March 18, 2014 At its February 21 meeting, the TSM Board asked for an alternate budget plan that addresses TSM’s deficit through increased revenue rather than through decreased expenses. I asked C.J. Salgado to provide that revenue plan, taking into account the following additions to the professional staff: two salespersons, a sales assistant, and a broadcast coordinator. At this point, the plan (attached) is incomplete, as it does not specify which initiatives to pursue or give revenue estimates for the categories for which the Advertising Department is responsible: Daily Texan Local Advertising Daily Texan Campus Advertising Daily Texan National Display - Agencies Daily Texan National Display - Other Daily Texan Classified Advertising Daily Texan Online Advertising Daily Texan Mobile Advertising Texas Travesty Advertising Our Campus Advertising Longhorn Life Advertising Orientation Advertising KVRX Underwriting/Events KVRX Online Advertising TSTV Underwriting/Events TSTV Online Advertising I have asked C.J. to provide the rest of the revenue plan as soon as possible, in order to give the TSM Board sufficient time to consider it in advance of Friday’s meeting. In the meantime, I am circulating this document, so that the next round of the budget conversation can begin. Frank Serpas III Interim Director, Texas Student Media

TSM Board Meeting: March 21, 2014 CJ Salgado Advertising Adviser

On February 21st we all participated in what seemed to be a very unusual type of board meeting for Texas Student Media. It was unlike any other as the tensions seemed to diminish and the yelling never ensued. Major confrontations have been due to the lack of transparency throughout the years. It seems to have always been the expectation to not share information about the unfortunate situations we have endured. The basis of this is unfounded but understood if one simply looks at the reporting structure. We are all passionate and invested in TSM, whether you are faculty, staff, student, board member or alum and regardless of the entity you represent. The industry leaders, relationships and knowledge all of these individuals embody are assets that have long been underutilized. We are all part of this organization and finally understand that things need to change in order to have a future. Even if the rumors are true and we receive funds at some point, we cannot dismiss the changes that are required. It is vital that we evolve our organization in order to ensure future success. I am optimistic that the cycle of segregation from the board has been broken and that we will continue to move forward with productive conversations to assist TSM into the future. I’d like to thank everyone who participated in that discussion as I think it was a turning point and the beginning of a new era. I applaud Interim Director, Frank Serpas for displaying full transparency and allowing open dialogue. He provided all of the information that was requested and more. A comprehensive analysis unlike any we have ever seen during a board meeting. Although the suggestion of reducing print for The Daily Texan is an unpopular plan, he did exactly what he was charged with, he thoroughly investigated all properties and provided recommendations for reductions as the board requested. No one wants to be the person to recommend or vote for The Daily Texan to go weekly or stop printing. Printing costs are high. Financially and logically, it makes sense. After his presentation and much discussion, I was then charged with providing revenue ideas and a secondary plan “the checkbook is open”, “give CJ whatever she wants”, statements you never hear during board meetings, especially ours. I appreciate the challenge and understand the stakes involved. Considering the predicament we are in, you must recognize an alternate plan not factoring in reductions is an “all in” venture. In order for TSM to revert and be successful with all our media, things need to change and quickly. Unfortunately, those two things can be a challenge for UT and TSM as UT policies sometimes hinder swift progress and TSM is not great with change.

Texas Student Media is vastly different from other departments, as an auxiliary to the university we have always been a unique organization. Most tasks from simple approvals, media requests and contracts (some over one year processing time) have always been a challenge. For those on the outside looking in, thinking it’s an easy fix; you are probably comparing TSM to corporate structures. It is crucial that you understand the challenges we encounter internally and externally when trying to accomplish tasks that should ordinarily be achieved easily. TSM is different, I prefer unique, but we have the potential to be so much more than what we are. Many have joked and said wherever we are assigned or reassigned, we are simply stepchildren or orphans in the UT system and we will never really have a home. If the perception and unstable history of TSM were overcome and real relationships established to support the entire organization, we would have the opportunity to be a massively successful media house. I have met with the staff to discuss concerns, goals and we are fully aware this organization has multiple components that are in need of development. What follows is my assessment of how TSM can improve, all cards on the table, nothing off limits.

