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Digital or Die!

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  • (Isaac)Are you dead yet? State of local business advertisinga. Today print advertising takes up about 29% of local business budget (ISAAC)
  • (Isaac)“…the reason newspapers are in trouble isn't that they aren't making lots of money -- they still are; advertising is a huge, huge business, as any app developer will try to tell you -- but that their business models and payroll depend on so much more money.” - Derek ThompsonIt’s not about the newspaper business or the internet business. It’s about local advertising. Connecting local buyers with local sellers.a. Today print advertising takes up about 29% of local business budget (ISAAC)http://www.theatlantic.com/business/archive/2012/02/the-collapse-of-print-advertising-in-1-graph/253736/
  • (Isaac)State of local business advertisinga. Today print advertising takes up about 29% of local business budget (ISAAC)http://www.theatlantic.com/business/archive/2012/02/the-collapse-of-print-advertising-in-1-graph/253736/http://www.marketingcharts.com/uncategorized/internet-top-local-biz-research-channel-20442/pew-research-sources-for-information-on-local-businesses-dec11gif/
  • (Isaac)SMBs use about 28% of their marketing budgets on direct mail today.In five years that number is expected to drop a tiny 1% to 27% of their budget.BIA/Kelsey Estimates 2011 Global Yellow Pages Revenues at $23.4 Billion… BIA/Kelsey believes newer services (websites, video, social, mobile, SEM) rather than established Internet Yellow Pages platforms will be the primary digital growth drivers for directory publishers in the coming years….“A noteworthy factor of this forecast is the moderating of print declines,” said Global Yellow Pages coauthor Charles Laughlin, senior vice president, program director, BIA/Kelsey. “As print declines flatten out, a shift to digital will be a key to any return to growth. Recent stock market gains by publishers may indicate increasing confidence in publishers’ ability to turn the corner with new digital products.”
  • (Drew)March 2012, PricewaterhouseCoopers reported 83% of U.S. consumers go online to research before shopping in store. (http://www.internetretailer.com/2012/03/30/most-shoppers-go-online-research-products)Even if 100% of all of the residents that received the PennySaverUSA book everyday picked it up to read it, the numbers still don’t even come close to online reach
  • (Drew)MORE CUSTOMERS (better reach and chances of engagement)March 2012, PricewaterhouseCoopers reported 83% of U.S. consumers go online to research before shopping in store. (http://www.internetretailer.com/2012/03/30/most-shoppers-go-online-research-products)Even if 100% of all of the residents that received the PennySaverUSA book everyday picked it up to read it, the numbers still don’t even come close to online reachMEASURE SUCCESS (soft economy means you need to better account for your spend)RELEIVE ROI ANXIETYBecause it is so measurable and there are multiple ways to target and optimize campaigns, it makes it easier to see the fruit of your labor in rationalize spendingIt’s not that print is inneffetive
  • (Drew)Jan 2012, eMarketer released an updated forecast of Print vs. Online Advertising spend and 2012 will be the first year that online ad spending will surpass print spend (http://www.emarketer.com/PressRelease.aspx?R=1008788)“Digital revenues remain sole bright spot” for newspaper industry as print revenues are expected to decline 18% from 2011 to 2016There are multiple reasons why this is, but the two main reasons sighted for the growth is “The growing amount of time consumers spend with digital platforms and advertisers’ view of the internet as a more measurable medium”
  • MORE SOLUTIONSPrint is no longer the only solution to offer. Local businesses are looking for the most effective ways to reach their customers we all have the opportunity to fulfill that need.Expansion-Think outside the traditional advertiser box and expand your competency to help your advertisers achieve their overall objectivesBe a leaderLocal businesses are one some of the slowest to adopt to the digital space. Us publishers can capitalize on this moment educate our advertisers and show them that we can offer much more beyond advertising in the traditional sense.
