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Turning a profit with your news site Presentation Transcript

  • 1. Fort Worth, Texas March 10, 2011Turning a Profitwith your news site MelTaylorMedia.com Twitter: @MelTaylorMedia Mel@MelTaylorMedia.com 267-625-5313
  • 2. Mel Taylor Media How we help Newspaper refresh blow up overhaul & rebuildoutdated web business models
  • 3. Mel Taylor Background
  • 4. Agendao Life blood of local journalismo Why are we stuck ?o Patch business modelo Other models……successfulo Cherry pick solutions that work
  • 5. Are YouVulnerable?
  • 6. AggregatorAggregatee
  • 7. DUMB ? News from PATCHAggregation: Good But... Use Carefully
  • 8. USE EVERY TOOL To Grow • audience share • revenue share
  • 9. Newspaper TOOLS• Legacy• Feet on street• Local content creation• Client relationships USP Unique Selling• Brand familiarity Proposition• Print / Traditional distribution
  • 10. Newspaper TOOLS• Video• Social & Mobile• Integrated / cross platform• Large newsrooms• Aggregation, Blog networks
  • 11. Digital First Aggregation TwitterContent RSS Blog Posts Curation Seed Print Website Syndicate
  • 12. Steps for Success• Understand Competition• Know USP• Leverage Digital for Share
  • 13. FAILOnline Journalism/Content looking for Revenue Models SMART Proven Revenue Models that supportOnline Journalism/Content
  • 14. Limited, Hard News Watch Dog Community Direct Advertiser SupportSoft Content & Services Journalism Support SystemSubsidize Hard Content (Just like in Newspapers) Ad & Content Networks Syndication Offline Revenue, Events Digital Marketing ServicesRevenue Friendly PLATFORM Soft Content & Services Sponsored Features Advertorial Ecommerce Web 101 Workshops Video, Social, Mobile Directory, Classifieds Sustainable Journalism - Platforms & Systems3/14/2011 MelTaylorMedia.com
  • 15. Life Blood of Newspaper Local Advertiser Dollars
  • 16. Local Biz BombardedTRADITIONAL NON-TRADITIONAL• Other Papers • Google • Groupon• Community News • Facebook• Specialty News • Digital agency • Pandora & digital radio• Magazines • Geo-Target national sites• TV • Self-publishing • Hyper-local sites/blogs• Radio • You-Tube• Cable • Yelp & review sites • Free directories• Outdoor • Craigslist, Angie’s list • Service Magic• Yellow Pages • Monster, Cars, Realtor.com
  • 17. MobileTwitter whatFacebookVideo shouldApps we doCoupons ?Blogs
  • 18. RUN ONLINE LIKE PRINTSAME RULES
  • 19. Run Web like NewspaperThink like Publisher / Owner 1. profit in this order 2. operations 3. editorial
  • 20. • New revenue development• Operational efficiencies• Bottom line & profit margin
  • 21. Reduce Costs• Open source• Outsource• Partner• Aggregate• Automate
  • 22. Costs
  • 23. 1. Compensation RUN2. Management3. Simplify inventory WEB4. Apply pressure LIKE5. Raise Rate PRINT
  • 24. Skepticism Online deals = small Print sales = big• Online is small %, but fastest growing• Advertisers moving larger % to web• Outsiders talking to clients. They’re buying
  • 25. Cannibalize Print ?
  • 26. solving fear of cannibalization if we don’t offer digital…someone else will
  • 27. SIMPLE First Steps • Who’s in charge? • Ask client about ad spend • Compensation adjustment • Pitch current print clients • Simplify ads & packages
  • 28. Who Runs Site Financially motivated or…. • make it impressive • drive page-views • win awards • sell more print ?
  • 29. Editorial vs. Sales Internal Conflict
  • 30. Overhaul Comp• Revenue per rep & manager• New business per rep (per month)• Grow % of current clients using web• High commission rate: new clients• Lower commission rate: transactional• Bonus & PENALTY
  • 31. Reps Operating BlindFully awareof how clientsare spending budgets?