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What changes are necessary?

Process implementation

Process flow tracking, work instructions and quality control are needed. In order to be successful all areas of the organization must follow guidelines and procedures to achieve overall revenue goals and quality output. TSM has missed opportunities for revenue due to lack of tracking, missed deadlines and no follow-up. An example would be: advertising going through the process of securing the sale only to find out the ad did not run because the students overseeing the department either decided against the ad or simply forgot to publish it. Incidents like this have cost us clients in the past and are unacceptable. Standard practices must be implemented to provide our clients with quality products. This does not mean there all no processes at all, it means that right now, we each have our own set of process for our department. There is no streamlined process in place that allows for everyone in TSM to no what is going on in another area unless they have been included in meetings or email chains. It would be beneficial to have a TSM wide process designed and applied to help with overall communication and successful execution of orders without confusion.

Pitch process We have amazing talented students within our organization and TSM is their playground to do as they wish. They are given the freedom to explore and create which makes this experience so unique and valuable. Unfortunately, not everything that is produced is a successful revenue generator. Implementing a pitch process would allow for feedback to be provided that will offer a reading on how much potential revenue could be attained. Many times features, special editions and show ideas are created without giving any thought to how much money could be brought in. This process would be way for us to assess which projects should have the use of more resources based on potential revenue. The rebuttal has been that it simply is not their job to worry about the revenue side of things; instead they should have fun doing whatever they do within their departments and learn along the way. This mindset needs to change and TSM needs to run like a business or there will be no future. I have talked to a variety of faculty, staff, student and alum that do not understand why certain items are not included as areas of revenue. It’s simple really; the students have control of the organization. If they don’t want to do it, even if we have clients wanting to invest, they decide whether they want to work on the product or not. Now before riots develop, I am not saying take “student” out of Texas Student Media or that student content should be controlled. A process needs to be in place that allows manpower and resources to be dedicated to specific projects and products that have potential to generate money. To allow for students to succeed in the future and provide a real-word experience, they must experience the standard practices that are in place in all companies. Relationship building

The advertising department secures campaign buys and appreciates all of the support from the varying departments, student organizations and individuals that help support Texas Student Media. We participate in several events around campus, but full exposure throughout campus, immersing our media products within campus life is an avenue that has never be attained. Partnerships throughout campus must be established to help generate buzz and interest in our products.

What changes are necessary?

Staffing All staff and students at TSM should follow standards of practice and be held accountable. Every professional staff member at TSM has expectations that they are evaluated on. They report to their assigned manager, with the exception of the Director and the student managers. The student manager’s report to the board and the Director has dual reporting requirements to the board and whichever division or college we are assigned to (Moody College of Communication – if ever officially confirmed), previously the Division of Student Affairs. The professional staff recognizes it is not solely about the student experience, but that we must do whatever is necessary to fulfill orders once secured. The student staff must embrace that mentality as well. Everyone needs to help promote revenue initiatives, ensure projects and expectations are achieved to prevent revenue loss. The idea that one individual can provide support to the entire Daily Texan, TSTV and KVRX student teams is absurd. Our students require guidance, support and the opportunity to learn in an environment that will allow them to excel in their future careers. We are doing a disservice to them if they are required to “share” one individual and it is a completely unrealistic expectation. This essentially sets that individual up for failure and possibly animosity from students in other departments not receiving as much guidance. Broadcast guidance for TSTV and KVRX is needed on a full-time basis to enhance both departments. Oversight for Travesty and Cactus has been nonexistent for years. If you want these entities to succeed they need support. Students should not shoulder the burden by themselves.

