Big Results Spotted with Creative Teamwork

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Big Results Spotted withCreative
Teamwork
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Program Goals

• Through the development of strong research and
  creative presentations, MOVE MARKET SHARE from
  competing media to The Chronicle.
• Flood the market with great presentations.
• Potentially target accounts and make joint calls
  with KHOU
• Maximize teamwork.
• Develop the consultant selling process.
• Launch full-court press on competitive media
  training.
• Motivate sales staff!

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The ResultsJanuary 1 - December 31, 2002

• Creative Close
• 7,309,118
• 100 Creative Close presentations sold
• 26 close ratio
• Media Bounty
• 3,468,901

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Local Share of Media Spending
HBJ 7.0 million Houston Press 3.6
million Paper City 1.2 million HCN 19.2
million
The Chronicle Revenue includes Solo Mail,
Shared Mail and Internet Revenues
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Creative Close Team

• Increase Houston Chronicle revenue and market
  share via in-house creative teamwork that drives
  advertisers to our paper.
• Comp ads and campaigns sell!

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Creative Close Team

• Form a dedicated creative team (a mini ad agency)
  to arm reps with campaigns that would help them
  close deals more quickly and make our
  advertisers businesses grow.
• We know that comp ads and campaigns sell!

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Objectives

• Sign on new advertisers that are not on a Houston
  Chronicle schedule
• Smooth ruffled feathers of disgruntled clients
  threatening to pull contracts
• Increase clients market reach (and papers
  revenue) by upselling existing accounts into new
  products
• Restructure clients media mix to include more
  newspaper (overlaps with Media Bounty)

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Allocation of Staff

• Began with one dedicated, full-time artist, one
  part-time writer
• Built quickly to team of
• 1 artist full-time
• 4 artists part-time
• 4 writers part-time
• Special Web projects from 2 addtl. Artists
• Second creative close team 4 addtl. artists plus
  writers
• Chronicle Promotions department Creative
  Close team members sandwichthis work between
  promotion projects campaigns.
• The second Creative Close team of 4 artists
  plus freelance writers as needed is employed
  through long-time Chronicle outsourcing partner
  American Color.

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Creative Close Teams

• In-house
• Campaigns over 50,000
• American Color
• Campaigns and Comp ads over 50,000

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Procedures

• Reps submit Creative Close request form

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Creative Process

• Research
• Brainstorming
• Unique visual and copy treatment for each
  clients profile audience
• Writer provides rep with a synopsis of the
  strategy/development of teams creative approach

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• Specs Rarely seen in the paper before ourteam
  nurtured the account, the liquor and fine foods
  store now a regular advertiser -- ROP, inserts
  and all. 212,000 in revenue

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• Commerce Towers flagging advertising revived by
  a Creative Close shot in the arm
• 75,000 in revenue

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• IW Marks jeweler had sworn off Chronicle
  advertising, but was so impressed that he became
  a frequent advertiser350,000 in revenue

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Creative Closes Next Big Challenge The Port of
Houston Authority

• Huge regional powerhouse
• Non-profit, manages Houston Ship Channel via
  state charter
• Landlord to industrial tenants along 52-mile
  Channel runs wharfs cranes
• Contributes 7.7 billion (yr.) to regional
  economy
• 245,000 jobs related to cargo moving through Ship
  Channel
• 2nd largest U.S. port in tonnage 1st in foreign
  cargo movements

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Challenge

• The Ports Image Problem
• Not big on publics radar
• Or seen as negative good old boy organization,
  outdated, environmentally irresponsible
  opposition to new container terminal plan

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Solution

• Vibrant, long-term, multi-product marketing
  campaign
• Educate public about personal value/benefits
  many daily needs (cars to coffee) served by Port
  reduces regional cost of living
• Build image as Good Neighbor (e.g., measures to
  mitigate environmental impact)
• Influence decision makers/business leaders
  indirectly
• Take advantage of rich history 11/10/1914 Pres.
  Wilson pushed button in DC that fired cannon at
  Turning Basin to mark openinglocal Heroes
  Thomas Ball Jesse Jones were instrumental in
  getting it done

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Revenue ChallengeShare 1 million with local TV
station

• Counting on our creative, reach frequency
  advantage and variety of products to win at least
  half that budget.

