Newspaper Transition Strategy 2009

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Information about Newspaper Transition Strategy 2009
Business & Mgmt

Published on December 8, 2008

Author: meltaylor

Source: slideshare.net

Newspaper Transition & Web Revenue Strategy 2009 Mel Taylor Media Online Revenue Strategy for Local Media www.MelTaylorMedia.com 267-625-5313 A Pop Web Group Company. [email_address] 12/3/08

Newspaper Transition & Web Revenue Strategy 2009 This report is a ‘best practices’ summary of observations, experiences and facts that were collected over the past 18 months. We believe it’s a realistic roadmap for local Newspaper media to follow, in 2009. It’s primarily focused on business, sales structure, and web revenue models. It touches lightly on content. Much of the information contained within, applies to local Television & Radio Broadcasters as well. Contact us if you are interested in the Radio or Television version of this report.

Mel Taylor Media background newspaper television radio internet sales management content, production talent, reporter sales training

newspaper

television

radio

internet

sales management

content, production

talent, reporter

sales training

Mel Taylor Media recent client list

challenge for newspapers stabilize & grow print business simultaneously grow share of web dollars current economy will accelerate this challenge, and force a quicker solution

forces killing current business model news as commodity ad networks, falling cpm’s, glut of inventory specialty sites aggregators those successfully leveraging automation & outsourcing. competitors not dependent on rising hard costs outdated worker agreements. ex: uaw internal conflicts & bottlenecks economy accelerating advertisers move to web

news as commodity

ad networks, falling cpm’s, glut of inventory

specialty sites

aggregators

those successfully leveraging automation & outsourcing.

competitors not dependent on rising hard costs

outdated worker agreements. ex: uaw

internal conflicts & bottlenecks

economy accelerating advertisers move to web

core business not newspapers not journalism it’s advertising

not newspapers

not journalism

it’s advertising

core business local assets news/info gathering & dissemination sales force & support staff relationships & brand trust printing press & distribution notice the omission of ‘newspaper ‘or ‘website’ ?

news/info gathering & dissemination

sales force & support staff

relationships & brand trust

printing press & distribution

first step

questions we ask local media managers your advertisers are moving online. are you offering web to all of them?

what % of your traditional clients use online advertising ? do your reps know? questions we ask local media managers

what % of your traditional clients want to use online advertising, but don’t know how ? questions we ask local media managers

BIG question we ask what % of your traditional clients are regularly offered web? typical answer: not sure, but probably well less than 25%

newspapers capture large share of local online revenue, yet they still leave a lot of money on the table that’s alot of upside for newspapers to gain… and for pure-plays/competitors to go after how pure-plays are gaining LOCAL share

HUGE issue traditional reps & managers fear cannibalization afraid to offer web trading dollars for dimes protect the way it’s always been potential loss of job

traditional reps & managers

fear cannibalization

afraid to offer web

trading dollars for dimes

protect the way it’s always been

potential loss of job

HUGE issue overcoming fear of cannibalization if newspaper doesn’t offer web to clients… someone else will. clients will buy web, either from newspaper, or it’s competitors: TV & pure-plays.

overcoming fear of cannibalization

if newspaper doesn’t offer web to clients…

someone else will.

clients will buy web, either from newspaper,

or it’s competitors: TV & pure-plays.

how newspapers are fixing that issue overhaul compensation update job descriptions consistent web training for ALL especially top & mid-management * * how can top & middle-managers “manage”…what they don’t fully understand ?

overhaul compensation

update job descriptions

consistent web training for ALL

especially top & mid-management *

overhaul sales rep compensation compensation must become primarily, commission based. bonus & penalty when selling web. no longer ok for sales rep to hit print number, and miss web number. In this case, rep loses print bonus. threat of sales staffers quitting greatly reduced in this environment, due to lack of available jobs. radio reps are strong candidates as replacement hires; they’re used to cold calling, direct sales & creative cross-platform packaging.

compensation must become primarily, commission based.

