digital roadmap for magazine publishers
DESCRIPTION
TRANSCRIPT
From Traditional to Tradigital
A roadmap for magazine publishers
Prescott ShiblesCEO
How do you use a roadmap?
The Industry’s Abuzz
Traditional Publishers• E-readers• Paywalls• Audience
Engagement/ Social Media
• Cost structure
Saavy Media Companies• HTML 5• Smartphones / mobile• Semantic analysis• Behavioral targeting /
personalization• Hyperlocal• API’s
Why such divergentstreams of thought?
5 Major Challenges
1. Print dollars to digital dimes2. Disintermediation of media3. Dramatic increase in number of competitors4. Rise of ad networks5. Top 50 Web sites command 90% of online
revenues
Simplifying Digital Strategy
4 P’s of Marketing1. Product2. Price3. Place4. Promotion
4 S’s of Digital Media1. Scale2. Segmentation3. Smarts4. Science
Scale
Nearly 30% of Google’s Revenue Comes from Partner Sites
Top 50 Web properties hold an 89% market share
Ad Network ScaleDec 2009 Unique Visitors (000)
Total Internet Audience 205,709
Aol. Advertising 187,023
Yahoo! Network 180,909
Google Ad Network 178,134
ValueClick Network 170,744
Microsoft Media Network 165,470
The challenge of ad networks
• BusinessWeek: 30% of display ad dollars spent with ad networks
• "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.
2005
2006
2007
2008
2009
2010
2011
$220
$350
$575
$1,000
$1,650
$2,600
$3,800
US Behaviorally Targeted On-line Advertising Spending (in
millions)
Hearst’s Scale
The Knot’s Scale
Content that Scales
Demand Media network reach
TheKnot.com almost twice as much reach as Conde’s Brides.com
Technologies that Enable Scale
• APIs and Microformats: a way for one application to interact with another one (transfer data, log in, etc.)
• HTML5: supported partially in new browsers like Safari and Chrome… mobile platforms
• Semantic analysis: automated tagging• Behavioral targeting: take lower value
inventory and increase prices as much as 25%
API Example
Segmentation
Ad Targeting
Behavioral Geography
Demographics Social Contextual
Need Finer Targeting Tools
Keys to Segmentation
• Unified customer database• Website registration• Registration API• Tie consumption habits to customer database
– Semantic analysis of content improves contextual targeting AND behavioral data capture
• Tie in historical data– RFM (recency, frequency, monetization)
Scale + Segmentation = Performance Buys
Build a Vertical Ad Network
• Approach competitors, traditional and digital• Adify, DoubleClick and others offer ability to
create your own ad network• Benefits of ad networks without the low
CPM’s
Science
Where to Spend
• “Content management systems are the new ad servers” – Tim Armstrong, CEO, Aol.
• "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.
Content Management
• Semantic tagging• Ease of use to editors• SEO• Integration with membership system• Syndication capabilities• Multisite management (theknot.com)
Membership
• Use threshold gating• Data I’ve seen puts conversions around 30%• Of those that become members, 40%
subscribe to the magazine• Majority of those are new print subs• Hearst developed Circules
– 50% of subs now driven by Web– $20 MM delta on circulation profits
Areas to Save
• Web analytics: can be had cheaply but don’t skim on proper implementation
• Inventory / yield management• Search• Personalization, behavioral recommendation
Smarts
Business Models
Traditional• Site-targeted
advertising• Subscription to content• Push-based• Assembly line approach
Tradigital• API license• Content Syndication• Subscription to service• Scale-based (push and
pull)• Consultative marketing
solutions sales execs
Simplifying Digital Strategy
4 P’s of Marketing1. Product2. Price3. Place4. Promotion
4 S’s of Digital Media1. Scale2. Segmentation3. Smarts4. Science
Wired on the iPad
• How does this scale?– iPad version, Android version, Skiff version, etc.
• How does it segment?– Not a lot of details as to how to deliver advertising
• What’s the science?– Proprietary… will cost you significant investment
up front and ongoing• What skills are required?
– Lots of training or hiring of specialists
Alternate Scenario
• Build App in HTML5– Port it later– Just go Web-based
• Does it scale? YES! Works on Apple and Android mobile devices
• How does it segment? It uses your regular ad server.• What’s the science? Standards-based solution, degrades
elegantly, affords future functionality• What skills are required? Most technical producers are
keeping up with HTML5. If not, learning curve isn’t high