Unfortunately for those of us in email advertising, trying to work with top-tier performance email publishers is like trying to find a wife in Alaska. There are so many of us and so few of them, and they know it. So what happens? Only the most attractive offers survive. Those are the offers with no caps on traffic, no schedule restrictions, higher payouts, etc. If you won’t give it to them, they are on to the next offer, and very few offers can take uncapped traffic at a high payout with zero restrictions.
In an article titled “How to Negotiate with Powerful Suppliers” from the Harvard Business Review Magazine, this kind of difficulty in getting publishers to work with your needs is due to the fact that the good ones are scarce. There are only a handful of top-tier quality email publishers that can really drive traffic at scale at any given time. Therefore, their services are in high demand and they gravitate to the offers that make them the most money with the fewest headaches.
So then, as advertisers, are we totally powerless? No. Luckily this article is titled, “How to Negotiate with Powerful Suppliers.” We have four options:
- Consider playing hardball. Good luck with #1. Remember, these publishers have buyers lined up, and there is no leverage in trying to withhold your business. That just won’t work.
- Acquire an existing supplier or create a new one. That sounds great, but the hard part is that email publishers come and go. There are many stories in this industry of large purchases being made only to have the mailer’s IPs go down the next day. Creating one is probably a better idea, but no simple task. Hiring an expert to create one may be just as expensive and just as risky.
- Consider whether you can change how you buy. You could consider changing how you buy, but in our industry, you probably have already done this. Other forms of media, such as Search and Social, can produce great traffic. But most advertisers look to email traffic only after saturating other opportunities.
- See if you can help the publisher realize value in other contexts. Bingo! This is the strategy that has been extremely successful for me. If I have an offer that is limited because of restrictions on the amount of traffic it can take, days it can be run, etc., I know that the best way to overcome that is to build ancillary value for the publisher into the offer. This can mean different things in different situations, but an example may be to test creative extensively until the conversion ratios from the open of the email through the acquiring of the customer are at a level much higher than existing offers. With that accomplished, the offer will make the publishers more money per email drop, and they will be much more willing to adhere to my requests on volume on scheduling. Another example would be to test CPM mailings. This may take a good deal of trial and error, but the top mailers will usually be willing to mail any offer on a CPM basis because they are guaranteed to meet their revenue targets. As a result, the advertiser has control over the size and timing of the email drops.
Ultimately, the easiest way to get what you need from the top-tier email publishers is to give them what they need first (which is high-performing offers). If you have gotten to the point where you are looking to expand your new customer acquisition outside of your current marketing channels, chances are that your offer is already strong enough. You may need to just optimize your advertising message to make it perform at a high level in the performance email marketing space. If you are not set up to optimize your creatives and site internally, definitely connect with an agency that specializes in digital direct response advertising.