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Online News
Financial Independence
Have the Business Models Come of Age?
Presented by John Granatino
5th International Sym...
Agenda
• A bit about Belo
• Original registration goals
• Advertiser case study
• The results
A Bit About Belo
Belo Interactive is the
Internet subsidiary of
Belo – the nation’s 9th
largest media company
with more th...
A Bit About Belo
Local market dominance
• BI attracts on average 5.5 million visitors generating over 110
million page vie...
A Bit About Belo
Recognition from our peers
• 2004
 Murrow Awards: KGW.com, WFAA.com, KTVB.com, KMOV.com, WVEC.com,
WWL-T...
Registration Goals
1. Identify and value customer segments
2. Increase audience loyalty and value
3. Migrate audiences
4. ...
Registration Goals
October 2000: Planning
May 2001: Launch
August 2001: 1st
email sale
February 2003: Audience
management ...
Goal 1: Identify & Value Customers
Who are your heaviest users in recency, frequencyWho are your heaviest users in recency...
Goal 1: Identify & Value Customers
Interests/HobbiesInterests/Hobbies DemographicsDemographics
Male 53%
Female 47%
$0-$19,...
Goal 2: Grow Audience Value
New visitor/TrialNew visitor/Trial
Retention/GrowthRetention/Growth
Loyal customerLoyal custom...
Goal 2: Grow Audience Value
Full audience management
• Technology enables “behavioral” tracking on our websites
• Integrat...
Goal 2: Grow Audience Value
Online ads can be served based on:
Content Section
 News
 Sports
 Weather
 Business
 Ente...
Goal 3: Migrate Audiences
Dallas Morning News
circulation
(785,000)
DallasNews.com
registered users
(1,825,000)
Reach oppo...
Goal 4: Increase Advertising Impact
Unleash the Internet’s power to deliver “one to one” orUnleash the Internet’s power to...
Goal 4: Increase Advertising Impact
We are able to deliver targeted
messages directly to
advertisers’ most valuable
custom...
Goal 4: Increase Advertising Impact
Traditional placement: reach large groups with similar profiles
Goal 4: Increase Advertising Impact
Client’s message will
only reach most
valued customer
segment, no matter
where custome...
Goal 4: Increase Advertising
Impact
Targeted Segments:
Visitors to the automotive section of
DallasNews.com in the past 30...
Results: A Competitive Advantage
Untargeted audiences:
Commodity impressions
Lower performance
Low consumer
relevance
Unkn...
Results: More Efficiency for Advertisers
• Email revenue more than doubled in 2003
 Since 2002, we have delivered more th...
Results: More Money for the Web Site
Targeted Revenue as % of Total
0%
4%
8%
12%
16%
20%
24%
2002 2003 2004 Expectation
Da...
Online News
Financial Independence
Have the Business Models Come of Age?
Presented by John Granatino
5th International Sym...
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ISOJ 2004

