2012 America East Mel Taylor

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Run Web as Profit First Business

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2012 America East Mel Taylor

  1. 1. March 13, 2012 Run DigitalProfit First MelTaylorMedia.com 267-625-5313
  2. 2. No BSDigital Business Models For Local Media
  3. 3. Mel Taylor Background
  4. 4. Bad News • Phila Inquirer • NYT regional • Media General • Chicago Sun times • Chicago News Co-op
  5. 5. How Long ?Bleed Red Ink Before YouClean House ?
  6. 6. Who do youFOLLOW
  7. 7.
  8. 8. let’s partner ;)
  9. 9. Digital ?I’m thinking retirement… bee-yatch
  10. 10. ‘Traditional print journalism has value of about zero’
  11. 11. PrivateEquity Your Newspaper
  12. 12. New sales product each week‘The Firehose’Unending stream of productsNo one knows what works, til you try
  13. 13. NEWSNot a Business Model
  14. 14. FAILOnline Journalism / Content looking for Revenue Models SMART Proven Revenue Models that support Online Journalism / Content
  15. 15. 3 step plan• Run Web like Business•1. Reduce costs Understand Competition Leverage Digital•2. Increase print share – Operational Efficiency3.– Increasenew revenue Tap Revenue Share – Increase Audience Share
  16. 16. Core business Newspapers Journalism Communications Advertising Enable Commerce
  17. 17. Run Web Like PrintThink like Publisher / Owner 1. Profit in this order 2. Operations 3. Editorial
  18. 18. Product LineWhat you want to sell ?What they want to buy ?
  19. 19. Search Web Social Presence SmallCustomerDatabase Business Social Needs Promotion Database Video
  20. 20. Journalism CPM Pageview Newspaper Social NeedsFollowers Paywalls Apps Mobile
  21. 21. InternalPoison
  22. 22. Remove Bozos Recent Online News Conference Watch clip of person killing your business from within.http://meltaylormedia.com/2011/11/if-steve-jobs-ran-your-newspaper/
  23. 23. DigitalOperations Manual Do you have one?
  24. 24. Digital Ops Manual • How we do it • Style guide • Process • System • Rules
  25. 25. Who’s in Charge How many in charge of digital? Salary or performance based?
  26. 26. I’m ready to give Rob Curley the hookBurn Thru Cash
  27. 27. Who Manages Digital ? ONE PERSONcompensation & job security tied to digital profitability Mel Taylor Media - Dec 2010
  28. 28. Who Manages Digital ? Mandatory Skill Set 1. Think like Publisher 2. Entrepreneurial 3. Biz-Dev & Direct Sales 4. Digital DNA 5. Traditional Marketing
  29. 29. • Webmasters• Designers• Editors Tell you what you can… …and can’t sell online ? Do you ask pressmen about what types of print ads you can sell?
  30. 30. Always done it that way Platform can’t do it We don’t offer it Don’t have time Too expensive Bad user experience
  31. 31. Beware• We hit our web budget• Web rev up 500 %• Web traffic is strong• 50,000 Facebook Fans• CPM selling
  32. 32. Where are sales experts in this picture?a) John Patonb) Jay Rosen cc) Jeff Jarvis a b New Business Models for News
  33. 33. The day I discovered that AOL PATCH had no idea how to make money.
  34. 34. Research
  35. 35. The New Workshop from Mel Taylor Media Online Business 101 for Editorial, Programming & Web ProducersWhen content creators understand online business models… they create more advertiser-friendly & profitable websites
  36. 36. Don’t Trainyour sales staff Until publisher is trainedUntil managers are trained Train the trainer
  37. 37. Separate Teams1. Internal civil war2. Print reps look out-of-touch3. Digital rep not incented to sell print4. Where to find good digital sellers?5. Multiple points of sales contact - bad7. Blame poor web sales on digital reps8. RARE - Deseret Media - Salt Lake City
  38. 38. InternalPoison
  39. 39. Meet Dick • Print Sales Superstar • Hits budget w/o Web • 75% of clients buy web • From competitors
  40. 40. Reps Operating BlindKnow how clientsare spending budgets?
  41. 41. Client Questions• Current marketing allocation• Current digital allocation• Digital you are considering• Who’s pitching you ?