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Presentation Pieces

• Strategy Paper
• ROP comps full pages, half pages,6 col. x
  3-inch strips
• Fillers sweeten the deal with discount
  spots/remnant space
• Direct Mail to invite people to take a Port tour
• Brochures for distribution on tour boat(runs 2X
  day)
• Also recommending Employment section,job
  fair participation 4-page Sunday magazine
  pop-up Web presence

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What we have learned!

• Training is critical.
• Follow-up training is critical.
• If you have limited resources, the training is
  more important than the expense for media
  reports.Cold lead lists will do!
• Close ratio on the creative close is 25. Could
  be as high as 40, if creatives could go on more
  calls.
• Agencies feel threatened.
• Dont go after broadcast dollars unless you have
  knock em dead creative.

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Does it work?

• 7,309,188 in additional business says YES!
• Jerry Ferguson, Creative Services Director, says,
  Good creative sells!
• And to try it yourself, she adds, Build your
  team with the best creative talent you can find
  youre being compared to top-notch agency
  creative to get new business and upsell accounts.
  Dont waste your time, or your sales reps time,
  with anything less than the best.

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Competitive MediaBounty Program
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Competitive Media Bounty Program

• Local advertising market share in Houston
• Competitive Media Bounty Program Overview
• Results
• Concept and Process
• Competitive Media Tracking Reports
• Bounty Program Forms
• Competitive Media Presentations

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As of 2003.

• All account executives MUST have 3 competitive
  media targets identified and must be actively
  working to sell them each quarter.
• If we moved 10,000,000 in additional business in
  2002 with 60, imagine the results with 100
  participation!

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Competitive Media Bounty ProgramThe Process
Target accounts identified by Research
competitive media tracking (Target Reports)
Account Executive completes the Account History
and Marketing Strategy Worksheets
Account Executive works with the Research
department to develop presentation (or
Creative Close Team)
Research analyzes the advertisers media
schedule and prepares a Best Buy analysis
Presentation to Advertiser
Sale is made
Account Executive completes the Sales Call
Report Bounty Paid
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Competitive Media Bounty ProgramCompetitive
Media Tracking Reports

• The Houston Chronicle Research Department has
  invested in a number of valuable competitive
  media tracking tools.
• Local broadcast, competitive print, radio and
  cable station advertising is measured.
• Target Reports, reports listing top 25
  advertising spending in competitive media, are
  sent to advertising division on a weekly basis to
  serve as prospect lists.

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Competitive Tracking /Lead Reports are key!

• TV
• Radio
• Cable
• Local suburbans
• Niche publications
• Others

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Doing the homework before the saleCompetitive
Media Bounty FormsAccount History Worksheet
This form provides a detailed history of the
account that will assist the Research
Department with its presentation development and
will help Account Executives formulate their
sales strategy.
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Doing the homework before the sale Competitive
Media Bounty FormsMarketing Strategy Worksheet
This form helps to structure the objectives and
strategy that will be used on the sales call and
guide the information to be covered in the
research presentation.
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Competitive Media Presentation

• The Chronicle Research department has developed a
  process by which an advertisers media schedule
  is analyzed on reach/frequency, gross rating
  points and cost per point.
• A Best Buy analysis is then prepared, showing
  customers how they can maximize their advertising
  dollars - increase reach and decrease costs, by
  shifting some of their media spending to The
  Houston Chronicle.

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Competitive Media PresentationBest Buy Example
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Competitive Media Bounty FormsSales Call Report
The Sales Call Report serves as an account of
the meeting with the client, and feedback
provided here helps to foster continuous
improvement of the competitive media selling
process.
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Reaping the Rewards . . .The Bonus

• 10 on sales of 5,000
• Maximum pay-out of 3,000 per period for account
  executive, 1,500 per manager.
• Plans must be pre-approved.
• 50 paid after schedule has run one month,
  remaining 50 when contract fulfilled.
• Directors sign off.
• Documentation provided.

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Competitive Media BountySuccess Story

• Specs (a wine and spirits store)
• History No Chronicle advertising for 15 years
• Competitive Media Houston Press/alternative
  publication, and Radio
• Sales strategy Researched their business by
  talking to store managers.Presented competitive
  info. to media research and creative close.
• Results 200,000 contract52-week Food section
  commitment52-week Dining Guide commitment and
  more.

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Teaming for New Business Works!

• Move market share
• Get better and more competitive creative
• Training is key!
• Gets your staff excited about new business
• Associate departments such as Research and
  Creative involved in the sales process gets
  better results for the client!