Rescue Plan 2010 for traditional media. “Must Dos” for local ads companies to not hit bottom before the sun goes down

I strongly disagree with forecasts suggested in the article published by MediaWeek on May 21, 2009 “Local Ads to Hit Bottom in 2010”.
It says:

Local advertising media — including newspapers, direct mail, TV, radio, Yellow Pages, traditional outdoor, cable TV, magazines and digital/online — are collectively forecast to decline to $144.4 billion in 2013, down from $155 billion last year. This year, local ad revenue will drop to $141.3 billion and hit a low of $135.8 billion in 2010, before reversing direction in 2011.

For some media — including newspapers, local TV, radio, print, Yellow Pages and local regional magazines — the Internet is causing executives to rethink business models in order to survive. Other media — including direct mail, outdoor, cable TV and digital/online interactive — will need to ride out a brutal economy.

I would say that substituting traditional media with new media is not THE solution, it’s A solution.

This forecast has no creativity in the conclusion. It only rides on the observed data. It would be much more useful to offer the solution as putting numbers together is rather a trivial task. What is missing in this doom and gloom narrative is “what if” question – question that always have to be asked by industry analysts. What if?

What if the same media will do things differently without moving on the web?

What if the industry can find new sources of revenue?

What if…?

There are 2 main sources of advertising spending:

1. marketing budget
2. sales budget

Yes, I already see your eyebrow moving up. “How on the earth you will tap into sales commissions?” I hear ya. Chilax. I am about to tell you.

Till today advertising agencies, media agencies, and all traditional and even majority of new media were fed only by marketing budgets. As advertising budgets shrink industry revenues go to places that we don’t want to follow them to. 

But the industry doesn’t have to go digital, fully transitioning to new media just yet. The industry simply needs to go “transactional” and explore new ways how they can help advertisers with customer acquisition and even retention.

It is absolutely achievable if media executive start to get out of their comfort zone and think creatively, or at least don’t stand of the way of companies that are willing to think creatively for them. Like us, yes, of course 

We are currently negotiating deals with major industry players on revisiting their business models utilizing some of our patented solutions. Technology division of IdeaMama Group revolutionizes advertising industry, and with non-traditional view on realocation of marketing resources we keep coming up with customized solution for various media industry subverticals.

We first have introduced the technology for new media players; now we are taking the recession-proof performance marketing model offline for media companies that are willing to adopt the innovation before their competition jumps on the bandwagon.

I would dare to say that as soon as 50 main television and radio broadcasters, outdoor and indoor digital signage companies and direct mail agencies integrate our (and any other relevant) solutions and let us with few partner-companies lead the new vision for the industry, traditional media will remain on its mark of $150 billion even during the recession.

The good news – as a result of this undertaking advertisers’ businesses will also pick up (as we are talking transactional marketing terms here), and it will positively effect the overall economy.

Chicken eggs dilemma will stop being a dilemma, if media giants will keep the gate open for new ideas. We can create a new type of economics based on different business model.

Are you willing to listen? Because we are about to speak .

Curious advertiser? To see Pay Per Deal model in action please view the demo.

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by Olga Kostrova, CEO of IdeaMama Group | IdeaMama Ad Network | IdeaMamaClub.com |