Approaching advertisers - what did I do wrong?

[NickGrogan]

It's good to have people feeding back their opinion.
What would you write yourself? or just as subject line?
Mine was brief, very factual and highlighting what they would gain from my site, depending on who they were.

Ok, firstly I wouldn't be emailing anyone just yet. Email marketing is great when you have a broad target audience - open rates of 25% and click rates of 3% are good on lists where people have subscribed to your emails, cold lists are generally lower, and what you have is a cold list.

Given that you need the big suppliers/retailers on board to make the project work, and there are only 3 of them, email marketing is not going to get you what you need.

You also don't seem to have a working website to show anyone, so even those 3% who might click through are not going to be impressed.

So, I would be calling the big supplier/retailers, speaking to sales managers/directors and asking for a meeting to discuss your idea and how it can help them. Tune your model to the clients requirements, then sell them what they've asked for, much much easier.

Once the big supplier/retailers like the idea, populate your website (as @fisicx says this is your problem not the suppliers) and drive traffic to it.

Then you can email the smaller supplier/retailers, who will see a working site that their biggest competitors are using and that therefore they want to be on.

Subject: First deals completed on widget comparison site.

Dear ???

As you are no doubt aware, xxx ltd has developed a widget comparison site dedicated to the big widgets industry at www.ratemywidget.com

Working with leading retailers including widgetsrus and masterwidget, we have developed a bespoke comparison service, which is receiving great reviews (link to ratemywidget.com press pages), and more importantly is generating new enquiries for our existing advertisers. In fact widgetsrus just completed a sale worth £.... (link to story about this sale on website, using actual values)

Following our successful launch, we are now opening up the website to all retailers and for the next 7 days, we are offering new advertisers a discount of 25% on their first months advertising, saving you up to £.... on our premier package. All advertising is charged on a pay per click basis, so that you are only charged when potential customers visit your site.

To find out more and to book your advertising, call John on 0800 widgets or visit www.ratemywidget.com

 

[ethical PR]

Spot on Nick.

Completely agree your first call, should have been to get the major suppliers on board to help you shape your offer.

If you don't carry out market research to understand the best communications channels to use to reach your target audience, you will always be on a hiding to nothing.

As Nick says without your potential suppliers you have nothing, so get appointments with them, gain their feedback then you can make a judgement call on whether you have a viable business proposition.

 

[boff]

Nick,

I did try calling people as I thought it's a more personal approach but a few ask me to email them, maybe to fob me off, and others were not available. One's telephone voicemail was full.

I also tailored my message in my email according to the retailer, so for the big ones, I mentioned a new advertising platform in order for them to hit their volume target.

All this in vain and I think it's because I have no website to show. So that's what I'm working on now.

I like your letter but obviously, I need to have all this content to write about, so this letter will come further down the line.

 

[ethical PR]

Boff - I don't think it's because you have no website to show, it's because you don't have the main providers on board.

I would suggest your focus should be on identifying how you can secure conversations with them to get them on board. For example, do you know who to approach at each provider - are you going for their Head of Marketing or other contact that you know would look after this area? Do you know if they are represented by a PR or marketing agency and if so who leads on the account at the agency and their direct contact details?.

There is no point developing your site when you don't have the content to populate it, or know whether you actually have a valid concept. You are thinking about this from the point of view of a web developer, rather than someone with a potential business.

Do your research identify who to approach and how best to approach them to secure the outcome you are looking for.

You will then know whether it is worth investing any more time in your concept/website.

 

[NickGrogan]

I mentioned a new advertising platform in order for them to hit their volume target.

But this isn't what you have or what they want, so no wonder they didn't reply.

The website is irrelevant, there are countless companies that can put together any kind of comparison site for you, and probably a range of ready made scripts that will do the job too. You're not offering anything new/special - at least from a web design point of view.

What you need to have is a reason for the companies to work with and advertise with you, once you've got that the website will follow, but the website can't lead the way.

So, what are you actually going to do for these suppliers/retailers?

