The following post is based on a presentation at TAtechEurope by Terry Baker, President of PandoLogic. It details the preliminary findings of the 2018 TAtech-PandoLogic Global Recruitment Advertising Survey. It is the third in a multi-part series. To read my first post, click here; to read my second, click here.
One of the key aspects that makes this Survey unique is that it acquires responses from BOTH Solution Providers (job boards, social media sites, digital media companies and other publishers) and Employers. This 360 degree perspective supports a comparative analysis of the two groups’ views of each other’s recruitment advertising strategies, practices and performance.
What did we learn in the 2018 Survey? Preliminary results indicate that Solution Providers are from Mars and Employers are from Venus – in other words, there is a significant disconnect between the two in many aspects of recruitment advertising. Why is that important? Because getting the two parties on the same planet (at least with regard to their views) is critical to the health of the online talent acquisition market.
The Survey covered four specific areas:
• Ad performance (which I discussed in my first post),
• Advertising products (which I explored in last week’s post),
• Product pricing (which I cover below), and
• Programmatic ad buying (which I’ll discuss next week).
Over the past 3-5 years, the pricing of recruitment advertising products has been affected by several concurrent trends:
• The rise of sites using a different business model and therefore able to offer ads priced at no or little cost,
• The increase in alternative ways of reaching candidates – e.g., social recruiting, recruitment marketing – diminishing the perceived need for and value of ads, and
• The introduction of programmatic ad buying with its performance-based pricing model.
The Survey found that of these factors, both Employers and Solution Providers judged the introduction of performance-based pricing to have been the most significant. That was especially true among the largest Employers (with monthly budgets of $10,000+) and the largest Solution Providers (with annual revenues of $10+ million).
Contrary to the opinion of certain pundits, however, that introduction of performance-based advertising seems not to have affected pricing for duration-based ads. A majority of the Solution Providers responding to the Survey reported that their base posting fee is the same this year as it was last year.
Fees were all over the map, of course, but most were in the $101-$150/posting range, followed by:
• $251-300/posting, and
Although the experience of many Solution Providers suggests otherwise, Employers claimed not to focus on a product’s price when selecting a vendor. Most said they used the best provider they can find for each specific requirement. The other two top responses were:
• the same provider year-over-year – reinforcing the importance of good CRM – and
• new providers that they heard about from their peers or at conferences – reinforcing once again the importance of CRM.
On that last point – learning about new Solution Providers from peers and at conferences – previous panels of senior talent acquisition leaders at TAtech Congresses have confirmed that they relied heavily on peer recommendations because … well, because they are just simply too busy to answer the phone or take an on-site demo.
On the issue of conferences, however, they were more ambivalent. When asked how important it was to meet new Solution Providers at a recruiting conference, just under a third said it didn’t matter at all, the same percentage said it was very important and the rest were somewhere in the middle in ranking its importance.
Food for thought,
Mark Your Calendars! TAtech’s 2018 events include:
• February 12-13, 2018 Scottsdale, Arizona USA: The TAtech Leadership Summit on AI/Machine Learning in Talent Acquisition – the only conference totally focused on the capabilities and impact of AI/ML/NLP in recruitment. See you next year!
• March 13-14, 2018 Dublin, Ireland: TAtechEurope 2018 – the premier event for recruitment advertising and technology thought & business leaders in Europe, the Middle East and Africa. See you next year!
• April 18-19, 2018 Las Vegas, Nevada USA: The TAtech Spring Congress & Meetup – a unique conference designed to maximize opportunities for B2B networking, trending topic discussions and the exploration of partnerships and business opportunities.
• June 5-6, 2018 Minneapolis, Minnesota USA: The TAtech Leadership Summit on Programmatic Ad Buying – the only conference totally focused on the technology and applications of programmatic ad buying by both publishers and advertisers.
• September 26-27, 2018 Bourbon Street New Orleans, Louisiana USA: The TAtech Fall Congress & World Job Board Forum – the Global Economic Forum of recruiting, this event brings together thought & business leaders from job boards and all other talent acquisition technology solutions companies.