2012 america east mel taylor
DESCRIPTION
Run Web as Profit First BusinessTRANSCRIPT
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Profit First Profit First Profit First Profit First Run DigitalRun DigitalRun DigitalRun Digital
March 13, 2012
MelTaylorMedia.com 267-625-5313
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Digital Business ModelsDigital Business ModelsDigital Business ModelsDigital Business Models
For Local MediaFor Local MediaFor Local MediaFor Local Media
No BSNo BSNo BSNo BS
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Mel Taylor BackgroundMel Taylor BackgroundMel Taylor BackgroundMel Taylor Background
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Bad NewsBad NewsBad NewsBad News• Phila Inquirer
• NYT regional
• Media General
• Chicago Sun times
• Chicago News Co-op
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How Long ? How Long ? How Long ? How Long ?
Bleed Bleed Bleed Bleed RRRRed Inked Inked Inked Ink
Before You Before You Before You Before You
Clean House ?Clean House ?Clean House ?Clean House ?
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Who do youWho do youWho do youWho do you
FOLLOWFOLLOWFOLLOWFOLLOW
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☺☺☺☺
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let’s partner ;)
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I’m thinking retirement… bee-yatch
Digital ?Digital ?Digital ?Digital ?
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‘Traditional print journalism
has value of about zero’
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Your
Newspaper
Private
Equity
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New sales product each week
‘The Firehose’
Unending stream of products
No one knows what works, til you try
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Not a Business Model
NEWSNEWSNEWSNEWS
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Online Journalism / Content looking for
Revenue Models
FAIL
Proven Revenue Models that support
Online Journalism / Content
SMART
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3 step plan3 step plan3 step plan3 step plan
• Run Web like Business
• Understand Competition
• Leverage Digital– Operational Efficiency
– Increase Revenue Share
– Increase Audience Share
1. Reduce costs
2. Increase print share
3. Tap new revenue
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Newspapers
Journalism
Communications
Advertising
Enable Commerce
Core businessCore businessCore businessCore business
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1. Profit
2. Operations
3. Editorial
in this orderin this orderin this order
Think like Publisher / Owner
Run Web Like PrintRun Web Like PrintRun Web Like PrintRun Web Like Print
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Product LineProduct LineProduct LineProduct Line
What you want to sell ?
What they want to buy ?
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Small Business
Needs
SearchWeb
Presence
Social
Database
Video
Promotion
Customer Database
Social
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Newspaper Needs
Journalism
Pageview
Paywalls
MobileApps
Social Followers
CPM
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Internal Internal Internal Internal
PoisonPoisonPoisonPoison
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http://meltaylormedia.com/2011/11/if-steve-jobs-ran-your-newspaper/
Remove BozosRemove BozosRemove BozosRemove Bozos
Watch clip of person killing your business from within.
Recent Online News Conference
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Digital Digital Digital Digital
OperationsOperationsOperationsOperations
ManualManualManualManual
Do you have one?
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• How we do it
• Style guide
• Process
• System
• Rules
Digital Ops
Manual
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How many in charge of digital?
Salary or performance based?
Who’s in Charge
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I’m ready to give
Rob Curley
the hook
Burn Thru Cash
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ONE PERSON
compensation & job security
tied to digital profitability
Mel Taylor Media - Dec 2010
Who ManagesWho ManagesWho ManagesWho Manages
Digital ?Digital ?Digital ?Digital ?
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Mandatory Skill Set1. Think like Publisher
2. Entrepreneurial
3. Biz-Dev & Direct Sales
4. Digital DNA
5. Traditional Marketing
Who Manages Digital ?Who Manages Digital ?Who Manages Digital ?Who Manages Digital ?
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• Webmasters Webmasters Webmasters Webmasters
• DesignersDesignersDesignersDesigners
• EditorsEditorsEditorsEditors
Tell you what you can…
…and can’t sell online ?
Do you ask pressmen about
what types of print ads you can sell?
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Always done it that way
Platform can’t do it
We don’t offer it
Don’t have time
Too expensive
Bad user experience
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• We hit our web budget
• Web rev up 500 %
• Web traffic is strong
• 50,000 Facebook Fans
• CPM selling
BewareBewareBewareBeware
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a) John Patonb) Jay Rosenc) Jeff Jarvis a
b
c
New Business Models for News
Where are sales experts in this picture?
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The day I discovered that AOL PATCH
had no idea how to make money.