  42. 42. Integrated Sales• All reps as super sellers• 1 web champion• 1 point of contact for client• Offer many solutions• Reach & power of all platforms Read: EPIC FAIL; Separate Digital Sales Teams
  43. 43. Overhaul Comp• Revenue per rep & manager• New business per rep (per month)• Grow % of current clients• High commission: new clients• Low commission: transactional• Bonus & PENALTY
  44. 44. Overhaul Comp> Grow % of clients using web> Bonus & PENALTY• Don’t hit web ? Lose PRINT bonus• Don’t hit web….all the time? > Lose acct or job
  45. 45. Outsourcing SalesHard Sell4-legged CallsHigh Churn RateClients feel pressured
  46. 46. Local Sales Effort• Protect & grow your LOCAL sales staff• Keep local client relationships to YOURSELF• YOUR managers should be trainers• YOUR managers should do 4-legged calls• Using imported sellers, makes rep look WEAK
  47. 47. VendorsBest Product & Price Financially motivated? Lowest cost & best features
  48. 48. Low Cost Operations
  49. 49. New CMS Models
  50. 50. Costs
  51. 51. Freekin’SCARYMedia Kits
  52. 52. Sales Kit Easy to understand ?For local business & reps ? Advertiser focused ?
  53. 53. The ABC 7 Coverage Area Encompasses Five Important Counties! With a total population of 909,790* in the ABC 7 coverage area, your commercial message is assured of reaching your best potential customers.*Source: US Census Bureau 2010 population estimates
  54. 54. Tampa Sarasota Bradenton Tampa Sarasota BradentonGender DMA Venice CBSA Age DMA Venice CBSAMen 48.1% 47.7% 18-34 25.3% 21.3%Women 51.9% 52.3% 18-49 49.0% 41.6% 25-54 48.5% 42.6% 35+ 74.7% 78.7% Tampa Sarasota Bradenton 50+ 51.0% 58.4%Race DMA Venice CBSAWhite 88.2% 94.6%Black 8.6% 3.1% Tampa Sarasota BradentonAsian 0.8% 0.4% Education DMA Venice CBSAOther 2.4% 1.8% High School 36.8 33.5% Some college 30.1% 29.8% College grad 14.3% 16.8% Tampa Sarasota Bradenton Post graduate 6.5% 8.1%Home owners DMA Venice CBSAOwn 75.3% 76.1%Rent 21.5% 21.5% Tampa Sarasota Bradenton HH income DMA Venice CBSA Tampa Sarasota Bradenton $50-74,999 16.5% 14.6%Value of home DMA Venice CBSA $75-99,999 13.5% 17.1%$300-349,000 3.3% 3.8% $100-149,000 10.4% 9.4%$350-499,999 4.6% 6.2% $150,000+ 5.5% 5.4%$500-749,999 1.8% 2.6%$750-999,999 0.7% 0.9% Source: Scarborough Research, Release 1, 2011 Tampa DMA compared to Sarasota/Bradenton/North Port CBSA$1,000,000+ 0.8% 1.3%
  55. 55. • WWSB ABC 7 is the ONLY Network Affiliate between Tampa & Ft. Myers.• ABC 7 airs 34 LIVE, LOCAL newscasts per week.• ABC 7 can bring your message to more people on the Suncoast than any other media.• ABC 7 is carried on all 3 Cable Systems along the Suncoast. (Comcast, Verizon and Brighthouse). As well as Direct TV.• A unique bond exists between the people of the Suncoast and ABC 7 that has flourished for over 35 years.• People value our thorough coverage of LOCAL news, weather and sports in their communities.• ABC 7 is a television station that has created strong relationships with the community and our customers, that endure over time.• ABC 7’s core values include being the best source of local information, providing top-quality service to our customers.
  56. 56. • ABC 7 has multiple ways of advertising: – Television (#1 way of advertising) – Internet (www.mysuncoast.com – 1.8 million page views a month!) – Sponsorships (Ex: Van Wezel’s Friday Fest, Music on Main in Lakewood Ranch, etc.) – Events (“Lifestyle Expo” in January 2012) – Discount Deals (Feature Deals on ABC 7 News) – Mysuncoast Deals (NEW App launching in Dec.!)