  • 32. Ask Client about Ad Spend Their answers will surprise you
  • 33. BiggerNotAlwaysBetter
  • 34. PrintNews Hole
  • 35. promo LOGO sectionsOnlineAd hole
  • 36. Un-limited Supply + Commodity Unit + Limited DemandLOSE PRICING POWER
  • 37. How To WinWhat can Newspaper do… that others can’t ? USP Unique Selling Proposition
  • 38. USP• Superior local reach• Feet on street• Trust & Brand familiarity• Client relationships• Local content creation & curation
  • 39. How Newspaper Wins Combine Newspaper USP with New Digital Tools
  • 40. Critical QuestionDo advertisers care more about news… or selling their merchandise ? 2009
  • 41. NEW LOCALCompetitors
  • 42. What in Common?
  • 43. Local Ad Dollars
  • 44. View slide deck here:http://www.businessinsider.com/the-aol-way
  • 45. Patch: Priority Plan• Local news source• Trusted community partner• Newspaper replacement• Create excellent journalism
  • 46. AOL’ shyper-local playfor local ad dollarsvia journalism
  • 47. Over 800 Sites…so far 555 in Q4 2010• 18 states• Over 100 in California• 73 in Massachusetts• 40 in Georgia• 30 in Philadelphia• 3m uniques; Dec 2010 Launched in February 2009
  • 48. Communities Avg size: 50-70kPATCH Philly Regional Publisher:Former Publisher @ Journal Register Lehigh County Bucks County Main Line Philadelphia Region Chester County Today: 30 Summer 2011: 60 South Jersey Delaware County
  • 49. Why is Patch doing this?• AOL’s dial-up dead• Need new revenue• Local media downsizing• 50% of local budgets on sideline• Local media protecting legacy biz
  • 50. Will Patch Succeed ?• Who knows – Doesn’t matter• Patch is more proof… – Local dollars up for grabs
  • 51. Deadly Mistake only focus on…. • traffic • community • banner ads • journalism skils
  • 52. tactic ofdiverting attention awayfrom item of significance
  • 53. Sweet.Newspaper is falling right into our trap
  • 54. Deadly Mistake As we bad mouth • 50 mil investment • Mc cookie cutter sites • Working conditions • Corporate approach
  • 55. Patch Grows• Efficiencies of scale• Walmart effect• Infra-structure• Additional revenue ops
  • 56. Patch Grows• Aquisitions• AOL content & ad net• Monetizable reach• Monetizable data
  • 57. Patch Marketing Staff… Freshest Breath in Town
  • 58. Recruitment
  • 59. POACH
  • 60. POACH• Newspaper• TV• Cable• Yellow Pages• NAA• Bloggers
  • 61. Patch University
  • 62. Patch Office Space
  • 63. Editor of Canon-McMillan Patch, with Mayor Rhome Pittsburgh Business Times
  • 64. Mayor Flips SwitchHopkins, Minnesota Patch Site #500
  • 65. FREE Holiday Parking Courtesy of Ardmore PATCH
  • 66. Editorial Pay & Positionso Local Editor; $40k o MacBook Pro, camera, smart phone, police scanner o $500 freelancer budget per month 401K matcho Regional Publisher; $80k Performance bonus Medical & Dentalo Regional Editor; $80k o Oversee group of 12 Patch sites
  • 67. SALES Pay & Positionso Ad Manager; $60k base o 5k signing bonus 401K match Performance bonus o 90k at plan Medical & Dental o Cell, laptop, wireless card o Budget
  • 68. Patch SalesInventory
  • 69. Current Ad Offerso Flat fee for SOV (share of voice)o Free Classifieds o Small fee $20 auto & jobso Directory up-sells o Fee to post couponso Newsletter Adso Video Profiles $800
  • 70. Huffington Post The great roll up begins similar to isps, cable, radio, newspaper• Profitable• Pageviews & uniques• Management success• Leverage rules of web 2.0• Technology implementation• Social, viral , commenting
  • 71. provides boost to aggregation /automation portion of business
  • 72. Warren Websterabout Outside.in acquisition:“We really believe in the model we have right now,pairing local journalism w/ tech and efficiency of scale.Outside.in : outstanding technology to scale even faster.[They have] tools for journalism to make us more robust; afantastic group of engineers, product people, and businesspeople.
