Remember the 50 or so digital advertising sales representatives Corporate hired for the newspaper division, as a parallel sales force to those selling print? Forgetaboutit! "The project is being/was killed,'' my tipster says. They hear the combined sales generated by the reps amounted to less than $150,000.
Can anyone confirm -- and add detail? Please post your replies in the comments section, below. To e-mail confidentially, write gannettblog[at]gmail[dot-com]; see Tipsters Anonymous Policy in the green rail, upper right.
Friday, April 24, 2009
25 comments:
Jim says: "Proceed with caution; this is a free-for-all comment zone. I try to correct or clarify incorrect information. But I can't catch everything. Please keep your posts focused on Gannett and media-related subjects. Note that I occasionally review comments in advance, to reject inappropriate ones. And I ignore hostile posters, and recommend you do, too."
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It's true and it's about time that employees who are compensated more than they contribute (can you imagine how much 50 people made who generated less than $150,000 in revenue since last year?) are finally let go when so many other VALUABLE employees have lost their jobs. Smartest move Gannett has made in a long time, they should move on to the national sales team next so I can get my job back!
ReplyDeleteSounds like it was a smart thing to do. An idea was tried, it didn't work and the idea was canned.
ReplyDeleteI'm surprised you would report on this one unless you see it as "another round" of layoffs. By the way, what happened to that whole story line?acarduc
3:10, how do you know these people weren't majority or totally commission-based? And what is it that makes you more valuable than any of these folks?
ReplyDeleteSounds to me like you have the Martore Syndrome, without the paycheck.
SO we now have a digital division, but no one selling ads for it. Hmmm. So who is selling ads for this digital division? Or is this digital division draining cash from the newspapers to justify its existence. Just asking.
ReplyDeleteCould things get any worse?
ReplyDeleteHey 8:32, it's because the digital native at our newspaper actually told people how much she made, and it was a guaranteed commission + a base salary healthier than most of our sales reps. And, hmm, gosh, the reason I'm more valuable than these folks is because I can actually sell (what a concept). It's obvious selling digital only with a .05% click through rate compared to a 3% response rate on the print side is a stupid idea. Haven't we all been trained for years on the importance of a media mix? learn it, love it and gannett will make it.
ReplyDeleteThis idea proves the Online only model will not work.
ReplyDeleteThis makes no sense. The same week they announce the digital division they begin layoffs? Just shows how screwed up this operation is. Hey, Crystal Towers, it is an advertising recession. Doesn't matter if it is TV, newspapers, magazines or Internet ads, the ad market has dried up because corporations are currently conserving cash. If they are going to advertise, they will advertise on Google to get the biggest bang for their buck.
ReplyDelete@9:41: Layoffs don't prove that "online only" won't work. It proves that the sales people's efforts were mismanaged.
ReplyDeleteNow, since I don't work for the company, I have no idea if this is true or not. But being in the industry and being in the digital side of the industry attached directly to online revenue, I can offer this:
-- Fifty people (not ten, or twenty, or thirty...but 50!) is a shit load of people to hire even in the best of times.
-- If all they're selling is banner ads, then those 50 folks are doomed.
-- The manager(s) in charge of this effort don't know what the fuck they're doing.
-- A $50k sales rep at a ridiculous 25% commissioned payout should be generating $200k in annual online sales. Fifty people at $200k should have been $10,000,000.
-- Trying to make $10 MM on a $10 CPM is rough sledding.
- Now, play with those numbers all you want, but you get the general idea.
Again, mismanagement of effort and company resources equivalent to perhaps a $3MM payroll.
10:35 This goes to the core of the transition from print to digital, but the truth is that online doesn't produce the sort of revenue that dead trees produce. And given the cuts in the cost of Internet ads, it is unlikley it ever will. It is the tiger chasing his tail routine: the more online ads we get, the lower the revenues for them are because the prices keep declining. This is a valuation issue: there is not much value in eyeballs. There is value in having a newspaper dropped on someone's doorstep, and having them open it up over their breakfast coffee. Go ahead and call me an old fuddy-duddy if you want, but I still don't see the economics of the Internet for any big operation. Small operations like Jim will thrive, but not big operations.
