
Brand Basics II
(December 17, 2002) - Websites
convert traffic into results. They compete for attention (or mindshare) with
each other. On the web, the competition is every other website that wants the
time, attention, and money of your traffic. A website without traffic (and a
traffic development budget and plan) is like a pile of unread brochures in a
stationary closet.
Like the fabled porridge in Goldilocks, there are
three levels of traffic: too little, too much, and just right. More is not always
good for everybody. Less is almost always bad. Finding out what "just right"
actually means takes experimentation and commitment. If you are talking with a
peer in our industry, who desn't have a grasp of their traffic (and we're
specifically including HR professionals in this notion), you are talking with
someone whose credentials are suspect.
In the employment business, having a website with
the right amount of traffic is everything.
We think that there are essentially five kinds of
web operations in our industry:
- Guides: publications and associations
that point traffic to relevant places,
- Vendors: like ATS providers and
outsourcing shops that offer end users the tools and services required to
process traffic and its accompanying data,
- Commodity Providers and Brokers: like
the largest job boards that buy traffic in bulk and resell it to end users,
- Niche Providers and Brokers: like staffing
firms and niche job boards that focus on acquiring a precise demographic
in their traffic, and
- End Users: like Corporate Recruiting
Shops that acquire traffic for further in-house processing.
Each category has a relatively easy to define set
of traffic requirements. You can evaluate the relative health of each by
understanding their traffic. Although each category contains a variety of models
for converting traffic into results, they are meaningless without the right
volume of traffic. This is true today and will be increasingly true as Gen Y
assumes its ascendancy in the market. (See last week's articles).
Traffic is the brand. Traffic is credibility.
Success is a function of how well the traffic is processed for its next use.
Here's an example:
Take a look at Manpower's
traffic rankings. Now look
at Adecco's. Then compare the two. (enter Manpower.com at the bottom
of the graph in the blank labled "Compare Sites). A very cursory look
at the financials suggests that Adecco is about twice the size of Manpower in
revenue terms. A look at the traffic suggests that Manpower has a very
sustainable cost advantage as well as a leg up in the next generation of
business.
The staffing industry, in general, has
been decimated by the ever-increasing array of job boards. These days, staffing
firms are either resellers of data acquired from a large job board,
experienced refiners of data from smaller job boards, or traffic managers and consumers
on their own. To the extent that they develop their own traffic and have
meaningful independence in this regard, they are viable over the next 5 years. To the
extent that they rely on others for their supply, they are middlemen, who will
ultimately be disintermediated.
- John
Sumser