Junior demand
"It's a booming industry and there are only so many people that are
really good at a specific skill," said Thrillist CEO Ben Lerer. "So
anyone with digital experience becomes expensive, and really good
people become really expensive."
Since the start of 2010, the percent of listings on the job site
Indeed.com that contain the phrase "digital sales" has more than
doubled. Much of the demand is focused on junior and mid-level
sales positions. At Tremor Video, for example, the company has
increased the size of compensation packages offered to junior
sellers -- typically those with two to four years experience who
carry the title of regional sales manager -- by at least 25% from a
year ago, according to Chief Revenue Officer Randy Kilgore.
"The pond for fishing for people with three years sales
experience is pretty well fished," he said. "Plus , a lot of people
are trying to hire video sellers. Yahoo is building up, and you see
what YouTube is doing."
During that time, the company has increased the size of its
sales force from about 25 to 40.
Mike Mobley, the new VP of national sales at IAC-owned
CollegeHumor Media, said that the ballooning salary scale was one
reason he asked his new employer to raise the salary ceiling for
his department when he joined. But he said he would only use the
new financial room for senior hires.
At his last job, a regional sales director position at CBS
Interactive, Mr. Mobley took another approach in bringing on new
talent for more junior roles. Burnt one too many times by
expensive, but mediocre, mid-level salespeople, Mr. Mobley and his
team opted to hire at what he called a "very entry-level position"
and then train those hires in-house.
But Mr. Mobley's own job-hunting experience proves that the
talent crunch also extends to more senior roles. When he was
looking for his latest job, he found himself considering five
offers, counting the one he took from CollegeHumor. This, he
admitted, is not a sign of a healthy buyer's market. "There's a
major gap in talent across the board," he said.
Education gap
Part of the problem seems to be education, or lack thereof. A
recent IAB survey on interactive media trends found that about 65%
of respondents said there are not enough industry training options.
Penry Price, former head of Google's massive U.S. sales team and
current president of Media6Degrees, says it's part of the bigger
problem that the nation can't to turn out enough graduates with
degrees in math and science and an industry that 's been slow to
recruit from other sectors.
"Even if you're smart from a marketing perspective or great at
sales with great relationships, if you aren't the next level up in
terms of analytical thinking, understanding how the ecosystem works
and why, you'll fall short," Mr. Price said. "The thought leaders
of the digital space are management-consultant types who are really
analytical and looking at digital data first and emotion
second."
Since individuals with those educational backgrounds aren't in
large supply in the advertising world, Mr. Price looks to other
industries, like the financial sector, or those who have gained an
understanding of the math and technology behind digital media
through real-world practice in non-sales positions.
"I have lot of interest in someone who's done a couple of years
of account management, who understands how ad exchanges work, who
understands why trading desks were built, who can turn the dials
for real-time optimization based on some kind of conversion event
that 's happening," Mr. Price said.
Digital guru, or closer?
But Evan Gotlib, senior VP-advertising sales and creative services
at Blip.tv, thinks digital employers needn't focus on "young
digital killers" exclusively.
"I can teach digital," he said. "I can teach you what a
click-tracking tab is , what an API is . But I can't easily teach
you how to just close a deal."
For that reason, Mr. Gotlib has focused his hiring efforts on
those salespeople with a track record of landing big deals, no
matter the medium.
"There's a generation of young digital sellers who just don't
understand what it really takes to sell," he said. "Selling is
hard, getting your ass kicked eight of 10 times. You have to hire
people who understand when someone says, 'No,' that that 's just
when the job starts. A lot of this new crop of sellers doesn't
really understand that ."
Sales salaries are cyclical, and the forces that fed bloated
compensation packages may already be moving back toward
equilibrium. Startups will fail. Job functions will shift or
disappear as automated platforms proliferate.
"The market is flooded with companies, many of which are great
ideas but only provide partial solutions," said Wenda Harris
Millard, of MediaLink. "Not all of these companies can survive.
There will be more consolidation in the industry and maybe that
will be where supply and demand come together."