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Digital Revenue Solutions for

Newspaper, TV, Radio


& Hyper-Local

and….

MelTaylorMedia.com
Updated 12/30/2010
• Help Wanted
What Newspapers
• Real Estate
• Auto
• Coupons
Lost
over past 15 years
• Inserts
• Grocery
• Movie Studios
• Dominance
• Share
• Poach Newspaper execs
• More advertiser choice
• Lower expenses
• Digital first
• Aggregation
Agenda

• Who, What, Why


• Potential plans
• How to beat them
• Other competitors
Web
Why Newspaper
& Local Media
Still Struggle
and how Patch can take local share…
Cannibalize Print ?
Web?
I’m thinking retirement…
bee-yatch !
College Professors
& assorted brainiacs

“searching for sustainable business models…yada, yada …crowd-sourcing


…entrepreneurial journalism...community engagement…yada yada…
grass roots via cloud…..yada…let’s do some more research….let’s tweet it…”
Hmmmmm…..
His lips are moving .
He’s a top exec.
He MUST be smart.
Right?
Um, yeah, Mel….thx for stopping by

• Our traffic is up
• We’re trusted news brand
• Patch is lame blog
• Our sales plan is just fine
• Our VP Interactive speaks on many panels
Put The
Data Down

Hit The Street


NOW
No….but they’ll get a bit naughty
when they gotta hit their numbers
ROAD KILL ?
Local Bloggers Paywalls
Local blogs
& indie-sites
getting nervous?
Run Web like Newspaper
Think like Publisher / Owner

in this order !
1. profit
2. operations
3. editorial
What is ?
Tim Armstrong
• AOL’ s Hyper-local play
to grab local ad dollars
• Run by ex-Googler
John Brod
• Editorial & tech first
• Sales ramping up
Warren Webster
Why is Patch
doing this?

• AOL’s dial-up dead


• AOL’s content-play struggles
• Need new rev stream
• They see local media downsizing
• 50% of local web budgets, still on sideline
• Local media protecting legacy business
Patch: Priority Plan
• Local news source
• Trusted community partner
• Newspaper replacement
• Create excellent journalism
Local Ad
Dollars
Local Online Advertising Share

Online Only
Online Only
Pure Play
47.2% Pure Play
51.7%
Newspaper
Newspaper
27.7% 23.6%

2008 2009

Borrell
750 Sites…so far
(over 100 in California)
Communities Avg size: 50-70k

Delaware County
Bucks County

Philadelphia
Chester County

Lehigh County

Main Line
Growing like a Weed
Revenue Streams

• Local
• Regional
• National
Short Term Objective

• Frantic pace of roll out

• Get hooks into local market…


before others know what hit them

• TV, Radio, Newspaper, Yellow Pages…


won’t respond quickly?
Strengths
• Digital first
• No legacy baggage
– Not protecting “way we always do it”
– Not impeded by old school

• Cost effective content creation


• Variety of sales tactics
Weakness (for now)

• Unfamiliar outsider
• Questionable local sales savvy
• Limited local relationships
• Clunky corporate structure
• Not as nimble as YOU
Patch Open House
Suburban Atlanta
Mayor Flips Switch
Hopkins, Minnesota Patch Site
#500
Patch Marketing Staff…
Freshest Breath in Town
Pay & Positions
o Local Editor; $40k
o MacBook Pro, camera, smart phone
o $500 freelancer budget per month
401K match
o Ad Manager; $60k
Performance bonus
o Managing group of sites Medical & Dental
o Regional Publisher; $80k
o Regional Editor; $80k
o Oversee group of 12 Patch sites
Sales Job Posting

o Be local online ad expert for small business


o Host WEB 101 seminars for small business
o Attend chamber & trade functions
o Convince buyers to shift budgets to digital
o Visible presence in business community
Wanted: Online Sales Executive

You’ll be working closely with local advertisers, as their local online advertising expert. You’ll
know your own platform (and others) backwards and forwards so you can present complete
advertising solutions.

You may decide to host local seminar on how to achieve the best results by advertising web.

As the top local business executive, you will attend chamber and trade functions, get
involved in community groups, head up charitable efforts and maintain a highly visible
presence in the business community.

Local Online Sales Exec is responsible for advertising sales to businesses in local markets.
Will sell banner ads, e-newsletters, video & more. You will present promotional
opportunities and display options to store owners/management. You will handle ad sales,
inventory management and “own” the online advertising for assigned local markets.

