digital first business models
DESCRIPTION
These are slides for a workshop for the Montreal Gazette on business models for digital-first success.TRANSCRIPT
Digital First Business Models
Steve ButtryThe Gazette
March 20 , 2012#gaztrain
Read more about it• stevebuttry.wordpress.com• slideshare.net/stevebuttry• @stevebuttry• jxpaton.wordpress.com• [email protected]
This change is tectonic, not cyclical
Clay Shirky:
“Nothing will work,but everything might.”
John Paton:
“You don’t tinker or tweak a broken model. You start again
anew.”
Digital First principles• Digital First & print last• Put the digital people in charge• Engage the community• Core competencies: Local content & local
sales• If it’s not core: reduce it, stop it, sell it or
outsource it
Foundation to build on:• Strong brands• Local content• Local sales force• Journalistic integrity
Engagement = value• Computers & archives
for community use• Open news meetings• Blog network• Classes• Digital audience 5x print• From loss to profit
Jim Brady:
“There's no silver bullet. There's just shrapnel.”
Why not paywalls?• We never charged for content• When they “work,” benefit is marginal• You need to spend that money & energy
developing a model for the future• They attempt to protect a failing model
John Paton:
“’You’re gonna miss us when we’re gone’ is not much of a business
model.”
Paid content opportunities?• Premium content (specialized)• Unique, high-value content• Membership (get more than content for
your payment• Mobile, tablet• Even if people will pay, can you make
more money w/ larger free audience?
Mobile Opportunity• 44% of U.S. adults have smartphones• 18% of U.S. adults have tablets (up 50%
from summer 2011 to early 2012)
Source: State of the News Media 2012
Mobile-first strategy• Text alerts• Email • Applications (phones & tablets)• Social media (tweets, check-ins, tips)• Location-based news, info & commerce• Easy-to-use mobile websites• Device-flexible (not device-agnostic)• Games (phones, iPads great for games)
C3’s new relationshipsFor the public: We will be their essential connection to community life — news, information, commerce, social life. Like many Internet users turn first to Google, your community should turn first to C3, whatever the need.
C3’s new relationshipsFor businesses: We will be their essential connection to customers, often making the sale and collecting the money.
Our current relationshipwith business customers
• Huge expense line in budget• Lots of inefficiency• Ad rates dropping• Ad revenues dropping• Lots of digital competition
C3’s revenue approach• Move beyond advertising• Direct sales (tickets, reservations, gift
registries, gift certificates)• Lead generation & targeted ads• Sponsorships, memberships & events• Mobile ads & applications• Handle multiple needs (yes, competing ads)
The C3 relationshipwith business partners
• Revenue line in budget (expense line, too)
• Delivering high value, tailored to needs• One-stop shop for connecting with
customers
Personal content• Births• Youth milestones• School• Graduation• College life• Military service• Weddings• Parenthood
• Divorce• Jobs, pets, holidays,
food, interests, health• Illness• Empty nesters• Retirement• Reunions• Obituaries
Life stories• Commissioned obits (journalist tells life
story, paid by family)• Obituary, website, booklet, video• Not just obits: weddings, retirements,
anniversaries, milestones
Newspaper Next
N2 lessons for Digital First
• Jobs to be done = opportunities• “Good enough” opens doors to new
avenues of excellence• Potential markets exceed what you can
imagine (or what research can project)• “Beware the sucking sound of the core”
Discussion question:
What are some social media revenue opportunities The Gazette
might pursue? How?
Discussion question:
What is a mobile revenue opportunity The Gazette might
pursue? How?
Discussion question:
What are some direct-sales opportunities The Gazette might
pursue? How?
Discussion question:
What is a personal content opportunity The Gazette should
pursue? How would it generate a new revenue stream?
Discussion question:
How should The Gazette change sales incentives for selling digital
products & landing new customers?
Read more about it• stevebuttry.wordpress.com• slideshare.net/stevebuttry• @stevebuttry• jxpaton.wordpress.com• [email protected]