Why are some advertisers happy and others sad?

EFFECTIVE ADS = HAPPY ADVERTISERS = LOW ADVERTISER ATTRITION

Here is a great mistake that we typically see in advertising for performing art program books.

The typical ad has a typical message and a typical layout that we all have seen:
“Wishing the Philharmonic / Opera / Ballet an excellent Season!” emblazoned at the top of the ad. At the bottom of the ad in small font size: The ABC Wealth Management Group.

This clichéd ad also contains “stage curtains”, “conductor”, “music notes” or ”theatrical” imagery. Now these images can work only if the marketing message is on-point.

Invariably when one calls to renew these ads for the subsequent season the response is: ”We did not get any calls.” Or “The ad did not work.” Are we surprised? NOT AT ALL.

Why does a business advertise? The answer will contain at least one of these elements: PRIDE, PROFIT or PROTECTION.

When selling an ad for your clients, you need to take the time to really ask the question: What do we want this ad to accomplish? Getting the advertising client involved with this process is the key. Many times when the client is presented with this question, there is silence on the other end of the phone line.

To understand what the advertising client wants the ad to accomplish and the ability to properly communicate that message in an ad takes practice, the ability to really listen to a client and a talented graphic art department.

Let’s go back a few Seasons to 2008-2009. The stock market had tanked and we experienced much attrition with the wealth management groups that advertise. (We found it rather ironic as they are they ones that typically argue the point to stick with it when the market turns.) Well this is how we were advising our wealth management advertisers to position their message.

We explained that most attendees to these performances do, in fact, have a wealth manager currently. The question that begged to be asked was whether they were seeing the results or getting the answers that they wanted from their current wealth manager.

Here was an actual ad campaign that we used and was highly effective for our client.

The image used: The distraught faces of a mature couple.

Headline at top of ad: “Are you afraid to go to the mailbox to get your statement?”
“Then someone is not doing their job.”

At ABC Wealth Management, Our clients are not afraid of their mailbox because we are doing our job. Call John Doe for a personal consultation on how we can help meet your financial goals.

The Lesson:
Performing art program book advertising is a POWERFUL medium. The trick of extracting the power is the ability to communicate and effectively translate your client’s needs into an effective message to the audience.

The Perfect Signature and Inventory

What is the perfect signature? Hint: It Isn’t John Hancock’s. The perfect signature contains 16 pages. “Why is this important to know?” You ask…

INVENTORY CONTROL. Inventory control is the single most important control element in the program book business. It is even more important than advertising sales. If one is able to control the inventory of pages allocated for content and ad sales to 16 page signatures, one holds the key to a successful program book. The 16 page signature insures that printing costs will be minimized and (providing that ad sales are successful) there will be a positive revenue stream.

On the sales side, the key is to maximize the “ad page” inventory WITHOUT GOING OVER OR UNDER ON 16 PAGE INCREMENTS. This can be easier said than done. We have found ourselves in situations where we actually have had to REFUSE an ad!!! Why? The cost of printing and additional signature out weighed the rate in which the ad would be sold.

On the content side for program notes, sponsorship levels, trade ads, the same holds true for maximization of page inventory WITHOUT GOING OVER. Going under does not really matter on the content side since we are not able to associate a content page with a dollar value. AHHHH, but one can associate a value amount for trade ads.

Let’s spend a little time on trade ads and advertisers and talk about rates for advertising.

Since one can associate a dollar value for advertising as well as trade advertising (i.e. the value of the trade), one can determine a rate for the advertisers and trade accounts. Developing a “rate card” can be an exercise in mind bending formulas and calculations. (We have been there, done that.) The trick is to balance ALL COSTS associated with the program book and bounce it to the number of pages allocated to INVENTORY FOR AD SALES ONLY. Where an organization may have more trade ads than typical, we recommend developing a separate “rate card” used for trade ads. This special rate card for trades would not necessarily be same rate card that is used for the advertisers. The suggestion, would be that “rates” associated with trade would be inflated advertiser rates. Remember these trade ads come out of the content page inventory and the trick is to maximize the inventory.