As the Local Online Sales Executive you will also be responsible for assisting in coordinating
local event sponsorships and attending them, possibly on weekends.
POACH

• Newspaper
• TV
• Cable
• Yellow Pages
• NAA
• Bloggers
Current Ad Offers
o Self-Serve for $15 cpm….discontinued
o Now: flat fee for SOV (share of voice)
o Free Classifieds: merchandise, services offered
o Small fee $20 auto & jobs
o Directory up-sells
o Enhanced video
o Fee to post coupons
o Newsletter Ads
No phone?
SEED
& Studio Now
other
LOCAL
competitors
Yahoo Local
• Now in 30 US neighborhoods
• California, Michigan, New York, San Fran, Brooklyn
• Content from local pubs
• Community reporters
• Feeds from other pubs
75%
of Deal Market

Average User
Single
Female 18-34
Income: 70k+
Users
2008: 400 k Employees
Dec 2009: 124
2009: 1.5 mil
Dec 2010: 3,100
2010: 40 mil
o No risk… ‘only pay if people buy’
o Customers not clicks
o Performance
o 66 % open rate
o Gets 50% of sales revenue
Crazy Growth (said no to recent Google offer)

Many on this call are helping them

…..by running their ads


Groupon is HARVESTING your readers
HARVESTING
your readers
• Over 45 US markets
• Feet on street
• Search Engine Marketing
• Display / Banner
• Video
• Multiple digital solutions
• Active advertiser count 13,200 to 16,700

• Revenues up $48m to $70m

• Add senior sales 143 to 246

• Add junior sales: 256 to 395


Tags
Boost
Pandora
o 60 million users
o About half of all Internet listening
o Avg 13 hrs of listening

o $50 mil revenue. Now profitable


o 45 of top 50 national advertisers
o Growing sales force
o San Fran, NYC, LA, Chicago, Detroit, Dallas, Atlanta
Pandora
Local Targeting of Ads
o Geo-targeting

o By format
o Audio, Video, Display
Now Hiring
• Advertising Sales Representative - Oakland, CA
• Senior Account Manager - Chicago, IL
• Advertising Operations Technical Lead
• Inside Sales Manager
• Manager - Pricing and Yield Management
• Online Ad Trafficker
• Sales Planning Supervisor
• Senior Advertising Project Manager
• Senior Revenue Analyst
• Vice President - Research and Marketing
o Quickie hyper-local sites for local TV
o No upfront costs
o Call center pitches local biz in your name
o Rev share approx 60% to DataSphere
o Primary relationship w/client. Retains data
Outsourced
LOCAL Sales
DataSphere = Smart
WTSP TV = Dumb
Take This Test
• What % of print clients buy web ?
• What % is sold local direct ?
• Plan to reach non-print ?
• Know marketing plan of clients?
• Are your managers in the field ?
slaughter
Web Sacred Cows
• Need more page-views
• Editorial controls site
• Remnant, 3rd party ad networks
Beware the BS

• We hit our (very low) web budget.


• Web rev up by 500%. (off low comps)
• Web traffic is strong. (distraction from profit margin talk)
• We’re doing fine. (compared to other industry losers)
• Print is where $ is. (yet, web is fastest growing rev stream)
Newspaper USP
unique selling proposition

What can Newspaper offer…


that PATCH can’t ?
Newspaper USP
• High % of local reach
• Feet on street
• Local content creation
• Client relationships
• Brand familiarity
• Print / Traditional distribution
How Newspaper Wins

Combine Newspaper USP


with

New Digital Tools


BROADCAST
or PRINT
Targeted
* Tweets
* Facebook Online Promotion
* Messages

Integrated
Campaign
Build Database * Download coupon
* Join contest
* Friend list
* Watch video
* Twitter
* Subscribers
Capture:
* Email
* Twitter
* Facebook fan
Mandatory Steps for Success
Treat Web
As Business

Run it just like


your Newspaper
Remove
Internal
Sabotage
Overhaul Comp
• Revenue per rep & manager
• New business per rep (per month)
• Grow % of current clients using web
• High commission rate: new clients
• Low commission rate: transactional
• Bonus & PENALTY
Digital Sales Training
Who does most training?