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Research
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When content creators understand online business models…
they create more advertiser-friendly & profitable websites
Online Business 101for Editorial, Programming & Web Producers
The New Workshop from Mel Taylor Media
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Don’t Train
your sales staff
Until publisher is trained
Until managers are trained
Train the trainer
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1. Internal civil war
2. Print reps look out-of-touch
3. Digital rep not incented to sell print
4. Where to find good digital sellers?
5. Multiple points of sales contact - bad
7. Blame poor web sales on digital reps
8. RARE - Deseret Media - Salt Lake City
Separate Teams
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Internal Internal Internal Internal
PoisonPoisonPoisonPoison
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• Print Sales Superstar
• Hits budget w/o Web
• 75% of clients buy web
• From competitors
Meet DickMeet DickMeet DickMeet Dick
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Know how clients
are spending budgets?
Reps Reps Reps Reps OOOOperating Blindperating Blindperating Blindperating Blind
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Client QuestionsClient QuestionsClient QuestionsClient Questions
• Current marketing allocation
• Current digital allocation
• Digital you are considering
• Who’s pitching you ?
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• All reps as super sellers
• 1 web champion
• 1 point of contact for client
• Offer many solutions
• Reach & power of all platforms
Read: EPIC FAIL; Separate Digital Sales Teams
Integrated SalesIntegrated SalesIntegrated SalesIntegrated Sales
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• Revenue per rep & manager
• New business per rep (per month)
• Grow % of current clients
• High commission: new clients
• Low commission: transactional
• Bonus & PENALTY
Overhaul CompOverhaul CompOverhaul CompOverhaul Comp
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> 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
Overhaul CompOverhaul CompOverhaul CompOverhaul Comp
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Hard SellHard SellHard SellHard Sell4444----legged Callslegged Callslegged Callslegged Calls
Outsourcing Sales
High Churn RateHigh Churn RateHigh Churn RateHigh Churn RateClients feel pressuredClients feel pressuredClients feel pressuredClients feel pressured
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Local Sales Effort• Protect & grow your LOCAL sales staff
• Keep local client relationships to YOURSELF
• YOUR managers should be trainers
• YOUR managers should do 4-legged calls
• Using imported sellers, makes rep look WEAK
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VendorsVendorsVendorsVendorsBest Product & PriceBest Product & PriceBest Product & PriceBest Product & Price
Financially motivated?
Lowest cost & best features
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Low Cost OperationsLow Cost OperationsLow Cost OperationsLow Cost Operations
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New CMS ModelsNew CMS ModelsNew CMS ModelsNew CMS Models
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Costs
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Freekin’
SCARYMedia Kits
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Easy to understand ?
For local business & reps ?
Advertiser focused ?
Sales Kit
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The ABC 7 Coverage Area Encompasses Five Important Counties!
With a total population of 909,790* in the
ABC 7 coverage area, your commercial
message is assured of reaching your best potential customers.
*Source: US Census Bureau 2010 population estimates
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Tampa Sarasota Bradenton
Gender DMA Venice CBSA
Men 48.1% 47.7%
Women 51.9% 52.3%
Tampa Sarasota Bradenton
Age DMA Venice CBSA
18-34 25.3% 21.3%
18-49 49.0% 41.6%
25-54 48.5% 42.6%
35+ 74.7% 78.7%
50+ 51.0% 58.4%
Tampa Sarasota Bradenton
Race DMA Venice CBSA
White 88.2% 94.6%
Black 8.6% 3.1%
Asian 0.8% 0.4%
Other 2.4% 1.8%
Tampa Sarasota Bradenton
Education DMA Venice CBSA
High School 36.8 33.5%
Some college 30.1% 29.8%
College grad 14.3% 16.8%
Post graduate 6.5% 8.1%
Tampa Sarasota Bradenton
HH income DMA Venice CBSA
$50-74,999 16.5% 14.6%
$75-99,999 13.5% 17.1%
$100-149,000 10.4% 9.4%
$150,000+ 5.5% 5.4%
Tampa Sarasota Bradenton
Home owners DMA Venice CBSA
Own 75.3% 76.1%
Rent 21.5% 21.5%
Tampa Sarasota Bradenton
Value of home DMA Venice CBSA
$300-349,000 3.3% 3.8%
$350-499,999 4.6% 6.2%
$500-749,999 1.8% 2.6%
$750-999,999 0.7% 0.9%
$1,000,000+ 0.8% 1.3%
Source: Scarborough Research, Release 1, 2011
Tampa DMA compared to Sarasota/Bradenton/North Port CBSA
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• WWSB ABC 7 is the ONLY Network Affiliate between Tampa & Ft. Myers.• ABC 7 airs 34 LIVE, LOCAL newscasts per week.• ABC 7 can bring your message to more people on the Suncoast than any other
media.• ABC 7 is carried on all 3 Cable Systems along the Suncoast. (Comcast, Verizon
and Brighthouse). As well as Direct TV. • A unique bond exists between the people of the Suncoast and ABC 7 that has
flourished for over 35 years. • People value our thorough coverage of LOCAL news, weather and sports in
their communities.• ABC 7 is a television station that has created strong relationships with the
community and our customers, that endure over time.• ABC 7’s core values include being the best source of local information, providing
top-quality service to our customers.
