roundtable 2003 ratkovich_leserman

of 27/27 The Newspaper as “Infomediary” Kim Leserman, Media Insight Group Tom Ratkovich, ASTECH InterMedia

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  • 1. www.astech-intermedia.comThe Newspaper as InfomediaryKim Leserman, Media Insight GroupTom Ratkovich, ASTECH InterMedia

2. FORCES DRIVING CHANGE INOPERATING LANDSCAPE FOR VENDORS 3. The New Operating Landscape More savvy consumers Determining what they will pay - easy access to information LESS! - shop price/compare productsProliferation of products Market share fragmentationBrand loyalty disappearingMore advertising clutterFight for mind shareDiminished effectivenessConsumers tuning outVendors spending more toachieve lower salesStrong negative impact onCutting cost everywhere vendors bottom line 4. Increased Focus On Cost-EffectivenessProfit BleedLower Ad EffectivenessAdvt.$$$ 5. Examples Are Everywhere Experimentation with technology- auto dialers/automated messaging Explosion in direct mail Pressure to improve targeting capabilities- Geographic and demographic Growing popularity of e-marketing- Success of Belo Interactives e-marketing database- E-Bay success (not just an auction site!) 6. Addressing TV Bureau of AdvertisingThere is renewed focus on ROI and a tremendous pressure for competitive advantage. In our environment, we have to findways for our advertising to work harder.David Rooney, Director of Media Operations DaimlerChrysler 7. THE ROLE OF THE INFOMEDIARY 8. The Concept ExplainedRequired reading: Net Worth (John Hagel and Marc Singer) - revolutionary new business model connect buyer/seller - permission marketing to bypass traditional advertising - root of privacy backlash:confidentiality concernsvs.pragmatic concerns over who benefits - consumers very willing to share personal data 9. Infomediary Role Information Intermediary:- trusted (third party ) personal agent for consumer - help capture/manage (not sell) consumer data - entrusted with complete view of customer - use it to strike best bargains on their behalf - complete protection of their privacy - shift focus from serving advertiser to serving consumer - act only in the best interest of the client - optimize relationship between buyer and seller 10. Infomediary Role Interact primarily via Internet:- infomediary provides a technology toolkit- customer communicates/controls permission viaongoing manipulations of dynamic preferencesmenu- client can specify which types of goods/servicesandwhich vendors at any point in time- marketing messages/offers delivered by e-mailviainfomediary to protect clients privacy 11. The Traditional Advertising ModelChanging Your Perspective. 12. The Merchant Community Fragmentation/Targeting/BypassChanging Your Perspective. Migration to ROI as key metric in ad expenditures Seeking mechanism to optimize communications through channel integration and consumer intelligence 13. The Evolving Business ModelChanging Your Perspective. 14. The Newspaper as Infomediary Opportunity to become the matchmaker between:Changing Your Perspective. Consumers with specific consumption intentions, and Merchants desiring to satisfy them Why? Trust Consumer and merchant relationships Channel integration 15. The Newspaper and Trust Generally among highest of media concernsChanging Your Perspective. Must be impeccable Does brand strength = trust? 16. The Newspaper and Relationships Consumer touch pointsChanging Your Perspective. Wide range Under-leveraged Merchant relationships transformed Control of data, channels lead to partnership Sales organization must also evolve 17. The Newspaper and Channel Integration Only entity capable of integrating newspaperChanging Your Perspective. distribution with direct mail, email, etc. Potency of this advantage related to customerknowledge Greater in markets where subscriber knowledge,penetration high In other markets, data acquisition is key 18. Getting Paid: The Right Revenue Model The Communication modelChanging Your Perspective. Paid for message delivery via all appropriate channels Consumer intelligence adds value beyond traditionalmodel The Customer Development model Paid for delivery (and fulfillment?) of customer Risk/reward creates high profit opportunity Relevant for some markets, not all 19. Changing Your Perspective. The Daily Telegraph (UK) 20. The Road Map Build the information infrastructureChanging Your Perspective. Enhance interactivity Ensure privacy Diversify communication channels Transform the account team Invest in the brand to build TRUST 21. Thank 22. Group A: The Competitive Environment What other entities might usurp the Infomediary opportunity?Changing Your Perspective. What are the advantages and disadvantages of each relative to you? How should the newspaper industry position itself against these competitors? What happens to the industry if we are not successful? 23. Group B: Consumer Interactivity & Data Acquisition Create a Data x Channel matrixChanging Your Perspective. Identify data elements that have economic value; to whom? Propose relevant data acquisition mode Outline data use policy 24. Group C: Getting Paid How should the revenue model evolve?Changing Your Perspective. Are there categories for which the Customer Delivery model is particularly relevant? Will the newspaper culture ever accept such a model? 25. Group D: The Organization What are the major roles of the organization?Changing Your Perspective. How do the traditional roles of advertising, circulation and marketing evolve? Do the typical manager positions remain? Outline an org chart What skill sets are required of each and how should they be developed? 26. Group E: TRUST How trusted is the typical newspaper relative to other media?Changing Your Perspective. Are there entities with whom consumers are more likely to share personal data? What steps can the newspaper company take to enhance the perception of trust, credibility and integrity in the market? 27. Group F: Instituting Change Who must champion this evolution?Changing Your Perspective. List the major transitory steps that must occur for it to take place? In what order? Over what time frame?