  57. 57. Television is the #1 Source for Product Information and NewsSource: TVB Media Comparisons Study 2010
  58. 58. MySuncoast.com InternetTrafficMonth Visits Page views Time spent/visitSept. ‘11 407,696 1,878,417 14:42Aug. ‘11 343,273 1,732,917 17:02July ’11 398,696 1,857,060 15:50June ’11 351,135 1,675,632 18:00May ‘11 325,848 1,486,342 17:06April ’11 287,262 1,458,119 18:30
  59. 59. Leaderboard should be calledMedia Kit TOP BANNER2 Yrs old Complexity & Inside-Talk Kills Sales 2012
  60. 60. How toFix the Kit
  61. 61. Total ReachOn-Air: xxx,000Website: xx,000Mobile xx,000YouTube xx,000Twitter xx,000Facebook xx,000Email xx,000Total Reach: xxx,000
  62. 62. MySuncoast.com Reaching xx,xxx Sarasota adults each month On-Air, Online & Marketing Services for Sarasota Area Business How We Help: Who We Help: • Brand & Message Awareness • Yoga, Fitness & Health Be seen, Get your message out • Beauty & Hair • Online Presence & Reputation • Boutiques & Retail Looking good online • Restaurants & Food • Database Marketing • Entertainment & Culture Customer email & Mailing Lists • Family & Kids • Online Couponing • Contractors Daily Deals, Promotions, Sampling •Doctors, Dentists, Lawyers Success Stories……can MySunCoast.com do this for you ? Client Logo Client Logo
  63. 63. Another Local Business SUCCESS STORY How can MySunCoast.com help you ?BUSINESS NAME (Logo & picture of business)• VERY brief description of business…. Location of Business(BUSINESS NAME) CHALLENGE: (what they needed help with)Restaurant launching new catering hall and menu. Needed help getting word out, having targetcustomers see upgrades to building, new menu , download new menu & coupon to sample food item.PLAN ( media company name ) PROPOSED• Large format banner on website home page, every Friday• Custom promotion & contest to build email list, encourage sampling, Downloadable coupon• Social media plan using Facebook & Twitter• Produce video profile & ‘behind the scenes’ tour of businessRESULTS ( insert business name here )• Built database of 500 using contest giveaway• Raised brand & message awareness via: • 750,000 banner impressions • 400,000 logo sponsorships impressions • 76,000 viewed video tourCLIENT TESTIMONIALWOW! Linda and her team did a fantastic job helping us get the word out about____. We now have aemail list of 600 and 250 new Facebook fans. The video looked great on the site, and is also perfect forour own website and Youtube channel. John Smith, Owner, Ocean Village Restaurant
  64. 64. Helping SARASOTA Business ON AIR & ONLINE
  65. 65. 3 Simple Packages
  66. 66. InventoryManagement % sold local direct?
  67. 67. DumbAd Networks on Home Page& Section Fronts
  68. 68. Remnant Ad Network on Home PageCause for Dismissal
  69. 69. Remnant Adon Home Page Remnant Ad on Home Page
  70. 70. Logo Competitor Remnant Ad Competitor Remnant AdRemnant Ad
  71. 71. Logo Competitor Remnant Ad on AUTO Page
  72. 72. How GREAT sites lose money> No Super-Premium Ads> The only local ad is pushedoutside of content area> Low CPM ad networkssucking up home pageof this otherwise strongnews-site.
  73. 73. CPM’s
  74. 74. BiggerNotAlwaysBetter
  75. 75. CPM RoadKill Ex-CEO
  76. 76. Rate Card & PricingSupply & Demand (not CPM)
  77. 77. Smart Practice weekly instead of monthly rates soundsexpensive $ 400. per month soundsreasonable $ 95. per week
  78. 78. PricingMon SatTues Thurs Fri SunWed$100 $150 $175
  79. 79. Super Dumb Practice Protect ‘rate card integrity’ @ $10 cpm and then….. Sell unsold inventory to ad networks @ $1 cpm
  80. 80. Un-limited Supply + Commodity Unit + Limited DemandLOSE PRICING POWER
  81. 81. Sweet Spot Pricing• Designate a premium unit • Sell 24 hour exclusive • Limit inventory…7 only…Pick a day• Pricing • Flat Fee….Raise rate as you sell out • Short commitment (3-6)
  82. 82. At Work Day-part Internet Prime Time Mon-Fri 9a-5pMorning Evening6a-10a Mid-day 8-11p 10-3p
  83. 83. Your site: Reader & Advertiser Friendly ? Train-wreck of content ? Is your site full of non-proprietary content that users can easily get elsewhere?
  84. 84. Client Education
  85. 85. TRIBUNE Digital Services
  86. 86. Get Online
  87. 87. FREE Local Plan 1st year• 3-page website• Domain name• Website hosting• Email supportYear 2 (per month)• $4.99 site/hosting• $2.00 domain• Cancel any time
  88. 88. Web Marketing 101For Local Business
  89. 89. Web Marketing 101For Local Business
  90. 90. Web Marketing 101For Local Business
  91. 91. Beware Exercise Caution Intermediaries, Middle men
  92. 92. Toll Taker 30% to Steve…Proceed with Caution
  93. 93. Share cropping Building business on land you don’t own
  94. 94. Frenemy
  95. 95. Centro• Started out as ADVOCATE for Newspaper Web sites• NOW…. They rep ANY & ALL sites
  96. 96. Centro Raised $22.5 million• expand sales force• target mid-tier advertisers / agencies• automated media-buying software
  97. 97. Centro• Middle man• Commoditize• Hidden spread• Can’t sell premium ops• Less reliant on Newspaper
  98. 98. Multiple Uses • Rte 9 is closed Breaking News • Lady Gaga tix on sale Friday • Red Sox beat Yankees 99-0 Ad-supported • Deal of Day • Coupon download Promotions • Win Trip • Stand by rate now avail Market to • Home page unit now avail Advertisers • Spring special 50% off
  99. 99. March 13, 2012 Run DigitalProfit First MelTaylorMedia.com 267-625-5313

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