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Digital Roadmap for Magazine Publishers

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Digital Roadmap for Magazine Publishers

  1. 1. From Traditional to Tradigital<br />A roadmap for magazine publishers<br />Prescott Shibles<br />CEO<br />
  2. 2. How do you use a roadmap?<br />
  3. 3. The Industry’s Abuzz<br />Traditional Publishers<br />E-readers<br />Paywalls<br />Audience Engagement/ Social Media<br />Cost structure<br />Saavy Media Companies<br /><ul><li>HTML 5
  4. 4. Smartphones / mobile
  5. 5. Semantic analysis
  6. 6. Behavioral targeting / personalization
  7. 7. Hyperlocal
  8. 8. API’s</li></li></ul><li>Why such divergentstreams of thought?<br />
  9. 9. 5 Major Challenges<br />Print dollars to digital dimes<br />Disintermediation of media<br />Dramatic increase in number of competitors<br />Rise of ad networks<br />Top 50 Web sites command 90% of online revenues<br />
  10. 10. Simplifying Digital Strategy<br />4 P’s of Marketing<br />Product<br />Price<br />Place<br />Promotion<br />4 S’s of Digital Media<br />Scale<br />Segmentation<br />Smarts<br />Science<br />
  11. 11. Scale<br />
  12. 12. Nearly 30% of Google’s Revenue Comes from Partner Sites<br />
  13. 13. Top 50 Web properties hold an 89% market share<br />
  14. 14. Ad Network Scale<br />
  15. 15. The challenge of ad networks<br />BusinessWeek: 30% of display ad dollars spent with ad networks<br />"Moving from site-targeting to people-targeting is the central dynamic of the industry," says Matt Spiegel, chief executive officer of ad giant Omnicom Media's (OMC) digital group. <br />
  16. 16. Hearst’s Scale<br />
  17. 17. The Knot’s Scale<br />
  18. 18. Content that Scales<br />Demand Media network reach<br />
  19. 19. TheKnot.com almost twice as much reach as Conde’sBrides.com<br />
  20. 20. Technologies that Enable Scale<br />APIs and Microformats: a way for one application to interact with another one (transfer data, log in, etc.)<br />HTML5: supported partially in new browsers like Safari and Chrome… mobile platforms <br />Semantic analysis: automated tagging<br />Behavioral targeting: take lower value inventory and increase prices as much as 25%<br />
  21. 21. API Example<br />
  22. 22. Segmentation<br />
  23. 23. Ad Targeting<br />Behavioral<br />Geography<br />Demographics<br />Social<br />Contextual<br />
  24. 24. Need Finer Targeting Tools<br />
  25. 25. Keys to Segmentation<br />Unified customer database<br />Website registration<br />Registration API<br />Tie consumption habits to customer database<br />Semantic analysis of content improves contextual targeting AND behavioral data capture<br />Tie in historical data<br />RFM (recency, frequency, monetization)<br />
  26. 26. Scale + Segmentation = Performance Buys<br />
  27. 27. Build a Vertical Ad Network<br />Approach competitors, traditional and digital<br />Adify, DoubleClick and others offer ability to create your own ad network<br />Benefits of ad networks without the low CPM’s<br />
  28. 28. Science<br />
  29. 29. Where to Spend<br />“Content management systems are the new ad servers” – Tim Armstrong, CEO, Aol.<br />"Moving from site-targeting to people-targeting is the central dynamic of the industry," says Matt Spiegel, chief executive officer of ad giant Omnicom Media's (OMC) digital group. <br />
  30. 30. Content Management<br />Semantic tagging<br />Ease of use to editors<br />SEO<br />Integration with membership system<br />Syndication capabilities<br />Multisite management (theknot.com)<br />
  31. 31. Membership<br />Use threshold gating<br />Data I’ve seen puts conversions around 30%<br />Of those that become members, 40% subscribe to the magazine<br />Majority of those are new print subs<br />Hearst developed Circules<br />50% of subs now driven by Web<br />$20 MM delta on circulation profits<br />
  32. 32.
  33. 33. Areas to Save<br />Web analytics: can be had cheaply but don’t skim on proper implementation<br />Inventory / yield management<br />Search<br />Personalization, behavioral recommendation <br />
  34. 34. Smarts<br />
  35. 35. Business Models<br />Traditional<br />Site-targeted advertising<br />Subscription to content<br />Push-based<br />Assembly line approach<br />Tradigital<br />API license<br />Content Syndication<br />Subscription to service<br />Scale-based (push and pull)<br />Consultative marketing solutions sales execs<br />
  36. 36. Simplifying Digital Strategy<br />4 P’s of Marketing<br />Product<br />Price<br />Place<br />Promotion<br />4 S’s of Digital Media<br />Scale<br />Segmentation<br />Smarts<br />Science<br />
  37. 37. Wired on the iPad<br />How does this scale?<br />iPad version, Android version, Skiff version, etc.<br />How does it segment?<br />Not a lot of details as to how to deliver advertising<br />What’s the science?<br />Proprietary… will cost you significant investment up front and ongoing<br />What skills are required?<br />Lots of training or hiring of specialists <br />
  38. 38. Alternate Scenario<br />Build App in HTML5<br />Port it later<br />Just go Web-based<br />Does it scale? YES! Works on Apple and Android mobile devices<br />How does it segment? It uses your regular ad server.<br />What’s the science? Standards-based solution, degrades elegantly, affords future functionality<br />What skills are required? Most technical producers are keeping up with HTML5. If not, learning curve isn’t high<br />

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