bonus & penalty when selling web. no longer ok for sales rep to hit print number, and miss web number. In this case, rep loses print bonus.

threat of sales staffers quitting greatly reduced in this environment, due to lack of available jobs. radio reps are strong candidates as replacement hires; they’re used to cold calling, direct sales & creative cross-platform packaging.

how newspapers are fixing that issue culture transition via job description modification no longer a newspaper company now a local news & info company aggregate, distribute & sell… multi-platform

culture transition via job description modification

no longer a newspaper company

now a local news & info company

aggregate, distribute & sell… multi-platform

how newspapers are fixing that issue management transition > legacy managers , no matter how successful they’ve been, may not be best suited to build the web business > creation of ‘vp advertising’ or ‘chief revenue officer’ understands and is responsible for all revenue opportunities.

how newspapers are fixing that issue management transition > consistent training for top & middle managers how can they manage what they don’t fully understand?

newspaper sales structure 2009 hybrid approach for near term web specialists target new biz, categories, web-only buyers web specialists assist & train traditional reps mandatory web sales for print reps (bonus & penalties) convert all reps to ‘super-sellers’ over time

hybrid approach for near term

web specialists target new biz, categories, web-only buyers

web specialists assist & train traditional reps

mandatory web sales for print reps (bonus & penalties)

convert all reps to ‘super-sellers’ over time

goal: integration all reps become super sellers 1 point of contact for client able to offer many solutions reps sell total reach of platforms newspaper sales structure 2009

goal: integration

all reps become super sellers

1 point of contact for client

able to offer many solutions

reps sell total reach of platforms

right-sizing who to let go ? those that debate change.. purge internal poison valued in past, but less valuable for future editorial without solid connection to revenue web staff without solid connection to revenue

who to let go ?

those that debate change.. purge internal poison

valued in past, but less valuable for future

editorial without solid connection to revenue

web staff without solid connection to revenue

mandatory re-think all content/editorial staff must now think revenue too

newspapers getting smarter about: less reliance on middlemen: ad networks not all traffic is valuable. bigger not always better developing content networks; syndication specialty sites , separate url’s inventory dilution & falling cpm’s via limiting supply aggregator strategy: do what you do best, point to the rest. reverse publishing opportunities online & print working side by side

less reliance on middlemen: ad networks

not all traffic is valuable. bigger not always better

developing content networks; syndication

specialty sites , separate url’s

inventory dilution & falling cpm’s via limiting supply

aggregator strategy: do what you do best, point to the rest.

reverse publishing opportunities

online & print working side by side

newspapers targeting new revenue categories broadcast & cable dollars online info-mercials, video micro-sites, video in banner, pre-roll, etc seo/sem offerings behavioral, geo targeting yahoo partnership go direct to brands w/custom, cross-platform ideas syndication of content creation of premium, vertical ad networks self-serve ad platforms for smaller clients

broadcast & cable dollars online info-mercials, video micro-sites, video in banner, pre-roll, etc

seo/sem offerings

behavioral, geo targeting

yahoo partnership

go direct to brands w/custom, cross-platform ideas

syndication of content

creation of premium, vertical ad networks

self-serve ad platforms for smaller clients

newspapers targeting broadcast & cable’s weaknesses reliance on transactional , agency business high cost of news gathering video & production small newsrooms limited publishing & layout experience small online sales & editorial staff little or no sales staff training over-air content not translating to web

reliance on transactional , agency business

high cost of news gathering video & production

small newsrooms

limited publishing & layout experience

small online sales & editorial staff

little or no sales staff training

over-air content not translating to web

newspaper tactics to grow local, online revenue share online only sellers & multi-platform super sellers consistent training of traditional sales force specialized web training of top & mid management change job description & commission structures target print, broadcast, & interactive budgets creation of local ad networks sales

online only sellers & multi-platform super sellers

consistent training of traditional sales force

specialized web training of top & mid management

change job description & commission structures

target print, broadcast, & interactive budgets

creation of local ad networks

how newspapers can own local, online news/info space low cost of video news gathering & production leverage new tech: video cell phones, wireless, etc. leverage large newsrooms reporters becoming MOJO’s : indie mobile journalists leverage publishing & layout experience 24/7 web-first newsroom local blogger network & aggregator strategy editorial

low cost of video news gathering & production

leverage new tech: video cell phones, wireless, etc.