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Financialindependence

  1. 1. Online News Financial Independence Have the Business Models Come of Age? Presented by John Granatino 5th International Symposium on Online Journalism University of Texas, April 16, 2004
  2. 2. Agenda • A bit about Belo • Original registration goals • Advertiser case study • The results
  3. 3. A Bit About Belo Belo Interactive is the Internet subsidiary of Belo – the nation’s 9th largest media company with more than 150 years of building loyal audiences. Belo Interactive is the Internet subsidiary of Belo – the nation’s 9th largest media company with more than 150 years of building loyal audiences.
  4. 4. A Bit About Belo Local market dominance • BI attracts on average 5.5 million visitors generating over 110 million page views a month. 1 • DallasNews.com and projo.com are the most visited local news and information web sites for their markets. 2 • The following Belo Interactive Web sites are the most visited local television-affiliated sites in their markets: 3 - azfamily.com, Phoenix - KGW.com, Portland - KING5.com, Seattle - KHOU.com, Houston - KVUE.com, Austin - KMOV.com, St. Louis 1. BI Web Logs, 2003 2. Nielsen//NetRatings Q2 2003 Custom Report 3. The Media Audit – Phoenix 4/03; Seattle 6/03; Austin 5/02; Portland 6/03; Houston 8/03; St. Louis, 7/03
  5. 5. A Bit About Belo Recognition from our peers • 2004  Murrow Awards: KGW.com, WFAA.com, KTVB.com, KMOV.com, WVEC.com, WWL-TV.com  AP Regional Awards: Dallas, Norfolk, Portland • 2003  Sigma Delta Chi: KGW.com  Online News Association: DallasNews.com  EPpy award: DallasNews.com  Murrow Awards: KGW.com and KREM.com  AP Regional Awards: DallasNews.com, KGW.com, Projo.com • 2002  Murrow Awards: KREM.com, WFAA.com, KVUE.com, NBC6.com, WWL-TV.com  NAA Digital Edge Award: Projo.com  AP Regional Awards: DallasNews.com, WFAA.com, KGW.com, KVUE.com
  6. 6. Registration Goals 1. Identify and value customer segments 2. Increase audience loyalty and value 3. Migrate audiences 4. Increase advertising impact
  7. 7. Registration Goals October 2000: Planning May 2001: Launch August 2001: 1st email sale February 2003: Audience management system May 2003: Offer targeted online advertising based on declared or behavioral data profiles September 2003: Launched broad suite of Precision Advertising Solutions October 2000: Planning May 2001: Launch August 2001: 1st email sale February 2003: Audience management system May 2003: Offer targeted online advertising based on declared or behavioral data profiles September 2003: Launched broad suite of Precision Advertising Solutions
  8. 8. Goal 1: Identify & Value Customers Who are your heaviest users in recency, frequencyWho are your heaviest users in recency, frequency and amount, and what do you know about them?and amount, and what do you know about them?  Represent 5% of total usersRepresent 5% of total users  Consume 51% of page viewsConsume 51% of page views  Tend to be higher income and slightlyTend to be higher income and slightly younger than print readersyounger than print readers  Do not subscribe to the newspaper (94%)Do not subscribe to the newspaper (94%)
  9. 9. Goal 1: Identify & Value Customers Interests/HobbiesInterests/Hobbies DemographicsDemographics Male 53% Female 47% $0-$19,999 11% $20,000-$34,999 12% $35,000-$49,999 15% $50,000-$74,999 21% $75,000-$99,999 17% $100,000+ 24% 13-17 Years Old 2% 18-24 Years Old 10% 25-34 Years Old 25% 35-44 Years Old 26% 45-54 Years Old 26% 55-64 Years Old 11% BI’s customer profileBI’s customer profile 6.3 million registrations 1.9 Million targeted email subscribers 6.3 million registrations 1.9 Million targeted email subscribers Automotive 14% Books/Literature 23% Computers/Technology 22% Cooking 24% Electronics 13% Entertainment/Movies 35% Finance/Stock Market 13% Gaming Internet/Computer 12% Golf 13% Health & Fitness 24% Home Improvement 22% Music 30% Outdoor Activities 22% Shopping 18% Sports 31% Travel 28% 62% 77%
  10. 10. Goal 2: Grow Audience Value New visitor/TrialNew visitor/Trial Retention/GrowthRetention/Growth Loyal customerLoyal customer GrowGrow loyalty/loyalty/ usageusage • NewsNews • CustomerCustomer experienceexperience • PromotionPromotion
  11. 11. Goal 2: Grow Audience Value Full audience management • Technology enables “behavioral” tracking on our websites • Integrates registration data to enable demographic or interest category targeting • Ad server designed to predict, deliver, report on audience segments REGISTER AUDIENCE DEFINE AUDIENCE GROUPS DELIVER TARGETED ADVERTISING Ad Serving System MEASURE BEHAVIOR Audience Management System
  12. 12. Goal 2: Grow Audience Value Online ads can be served based on: Content Section  News  Sports  Weather  Business  Entertainment Traditional site targeting Traditional site targeting Demographics  Gender  Income  Age Lifestyle/Interest  Entertainment  Shopping  Travel Purchase Intent  Real Estate  Employment  Automotive  Financial New targeting options New targeting options
  13. 13. Goal 3: Migrate Audiences Dallas Morning News circulation (785,000) DallasNews.com registered users (1,825,000) Reach opportunity from online Reach opportunity for BI Frequency from duplicated audience (As of Jan, 2004)(As of Jan, 2004)
  14. 14. Goal 4: Increase Advertising Impact Unleash the Internet’s power to deliver “one to one” orUnleash the Internet’s power to deliver “one to one” or addressable marketing.addressable marketing.  Define specific audiences – beDefine specific audiences – be likelike traditional mediatraditional media  Increase results – Relevance, efficiency, performanceIncrease results – Relevance, efficiency, performance  Develop unique solutions – beDevelop unique solutions – be differentdifferent than traditionalthan traditional mediamedia
  15. 15. Goal 4: Increase Advertising Impact We are able to deliver targeted messages directly to advertisers’ most valuable customers, no matter where those customers travel throughout our sites.
  16. 16. Goal 4: Increase Advertising Impact Traditional placement: reach large groups with similar profiles
  17. 17. Goal 4: Increase Advertising Impact Client’s message will only reach most valued customer segment, no matter where customer travels on our site Client’s message will only reach most valued customer segment, no matter where customer travels on our site Precision placement hits the exact target every time
  18. 18. Goal 4: Increase Advertising Impact Targeted Segments: Visitors to the automotive section of DallasNews.com in the past 30 days Measurable Results: »Response rate of 7.7% »Credit applications doubled »Mitsubishi automobile searches increased by 17% on site »Campaign generated 44% of calls at a time when eight promotions were running in other media Targeted Segments: Visitors to the automotive section of DallasNews.com in the past 30 days Measurable Results: »Response rate of 7.7% »Credit applications doubled »Mitsubishi automobile searches increased by 17% on site »Campaign generated 44% of calls at a time when eight promotions were running in other media Targeted Campaign Yields Dramatic Results for Auto Dealer
  19. 19. Results: A Competitive Advantage Untargeted audiences: Commodity impressions Lower performance Low consumer relevance Unknown audience reach Targeted audiences: Powerful delivery combinations Efficiency Superior performance Audience relevance Reach and frequency
  20. 20. Results: More Efficiency for Advertisers • Email revenue more than doubled in 2003  Since 2002, we have delivered more than 1,500 email campaigns  We now have over 700 email clients • Average CPM for a targeted campaign is more than double an untargeted CPM  We have delivered more than 150 targeted campaigns  We now have over 50 targeted clients and 20 were new clients to Belo Interactive • I can pay for a larger news staff  Belo spends its money disproportionately on journalists, so success in targeting leads to success in content
  21. 21. Results: More Money for the Web Site Targeted Revenue as % of Total 0% 4% 8% 12% 16% 20% 24% 2002 2003 2004 Expectation DallasNews.com targeting revenue grew 143% from the first quarter of 2003 to the last quarter
  22. 22. Online News Financial Independence Have the Business Models Come of Age? Presented by John Granatino 5th International Symposium on Online Journalism University of Texas, April 16, 2004

ISOJ 2004

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