ReplyDeleteThe entire past sales model created a very false sense of ability and direction. In Phoenix, they sliced and diced existing advertisers to slot them in on-line and the variety of glossy (free) magazines (most all of which have failed or are bleeding money). The net result was convincing existing advertisers there are other/better options. Unfortunately, they didn't work out as planned for the advertiser or newspaper and as a result severely diluted their trust and ad revenue. To compound the issue, for years, as these advertisers were slotted in on-line and the magazines, managers of the each product bragged about the resounding success which was very short-lived.
ReplyDeleteWasn't digital suppose to rescue the company? Isn't that why so many print people were laid off, to make way for the digital cavalry?
ReplyDeleteI see GCI/USAT web sites improving, winning awards, getting more hits...BUT THEY STILL DON'T MAKE MONEY! And probably never will.
A long time ago, digital gave away content for free. That was the nail in the coffin and some pretty stupid thinking on behalf of all in the industry who continue to give it away.
As a side note, I find technically inclined people to be very intelligent. They are generally fast learners. But when it comes to common sense, or business decisions, or managing staffs...they are a disaster! They shouldn't have the clout they do. They are not natural-born leaders for whatever reason. Just a different part of the brain. Not meant to demean anyone. I admire their skills but am baffled by their inability to inspire, lead and motivate. They shouldn't, for instance, be in charge in the newsroom.
Yes, that a broad generalization, but I have found it to be fairly accurate. If what is left of this industry in terms of business decisions, journalism initiatives, etc. goes to the tech geeks, we're in serious trouble. They are craftsmen, not leaders. Sorry...just the way I see it in my rather large shop. It's the same difference between being book smart and life smart. They tend to be book smart, but come up short elsewhere.
I know ours were a joke.
ReplyDeleteWhy do I feel like a lot of the comments came from print people that don't know their ass from their elbow when it comes to digital sales?
ReplyDeleteHiring that 50 was never a good idea, it created internal competition. Basically multiple Gannett employed sales reps all trying to sell the same thing to the same advertisers.
Next let's talk about the sites. . .just because you build it does not mean people will come. Although with the projected revenues for some of the new properties it's clear upper management does not understand that concept. Some of these sites cannot command the industry recognition and respect needed to turn the large profit management hopes for. There are other established sites with high market share that do it better than ours.
And to 2:25 it's hard to for digital to succeed when the print side is constantly undermining the digital team by appropriating budgets, throwing digital under the bus for every issue they can think of and taking credit for any success we might earn. . . .and oh yeah what's that again, trying to steal digital jobs!! Digital 101 training my ass!
@9:38 You're more valuable because you can sell a print product? I can only imagine the variables you're burdened with during the course of a sale. Showing a circulation map, deciding between black and white or color..I wouldn't call you what you do "sales." The fact that you think print drives a better ROI is laughable...well, now that you're giving it away it might. Please try to understand the digital medium and the intricacies of selling any digital products before you speak on the topic.
ReplyDelete"@9:38"
ReplyDeleteThe fast sign of a Twitter dumbfuck. This person is a fooktard.
It never made sense to me to have separate online sales people. Why don't they just integrate online into their retail, class and national advertising and have ALL sales people sell these products. I thought there were bundle packages with print, online and magazines? It is the only way you can continue to create revenue. Combine all the products into one package and reach more readers. Duh!
ReplyDeleteI'm a sales rep who has sold for many years at a Gannett paper. Re: digital at Gannett's community papers (internet) it just doesn't work for the advertisers, period. Even though circulation is dropping like a rock and advertisers are seeing less response and ROI, digital is a much poorer investment Those who've been coerced to buy digital from us have all canceled after a short time because it just doesn't work! Fewer (former) advertisers are coming back into the paper and none want digital.
ReplyDeleteAs someone who saw the payroll, these folks got a guaranteed $2000 a month ramp up regardless of what they sold and a salary. They got the top of the line cell phones and laptops and the retail online sales people saw them as those who interfered in their territory, but had to hand over leads to the digital "sharks". They were not happy! Seems the "Sharks" didn't have the bite of a minnow. NOT SURPRISED...think of the monies wasted here.
ReplyDeleteThis program was a corporate cluster. The people at corporate felt their plan could sell digital better than the local markets' efforts. Although local markets' sales forces have their flaws, they know their markets, their customers and how to sell, and they're learning the digital stuff pretty quickly (prolly faster than MSM reps in other industries btw).