  • 73. other LOCALcompetitors
  • 74. Outsourcing
  • 75. Yellow Pages
  • 76. Cable
  • 77. Google Places
  • 78. • Over 45 US markets• Feet on street • Search Engine Marketing • Display / Banner • Video • Multiple digital solutions
  • 79. NewspapersDIGITAL SERVICE Divisions
  • 80. TRIBUNEDIGITALSERVICES
  • 81. Online Radio
  • 82. Pandorao 60 million users o About half of all Internet listening o Avg 13 hrs of listeningo $50 mil revenue.o 45 of top 50 national advertiserso Growing sales force o San Fran, NYC, LA, Chicago, Detroit, Dallas, Atlanta
  • 83. PandoraTargeting of local adson NATIONAL SITES o Geo-targeting o By format o Audio, Video, Display o Mobile
  • 84. LOCAL adon national site 112
  • 85. Digital Outdoor• Geo target• Day part• Production
  • 86. Hyper-local sites & Web Sales for Local TV
  • 87. o No upfront costso Call center pitch local businesso Use TV’s call letterso Rev share approx 60% to DataSphere
  • 88. Don’t help them Don’t run their ads Post tease & link back to site Post tease & link back to site
  • 89. 75% of Deal Market Average User Single Female 18-34 Income: 70k+Users2008: 400 k Employees Dec 2009: 1242009: 1.5 mil Dec 2010: 3,1002010: 40 mil
  • 90. HARVESTINGyour audience
  • 91. & Newspaper> Partner NO> Run Groupon Ads
  • 92. Deals
  • 93. Take your foot off the brake
  • 94. think about it… newspapers are careful about who gets a front page ad in their print product ( hand-selected business pays premium )but… they don’t follow the same smart rules about ad placements in their online product
  • 95. not smart
  • 96. DUMBNational Ad Networks( at local level ) REMOVE from home-page & section fronts Consider day-parting
  • 97. danger of ad networks Ad unit designed to look like editorial
  • 98. DUMB National Ad Networks
  • 99. National Ad Networks 3rd Party Ads, Remnant, Google Ad Sense 1.Found moneyGood: 2.No upfront costs 1.3rd party reps inventoryBad: 2.Inventory glut lowers pricing power 3.Local business gets on site…cheap 4.Commoditize your inventory
  • 100. National Ad Networks REMOVE home-page & section fronts • Day-part • Secondary sections • Below fold • Non-prime positions
  • 101. 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.
