Editorials
The future of a traditional stock agency is in its own hands
There is currently much debate about the future of the stock photography industry and how the traditional stock agency is able to compete in a market place continuing to be dominated by three large global players.
For the traditional stock agencies life is tougher than it was. The market is becoming more competitive and image buyers more demanding of greater choice, improved service, lower prices. Competitor websites are continually developing and their sales and marketing initiatives are increasingly prominent in today’s market.
I don’t see this as anything to lament, but rather as a new opportunity for companies to evolve, adapt to the changing market and look at how they can update their business model, optimize technology, develop new product lines or services and maximize the skills and expertise of their staff.
To compete in this increasingly global market there is a need to develop a distinctive offering or a clear reason why your existing clients should continue to buy from your specific agency rather than elsewhere. If you have an established and loyal client base and brand name within your market, this is an easy battle to win – if you want to win it that is.
There are four key ways that a stock agency can gain a distinctive advantage and increase growth and market share:
1) Investment in technology
2) Product development
3) Effective marketing and international distribution
4) Sales optimisation and development
Investment in technology is fundamental if you have a sales operation and there are many examples of agencies, portals and mircro-payment sites, which I won’t go into here, that have effectively leveraged their web technology for real impact in the market. However technology is just one way to gain a competitive advantage and increased sales revenues.
Additionally a company’s strategy for business development should take into account the product development required to meet customers’ diverse and evolving needs. Then this business development strategy needs to be effectively and strategically communicated and marketed to clients. A lot can be done through online marketing and PR campaigns that don’t have to be costly. In addition an agency can increase its product offering or increase the number of resellers for its product depending on whether its focus is as supplier or distributor without having to significantly increase overheads and the cost of sales.
Just as fundamental in my opinion for gaining and retaining clients is investment in the right staff – in particular in recruiting and training first rate sales people to win new business and deliver exceptional customer service.
Pepper Stark has worked with companies to help them streamline their sales process and train their sales team in order to increase pro-activity and effectively target new business opportunities. This has enabled them to re-awaken lapsed clients, increase market awareness for their agency and attract new clients with the USPs of their product offering and service resulting in very dramatic and immediate revenue increases.
A more focused and committed approach to new business development will help any company grow and increase market share whatever its size and offering. A variety of business models are operating for both well established traditional stock agencies and newcomers to the digital image scene. Development options are many and varied for companies looking forward to a future in this industry and prepared to invest – not just money, but time and continued commitment.
For more information visit Liz Pepper's Bio or visit www.pepperstark.com.
----
Related Stories:
Regional concerns for stock agencies in the Middle East (October 17, 2006)Photojournalism online - The balance between business and passion (August 25, 2006)
Editorial: Micro payment agencies - A force for good or evil? (July 17, 2006)
Royalty Free content proliferation (July 13, 2006)
Editorial: The evolution of the stock photo industry (January 12, 2006)
Posted in: Editorials, Stock Photo Companies
Comments(1)
post a comment »Pino Granata, October 25, 2006 [#]
To compete against the big threes is pretty impossible. This agencies have invested billions dollars and now they have almost the 80% of the market. In a certain way is like to fight a war with swords against nuclear weapons. I’m sure that something will happen in the next future, but only because the business model of the big threes is proving wrong and the results show this. We deal in pictures and we don’t sell potatoes and somebody should think about this.