leverage large newsrooms

reporters becoming MOJO’s : indie mobile journalists

leverage publishing & layout experience

24/7 web-first newsroom

local blogger network & aggregator strategy

notable newspaper initiatives specialty sites determine online content & revenue hole in market, and fill it with a separately branded web site. leverage power of legacy assets: content development, IT & design staff, marketing & sales staff, advertiser relationships, etc. www.Metromix.com www.LVBrideandGroom.com www.ToastedRav.com www.PHrequency.com

newspaper action plan 2009 summary modify job description & comp plans regular training for all staff, especially top mgrs. automate & outsource syndicate & aggregate find profitable local holes, & fill consider revenue first, then content reverse publish

modify job description & comp plans

regular training for all staff, especially top mgrs.

automate & outsource

syndicate & aggregate

find profitable local holes, & fill

consider revenue first, then content

reverse publish

advertiser spend 2008 where should we place more sales effort? TNS Media Intelligence Overall Online S.C. Johnson DOWN 10 % UP 111 % Wells Fargo DOWN 10 % UP 157 % Verizon UP 8 % UP 70 %

DOWN 10 %

UP 111 %

DOWN 10 %

UP 157 %

UP 8 %

UP 70 %

TNS Media Intelligence advertiser spend 2008 where should we place more sales effort? Overall Online Ford DOWN 2 % UP 65 % GM DOWN 9% UP 79 % Chrysler DOWN 8% UP 41%

DOWN 2 %

UP 65 %

DOWN 9%

UP 79 %

DOWN 8%

UP 41%

 

reverse value add

web advertising 101 seminars for local business another tactic to drive web revenue

why a seminar ? local advertisers want to buy web, but… confused embarrassed by lack of knowledge don’t totally trust sales rep think Google is enough think their own site is enough never been offered web

local advertisers

want to buy web, but…

confused

embarrassed by lack of knowledge

don’t totally trust sales rep

think Google is enough

think their own site is enough

never been offered web

new web revenue on books increase online ad mix target advertisers still on web sidelines slow the migration to competition traditional rep sales training benefits of seminar for local media

new web revenue on books

increase online ad mix

target advertisers still on web sidelines

slow the migration to competition

traditional rep sales training

 

 

 

 

 

 

 

 

newspaper brings in ‘outside expert’ expert provides objective info non-sales approach fun, easy to understand how does it work ?

newspaper brings in ‘outside expert’

expert provides objective info

non-sales approach

fun, easy to understand

expert makes the case for web advertising provides best practices & basic info branding vs. message awareness vs. search discuss creative, pricing, targeting local case studies seminar topics that lead to business .

expert makes the case for web advertising

provides best practices & basic info

branding vs. message awareness vs. search

discuss creative, pricing, targeting

local case studies

case studies & Cablevision $146,000 new quarterly business 26 new contracts e $ 144,000 new quarterly business 41 new contracts

& Cablevision

$146,000 new quarterly business

26 new contracts

e

$ 144,000 new quarterly business

41 new contracts

case studies $140,000 new quarterly business 26 new contracts RESIDUAL EFFECT of training & seminar: web sales up 300% Jan: $30k per month …June: $109k per month Jan: 44 web clients….June: 67 web clients

$140,000 new quarterly business

26 new contracts

RESIDUAL EFFECT of training & seminar:

web sales up 300%

Jan: $30k per month …June: $109k per month

Jan: 44 web clients….June: 67 web clients

WARNING clients will buy web. from you…. or the competition

clients will buy web.

from you….