Professional staffing at TSM has been a revolving door for years, we have ten people left from thirty. Some of the impact caused by changes to the process, once the decision was made to relieve us from the printing press and delivery components. The staff has endured many setbacks, constant negative reprimand from the board and never ending changes in leadership in the Director’s seat. As I stated in my previous report, year after year, none of the tough decisions are being made. After eight years and now on our fifth Director/Interim Director, people need to understand, it’s not about making everyone happy. TSM needs to be run like a business and do right by our students in preparing them for the future. Due to the way the organization is structured, the Director has no power over student managers, unless authorized by the board. The Director must be able to provide expectations and hold the student managers accountable (again, strictly relating to process and fulfillment, not content). This should include the hiring of student managers, to confirm knowledge, leadership and revenue expectations are understood. If the trust does not allow for that due to the current election process, maybe an internal process can be applied that would promote growth and accountability within entity teams. We have two transient groups (board members and student managers) that are responsible on paper for long-term goals, but in truth, it always comes back to the professional staff that ensures projects are achieved. It’s imperative that the Director or a consistent staff member is given authority to ensure all aspects of each entity are successful. TSM goals and revenue must be at the forefront.

Texas Student Media Org Chart 2007

Texas Student Media Org Chart 2014

What changes are necessary? Surveys /Audits / Stats TSM rarely invests in itself. In order to be fully knowledgeable about all of our products, we must know all of our stats. The access we have to online provides insight into our readers, devices used to browse, locations etc. Our digital team has done a great job of tracking these stats, which continuously helps our team, but more must be done across the board. The Daily Texan has had significant declines in circulation for the past several years, which is not a good indicator to our audience or clients. Although pickup reports are provided by our vendor it is recommended that an outside audit be done to confirm accuracy and then utilize the data to enhance distribution overall, providing our clients with better reach.

I have included a couple of months of data, which shows current pickup information. During the month of September, The Daily Texan returns were: 69,938 For the month of January, returns were: 38,253. More in depth monitoring and audits need to be done to study traffic patterns, pickups, alternate pickup locations, cycling of racks and maintenance. At 12k circulation and our audience over 70k you can easily see that we are not attaining the reach we should.

! ! ! ! ! !9/2/13 9/3/13 9/4/13 9/5/13 9/6/13 0 3968 3966 3793 3317 15044

! ! ! ! ! !9/9/13 9/10/13 9/11/13 9/12/13 9/13/13 3504 3749 3498 3773 3149 17673

! ! ! ! ! !9/16/13 9/17/13 9/18/13 9/19/13 9/20/13 3968 3914 3711 3337 2748 17678

! ! ! ! ! !9/23/13 9/24/13 9/25/13 9/26/13 9/27/13 3581 3288 3666 3258 2313 16106

! ! ! ! ! !9/30/13 ! ! ! ! !3437 ! ! ! ! !

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1/13/14 1/14/14 1/15/14 1/16/14 1/17/14 461 523 422 343 337 2086

1/20/14 1/21/14 1/22/14 1/23/14 1/24/14

0 3220 3928 4227 4671 16046

1/27/14 1/28/14 1/29/14 1/30/14 1/31/14 3935 4778 3940 3902 3566 20121

What changes are necessary? Surveys /Audits / Stats The digital team put the following information together for the digital sales meeting. Curt and Nathan presented current stats, site development updates and options for future sales efforts. Thank you to Mary Grace who put these two designs together for that presentation.

What changes are necessary? Surveys /Audits / Stats We currently sell on a flat rate basis, as impression attainability would not be achieved within a reasonable amount of time. There are many other possible avenues for revenue share options or low dollar ad buys but we are limited to the amount of real estate provided to us by The Daily Texan. The website redesign and launch was initial slated for January 2014 which has not occurred. Several meetings were conducted and the advertising team was included to review the spaces they had designated for revenue opportunities.

What changes are necessary? Surveys /Audits / Stats

As requested during our last board meeting, I have included a few months of data, which show our online sales that have been booked. There are always many other opportunities for revenue outside of the scope of what we currently sell. It is about the decision being made that other options will be allowed within the realm of the websites. Students have long determined the inventory allocated for sale.

September 2013 Local 4078 National 3615 Total 7693

! !! !October 2013 Local 3278 National 5250 Total 8528

! !! !November 2013 Local 2678 National 2300 Total 4978

! !! !December 2013 Local 1267 National 1250 Total 2517

! !! !January 2014 Local 2628 National 3066 Total 5694

What changes are necessary? Surveys /Audits / Stats Due to lack of quorum (spring break), the March 7th board meeting was cancelled. I took that as an opportunity to include the following report. The digital team polled the UT community to determine key points specific to The Daily Texan. This survey is active through March and the stats are a reflection of the duration between: 3/3/14 – 3/10/14. These are their findings.