It’s a FACT.
More training = more revenue
Bigger Not Always Better

REDUCE
commodity page-views

GROW
high ‘advertiser value’
simplify
why do we
talk like this?
• cpm
confusing for client
& sales rep ! • pageviews
• uniques
• click-thrus
• weird vocabulary
• monthly pricing
Endorsed by Internet Expert:
Shemp Howard
NEWS LOGO
REDUCE
NEWS LOGO

Clutter !
NEWS LOGO

NEWS LOGO
DUMB
National Ad Networks
( at local level )

REMOVE
from home-page & section fronts
Consider day-parting
How GREAT sites
lose money

> No Super-Premium Ads

> The only local ad is pushed


outside of content area

> Low CPM ad networks


sucking up home page
of this otherwise strong
news-site.
Can’t sell
premium unit
on home page?
Smart Practice
weekly instead of monthly rates

sounds
expensive $ 400. per month

sounds
reasonable $ 95. per week
‘Your cpm is too high’
Interactive
Media Queen

Avoid This Nonsense….


instead….sell flat fee to local/directs
how local biz
decides to buy web
• loves your newspaper
• design & tech
• editorial
• twitter & facebook
• audio & video
Ad Mix
do they see
local competitors?
Super Premium
Ad Units
multiple uses

• Rte 9 is closed
Breaking
News • Lady Gaga tix on sale Friday
• Phillies beat Astros 3-1

• Deal of Day
Sponsored • Coupon download
Promotions • Win Trip
• Ticket Raid location

• Stand by rate now avail


Market to • Home page unit now avail
Advertisers
• Spring special 50% off
LEADS

New Business Development


Cold Calling

Phone Blitz

STINKEROO
#1 Current Print Clients
Meet Dick. 25 years in the Newspaper biz.
Always hits his print budget without fail.
Hi.
Dick always wins sales contests, like this I’m Dick.
one to a tropical island. But because Dick is
a print-sales superstar, he gets a pass when
it comes to web.

Dick NEVER pitches web. Yet 90% of Dick’s


clients buy alot of digital.

Dick’s print clients buy online video, SEO,


Groupon, banners and social media….
…from Dick’s competitors.

Dick’s clients LOVE him. They would buy


Web from Dick……if only he offered it.
#2 Call Center to Set Appts
Keep Sellers On The Street.

Use classified phone room down-time


to set up appointments…or consider
off-shoring this activity to countries
that would LOVE this job.

Your sales reps should be in front of


clients and potential clients, as much
as possible.

Expensive reps & sales managers


sitting behind a desk making a few
half-hearted cold calls, is a poor use
of limited resources.
#3 Web 101 for
Local Business Seminars
Web 101 for Local Business
Why ?

Local biz wants to buy web…


• confused / lack of knowledge
• doesn’t totally trust sales rep
• think Google or website is enough
• never been offered web
Web 101 for Local Business
Benefits

• Provide web education to local biz


> they buy more web !
• Immediate web revenue
• Sales reps get trained
• Better than cold call
• Superior, qualified lead generation
Test Yourself…
Higher score, better chance to beat Patch

Compensation Web 101


Bonus, Penalty, MBO’s for Local Business

All Staff Training Sell


Management & Owners Non-Print Products

Simple Packages…
Job Description Refresh
No CPM’s

Online Media Kit,


Reporting Structure
Direct Contact to Rep

Plan to Reach
No Ad Networks
Non-Advertisers
Watch
Deseret News, Salt Lake City
Newspaper..Broadcast..Web

Clark Gilbert
Digital Rock Star
Watch
Gawker Media

Nick Denton
Digital Rock Star
online video
that pays

Remember all that video stuff


you bought for the newsroom?

Take back half of it, and give it


to the sales department.
Re-think
EVERYTHING
• Vendor Deals
• Aggregation & RSS Reduce Costs
• Local Indie-Journos via
• CMS Platforms > Open Source
• Local Ad Networks > Crowd Source
• Sales-Based Video > Revenue Share
• Management
The New Workshop from Mel Taylor Media

Online Business 101


for Editorial, Programming & Web Producers

When content creators understand online business models…


they create more advertiser-friendly & profitable websites
Local Media Primary Primary Potential
Position Background Responsibilities Weakness / Limitations

• Owner • Increase shareholder value • Delegate strategy to content first executive


Building • Manage overall operations • Thinks only brand extension strategy
• CEO / COO • Drive top line growth
Profitable Business • Over reliance on internal, traditional managers
• Investor • Increase profit margin • Tough keeping track of online competitors

