College Professors & assorted brainiacs“searching for sustainable business models…yada, yada …crowd-sourcing…entrepreneurial journalism...community engagement…yada yada…grass roots via cloud…..yada…let’s do some more research….let’s tweet it…”
Run Web like NewspaperThink like Publisher / Owner in this order ! 1. profit 2. operations 3. editorial
What is ? Tim Armstrong • AOL’ s Hyper-local play to grab local ad dollars • Run by ex-Googler John Brod • Editorial & tech first • Sales ramping upWarren Webster
Why is Patch doing this?• AOL’s dial-up dead• AOL’s content-play struggles• Need new rev stream• They see local media downsizing• 50% of local web budgets, still on sideline• Local media protecting legacy business
Patch: Priority Plan• Local news source• Trusted community partner• Newspaper replacement• Create excellent journalism
Patch Marketing Staff… Freshest Breath in Town
Pay & Positionso Local Editor; $40k o MacBook Pro, camera, smart phone o $500 freelancer budget per month 401K matcho Ad Manager; $60k Performance bonus o Managing group of sites Medical & Dentalo Regional Publisher; $80ko Regional Editor; $80k o Oversee group of 12 Patch sites
Sales Job Postingo Be local online ad expert for small businesso Host WEB 101 seminars for small businesso Attend chamber & trade functionso Convince buyers to shift budgets to digitalo Visible presence in business community
Wanted: Online Sales ExecutiveYou’ll be working closely with local advertisers, as their local online advertising expert. You’llknow your own platform (and others) backwards and forwards so you can present completeadvertising solutions.You may decide to host local seminar on how to achieve the best results by advertising web.As the top local business executive, you will attend chamber and trade functions, getinvolved in community groups, head up charitable efforts and maintain a highly visiblepresence in the business community.Local Online Sales Exec is responsible for advertising sales to businesses in local markets.Will sell banner ads, e-newsletters, video & more. You will present promotionalopportunities and display options to store owners/management. You will handle ad sales,inventory management and “own” the online advertising for assigned local markets.As the Local Online Sales Executive you will also be responsible for assisting in coordinatinglocal event sponsorships and attending them, possibly on weekends.
Current Ad Offerso Self-Serve for $15 cpm….discontinued o Now: flat fee for SOV (share of voice)o Free Classifieds: merchandise, services offered o Small fee $20 auto & jobso Directory up-sells o Enhanced video o Fee to post couponso Newsletter Ads
Pandorao 60 million users o About half of all Internet listening o Avg 13 hrs of listeningo $50 mil revenue. Now profitableo 45 of top 50 national advertiserso Growing sales force o San Fran, NYC, LA, Chicago, Detroit, Dallas, Atlanta
PandoraLocal Targeting of Ads o Geo-targeting o By format o Audio, Video, Display
Now Hiring• Advertising Sales Representative - Oakland, CA• Senior Account Manager - Chicago, IL• Advertising Operations Technical Lead• Inside Sales Manager• Manager - Pricing and Yield Management• Online Ad Trafficker• Sales Planning Supervisor• Senior Advertising Project Manager• Senior Revenue Analyst• Vice President - Research and Marketing
o Quickie hyper-local sites for local TVo No upfront costso Call center pitches local biz in your nameo Rev share approx 60% to DataSphereo Primary relationship w/client. Retains data
OutsourcedLOCAL SalesDataSphere = SmartWTSP TV = Dumb
Take This Test• What % of print clients buy web ?• What % is sold local direct ?• Plan to reach non-print ?• Know marketing plan of clients?• Are your managers in the field ?
slaughter Web Sacred Cows• Need more page-views• Editorial controls site• Remnant, 3rd party ad networks
Beware the BS• We hit our (very low) web budget.• Web rev up by 500%. (off low comps)• Web traffic is strong. (distraction from profit margin talk)• We’re doing fine. (compared to other industry losers)• Print is where $ is. (yet, web is fastest growing rev stream)
Overhaul Comp• Revenue per rep & manager• New business per rep (per month)• Grow % of current clients using web• High commission rate: new clients• Low commission rate: transactional• Bonus & PENALTY
Digital Sales Training Who does most training? It’s a FACT. More training = more revenue
Bigger Not Always BetterREDUCEcommodity page-viewsGROWhigh ‘advertiser value’
multiple uses • Rte 9 is closed Breaking News • Lady Gaga tix on sale Friday • Phillies beat Astros 3-1 • Deal of Day Sponsored • Coupon download Promotions • Win Trip • Ticket Raid location • Stand by rate now avail Market to • Home page unit now avail Advertisers • Spring special 50% off
#1 Current Print ClientsMeet Dick. 25 years in the Newspaper biz.Always hits his print budget without fail. Hi.Dick always wins sales contests, like this I’m Dick.one to a tropical island. But because Dick isa print-sales superstar, he gets a pass whenit comes to web.Dick NEVER pitches web. Yet 90% of Dick’sclients buy alot of digital.Dick’s print clients buy online video, SEO,Groupon, banners and social media….…from Dick’s competitors.Dick’s clients LOVE him. They would buyWeb from Dick……if only he offered it.
#2 Call Center to Set ApptsKeep Sellers On The Street.Use classified phone room down-timeto set up appointments…or consideroff-shoring this activity to countriesthat would LOVE this job.Your sales reps should be in front ofclients and potential clients, as muchas possible.Expensive reps & sales managerssitting behind a desk making a fewhalf-hearted cold calls, is a poor useof limited resources.