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• ABC 7 has multiple ways of advertising:
– Television (#1 way of advertising)
– Internet (www.mysuncoast.com – 1.8 million page views a month!)
– Sponsorships (Ex: Van Wezel’s Friday Fest, Music on Main in Lakewood Ranch, etc.)
– Events (“Lifestyle Expo” in January 2012)
– Discount Deals (Feature Deals on ABC 7 News)
– Mysuncoast Deals (NEW App launching in Dec.!)
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Television is the Television is the Television is the Television is the #1#1#1#1 Source for Source for Source for Source for Product Information and NewsProduct Information and NewsProduct Information and NewsProduct Information and News
Source: TVB Media Comparisons Study 2010
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MySuncoast.com
InternetTraffic
Month Visits Page views Time spent/visit
Sept. ‘11 407,696 1,878,417 14:42
Aug. ‘11 343,273 1,732,917 17:02
July ’11 398,696 1,857,060 15:50
June ’11 351,135 1,675,632 18:00
May ‘11 325,848 1,486,342 17:06
April ’11 287,262 1,458,119 18:30
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Media Kit
2 Yrs old
Leaderboard
should be called
TOP BANNER
Complexity
& Inside-Talk
Kills Sales
2012
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How to
Fix the Kit
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On-Air: xxx,000
Website: xx,000
Mobile xx,000
YouTube xx,000
Twitter xx,000
Facebook xx,000
Email xx,000
Total Reach: xxx,000
Total Reach
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Reaching xx,xxx
Sarasota adults each month
Reaching xx,xxx
Sarasota adults each month
On-Air, Online & Marketing Servicesfor Sarasota Area Business
On-Air, Online & Marketing Servicesfor Sarasota Area Business
How We Help:
• Brand & Message Awareness
Be seen, Get your message out
• Online Presence & Reputation
Looking good online
• Database Marketing
Customer email & Mailing Lists
• Online Couponing
Daily Deals, Promotions, Sampling
How We Help:
• Brand & Message Awareness
Be seen, Get your message out
• Online Presence & Reputation
Looking good online
• Database Marketing
Customer email & Mailing Lists
• Online Couponing
Daily Deals, Promotions, Sampling
Who We Help:
• Yoga, Fitness & Health
• Beauty & Hair
• Boutiques & Retail
• Restaurants & Food
• Entertainment & Culture
• Family & Kids
• Contractors
•Doctors, Dentists, Lawyers
Who We Help:
• Yoga, Fitness & Health
• Beauty & Hair
• Boutiques & Retail
• Restaurants & Food
• Entertainment & Culture
• Family & Kids
• Contractors
•Doctors, Dentists, Lawyers
Client Logo
Client Logo
Success Stories……can MySunCoast.com do this for you ?
MySuncoast.com
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Another Local Business SUCCESS STORYHow can MySunCoast.com help you ?
BUSINESS NAME (Logo & picture of business)• VERY brief description of business…. Location of Business
BUSINESS NAME (Logo & picture of business)• VERY brief description of business…. Location of Business
(BUSINESS NAME) CHALLENGE: (what they needed help with)Restaurant launching new catering hall and menu. Needed help getting word out, having target
customers see upgrades to building, new menu , download new menu & coupon to sample food item.
(BUSINESS NAME) CHALLENGE: (what they needed help with)Restaurant launching new catering hall and menu. Needed help getting word out, having target
customers see upgrades to building, new menu , download new menu & coupon to sample food item.