  • 102. danger of ad networks Ad unit designed to look like editorial
  • 103. TV Promo Great TV Station in prime position losing web dollars on HOME PAGE Sales/Marketing Promo Marketing Promo in prime position TV Promo in prime position 3 home-page units !Would TV run nothing but devoted to DEALSnon-paid promos & remnant adsin 11p newscast? Sales/MarketingNo. PromoThen why do it online..on this PREMIUM page? Sales/Marketing Low CPM Promo 3rd Party Ad net
  • 104. simplify
  • 105. NEWS LOGO REDUCE NEWS LOGO Clutter ! NEWS LOGO NEWS LOGO
  • 106. Huh? • cpm • pageviews • uniques Huh? • click-thru rate • odd pricing • pixels • impressions
  • 107. overcoming COMMON objections
  • 108. Overcoming Common Objections Groupon Newspaper Not Already Facebook Doesn’tInterested have Site Google Work Tried it. Don’t See Cable No Budget Did not My Ad Work
  • 109. Website Seller OLD SCHOOLweb sales DEAD
  • 110. NEVER Call your site….THE INTERNET Some prefer to read our paper:Better: • at work on computer • on their iPhone
  • 111. NEVER SAYWanna buy a banner ? 25% of our readers loveBetter: our Online Newspaper… You need to be there too
  • 112. Notinterestedin Web
  • 113. Newspaper is Enough• Great start !• Readers are online too• Need your ad there
  • 114. things to say to client
  • 115. totally understand many of my clients felt same way
  • 116. your customers still use newspaper
  • 117. but…
  • 118. your customers are spending more time online
  • 119. Let me help you reach them online
  • 120. At Work Day-Part Internet Prime Time Mon-Fri 9a-5p
  • 121. Total Readership Newspaper: xxx,000 Online: xx,000 Total Reach: xxx,000 Website: xx,000 Unique / readers Mobile: x,000 Apps, alertsTotalOnline Social: x,000 Facebook, Twitter Email: xx,000 Opt-ins YouTube: xx,000 Subscribers
  • 122. SIMPLEMedia Kit • Online • Print • Email (PDF)
  • 123. Reach Philly….in Print & Online PW.com - AT WORK DAYPART________% of Philly (ages 18-54) are online PW.com features:________% of (18-54) that use online for entertainment • High profile display ads________% of (18-54) that use online for local info • Custom Sponsorships • Audio & video adsPW.com delivers: • Contests & Promotions______ Page-views per month • Database & lead capture______ Unique readers on computer or mobile • Social Media & Mobile • Email ____ Email Subscribers ____ Facebook Fans ____ Twitter Subscribers DEMO ONLY
  • 124. Reach Philly….in Print & Online PW.com - AT WORK DAYPART•Testimonials•Quick case study•Logos of current online advertisers•Local advertisers looking great on site DEMO ONLY
  • 125. How Local Biz Decides to buy your site• Reads your newspaper• Pageviews, CPM, Price• Design• Awards• Twitter & Facebook & Video
  • 126. Ad Mix do they seelocal business& competitors?
  • 127. http://www.tmccreatives.com/
  • 128. Premium Ads • Skins & site take-overs • Pre-rolls • Large format display
  • 129. smart practice easiest ad unit to sell Sliding Billboard
  • 130. Home Page Premium Unit
  • 131. Already Using• Banners• SEO• Facebook• Website
  • 132. PRINT & ONLINE targeted email* tweets* facebook online promotion* messages Integrated Campaign build database * download coupon * join contest * friend list * watch video * twitter * subscribers capture: * email * twitter * facebook fan
  • 133. Don’t SeeMy Ads
  • 134. Target Impressions• Day-part (9a-3p)• Pick a day (wed)• Pick a section (sports)
  • 135. Newspaper Stinks• I understand your feelings• Show online solutions• Use Print to support Web• Up-sell to print• Show benefits of combo
  • 136. Using Google / SEO• Great start• Reaches ACTIVE buyers• You need PASSIVES too – Those NOT buying now
  • 137. To advertiseyour business Would you only use Yellow Pages?
  • 138. TooExpensive
  • 139. Smart Practiceweekly instead of monthly rates soundsexpensive $ 400. per month soundsreasonable $ 95. per week
  • 140. ‘Your cpm is too high’ Interactive Media Queen Avoid This Nonsense….instead….sell flat fee to local/directs
  • 141. It’s NotWorking
  • 142. Manage ClientExpectations
  • 143. How will clienttrack success?
  • 144. • Increase salesHow • Store trafficWill • Brand awareness • Message awarenessClient • Click thru rate • Download couponTrack • Subscribe emailSuccess • Facebook / Twitter
  • 145. Manage ExpectationsBrand Awareness 3 Campaign - Boston Pizza Logo ObjectivesMessage Awareness - Boston Pizza; 3 locations. Now in BraintreeDirect Response - Accountable performance - Show (redeem) text message for free topping
  • 146. Top Reasons forCANCELLATION
  • 147. BADBanner Design Creatives
  • 148. Click here for… Well designed… • Gift Cards • Branding • Menus • Message Awareness • NYE Reservations • Direct Response
  • 149. Design Banner as if….• Speed by at 70mph• 2 seconds of attention
  • 150. Banner Design• KISS• No Web Address• Clear graphics / messaging• Understood in 2 seconds
  • 151. Banner Design• What is Goal ? Branding Message awareness Direct response• Call to Action ?