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What changes are necessary?

Revenue ideas

Year after year people gather in a room and discuss all of the potential revenue opportunities that we should try to incorporate in addition to the many sales offerings we already have available. It needs to be understood that we do not try to push one product over another, the honest truth is that if you have a quality product and your clients are receiving a good return on their investment, they will continue to invest. If not, they will seek other options in which to invest that will provide the return they expect. These ideas have been presented since 2012 with optimistic thinking that the items would be slated for implementation by the beginning of the new academic year, 2013-2014. Unfortunately, I was told that the majority either needed a contract (required authorization at higher levels and would take an excess of a year to get approved), the idea went against the UT solicitation policy, or support was not in place to allow for expansion or development. There are many opportunities, it’s about finding out how to make them happen and eliminate the excuses. With support the following could bring TSM over $200k.

- Use of revenue share programs - Partnerships to increase website traffic / design / apps - Native online advertising - Development / Pledge drive / fundraising opportunities and support - Alumni opportunities and support - Vendor Kiosks (advertising space and newspaper rack distribution) - TSM custom built kiosks (advertising space and newspaper rack distribution) - University partnership to route advertising, event or production needs to TSM - Donor naming opportunities: building, rooms, offices, conference room etc. - External building advertising real estate - Entity logos on the outside of the building - Underutilized real estate, white boxes (Frank stated possibility of leasing) - Analyzing, correcting and expanding distribution of The Daily Texan - Dorm and campus specific distribution - Interested businesses wanting our products

- Subscriptions for online full access - Archive memberships for all entities to access historical content - Merchandise sales for all entities online and displayed at TSM business office for sale

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What changes are necessary?

Revenue ideas Development - Texas Student Media is in need of a person to focus on Development. This is a significant resource that has never been realized due to lack of manpower. TSM has been fortunate to receive a few unsolicited donations. Pledge Drives/Fundraisers - With pledge drives streamlined and direction provided by professional staff an increase of 50% is attainable. Production - The majority of production requests are routed to TSTV and others that are print driven are handled in the creative department. Utilizing the newly acquired equipment in TSTV will assist in bringing in additional revenue, but would require additional manpower to fulfill production requests on a consistent basis. If additional support was added we would be able to secure more than the estimated return. Researching audience and client customized show requests would help secure more revenue.

Longhorn Life - One of the main products that the Advertising department controls is the Longhorn Life tabloid. We have the chance to improve the overall look and brand by converting it to a full color product on quality paper and increase our online presence. Longhorn Life not only produces the content our audience desires, but allows for flexibility when it comes to custom client articles. The opportunity for expanding the Longhorn Life brand is limitless and collaboration between Longhorn Life and all entities is always supported. Events - To allow for increases in advertising events, additional manpower is needed. We have the ability to add to our event lineup and increase revenue with appropriate support. If all prior details regarding direction and accountability were able to be implemented event increases would be possible. Staff - The need for staff is an understatement. Based on the independent research conducted and positions of growth I would invest in the following positions if resources were unlimited.

- Advertising admin support - Advertising salesperson - Development associate - Marketing associate - Broadcast Manager - Travesty / Cactus Manager - Business Assistant

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The goal of Texas Student Media is to provide our students with experience that will help them in their future careers. If we continue on this path TSM will no longer be an option for future students. Without improving our processes and holding students accountable, a detrimental disservice is done to them. They must be educated on industry standards, which are all tied to revenue, growth and success. To say they wrote an article, worked on or produced a show is one thing. To say they wrote an article, worked on or produced a show that generated over $25k is another. Which statement of experience would be more appealing in the real world? The stats are essential. We need to move forward with a process that has the breakdown of revenue allocated for every venture. Hook'em & Sell'em!!!

CJ Salgado Advertising Adviser !

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