Web 101 for Local Business Why ?Local biz wants to buy web… • confused / lack of knowledge • doesn’t totally trust sales rep • think Google or website is enough • never been offered web
Web 101 for Local Business Benefits• Provide web education to local biz > they buy more web !• Immediate web revenue• Sales reps get trained• Better than cold call• Superior, qualified lead generation
Test Yourself… Higher score, better chance to beat Patch Compensation Web 101Bonus, Penalty, MBO’s for Local Business All Staff Training SellManagement & Owners Non-Print Products Simple Packages…Job Description Refresh No CPM’s Online Media Kit, Reporting Structure Direct Contact to Rep Plan to Reach No Ad Networks Non-Advertisers
WatchDeseret News, Salt Lake City Newspaper..Broadcast..Web Clark Gilbert Digital Rock Star
WatchGawker Media Nick Denton Digital Rock Star
online video that pays Remember all that video stuff you bought for the newsroom? Take back half of it, and give it to the sales department.
Re-think EVERYTHING• Vendor Deals• Aggregation & RSS Reduce Costs• Local Indie-Journos via• CMS Platforms > Open Source• Local Ad Networks > Crowd Source• Sales-Based Video > Revenue Share• Management
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
Local Media Primary Primary Potential Position Background Responsibilities Weakness / Limitations • Owner • Increase shareholder value • Delegate strategy to content first executive Building • Manage overall operations • Thinks only brand extension strategy • CEO / COO • Drive top line growth Profitable Business • Over reliance on internal, traditional managers • Investor • Increase profit margin • Tough keeping track of online competitors • Build & manage digital platforms • Little or no direct sales & revenue experience VP Digital Content & Tech • Drive online traffic • Compensation primarily based on traffic • Content & tech development • Employs content first, not profit first strategy Local Sales • Sell traditional inventory • Prefer to sell traditional Traditional Sales • Sell web inventory (secondary goal) • Limited or no web sales training Management • Manage sellers • No web business model experience • Compensation favors traditional sales • Traditional media creation • Prefers traditional content development Local Content Traditional Media • Web media creation • Thinks only brand extension strategy Management • Increase audience numbers • Limited or no web development training • No web business model experience • Sell traditional inventory • Prefer selling traditionalLocal Sales Reps Traditional Sales • Sell web inventory (secondary goal) • Limited experience selling web • Limited or no web sales training • Compensation favors traditional Why Traditional Media Struggles w/ Online Revenue Growth
TOP 10 Revenue Mistakes of Local Online Media 1. Management, owners & CEO’s lack specialized web training 2. Dangerous thinking: ‘selling web cannibalizes print sales’ 3. Limited web training of sales reps 4. Management structure conflicts 5. Poor attention to fast changing, online environment 6. Setting web budgets too low 7. Ineffective inventory & yield management 8. Confusing media kits, sales packages & pricing 9. Director of Interactive; tech & content background only 10. Over-reliance on vendors & research for sales strategyRead full report here:http://meltaylormedia.com/2010/08/top-10-web-revenue-mistakes-of-tv-radio/
Middle-Man Channels Advertisers benefit from Traditional Channels New Channels new, multiple ways for reaching local consumer for reaching local consumerof reaching local consumer Niche Sites Newspaper Google Places, SEM, FacebookWants to reach local consumer TV Patch, Advertiser Hyper-local Local Consumer Radio Groupon YP360, Direct Mail Local.com Reach Local Directories Hulu, Pandora Direct Relationship between advertiser & consumers, avoiding middle-man channels EX: Twitter, Database, Blogs, Social, Mobile
Advertisers Content • National, Regional, Local Local Media Eco-System • Laid off journalists & photographers • Traditional media news • Moving dollars online Business Models that Support Local Journalism • Indie-sites & pro-am bloggers • Pro-active plan that exploits economic pressures • Watch Dog Journos • info & pubic domain data feeds Agy com Local Ad Network • Enables local commerce, that subsidizes local news • Community & citizen participation • Proven revenue management systems (RMS) • Move quicker from investor support, to self-support Traditional & Digital • Leverage efficiencies of outsourcing and open-source Local Ad Network Revenue share Fees Agency commission Marketing Services • Multiple online & offline revenue streams • Scalable via networks, franchising & co-ops Sales, Marketing, Training, Tech Co-op & Business Support EfficienciesRev share Self-serve, Outbound tele-sales RMS & CMS Platforms Licensing fee and/or revenue share Fees, sponsorships Events & Training Workshops lead aggregation Stringer & Syndication & Licensing Per Diem & fees Creative • Marketing Agencies Outsource / Fees Hyper-Local Incubator Outsource / Fees Marketing • Promotions • Video, Indie-Producers News, Community, Services & Support • Event, Contesting • Designers & Developers for Local, Media Markets • Social Traditional & Digital Marketing Services Fees Destination Site Commission, fees & rev-share Aggregation, Curation, Editorial Display, search, lead capture Local Ad Network Rev share, Agy com CMS & RMS Platforms Co-op Resources Mobile, RSS, Email, Social Ad supported Licensing fee, Rev share For Independent Bloggers & Sites Sponsor supported • Sales support, network & services Events & promotions Fees Stringers, Syndication & Licensing and/or fees • Content network & syndication • Tech & back-office support • Pre-vetted platforms & apps Traditional & Public Media • Representation and investments Local Community & Readership Growing need to reduce costs, • What if Newspaper shuts down? increase local coverage & revenue •Central hub for public affairs & local information
Digital Revenue Solutions for Newspaper, TV, Radio & Hyper-Localand…. MelTaylorMedia.com Updated 12/22/2010