  • 152. ClientVanity
  • 153. Banner Design• What is Goal ? Branding Message awareness Direct response• Call to Action ?
  • 154. Banner Design good or bad ?
  • 155. if we don’t offer digital…someone else will
  • 156. SELL Current Print ClientsPrint Sales SuperstarWins Sales ContestsHits Budget w/o WebHis clients wouldbuy Web if….• offered consistently• offered with passion• offered as a ‘great idea’ (not just banner ads)
  • 157. Use Classified Call Center to set appointments• Cold calling is weak• Keep sellers on street• Use classified dept• Consider outsourcing to call center
  • 158. Web 101 forLocal Business Seminars
  • 159. Starter Web Sales Plan• Designate premium HOME PAGE unit • Sell 24 hour exclusive • Limit inventory…7 only…Pick a day• Pricing • Flat Fee • Raise rate as you sell out • 12 week commitment
  • 160. Overhaul Compensation• Revenue & New Business • Per rep & manager • Per month• Commission • 25% or more for new biz • 10% or below for transactional
  • 161. Overhaul Compensation> 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
  • 162. CompensationDO NOT bonus based on: • Page views • Unique users
  • 163. instead…bonus & compensate on revenue & profit
  • 164. Multiple Uses Breaking • Rte 9 is closed News • Lady Gaga tix on sale Friday • Red Sox beat Yankees 99-0 • Deal of Day Ad-supported • Coupon download Promotions • Win Trip • Stand by rate now avail Market to • Home page unit now avail Advertisers • Spring special 50% off
  • 165. local business using twitter & facebook
  • 166. food truck sends tweetsinform customers where they’ll be, and at what time
  • 167. Hyper Local
  • 168. Blogger Network Farm System for Newsroom
  • 169. The Revenue Engine, Platform & System for Hyper-Local News, Independent Websites & Content Creators UPDATED 3/11/2010 • Hyper Local Networks • Competing with Patch • Sustainable Models Hyper-Local Incubator Revenue, Sales, Tools & Support Services3/11/2011 MelTaylorMedia.com Mel@MelTaylorMedia.com PH: 267-625-5313
  • 170. Advertising & Content Network Blogs / Independent Journalists / Online Content Creators Hyper-Local Incubator *for demonstration purposes only3/14/2011 MelTaylorMedia.com
  • 171. Advertisers Content • National, Regional, Local Local Media Eco-System • Laid off journalists & photographers • Moving dollars online Business Models that Support Local Journalism • Traditional media news • Indie-sites & pro-am bloggers • Enable local commerce to subsidize local news • Info & pubic domain data feeds Agy com Local Ad Network • Community & citizen participation • Proven revenue management systems (RMS) • Move from investor/foundation support, to self-support Fees Traditional & Digital • Leverage efficiencies of outsourcing & open-source Local Ad Network Revenue share Agency commission Marketing Services • Multiple online & offline revenue streams 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 Outsource / Fees Hyper-Local Incubator Outsource / Fees Marketing • Marketing Agencies • 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 Readership Growing need to reduce costs, • What if Newspaper shuts down? increase local coverage & revenue • Central hub for public affairs & local info Property of Mel Taylor Media. OCT. 1, 2010 www.MelTaylorMedia.com
  • 172. Soft Content & Services Subsidize Hard Content (Just like in Newspapers) Limited, Hard News Watch Dog Community Direct Advertiser Support Journalism Support System Ad & Content Networks Syndication Offline Revenue, Events Digital Marketing ServicesRevenue Friendly PLATFORM Soft Content & Services Sponsored Features Advertorial Ecommerce Web 101 Workshops Video, Social, Mobile Directory, Classifieds Sustainable Journalism - Platforms & Systems3/14/2011 MelTaylorMedia.com
  • 173. 536,893 Unique Readers per month
  • 174. News 10Sacramento
  • 175. Integrated & Separate Sales Reps• All reps as super sellers• Slowly grow web-only force• 1 point of contact for client• Offer many solutions• Reach & power of all platforms
  • 176. Tools For TrafficSEO, Title TagsKeyword richSyndication, RSS Tapping These ?Share / SocialFlickr, YouTube
  • 177. Online Videoshow me the money
  • 178. 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.