ReplyDeleteThis one totally typified what happens when corporate feels it can do something better than local markets, and instructs local markets what to do. the concepts might be nice, but if you're working in an office in HQ, it's gonna be near impossible for you to micromanage something way out in the field -- just not possible
the spirit of paying employees competitive wages was nice, though, but the money invested in the higher-paid digital reps just forced local markets to lay off more experienced and versatile people.
I was one of those Digital "natives" as Michelle Krans would refer to us and let me tell you that these people have no idea what tehy are doing. Actually, the only person that was even remotely helpful was Julie Murphy the trainer. She was great.
ReplyDeleteMy ad director, local support people and the newspaper leadership here are clueless.
We did not fall within the Gannett DIgital department, but were told we would work for teh local newspaper reps selling digital to accounts they never called on.
Here are a few examples:
1. Local termite (one van)
2. Piano teachers
3. Corner Deli
4. Shoe repair shop (one worker)
These people DO NOT buy digital ads. And why don't the lazy POS salespeople in the "field" start making a few phones calls? They wait for the phone to ring.
This program was a disaster and it is sad to see it dismantled.
To @9:38 - so, I take it you click on multiple ads while online, no matter what site you go to from your home computer you see the SAME customers on a frequent basis that helps build awareness. Oh, and I'll bet you are more apt to spend money with those customers advertising online because you know a little about their business or are intrigued by a product they have? Well yes, of course, that's what EVERYBODY else does except for this "print dinosaur". How many times have you actually clicked on the happy faces in your face thinking you actually have a chance to win $10,000 when trying to shop online? I hope you are not from our corporate offices, or at any high level of infuence within the company or Gannnett is dead. But the sad thing is you are most definitely from corporate - or a Publisher - and think you have all the answers (sadly) because last time you tried to sell anything you only had to focus on a zip code and color. Here's a tip: hire some circ people back and actually try to increase the print penetration of the product that proves the most effective, let's go with your plan in 2019.
ReplyDeleteI was also one of these natives, and I agree that we were over compensated for our work. But, those on the outside have no idea how doomed we were to fail from the very begining. Corporate had no idea what they were doing, and limited us so much on who and what we could sell, it was impossible to make our goals. Not to mention the constant stepping of toes with other print and digital reps already at our respective papers. I had so many great leads taken away from me because of mismanagement of the "rules" it was not funny. Our management team had no clue on what to do. This whole thing was a joke, and I am glad it is over!
ReplyDeleteAs another former digital native myself, I will back up the comments made by the former digital native above.
ReplyDeleteAs a Webmaster with 20 years of experience and success with top companies around the U.S., I was excited when chosen to become a digital sales specialist for Gannett. The position quickly lost its luster when we returned, after a week of training in Washington, to our local newspapers. The reality of the situation was that we were:
1. Working during the downturn
Ad revenues in all media segments were down (and still are) when this program was started. What terrible timing for launching a new digital initiative with high revenue goals.
2. Working with managers that were clueless...no, hostile to having us come in as digital experts
My bosses were old school newspaper guys who were fairly clueless about new media and how it should be sold. They had us use the old-fashioned foot-stomping cold-calling techniques of their newspaper past selling 'expertise'. I suggested new thinking and a new way of selling digital advertising that works in other industries, but I was ignored...no, shunned into a lonely cubicle. Think about it, they had no incentive to have 'expert' reps come in from corporate and take over their turf, so they killed the program by burying us.
3. Working with no advertising support for the program
We were told to go out and tell business owners/managers that they had to advertise during the recession or they were doomed. I suggested we advertise our own program to these business owners/managers on a regional level so we could get 'warm' leads. Nope. Shot down again.
If the senior managers at Gannett truly wanted our group succeed, they would have integrated us into the rest of the sales program and made sure it wasn't undermined by the advertising managers and directors at the local level.
4. Working as outsiders within the Gannett culture
None of the advertising reps wanted to have anything to do with us. We were a threat to them. We couldn't work with them to do what was in the advertisers' best interest...putting together multimedia campaigns that worked!
5. Working, yet not allowed to talk to any active account or territory
Instead, they gave us the bottom of the barrel in terms of cold call leads and hung us out to dry. I can still hear their laughing behind our backs to this day. I will be the one laughing in the end when Gannett gives them their pink slips.
After 30 years, my parents have finally canceled their subscription to the newspaper. Another nail in Gannett's coffin as far as I'm concerned.
And as far as the money we received for 'compensation'. I took a pay CUT to join this program. Now I don't have a job!
Know the facts.
Well SAID!!!!
ReplyDelete