 

[boff]

What you need to have is a reason for the companies to work with and advertise with you

For the big retailers, they certainly want volume. I may not have it right now but that's the point of the website and my intention to them.

... once you've got that the website will follow, but the website can't lead the way.

You're contradicting yourself now after you did a good job convincing me. Didn't you say earlier:

You are offering me a chance to be listed on an empty website, which has no traffic, along side my competitors. So what can I expect in return? Nothing.

So in other words, get a website with content and traffic and retailers before I approach these companies. And now you say the website will follow... Then after thoroughly confusing me, you ask me what I will do?

This is what I will do.

I work in marketing in a big company and I've approached these big advertisers the way I would expect to be approached, so after getting some feedback on this forum, I believe I've approached them the right way.

However, as you've pointed out, I have no clout and this is where I failed to convince them.

A known entity in the market, with significant market knowledge and finances creates a portal/comparison site - I'd certainly want to be listed,

Since I'm none of the above, the only way left to convince advertisers is to have a site up and running so they can see exactly how it works and where they will appear.

An unknown person (me) contacted the big retailers (yes, the head of marketing) and tried to convince them to appear on an empty website by offering them what they want (traffic) when obviously an empty website can't deliver that. So this sort of approach is not going to work.

 

[ethical PR]

Boff I and others have suggested a way to help you identify whether there is a market for your product.

You say you work in marketing so you should have a better understanding than most of the importance of market research to develop your proposition / understand whether there is a marketplace for your business.

I don't know why you are continuing to focus on the site when you need to focus on the proposition.? The website is simply a channel.

 

[fisicx]

For the big retailers, they certainly want volume. I may not have it right now but that's the point of the website and my intention to them.

But all you have in an intention - and ideas have no value.

I disagree a little with PR Ethical. Put together the website, build up the content, get the traffic and then go back to them with the proposition. If it works great, if it doesn't hopefully you won't have lost too much money.

 

[boff]

But all you have in an intention - and ideas have no value.

Correct, that's why I now believe getting the site up and running is important. Not to the point of sending free traffic to potential advertisers, I'll never be able to afford that, but enough to convince them to join their competitors on this platform.

ethical PR - I already did my market research of course. The website is not simply a channel, it's everything. Without the website, there is no business. My business is not like these retailers for whom online is just another channel in addition to their brick and mortar store.

As marketer, if someone came to me with a low-risk proposition such as what I am offering, I would not hesitate to sign up, maybe with a small test budget to start with. The worst case scenario will be much less than losing the whole of that budget because people will still end up visiting our site. We've done this before and we'll continue doing like this. That's why I was initially confident of advertisers signing up to my cpc advertising model.

 

[fisicx]

As marketer, if someone came to me with a low-risk proposition such as what I am offering, I would not hesitate to sign up, maybe with a small test budget to start with.

But you are a marketeer, your potential advertisers aren't. They are conservative, skeptical and wary of marketing offers. If they start to see converting traffic coming from your new site then they might be interested. Until then nothing's going to happen.

 

[NickGrogan]

... once you've got that the website will follow, but the website can't lead the way.

You're contradicting yourself now after you did a good job convincing me. Didn't you say earlier:

You are offering me a chance to be listed on an empty website, which has no traffic, along side my competitors. So what can I expect in return? Nothing.

So in other words, get a website with content and traffic and retailers before I approach these companies. And now you say the website will follow... Then after thoroughly confusing me, you ask me what I will do?

No, my statements don't contradict each other. You need the concept first, and right now you don't have one. Creating a website and filling it with content isn't a concept, and isn't what I recommended.

You need a simple idea, offering something your advertisers want, in a way you can deliver.

The website is not simply a channel, it's everything. Without the website, there is no business.

No, the website is a channel, it might actually be the wrong channel. Perhaps what your industry needs is an app. Maybe it's an exhibition, maybe it's a print magazine, maybe a youtube channel. I can't think of any business where the website is everything and that includes google, facebook, twitter, etc.

