Nexstar grew its digital ad agency services by 38% to $62 million in Q1 2018, and other local publishers are increasingly bullish on the business according to a new Local Media Association survey. Almost one-third of its respondents said digital marketing services were their top growth opportunity, and two-thirds said that side of their business was profitable.
The digital marketing services industry suffers from a justly-earned perception of overselling and underperforming among the small- to medium-size businesses to which it caters, one of the industry’s leaders said Tuesday. “The reputation of this industry currently stinks,” Sharon Rowlands, CEO of ReachLocal, told attendees of BIA/Kelsey’s Leading in Local conference in SMB digital marketing.
In 2011, Daryl Hively launched his own digital agency, Guarantee Digital. Guarantee has partnered with 27 media companies, including newspapers, magazines, broadcast groups, directories and a direct mail house, in 40+ markets. “We’re sort of Switzerland,” Hively says. “We’re not owned by a large media company. The smaller independents feel comfortable partnering with us.” Yesterday: Digital Services Hyper-Competitive, Worth It
Andy Lobred, Media General’s VP of digital media, is on a mission to boost digital to 10% of his company’s overall revenue. His solution: Staffing stations with digital-only sellers and diversifying digital products. In an interview with NetNewsCheck, Lobred explains how he holds on to effective digital sellers, weighs in on programmatic buying and talks about expanding digital marketing services business into all of its markets.
As legacy media companies turn to digital marketing services as a new revenue stream, they’re finding the training and incentive structures in place for their sales teams are stumbling blocks, with gaps in understanding the product, medium and revenue potential. But the biggest obstacle may be fully investing in a new product and approach. “A newspaper, a television station, a radio station, a directory — these are long established businesses … 50-, 60-, 150-years old,” says Greg Harmon of Borrell Associates. “They’ve got a tried and true way to make money that really works.” Part three of a three-part special report. Read the full report here.
Newsy Ramps Up For 24/7 News
Legacy media companies are finding new revenue streams with digital marketing services. And while they are unlikely to replace revenue lost to declining print advertising sales, they are giving publishers new tools to help preserve and build their customer base. Part two of a three part special report. Read part one here.
Legacy media and pureplays alike are ramping up their efforts in the digital marketing services space, helping local businesses establish a presence online and tapping into what could be a very lucrative revenue stream. “Everybody should have these services at their disposal or they’re not in the game,” says the Blinder Group’s Mike Blinder. Part one of a three-part special report.
TV stations are trying to figure out whether — and how — to capitalize on the $390 billion digital marketing services market. For depending on your point of view, DMS represent either the next unconquered frontier of local advertising, or a sector that requires a whole lot of work for not much revenue.