaper's total revenue is derived from subscriptions, a significant portion of the remaining 80% of revenue comes from business advertisers. As traditional advertisers shift budgets to direct, on-line, and other media, newspaper's efforts to increase penetration of existing advertiser segments and develop new advertiser segments will intensify. It could take 20 to 50 new advertisers to make up for the departure of one major advertiser.
Maintaining a complete database of businesses supports future marketing efforts in the following ways:
Understanding the Market Knowing the make-up of your advertiser market is key to developing a complete situation analysis; the foundation upon which to build a business and marketing plan. Knowing what advertiser segments are expanding or contracting is key to staying in front of the market, instead of playing catch up.
Measuring Performance A database of advertisers with spending history and SIC codes provides a way to measure performance over time with existing advertisers and advertiser segments. A database of every business in your market area allows you to measure penetration by SIC code or advertiser segment to gain an understanding of strengths and weaknesses.
Estimating Revenue Potential Historical ad spending and industry ad spending averages allow you to estimate the value of SIC codes or advertiser segments. The result is the development of realistic, bottom up (as opposed to top down¹) revenue goals.
Targeting Resources Once you know where the gold is buried, you can focus your existing inside and outside sales resources where they will generate the most revenue. A complete business database provides your sales staff with the information they need to increase advertiser segment penetration.
Developing New Products A complete business database with historical and estimated revenue potential by advertiser and advertiser segment is the road map to successful new product and service development. Whether you are trying to refine special sections or launch new niche publications, a complete business database will help you identify under-served advertising segments and provide direction for new product and service development.
Supporting Sales Efforts A complete business database serves as an ongoing source of leads for your inside and outside sales staff. Less time prospecting means more time selling and more revenue per sales rep.
So the next time someone mentions database marketing¹, think business.
Scott Stines is Integrated Marketing Coordinator with The Gazette Company in Cedar Rapids, IA where he is responsible for integrating the company's newspaper, shoppers, television, radio, direct marketing, online and commercial printing products and services for advertisers.
• Back To Top | Home