• Build & manage digital platforms • Little or no direct sales & revenue experience
VP Digital Content & Tech • Drive online traffic • Compensation primarily based on traffic
• Content & tech development • Employs content first, not profit first strategy

Local Sales • Sell traditional inventory • Prefer to sell traditional


Traditional Sales • Sell web inventory (secondary goal) • Limited or no web sales training
Management • Manage sellers • No web business model experience
• Compensation favors traditional sales

• Traditional media creation • Prefers traditional content development


Local Content Traditional Media • Web media creation • Thinks only brand extension strategy
Management • Increase audience numbers • Limited or no web development training
• No web business model experience

• Sell traditional inventory • Prefer selling traditional


Local Sales Reps Traditional Sales • Sell web inventory (secondary goal) • Limited experience selling web
• Limited or no web sales training
• Compensation favors traditional

Why Traditional Media Struggles w/ Online Revenue Growth


TOP 10 Revenue Mistakes
of Local Online Media

1. Management, owners & CEO’s lack specialized web training


2. Dangerous thinking: ‘selling web cannibalizes print sales’
3. Limited web training of sales reps
4. Management structure conflicts
5. Poor attention to fast changing, online environment
6. Setting web budgets too low
7. Ineffective inventory & yield management
8. Confusing media kits, sales packages & pricing
9. Director of Interactive; tech & content background only
10. Over-reliance on vendors & research for sales strategy

Read full report here:


http://meltaylormedia.com/2010/08/top-10-web-revenue-mistakes-of-tv-radio/
Middle-Man Channels

Advertisers benefit from Traditional Channels New Channels


new, multiple ways for reaching local consumer for reaching local consumer
of reaching local consumer
Niche Sites
Newspaper
Google Places,
SEM, Facebook
Wants to reach local consumer
TV
Patch,
Advertiser Hyper-local Local Consumer
Radio Groupon

YP360,
Direct Mail Local.com

Reach Local

Directories
Hulu, Pandora

Direct Relationship
between advertiser & consumers, avoiding middle-man channels
EX: Twitter, Database, Blogs, Social, Mobile
Advertisers Content
• National, Regional, Local Local Media Eco-System • Laid off journalists & photographers
• Traditional media news
• Moving dollars online
Business Models that Support Local Journalism • Indie-sites & pro-am bloggers
• Pro-active plan that exploits economic pressures • Watch Dog Journos
• info & pubic domain data feeds
Agy com Local Ad Network
• Enables local commerce, that subsidizes local news
• Community & citizen participation
• Proven revenue management systems (RMS)
• Move quicker from investor support, to self-support
Traditional & Digital • Leverage efficiencies of outsourcing and open-source Local Ad Network Revenue share
Fees Agency commission
Marketing Services • Multiple online & offline revenue streams
• Scalable via networks, franchising & co-ops Sales, Marketing, Training, Tech Co-op
& Business Support Efficiencies
Rev share Self-serve, Outbound tele-sales
RMS & CMS Platforms Licensing fee and/or revenue share
Fees, sponsorships Events & Training Workshops
lead aggregation
Stringer & Syndication & Licensing Per Diem & fees

Creative
• Marketing Agencies Outsource / Fees
Hyper-Local Incubator Outsource / Fees
Marketing
• Promotions
• Video, Indie-Producers News, Community, Services & Support • Event, Contesting
• Designers & Developers for Local, Media Markets • Social

Traditional & Digital Marketing Services


Fees
Destination Site Commission, fees & rev-share
Aggregation, Curation, Editorial Display, search, lead capture
Local Ad Network
Rev share, Agy com

CMS & RMS Platforms


Co-op Resources Mobile, RSS, Email, Social Ad supported
Licensing fee, Rev share For Independent Bloggers & Sites
Sponsor supported
• Sales support, network & services Events & promotions
Fees Stringers, Syndication & Licensing and/or fees
• Content network & syndication
• Tech & back-office support
• Pre-vetted platforms & apps
Traditional & Public Media • Representation and investments
Local Community & Readership
Growing need to reduce costs,
• What if Newspaper shuts down?
increase local coverage & revenue •Central hub for public affairs & local information
Digital Revenue Solutions for
Newspaper, TV, Radio
& Hyper-Local

and….

MelTaylorMedia.com
Updated 12/22/2010

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