  • Carissa to create title slide
  • (Drew)WRATH – Extreme angerMany of us have grown to hate the rise of companies like Craigslist and I think we pile all of these companies together as “digital” and say that digital or online products are killing usFor many of us, PSUSA including, the growth of our own websites and digital products has caused a similar feeling internally between our sales reps and the web unitIt makes complete sense why our reps feel this way, but it is not solving anythingIn fact, when speaking with Loren about his experiences he mentioned conversations that he had with attendees from AFCP 3 years ago and the sentiment was “Craigslist? Oh, my publications is too far removed from the big cities that Craigslist covers to have an impact on my business.”
  • (Drew)EXAMPLE - 3 point shot.http://en.wikipedia.org/wiki/Three-point_field_goalhttp://espn.go.com/mens-college-basketball/story/_/id/7178690/one-man-believed-adopting-3-pointer-college-basketball- “The three-point rule was first tested at the collegiate level in a 1945 National Collegiate Athletic Association game between Columbia and Fordham. However, professional basketball was the first to adopt the rule on a permanent basis. The short-lived American Basketball League did so in 1961, and the Eastern Professional Basketball League followed in its 1963–64 season. The three-point shot later became popularized by the original American Basketball Association after its introduction in the 1967–68 season. During the 1970s, the ABA used the three-point shot, along with the slam dunk, as a marketing tool to compete with the National Basketball Association (NBA). In the 1979–80 season, the NBA adopted the three-point shot.”- ESPN noted the shot was adopted with “all the enthusiasm as a root canal.”- Ed Steizts, inventory of the shot "It's going to force teams to play more defense away from the basket," Ed Steitz said when the 3-pointer was adopted. "People will say, 'You're putting the little man back in the game,' and that's good."
  • b.  What it could be - Embrace Craig’s list as the industry standard/benchmark and realize you actually have the upper hand- The internet is not your enemy. It is a gateway to helping your customers get good response.
  • (Isaac)Envy– resentful longing aroused by someone else’s possessionsa.  What it is - Envy what it used to be. We all want our old profits.
  • a.  What it is - Envy what it used to be. We all want our old profits. b. What it could be - Print has reached its peak as well, HOWEVER we have to tap new revenue streams to stay alive. Use every effort to build business back up by focusing on the customer. Print will be here for a while.EXAMPLE - FAT quarterback at 30 year reunion
  • (Isaac)a.  What it is – PRINT OR BUST baby. Online is cool, but it’s only an add-on to my print productsb. What it could be – Darwin Quote – it’s not the strongest that survives. Or the most intelligent that survives.  It’s the species that is most adaptable to change.EXAMPLE - craigslist - first 10 years that we were on the internet, they had to buy an ad on print and still have to pay to have an ad online 1995-2006.
  • (Isaac)a.  What it is – PRINT OR BUST baby. Online is cool, but it’s only an add-on to my print productsb. What it could be – Darwin Quote – it’s not the strongest that survives. Or the most intelligent that survives.  It’s the species that is most adaptable to change.EXAMPLE - craigslist - first 10 years that we were on the internet, they had to buy an ad on print and still have to pay to have an ad online 1995-2006.
  • (Drew)Gluttonya.  What it is – these ad sales are so delicious and easy to acquire! (won’t diversify across accounts)
  • (Drew)MySpace’s demise was due to gluttonyThey preferred ad revenue over user experience (better the user experience, better the loyalty, more valuable the advertising space)This is a picture of a MySpace welcome page from 2007. Not ONE item is content produced or provided by MySpace, it’s ALL advertisingPictures from Michael Hanscom’s blog post made in 2007 (Facebook is MySpace without the pain… http://www.michaelhanscom.com/eclecticism/2007/09/26/facebook-myspace-without-the-pain/)Even before the internet, consumers would most certainly react the same way with print, but free print publications had no way of knowing it unless they had advanced measuring techniques.This means it IS NOT the medium. Print is not the problem, it’s our gluttony that’s the problem. Even at PSUSA we are combating issues like this on PSUSA.com where a majority of our revenue comes from externally served ads from Google AdSenseWe are in the process of developing serveral product enhancements to make the users’ experience better and we hope this will increase amount of classified ads placed so we can be less dependent on the external ads.