What you need to have is a reason for the companies to work with and advertise with you

For the big retailers, they certainly want volume. I may not have it right now but that's the point of the website and my intention to them.

Most businesses are focused on profits, not volume, you can almost always buy volume, and your offering at present will be more complicated and expensive than simply loading up on Adwords. You can't offer them something you don't have.

So, why would companies work with you?

 

[ethical PR]

But all you have in an intention - and ideas have no value.

I disagree a little with PR Ethical. Put together the website, build up the content, get the traffic and then go back to them with the proposition. If it works great, if it doesn't hopefully you won't have lost too much money.

I understand what you are saying Fiscix but I think he needs to establish a relationship with the providers first to help shape any offering.

He can then build a website/and or online content, his marketing strategy, based on having carried out his market research before he tries to get advertisers on board.

 

[boff]

But you are a marketeer, your potential advertisers aren't.

Yes there are. Aren't advertisers trying to market something to you?
They might well be a very conservative bunch in this industry. Which would explain why most are still going for print advertising when everyone else is moving online.

 

[boff]

Nick,
The website is definitely the business in my case. Can you imagine Google, FB, Twitter in print magazines, in an exhibition? And not for advertising. Their business model is all about their website and perhaps an app. Google doesn't even have an app for its main source of revenue (PPC & organic results as content) and that's saying something.


As for volume, you wouldn't want to bankrupt yourself going for volume; you'll want to maintain the profit margin. But a company that shows growth YoY is a successful one.

My site is all about being simpler to manage than PPC, and cheaper, not more expensive and complicated otherwise as you put it, they'll just go for PPC. Which by the way, "simply loading up on PPC" is not how it works.

 

[ethical PR]

Boff - it's quite clear that regardless of whatever advice you are given you feel the solution is to forge ahead with your site,

Advertisers aren't trying to market something to you they are trying to generate sales.

As an experienced marketeer you have made a decision on the approach you want to take so I am not sure how much value anyone on the forum can add.

Best of luck

 

[fisicx]

Yes there are.

No they are not. This is what you do for a living, they don't.

Can you imagine Google, FB, Twitter in print magazines, in an exhibition?

Have you not seen the TV adverts, the newspaper advert and posters? Facebook uses all of them.

You are selling a solution for which your potential advertisers don't see a need, this is what Ethical PR was alluding to. You need to sell the idea of alternative marketing methods to them and then you can start promoting your website.

But it's going to take a long time, and a lot of effort and a lot of money to do this. Which is why you are unlikely to ever recover your costs. Hence my original post which was to find something else to compare.

 

[NickGrogan]

Nick,
The website is definitely the business in my case. Can you imagine Google, FB, Twitter in print magazines, in an exhibition? And not for advertising. Their business model is all about their website and perhaps an app. Google doesn't even have an app for its main source of revenue (PPC & organic results as content) and that's saying something.

maybe a couple of years ago, not now. Most new FB users are mobile and use the app, FB's biggest competition before the bought it was whatsapp - an app, not a website.

Have you seen the ads for "ok google"? its an app, along with most of the software on my android (Google) phone too. So Google is moving away from websites.

As for volume, you wouldn't want to bankrupt yourself going for volume; you'll want to maintain the profit margin. But a company that shows growth YoY is a successful one.

Pick up a copy of the FT, it's full of companies doing exactly that. When did FB become profitable, or Twitter? Pillkington glass nearly went bankrupt doing it, and Independent Energy did go bankrupt. Citylink is a more recent example.

My site is all about being simpler to manage than PPC, and cheaper, not more expensive and complicated otherwise as you put it, they'll just go for PPC. Which by the way, "simply loading up on PPC" is not how it works.

You wont appear to be simpler/cheaper than Google, even if you are - everyone knows Google and thinks they understand how it works.

By loading up on PPC, I could have said increasing their ad budget, managing and increasing the price they're prepared to pay and targeting a longer or broader range of keywords, but you know what I mean either way.