Healthy Gains

Folio: The Magazine for Magazine Management, Sept, 2000 by Bob Moseley

WITH THE EXCEPTION OF ADVERTISING DIRECTORS, THE AD SALES COMMUNITY HAS EXPERIENCED LARGE SALARY INCREASES. HOWEVER, THREE-YEAR GROWTH REMAINS

AD SALES PROS SAW IMPRBSSIVE GAINS IN compensation in 2000, according to FOLIO:'s 2000 ad sales salary survey--but not, unfortunately, all of them. In the eighth consecutive year of magazine advertising growth, regional managers' compensation increased substantially, by 9.1 percent, and compensation for ad sales people rose 8.9 percent. But the total compensation for ad sales directors dropped for the second straight year.

Regional managers now take home $107,356, on average, while sales persons earn $90,937. Compensation for ad sales directors fell 3.9 percent, to $112,484.

The healthy jumps for regional managers (from 0.2 percent in 1999) and ad sales persons (from 2.3 percent in 1999) cannot overshadow modest compound annual salary growth (3.0 percent for regional managers, 3.6 percent for ad sales persons) over a three-year period. Ad sales directors have seen their salaries decline by 1.9 percent over that same three-year time frame.

Why is pay for the top ad sales position in decline? Perhaps it's because there's a ready supply of talent for that position, suggests Richard Kinsler, publisher of Popular Science. "There are great people coming up who could be ad directors," he notes. "The most difficult thing to get right now is sales people."

(This year's survey groups ad sales into three job titles: advertising sales director; advertising sales/regional manager; and advertising sales person/account executive/category manager. In 1998 and 1999, data were collected separately for advertising sales manager and regional branch manager. Those titles have been combined in 2000 for the purpose of analysis.)

Same story, different year

The survey found vast discrepancies in pay between men and women. Men outearn women by about $27,000, on average, over the three job titles. The gap was widest at the top, where male ad directors earn $30,215 more than their female counterparts. Furthermore, men hold most of the director or managerial positions in ad sales, while women represent 63 percent of the sales people.

"I'm surprised at the pay discrepancy because women seem to be the best ad sales people, as far as what I've seen," says Sylvia Witaschek, account executive for Washington Business Journal. "In ad sales there's a high amount of rejection, and women seem to deal better with rejection than men."

Another finding: The bigger the company, the better the pay. The survey revealed that company revenue makes a huge difference in how well ad sales employees are compensated. Ad sales directors at companies with revenues of $15 million or more earn a whopping $58,000 more, on average, than ad directors at companies with revenues under $15 million. The difference is also wide for regional managers ($22,000) and ad sales people (nearly $29,000). "You're working from a bigger base of revenue at large companies, so commissions are going to be higher," notes Fawn Lopez, ad sales director for Crain's Chicago Business. "And it's much easier to sell at a larger company."

In general, the ad sales community is reaping the rewards of a booming economy. "My business is off the roof right now," says Steve Jaten, advertising director for American Iron Magazine and Motorcycle Tour & Cruiser. "It's never been better."

Advertising Sales Director

In some cases, may have the title of publisher. Top ad sales executive. Manages ad sales department, sets policies and procedures, and is responsible for reaching goals and quotas. Hires and trains personnel.

TOTAL COMPENSATION

1998

AVERAGE: $119,255

CONSUMER: $111,649

BUSINESS: $128,031

1999

AVERAGE: $117,006 (-1.9%)

CONSUMER: $114,382 ( 2.4%)

BUSINESS: $120,035 (-6,2%)

2000

AVERAGE: $112,484 (-3.9%)

CONSUMER: $107,334 (-6.2%)

BUSINESS: $119,241 (-0,7%)

BASE/DRAW

1998

AVERAGE: $80,508

CONSUMER: $76,242

BUSINESS: $85,742

1999

AVERAGE: $78,262 (-2.8%)

CONSUMER: $77,757 ( 2.0%)

BUSINESS: $78,881 (-8.0%)

2000

AVERAGE: $74,668 (-4.6%)

CONSUMER: $73,155 (-5.9%)

BUSINESS: $76,741 (-2.7%)

Advertising Sales/Regional Manager

Generally, the second level of management in ad sales department. Reports to director or publisher. Has management but not policy responsibility for personnel within the department. Responsible for accounts in specific regions. May supervise some staff.

TOTAL COMPENSATION

1998

AVERAGE: $98,201

CONSUMER: $104,356

BUSINESS: $91,627

1999

AVERAGE: $98,430 ( 0.2%)

CONSUMER: $98,381 (-5.7%)

BUSINESS: $98,483 ( 7.5%)

2000

AVERAGE: $107,356 ( 9.1%)

CONSUMER: $111,002 ( 12.8%)

BUSINESS: $104,789 ( 6.4%)

BASE/DRAW

1998

AVERAGE: $60,242

CONSUMER: $53,217

BUSINESS: $56,923

AVERAGE: $60,818 ( 1.0%)

CONSUMER: $63,158 (-0.1%)

BUSINESS: $58,264 ( 2.4%)

2000

AVERAGE: $65,873 ( 8.3%)

CONSUMER: $62,814 (-0.5%)

BUSINESS: $68,017 ( 16.7%)

Advertising Sales Person/Account Exec

Calls on clients and agencies. Maintains current accounts and develops new ones. May be responsible for selling ad pages to accounts from specific categories.