PLAN ( media company name ) PROPOSED• Large format banner on website home page, every Friday
• Custom promotion & contest to build email list, encourage sampling, Downloadable coupon
• Social media plan using Facebook & Twitter
• Produce video profile & ‘behind the scenes’ tour of business
PLAN ( media company name ) PROPOSED• Large format banner on website home page, every Friday
• Custom promotion & contest to build email list, encourage sampling, Downloadable coupon
• Social media plan using Facebook & Twitter
• Produce video profile & ‘behind the scenes’ tour of business
RESULTS ( insert business name here )• Built database of 500 using contest giveaway
• Raised brand & message awareness via:
• 750,000 banner impressions
• 400,000 logo sponsorships impressions
• 76,000 viewed video tour
RESULTS ( insert business name here )• Built database of 500 using contest giveaway
• Raised brand & message awareness via:
• 750,000 banner impressions
• 400,000 logo sponsorships impressions
• 76,000 viewed video tour
CLIENT TESTIMONIALWOW! Linda and her team did a fantastic job helping us get the word out about____. We now have a
email list of 600 and 250 new Facebook fans. The video looked great on the site, and is also perfect for
our own website and Youtube channel. John Smith, Owner, Ocean Village Restaurant
CLIENT TESTIMONIALWOW! Linda and her team did a fantastic job helping us get the word out about____. We now have a
email list of 600 and 250 new Facebook fans. The video looked great on the site, and is also perfect for
our own website and Youtube channel. John Smith, Owner, Ocean Village Restaurant
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Helping SARASOTA Business
ON AIR & ONLINE
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3 Simple Packages
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InventoryInventoryInventoryInventory
ManagementManagementManagementManagement
% sold local direct?
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DumbDumbDumbDumb
Ad Networks
on Home Page
& Section Fronts
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Remnant
Ad Network
on Home Page
Cause for Dismissal
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Remnant Ad
on Home Page
Remnant Ad
on Home Page
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Competitor
Remnant Ad
Competitor
Remnant Ad
Remnant
Ad
Logo
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Competitor
Remnant Ad
on AUTO Page
Logo
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> No Super-Premium Ads
> The only local ad is pushed
outside of content area
> Low CPM ad networks
sucking up home page
of this otherwise strong
news-site.
How GREAT sites
lose money
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CPM’sCPM’sCPM’sCPM’s
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Bigger
Not
Always
Better
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CPM CPM CPM CPM RoadKillRoadKillRoadKillRoadKill
Ex-CEO
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Rate Card& Pricing
Supply & Demand
(not CPM)
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Smart Practiceweekly instead of monthly rates
$ 400. per month sounds
expensive
sounds
reasonable $ 95. per week
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Mon
Tues
Wed
ThursSat
Sun
PricingPricingPricingPricing
Fri
$100 $150 $175
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Super Dumb Practice
Protect ‘rate card integrity’ @ $10 cpm
and then…..
Sell unsold inventory
to ad networks @ $1 cpm
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LOSE PRICING POWER
Un-limited Supply
+
Commodity Unit
+
Limited Demand
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• Designate a premium unit
• Sell 24 hour exclusive
• Limit inventory…7 only…Pick a day
• Pricing
• Flat Fee….Raise rate as you sell out
• Short commitment (3-6)
Sweet Spot Pricing
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Internet Prime Time
Mon-Fri 9a-5p
Morning
6a-10a Mid-day
10-3p
Evening
8-11p
At Work Day-part
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Is your site full of non-proprietary content
that users can easily get elsewhere?
Your site: Reader & Advertiser Friendly ?
Train-wreck of content ?
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Client EducationClient EducationClient EducationClient Education
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TRIBUNEDigital
Services
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Get OnlineGet OnlineGet OnlineGet Online
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• 3-page website
• Domain name
• Website hosting
• Email support
Year 2 (per month)
• $4.99 site/hosting
• $2.00 domain
• Cancel any time
FREE Local Plan 1st year
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Web Marketing 101For Local Business
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Web Marketing 101For Local Business
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Web Marketing 101For Local Business
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Exercise
Caution
Intermediaries,
Middle men
BewareBewareBewareBeware
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Toll TakerToll TakerToll TakerToll Taker
30% to Steve…
Proceed with Caution
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Share croppingShare croppingShare croppingShare croppingBuilding business on land you don’t own
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FrenemyFrenemyFrenemyFrenemy
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Centro
• Started out as ADVOCATE for Newspaper Web sites
• NOW….They rep ANY & ALL sites
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Centro
Raised $22.5 million
• expand sales force
• target mid-tier advertisers / agencies
• automated media-buying software
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Centro
• Middle man
• Commoditize
• Hidden spread
• Can’t sell premium ops
• Less reliant on Newspaper
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Breaking News
Ad-supported
Promotions
Market to Advertisers
• Rte 9 is closed
• Lady Gaga tix on sale Friday
• Red Sox beat Yankees 99-0
• Deal of Day
• Coupon download
• Win Trip
• Stand by rate now avail
• Home page unit now avail
• Spring special 50% off
Multiple Uses
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Profit First Profit First Profit First Profit First Run DigitalRun DigitalRun DigitalRun Digital
March 13, 2012
MelTaylorMedia.com 267-625-5313