newspaper transition strategy 2009
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Newspaper Transition & Web Revenue
Strategy 2009
Mel Taylor MediaOnline Revenue Strategy for Local Mediawww.MelTaylorMedia.com 267-625-5313
A Pop Web Group Company.
[email protected]/3/08
This report is a ‘best practices’ summary of observations, experiences and facts that were collected over the past 18 months.
We believe it’s a realistic roadmap for local Newspaper media to follow, in 2009.
It’s primarily focused on business, sales structure, and web revenue models. It touches lightly on content.
Much of the information contained within, applies to local Television & Radio Broadcasters as well.
Contact us if you are interested in the Radio or Television version of this report.
Newspaper Transition & Web Revenue Strategy 2009
Mel Taylor Media background
• newspaper
• television
• radio
• internet
• sales management
• content, production
• talent, reporter
• sales training
Mel Taylor Media recent client list
challenge for newspapers
stabilize & grow print business
simultaneously
grow share of web dollars
current economy will accelerate this challenge, and force a quicker solution
• news as commodity
• ad networks, falling cpm’s, glut of inventory
• specialty sites
• aggregators
• those successfully leveraging automation & outsourcing.
• competitors not dependent on rising hard costs
• outdated worker agreements. ex: uaw
• internal conflicts & bottlenecks
• economy accelerating advertisers move to web
forces killing current business
model
core business
• not newspapers• not journalism
it’s advertising
core business local assets
• news/info gathering & dissemination
• sales force & support staff
• relationships & brand trust
• printing press & distribution
notice the omission of ‘newspaper ‘or ‘website’ ?
first step
questions we asklocal media managers
your advertisers are moving online.
are you offering web to all of them?
what % of your traditional clients
use online advertising ?
do your reps know?
questions we asklocal media managers
what % of your traditional clients
want to use online advertising,but don’t know how ?
questions we asklocal media managers
BIG question we ask
what % of your traditional clients are regularly offered web?
typical answer: not sure, but probably well less than 25%
newspapers capture large shareof local online revenue,
yet they still leave a lot of money on the table
that’s alot of upside for newspapers to gain…and for pure-plays/competitors to go after
how pure-plays are gaining LOCAL share
HUGE issuetraditional reps & managers fear cannibalization afraid to offer web
trading dollars for dimes
protect the way it’s always been
potential loss of job
HUGE issueovercoming fear of cannibalization
• if newspaper doesn’t offer web to clients…
someone else will.
• clients will buy web, either from newspaper,
or it’s competitors: TV & pure-plays.
how newspapers are fixing that issue
• overhaul compensation
• update job descriptions
• consistent web training for ALLespecially top & mid-management *
* how can top & middle-managers “manage”…what they don’t fully understand ?
overhaul sales repcompensation
• compensation must become primarily, commission based.
• bonus & penalty when selling web. no longer ok for sales rep to hit print number, and miss web number. In this case, rep loses print bonus.
• threat of sales staffers quitting greatly reduced in this environment, due to lack of available jobs. radio reps are strong candidates as replacement hires; they’re used to cold calling, direct sales & creative cross-platform packaging.
how newspapers are fixing that issue
culture transition via job
description modification
• no longer a newspaper company
• now a local news & info company
• aggregate, distribute & sell… multi-platform
how newspapers are fixing that issue
management transition
> legacy managers, no matter how successful they’ve been, may not be best suited to build the web business
> creation of ‘vp advertising’ or ‘chief revenue officer’ understands and is responsible for all revenue opportunities.
how newspapers are fixing that issue
management transition> consistent training for top & middle managers how can they manage what they don’t fully understand?
newspapersales structure 2009
hybrid approach for near term
• web specialists target new biz, categories, web-only buyers
• web specialists assist & train traditional reps
• mandatory web sales for print reps (bonus & penalties)
• convert all reps to ‘super-sellers’ over time
goal: integration• all reps become super sellers
• 1 point of contact for client
• able to offer many solutions
• reps sell total reach of platforms
newspapersales structure 2009
right-sizing
who to let go ? • those that debate change.. purge internal poison
• valued in past, but less valuable for future
• editorial without solid connection to revenue
• web staff without solid connection to revenue
mandatory re-think
all content/editorial staff
must now think revenue too
newspapers getting smarter about:
• less reliance on middlemen: ad networks
• not all traffic is valuable. bigger not always better
• developing content networks; syndication
• specialty sites, separate url’s
• inventory dilution & falling cpm’s via limiting supply
• aggregator strategy: do what you do best, point to the rest.
• reverse publishing opportunities
• online & print working side by side
newspapers targeting new revenue categories
• broadcast & cable dollars online info-mercials, video micro-sites, video in banner, pre-roll, etc
• seo/sem offerings
• behavioral, geo targeting
• yahoo partnership
• go direct to brands w/custom, cross-platform ideas
• syndication of content
• creation of premium, vertical ad networks
• self-serve ad platforms for smaller clients
newspapers targeting broadcast & cable’s weaknesses
• reliance on transactional, agency business
• high cost of news gathering video & production
• small newsrooms
• limited publishing & layout experience
• small online sales & editorial staff
• little or no sales staff training
• over-air content not translating to web
newspaper tactics togrow local, online revenue
share
• online only sellers & multi-platform super sellers
• consistent training of traditional sales force
• specialized web training of top & mid management
• change job description & commission structures
• target print, broadcast, & interactive budgets
• creation of local ad networks
sales
how newspapers can ownlocal, online news/info space
• low cost of video news gathering & production
• leverage new tech: video cell phones, wireless, etc.
