Digital first business models


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These are slides for a workshop for the Montreal Gazette on business models for digital-first success.

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  • These are slides for a workshop for the
  • I’ll explain the origins of Bryce Canyon (not erosion, but tectonic upheaval), and explain the tectonic shifts going on in the media business.
  • I’ll mention the roots of C3, in my work for the Newspaper Next project.
  • Digital first business models

    1. 1. Digital FirstBusiness Models Steve Buttry The Gazette March 20 , 2012 #gaztrain
    2. 2. Read more about it••• @stevebuttry••
    3. 3. This change is tectonic, not cyclical
    4. 4. Clay Shirky: “Nothing will work,but everything might.”
    5. 5. John Paton: “You don’t tinker or tweak abroken model. You start again anew.”
    6. 6. Digital First principles• Digital First & print last• Put the digital people in charge• Engage the community• Core competencies: Local content & local sales• If it’s not core: reduce it, stop it, sell it or outsource it
    7. 7. Foundation to build on:• Strong brands• Local content• Local sales force• Journalistic integrity
    8. 8. Engagement = value • Computers & archives for community use • Open news meetings • Blog network • Classes • Digital audience 5x print • From loss to profit
    9. 9. Jim Brady:“Theres no silver bullet. Theres just shrapnel.”
    10. 10. Why not paywalls?• We never charged for content• When they “work,” benefit is marginal• You need to spend that money & energy developing a model for the future• They attempt to protect a failing model
    11. 11. John Paton:“’You’re gonna miss us when we’re gone’ is not much of a business model.”
    12. 12. Paid content opportunities?• Premium content (specialized)• Unique, high-value content• Membership (get more than content for your payment• Mobile, tablet• Even if people will pay, can you make more money w/ larger free audience?
    13. 13. Mobile Opportunity• 44% of U.S. adults have smartphones• 18% of U.S. adults have tablets (up 50% from summer 2011 to early 2012)Source: State of the News Media 2012
    14. 14. Mobile-first strategy• Text alerts• Email• Applications (phones & tablets)• Social media (tweets, check-ins, tips)• Location-based news, info & commerce• Easy-to-use mobile websites• Device-flexible (not device-agnostic)• Games (phones, iPads great for games)
    15. 15. C3’s new relationshipsFor the public: We will be their essentialconnection to community life — news,information, commerce, social life. Likemany Internet users turn first to Google,your community should turn first to C3,whatever the need.
    16. 16. C3’s new relationshipsFor businesses: We will be their essentialconnection to customers, often makingthe sale and collecting the money.
    17. 17. Our current relationship with business customers• Huge expense line in budget• Lots of inefficiency• Ad rates dropping• Ad revenues dropping• Lots of digital competition
    18. 18. C3’s revenue approach• Move beyond advertising• Direct sales (tickets, reservations, gift registries, gift certificates)• Lead generation & targeted ads• Sponsorships, memberships & events• Mobile ads & applications• Handle multiple needs (yes, competing ads)
    19. 19. The C3 relationship with business partners• Revenue line in budget (expense line, too)• Delivering high value, tailored to needs• One-stop shop for connecting with customers
    20. 20. Personal content• Births • Divorce• Youth milestones • Jobs, pets, holidays,• School food, interests, health• Graduation • Illness• College life • Empty nesters• Military service • Retirement• Weddings • Reunions• Parenthood • Obituaries
    21. 21. Life stories• Commissioned obits (journalist tells life story, paid by family)• Obituary, website, booklet, video• Not just obits: weddings, retirements, anniversaries, milestones
    22. 22. Newspaper Next
    23. 23. N2 lessons for Digital First• Jobs to be done = opportunities• “Good enough” opens doors to new avenues of excellence• Potential markets exceed what you can imagine (or what research can project)• “Beware the sucking sound of the core”
    24. 24. Discussion question: What are some social mediarevenue opportunities The Gazette might pursue? How?
    25. 25. Discussion question: What is a mobile revenueopportunity The Gazette might pursue? How?
    26. 26. Discussion question: What are some direct-salesopportunities The Gazette might pursue? How?
    27. 27. Discussion question: What is a personal content opportunity The Gazette shouldpursue? How would it generate a new revenue stream?
    28. 28. Discussion question:How should The Gazette changesales incentives for selling digital products & landing new customers?
    29. 29. Read more about it••• @stevebuttry••