  • (Drew)Don’t go the way of MySpaceMost print publications have had to increase the amount of ad space to accommodate rising print and distribution costs and shrinking readershipDiversify by adding digital products to your advertising packages and start to get your clients to acquire the taste for digitalNot only will this help you avoid “exhausting your readership with ads, but it will allow your advertisers to reach them across multiple channelsIt’s incredibly easy to lose sight of our objectives. If generating revenue is your primary objective, then you have already failedConcentrate on creating a great user experience for both the advertiser and the consumer and the revenue will follow
  • (Drew)GREED – intense desire & selfish desire for wealth or powera.   What it is – don’t want to let those margins gob.  What it could be – put your customers before margins and profits will come along with itEXAMPLE - Not going to trade print dollars for digital dimes. Craig Newmark, his price point was $0. Now he’s making $100M+ off of this. Ironic that people that are acting the most greedy will make the least money in the long wrong. Real way to success is helping connect buyers and sellers.
  • (Drew)Lessons from the long tail.a.   What it is – don’t want to let those margins gob.  What it could be – put your customers before margins and profits will come along with itEXAMPLE - Not going to trade print dollars for digital dimes. Craig Newmark, his price point was $0. Now he’s making $100M+ off of this. Ironic that people that are acting the most greedy will make the least money in the long wrong. Real way to success is helping connect buyers and sellers.
  • a.   What it is – lust after really BIG customerb.  What it could be – Bunny over the elephant. Don’t make that much money off of BIG customers. Majority of mom and pops are our margins. Even in the digital world, the internet is slow to adopt, we should be providing the digital answers for them.
  • a.   What it is – lust after really BIG customerb.  What it could be – Bunny over the elephant. Don’t make that much money off of BIG customers. Majority of mom and pops are our margins. Even in the digital world, the internet is slow to adopt, we should be providing the digital answers for them.
  • a.   What it is – Slow to adopt. Customers are changing with or without you. You are behind the curve. CANNOT do the internet at the speed of print. Print at the speed of web. b.   What it could be – Get in front of the curve, explore new options, and reap the benefits of being there first.
  • Don’t turn a blind eye to this. Kind of talking to ourselves - on the digital side we are offering about 6 products. the powersite product line makes the lion’s share. it makes 50% margins and north of $8M/year. We sell for $18 week. We are going to sell it to you for $7 week. Help us cover our costs and keep our industry alive.  Powersite product was not making money in the first two years.
  • Don’t turn a blind eye to this. Kind of talking to ourselves - on the digital side we are offering about 6 products. the powersite product line makes the lion’s share. it makes 50% margins and north of $8M/year. We sell for $18 week. We are going to sell it to you for $7 week. Help us cover our costs and keep our industry alive.  Powersite product was not making money in the first two years.
  • Don’t turn a blind eye to this. Kind of talking to ourselves - on the digital side we are offering about 6 products. the powersite product line makes the lion’s share. it makes 50% margins and north of $8M/year. We sell for $18 week. We are going to sell it to you for $7 week. Help us cover our costs and keep our industry alive.  Powersite product was not making money in the first two years.
  • Don’t turn a blind eye to this. Kind of talking to ourselves - on the digital side we are offering about 6 products. the powersite product line makes the lion’s share. it makes 50% margins and north of $8M/year. We sell for $18 week. We are going to sell it to you for $7 week. Help us cover our costs and keep our industry alive.  Powersite product was not making money in the first two years.
  • Don’t turn a blind eye to this. Kind of talking to ourselves - on the digital side we are offering about 6 products. the powersite product line makes the lion’s share. it makes 50% margins and north of $8M/year. We sell for $18 week. We are going to sell it to you for $7 week. Help us cover our costs and keep our industry alive.  Powersite product was not making money in the first two years.
  • Print vs. Online ad revenues in Newspaper industry with % of revenue attributed to Online from 2011 to 2016.Does your
  • (Isaac)a.  What it is - Envy what it used to be. We all want our old profits. b. What it could be - Print has reached its peak as well, HOWEVER we have to tap new revenue streams to stay alive. Use every effort to build business back up by focusing on the customer. Print will be here for a while.EXAMPLE - FAT quarterback at 30 year reunion
  • Transcript

    • 1. The 7 deadly sins of the traditional print publisher. Drew Fortin Isaac Taylor Marketing Director, Digital Products Product Manager, PowerSites PennySaverUSA PennySaverUSA dfortin@pennysaverusa.com itaylor@pennysaverusa.com @fortin on Twitter
    • 2. It’s still a …the reason newspapers are in trouble isnt that they arent making lots of money -- they still are...but that their business models and payroll depend on so much more money.$20B -Derek Thompson of The Atlantic industry 1962 Mission – Connect buyers with sellers.
