Street fight prezo


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Street fight prezo

  1. 1. Hyperlocal Revenue 
  2. 2. Some Good Company....
  3. 3. Let’s Start at the Very Beginning A very good place to start
  4. 4. There Is No New Revenue Stream Robert Niles: “For all those hopeful newspaper managers, searching for a new revenue model that will save good, old-fashioned newsroom journalism, I have a message for you: Youre wasting your time. Please, stop. There is no new revenue model for journalism.”
  5. 5. What Are They?●Advertising●Direct Purchase●Donations
  6. 6. The Positive Side Constraints are a Good Thing
  7. 7. We can Still Do a Lot!This does not mean we can’t improve, experiment, update,adapt old revenue models.It just means that some things change and some things.... staythe same.
  8. 8. Some things HAVE changed.....●But it’s not the revenue streams - it’s the productionmode, production cost.●Qualitative changes abound: Relationship withaudience, engagement, etc. These can be positive on therevenue stream.... but revenue streams are the same.
  9. 9. Lets talk about each of these●Advertising●Direct Purchase●Donations
  10. 10. AdvertisingWhat we really mean is ..... for
  11. 11. Direct Purchase for
  12. 12. Donations for 10 presentation points for the audience member that gets this reference
  13. 13. I had a 4 year experiment around donations
  14. 14. Theory: Giving people: Transparency and Participation in the donation process will increase donations.
  15. 15. Apologies for going into numbers....
  16. 16. Donations.....NPR can get 1/12 listeners.Perspective: KQED has roughly750k listeners and is the secondlargest NPR station in the country.Average donation $125.Total yearly take: 7.8 million
  17. 17. Dont forget the content.....All this assumes your content is good.Otherwise you’re in trouble
  18. 18. *Overall stats Spot.Us●All data based on a database replicafrom 1:10 AM December 16th 2011●Breakdown: ● Number of members: 12,588 ● Number of donors: 6,647 ➔ 52.8 % of the community donates
  19. 19. *Community *●Number of donations: 13,020●Average number of donations: ● Per community: 1.05 ● Per donor: 1.93●Average donation: $38.17●Average time between donations: ~59.9 days
  20. 20. *Doing some math *●If Spot.Us Could Get 200,000 people tojoin....●Keep same level and occurrence ofdonations ($76 from 1/2 community)That’s 7.6 million.●
  21. 21. ●I’M RICH!!!! and I beat KQED! ●but wait.......
  22. 22. *Reverse NumbersGame●Percent of Traffic that Joins: 1.9%●Means - Every 1k visitors = 20 new members!●Percent of joiners who donate (50%)●Means every 2k visitors = 20 donors●100,000 donors needs: 10 million eyeballs●OR: 833k a month (KQED traffic)●NOTE: NPR throughout the country = +30million listeners
  23. 23. Final ConclusionsIf I were a pure scientists - it would be apples and oranges. My "sample" iscontaminated. At best I could say "inconclusive" at worst "theory doesnt holdtrue."
  24. 24. But apples and oranges are always there And Id argue they play in favor of my theory We are an unknown brand Managed by a team of 3-4 people (at our height) Our content was good - but Im willing to admit we didnt win any Pulitzers.
  25. 25. And thats without bringing up the pink elephant in the room.
  26. 26. *Spot.Us - as examplebut extrapolate....●MinnPost●Voice of San Diego●Bay Citizen●etc. etc.●Let’s take LARGE foundation grants out of it.●Their current mechanism of donations istraditional - but if they were 100% donations -they’d have to hit numbers similar to KQED.●Can we lower that barrier?
  27. 27. AdvertisingHow can we re-think this. for
  28. 28. AdvertisingHow about ........ for
  29. 29. Google Consumer Surveys READ THIS ARTICLE
  30. 30. Early Results at Mission Loc@l20% conversion rate80% abandonment rate So the real question is.......
  31. 31. What is more valuable. 20 80 vs.($15 eCPM) ($2-$5 eCPM) These are early results - I expect the brains to do better over time
  32. 32. AdvertisingHow can we re-think this. for
  33. 33. AdvertisingHow can we re-think this. for
  34. 34. NowSpots
  35. 35. AdGlue
  36. 36. Be Mission Market - Direct Purchase
  37. 37. The Screenularity
  38. 38. Are you Ready to Compete in Video?66% of Americans say television is their mainsource of news. Thats down from 74% in 2008 Down from 82% in 2002
  39. 39. Open Fields For Those That Can Grab itBottom of the second inning.
  40. 40. Thank youDavid Cohn - @digidaveCurrent project: @circa