Here is an example. Let’s say our advertiser rate card is as follows:

Full Page Ad: $1200
Half Page Ad: $600
Quarter Page Ad: $500

The trade rate card might look like this:

Full Page Ad: $2000
Half Page Ad: $1100
Quarter Page Ad: $800

Using a “trade rate card” will not only give better control on inventory of pages, but will also give control on the consistency of value for trade advertisers."HOW TO PUBLISH A PLAYBILL" "FREE PROGRAM BOOKS" "FREE PLAYBILL" "HOW TO SELL PLAYBILL ADVERTISING"

What would happen if the IRS audited your program book?

It is common practice to give away/trade ad space in turn for needed goods and services for your organization. Also many organizations give away/trade ads to corporate sponsors but this can create some tax consequences. We have heard of situations where sizable taxes on unrelated business income had to be paid for trading advertising in an organizations program.

In addition to potential tax penalties, trade ads can run up your printing bill big time! Staff members that are not intimately involved with the make up of a program and are quick to trade, assume it is just another page and the cost is minimal. Remember your program is printed in signatures (4 page increments)….signatures come in numbers evenly divisible by 4 (4, 8 12, 16, 24, etc.) and there are good signatures and bad signatures in page makeup.

Giving away one extra ad could throw your layout into a very costly signature configuration, as well as raise an eyebrow with the IRS. It is far better to have a sponsor pay a discounted rate for an ad…….have your cake and eat it too. Remember the perceived value of a give away is….no value at all. In the end this will ultimately hurt the sale of ads in your program.

Thought for the Day

THE PIANO TUNER

A man moved to another state where he didn't know anyone. In the move, his old piano was jarred, and of course it needed to be tuned when the man arrived at his new home.
So he asked around, and was told that Earl Opporknockity was the best piano tuner in the area. The man called Earl and hired him to tune his piano.
Earl had a keen ear and a deft touch, and did a wonderful job tuning the old piano. The man was able to play beautiful music once again, and was very pleased.
After a year or so the old piano started producing sour notes again. So the man called Earl, and asked him to come work his magic on the old piano again.
To the man's surprise, Earl refused, saying "Sorry, I can't accept the job."
"Why not?" the man wanted to know. "I'll pay you twice as much as last time if you'll just come tune my piano."
"Haven't you heard?" Earl asked, "Opporknockity only tunes once."

A REAL Measurement of "Happiness!"

“We are happy.” 

We hear this often, when contacting performing arts organizations about their program book needs. “We are happy with our current arrangement.” Here is the thing that tends to make us cringe about that …It’s not a matter of being happy with a current arrangement. It’s a matter of,  “Is the current arrangement cost effective?” If one can answer that question with accuracy, then and only then, can one say that they are happy with their current arrangement.

“Happy” versus “Dollars and Sense”

Keep emotion out of the business decision. Make no mistake about it, program book publishing is a business with a very defined business model. Joe Sales rep might be a wonderful person and he may sell many ads, however one can’t simply look at the number of ads sold or the dollars sold. Until one looks at the complete process and all costs involved, a decision to keep the current process in-house or to outsource it, should not be made. 

Costs (It’s the big elephant in the room)

Let’s make a “simple” list:

1. Commissions or Salary for salesperson.
2. Time & wage allocated towards the layout / design of the program book.
3. Time & wage allocated towards layout / design of customer ads.
4. Time & wage allocated towards chasing the customers artwork / ad copy
5. Pre-press and Print cost
6. Fixed cost allocation
7. Time & wage of collections of account receivables from the advertiser.
8. Balancing the inventory of pages allocated for ads and content to make the most cost efficient pagination.

Now for the Revenue list:

      1. Ad sales

The point of this exercise is to understand that there is a considerable amount of balance and control on the Costs side. If an organization does not have an excellent handle on the costs, ad sales mean absolutely NOTHING.

Before one is happy, please take the time (and it does take time) to run through this exercise. There may be eye-opening surprises, but you will know, if you are "truly Happy."