• leverage large newsrooms
• reporters becoming MOJO’s : indie mobile journalists
• leverage publishing & layout experience
• 24/7 web-first newsroom
• local blogger network & aggregator strategy
editorial
notable newspaper initiatives
specialty sites
determine online content & revenue hole in market, and fill it with a separately branded web site. leverage power of legacy assets: content development, IT & design staff, marketing & sales staff, advertiser relationships, etc.
www.Metromix.com
www.LVBrideandGroom.com
www.ToastedRav.com
www.PHrequency.com
newspaperaction plan 2009 summary
• modify job description & comp plans
• regular training for all staff, especially top mgrs.
• automate & outsource
• syndicate & aggregate
• find profitable local holes, & fill
• consider revenue first, then content
• reverse publish
advertiser spend 2008where should we place more sales effort?
Overall Online
S.C. Johnson DOWN 10 % UP 111 %
Wells Fargo DOWN 10 % UP 157 %
Verizon UP 8 % UP 70 %
TNS Media Intelligence
Overall Online
Ford DOWN 2 % UP 65 %
GM DOWN 9% UP 79 %
Chrysler DOWN 8% UP 41%
TNS Media Intelligence
advertiser spend 2008where should we place more sales effort?
reverse value add
web advertising 101 seminarsfor local business
another tacticto drive web revenue
why a seminar ?local advertisers
want to buy web, but…
• confused• embarrassed by lack of knowledge• don’t totally trust sales rep• think Google is enough• think their own site is enough• never been offered web
• new web revenue on books
• increase online ad mix
• target advertisers still on web sidelines
• slow the migration to competition
• traditional rep sales training
benefits of seminarfor local media
• newspaper brings in ‘outside expert’
• expert provides objective info
• non-sales approach
• fun, easy to understand
how does it work ?
• expert makes the case for web advertising
• provides best practices & basic info
• branding vs. message awareness vs. search
• discuss creative, pricing, targeting
• local case studies
seminar topics that lead to business.
case studies
• & Cablevision• $146,000 new quarterly business• 26 new contracts
• e
• $ 144,000 new quarterly business• 41 new contracts
case studies
• $140,000 new quarterly business
• 26 new contracts
RESIDUAL EFFECT of training & seminar:
• web sales up 300%
• Jan: $30k per month …June: $109k per month
• Jan: 44 web clients….June: 67 web clients
WARNING
clients will buy web.from you….
or the competition
reaching customers
onlineSample slides from
seminarPresented by
Mel Taylor
Your customers
are spending more time
online
Ad spend: out of whack
the economy
while market is soft
•build demand for offerings
•lock long-term discount rates
•steal show while others vanish
Bill segment
Radio38 years
TV13 years
Internet 5 years
reaching critical mass50 million users
Phone74 years
Ignored Amazon.com
Ignored MP3’s and I-tunes
• search• branding• message
awareness
web marketing
• today’s yellow pages• reach those on a mission
search
is search enough?
would you only use yellow pages?
to advertise your business
How do you stand outon this page?
How do you stand out ?
branding• stand out from crowd• familiarity• stability• logo w/ slogan
•educational
•newspaper, broadcast,
outdoor
•passive consumer
•un-aware of offer> New location > Sale > New item
message awareness
click-through rate
what it does and
does not measure.
measures immediate response
not overall response
click-through rate
• brand lift• brand preference• brand recognition• visited site/store, later
OVERALL response
creative• kiss. 7 words or less• clear in graphics• single message• borrow from billboards
Unique User – visitor to site
Page Views – viewed web page.
learn these
EX: readership, viewership, listenership
EX: quarter hours, rating points
CPM – “Cost Per Thousand”
learn these
If CPM is $10
My AD seen 100,000 times
Total cost: $1,000.
http://tribads.chicagotribune.com/onlineadvertising/
http://essentials.baltimoresun.com/media_kit/design-dev/
rich media
http://www.tihr.com/mediakit/
what sites should i use?
• quality of content • advertiser friendly • number of ad units
what sites should i use?
www.wxtu.com
many radio stations still not taking web seriously
• dumping ground• cluttered• no content• no value, even if free• station looks bad
GOOD !• IAB.net compliant
• clean environment
• limited Ad units
• above fold
• good content
http://www.tmccreatives.com/
newspaper online
http://essentials.baltimoresun.com/micro_clients/lifebridge/
• online info-mercial
• ad-vertorial
• ez & cheap to produce
• your biz seen by more
• better search results
• never a wasted play
video micro-site on newspaper site
Source: NetRatings, September 2008
2 3 Million2 3 MillionTop Local Websites
Seminar 90 mins
• Client Check-in & Lunch / Networking
• Mel Taylor (50 mins)
• Web sales manager; local info ( 10 mins)
• Local manager offers discounted packages
• 15 minute break to close biz
• Pick door prize winners
Here’s overview of Seminar/Training program
• On site visit & training …. 5 weeks in advance
• Expert Web sales training; how to overcome common objections
• Overhaul of sales presentation & packages
• Set goals, get input from local staff
• Co-development of all materials, strategy
• Return day before event; training/prep
• Up to 3 sessions a day, over 2 days
• optional sessions: retail, agency, real estate, etc
• In the field calls, day after
call or email for more info. we specialize in building web revenue.
guaranteed.
Mel Taylor MediaOnline Revenue Strategy for Local Mediawww.MelTaylorMedia.com 267-625-5313
A Pop Web Group Company.
[email protected]/3/08