  • 179. 4 Types of Video• Story extender• Story teller• Gotta see it, to believe it• Client promo / demo
  • 180. Online Video Best Practices for Revenue• Pre-Roll • Frequency cap • :10, :15, or :30 based on length • No video? Use static billboard• Lower Third
  • 181. onlinephoto-mercials
  • 182. online photo-mercials
  • 183. Newspaper USP unique selling propositionWhat can Newspaper offer…that PATCH & OTHERS can’t ?
  • 184. 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
  • 185. 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
  • 186. mel taylor mediatestimonialsOur ‘Web 101 for Small Business’ seminar was a huge success• $140,000 in new revenue and signed 26 NEW advertisers• Increased average revenue per account by 18%.Mel is charismatic, well spoken and easily captures attention of the crowd. He takes the time to build a storythat can make the most difficult concepts seem easy.Before the client seminar (where Mel trained our sales staff) he addressed the most common objections. Melhelped give the sales staff more confidence, and made them fully prepared to sell.At the client seminar, Mel engaged the audience, spoke in terms that made them comfortable, and madeprofessional reference to promote our Newspaper website, without losing credibility as a professional, outsideconsultant.Dan Sarko ; VP of Interactive; Tribune
  • 187. mel taylor mediatestimonials We generated over $140k of new (quarterly) online business. The seminar results far exceeded our expectations. Mel’s presentation was also a very effective learning tool for our print sales staff, reinforcing our in-house web training. One key to our success was Mel’s presentation style. He was able to build the advertisers’ web comfort by using non-tech, easy to understand methods & terminology. John D’Orlando, VP Advertising; Orlando Sentinel
  • 188. mel taylor media testimonialso Your knowledge and experience in what works, and what doesnt, to generate online revenues is sorely needed in the Broadcast industry. Your recommendations are simple, practical, and can be executed immediately. Feedback from attendees was as high as weve ever gotten. John Potter VP Training; Radio Advertising Bureauo As an event planner, I have the opportunity to place many different types of speakers on various industry programs. Rarely do I encounter a speaker of the caliber of Mel Taylor. Not only is he extremely knowledgeable in and well-prepared for his subject matter, he is also a very entertaining speaker and a pleasure to work with. He is an asset to any program. Marsha Stoltman; America East Newspaper Conferenceo Mel, Thank you so much for helping Clear Channel Philadelphia take 100% share of the “Cirque Du Soleil” Theatre buy. $60 thousand dollars for us! Your “integrated marketing approach” blew the client away. We even took $10,000. of their print budget ! The client said they were VERY impressed with your presentation and program, ….and they don’t impress easily ! Tara Kelly, Clear Channel Radioo Mel Taylor has sold new media for newspapers, radio and television, and knows what it takes to get past low CPM’s and remnant ads. We hired Mel Taylor Media at WTEN in Albany and saw immediate benefits. In addition to innovative internet training and development for our sales team, Mel worked closely with the news director and web developer. Our site now looks better and is more appealing to our advertisers as well as our viewers. The best part: revenue is up. Mike Sechrist, WTEN TV, Albany, NY
  • 189. Mel Taylor Media success story Results: 90 day web-sales initiative 2008 2009 IncreaseFebruary $71,813 $134,847 88% March $97,304 $160,756 66% April $110,000 $164,475 49%
  • 190. Fort Worth, Texas March 10, 2011Turning a Profitwith your news site MelTaylorMedia.com Twitter: @MelTaylorMedia Mel@MelTaylorMedia.com 267-625-5313