    • 3. State of LocalAnd it’s Business Marketing •28% of SMBs’ marketing budgets still go to direct mail •$23.4 Billion 2011 Global Yellow Pages NOT Revenue •New services are primary digital growth drivers over established Internet platforms •Investment shifts to digital products are critical to any return on growth going away
    • 4. Digital Means Good ThingsFor Advertisers83 Of consumers research % online before shopping in-store. - Pricewaterhouse Coopers March 2012 Report
    • 5. Digital Means Good ThingsFor Advertisers ROI Anxiety Relief
    • 6. Digital Means Even BetterThings for Publishers21 % Of newspaper revenue from digital ads by 2016. - eMarketer January 2012 Report
    • 7. Digital Means Even BetterThings for Publishers
    • 8. 7 Deadly Sins
    • 9. WrathExtremeAnger
    • 10. Lessons From The 3-Pointer "People will say, Youre putting the little man back in the game, and thats good.“ – Ed Steitz, inventor of the 3 point shot Photo Credit: billaday
    • 11. Digital Anger Management 101 Take a serious look at the competition… •What do you have that they don’t? • Localized products • Targeted traffic • Loyal readers • Relationships • Brand voice and assets • What do they have that you don’t? • Traffic/Users
    • 12. Envyresentful longingaroused bysomeone elsespossessions,qualities, or luck
    • 13. Look forward.“Until recently, the holy grail was summed up in twowords: replacement revenue. Now the jig’s up. No matter how fastyou shovel digital dirt into the chasm of print loss, you can’t recreatethe past; you can’t fill the hole.” –Ken Doctor
    • 14. Pridefeeling ofpleasure fromones ownachievements
    • 15. We all need to adapt.• Bundle products together• Use digital to create sticky customers• Constantly test new products & pricing• It’s okay to fail, but fail fast “it’s not the strongest that survives. Or the most intelligent that survives. It’s the species that is most adaptable to change.” - Darwin
    • 16. Gluttonyhabitual eatingto excess.
    • 17. Don’t Go The Way of MySpaceSpread the risk &improve advertisers’results.
    • 18. GreedIntense &selfish desirefor wealth orpower.
    • 19. Lessons from the Long Tail Small pool of print customers that account for majority of revenuesRevenue Larger pool of potential online customers but each with lower revenue potential POTENTIAL CUSTOMERS
    • 20. Lust A very strong desire.
    • 21. Mom and pop shops are likerabbits. They’re small, butwhen you get enough ofthem together an elephantwill seem small incomparison.Mom and Pops are,and will continue to bewhere our marginsare.
    • 22. Sloth Not adapting to changeReluctance to work because of pride can be bad.or make an effort; Being slow to adapt becauselaziness of slothfulness can put you in an equally bad position
    • 23. It’s really not about digital…it’sabout your customer Take a serious look at the competition Create new revenue streams Marketing or bust! Diversify & bundle with digital products Stay focused on the end game Hunt bunnies, not elephants Use your size to your advantage
    • 24. EVERY POWERSITE INCLUDES: •WEBSITE CREATION •WEBSITE HOSTING •WEBSITE PROMOTION
    • 25. Now is a GREAT time to start! The other guys: PowerSites: $500+ Typical Setup Fee $50 PowerSite Setup Fee X X 25 Websites 25 PowerSites $12,500 $1,250We’re giving away 25 FREE PowerSite setups to everyone whosigns up to sell PowerSites by May 31st.
    • 26. Thank You!Drew Fortin Isaac TaylorMarketing Director, Digital Products Product Manager, PowerSitesPennySaverUSA PennySaverUSAdfortin@pennysaverusa.com itaylor@pennysaverusa.com@fortin on Twitter

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