or the competition

reaching customers online Sample slides from seminar Presented by Mel Taylor

Your customers are spending more time online

Ad spend: out of whack

the economy

while market is soft build demand for offerings lock long-term discount rates steal show while others vanish

build demand for offerings

lock long-term discount rates

steal show while others vanish

Bill segment

Radio 38 years TV 13 years Internet 5 years reaching critical mass 50 million users Phone 74 years

Ignored Amazon.com

Ignored MP3’s and I-tunes

search branding message awareness web marketing

search

branding

message awareness

today’s yellow pages reach those on a mission search

today’s yellow pages

reach those on a mission

is search enough?

would you only use yellow pages? to advertise your business

How do you stand out on this page?

How do you stand out ?

branding stand out from crowd familiarity stability logo w/ slogan

stand out from crowd

familiarity

stability

logo w/ slogan

educational newspaper, broadcast, outdoor passive consumer un-aware of offer > New location > Sale > New item message awareness

educational

newspaper, broadcast, outdoor

passive consumer

un-aware of offer

> New location > Sale > New item

click-through rate what it does and does not measure.

measures immediate response not overall response click-through rate

brand lift brand preference brand recognition visited site/store, later OVERALL response

brand lift

brand preference

brand recognition

visited site/store, later

creative kiss. 7 words or less clear in graphics single message borrow from billboards

kiss. 7 words or less

clear in graphics

single message

borrow from billboards

 

Unique User – visitor to site Page Views – viewed web page. learn these EX: readership, viewership, listenership EX: quarter hours, rating points

CPM – “Cost Per Thousand” learn these If CPM is $10 My AD seen 100,000 times Total cost: $1,000.

http://tribads.chicagotribune.com/onlineadvertising/ http://essentials.baltimoresun.com/media_kit/design-dev/ rich media http://www.tihr.com/mediakit/

what sites should i use? quality of content advertiser friendly number of ad units

quality of content

advertiser friendly

number of ad units

what sites should i use?

www.wxtu.com many radio stations still not taking web seriously dumping ground cluttered no content no value, even if free station looks bad

dumping ground

cluttered

no content

no value, even if free

station looks bad

GOOD ! IAB.net compliant clean environment limited Ad units above fold good content

GOOD !

IAB.net compliant

clean environment

limited Ad units

above fold

good content

http://www.tmccreatives.com/ newspaper online

http://essentials.baltimoresun.com/micro_clients/lifebridge/ online info-mercial ad-vertorial ez & cheap to produce your biz seen by more better search results never a wasted play video micro-site on newspaper site

online info-mercial

ad-vertorial

ez & cheap to produce

your biz seen by more

better search results

never a wasted play

Source: NetRatings, September 2008 2 3 Million Top Local Websites

Seminar 90 mins Client Check-in & Lunch / Networking Mel Taylor (50 mins) Web sales manager; local info ( 10 mins) Local manager offers discounted packages 15 minute break to close biz Pick door prize winners

Client Check-in & Lunch / Networking

Mel Taylor (50 mins)

Web sales manager; local info ( 10 mins)

Local manager offers discounted packages

15 minute break to close biz

Pick door prize winners

Here’s overview of Seminar/Training program On site visit & training …. 5 weeks in advance Expert Web sales training; how to overcome common objections Overhaul of sales presentation & packages Set goals, get input from local staff Co-development of all materials, strategy Return day before event; training/prep Up to 3 sessions a day, over 2 days optional sessions: retail, agency, real estate, etc In the field calls, day after

On site visit & training …. 5 weeks in advance

Expert Web sales training; how to overcome common objections

Overhaul of sales presentation & packages

Set goals, get input from local staff

Co-development of all materials, strategy

Return day before event; training/prep

Up to 3 sessions a day, over 2 days

optional sessions: retail, agency, real estate, etc

In the field calls, day after

call or email for more info. we specialize in building web revenue. guaranteed. Mel Taylor Media Online Revenue Strategy for Local Media www.MelTaylorMedia.com 267-625-5313 A Pop Web Group Company. [email_address] 12/3/08

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