Peter Cannone

ThriveHive’s Top Bets

2

Today, the SMB Market Remains Fragmented

This is us

3

We are Proud to be a Significant Player in the Digital SMB Space, But Where Do We

Go From Here?

4

New Digital Trends Will Fuel Product Line Expansion & Revenue Growth

Video is exploding and we will develop it into a major revenue producing line.

5

We are Just Scratching the Surface With What is Possible With Technology

We will be investing heavily in technology to revolutionize our digital marketing capabilities.

6

Imagine If…

We had a “Boost My Business” button for very small businesses that automatically placed auto-generated ads across a mix of Google, Owned and Operated sites, and Facebook.

BOOST MY BUSINESS

7

Websites were created instantly from the information in print ads

combined with data pulled automatically from third party data sources and other social presence

on the web.

Imagine If…

8

Our ad creative and targeting were automatically A/B tested and optimized

using machine learning.

Imagine If…

9

Businesses could have seamless publishing to their blog, email, and social media channels via voice command on their phone.

Imagine If…

10

We had the ability to predict before any campaign starts exactly what the results will be with plus or minus 5% accuracy.

Imagine If…

11

We had a single hub that kept the online presence of a business up to date

on their website, their online directory listings (like Yelp and Facebook), and the

newspaper directories.

Imagine If…

12

Imagine If…

We could run email campaigns that send a unique, tailored, email message to each person on a contact list at the precise time that is optimized for each individual recipient.

13

Out With the Old

● Using technology we look to end the “one size fits all” approach to the customer experience

● We strive to deliver the best offer/ad/approach, not just any offer/ad/approach

● We want our customers to feel like we understand them ● We want to improve the customer experience end to end

14

● Mass customized advertising and communications will make consumers feel as though they are being treated as individuals

● Technology is enabling an entire next generation of advertising and marketing that is just beginning now

In With the New

15

THANK YOU!

Set up your free consultation today. Thank You!

Digital marketing services:Our bets for 2018/beyondJay Small, President jay@cordilleradigital.com

8 years: How our digital goals have evolved2010-2012: Invest in agency products, grow gross revenue

2013-2014: Invest in sales force, grow net operating revenue 2015-2017: Level off investment, grow operating profit

2018-?:

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Invest in owned/operated, grow operating profit, make sum of digital +TV greater than parts

Our table stakes• Starting from legacy media brands, strong local presence • Good media sales forces, outside-sales mindsets • More focus on growing revenue than cutting costs • Competent technology platforms, at least par with competitors

18

Bets that did not pay off• Sourcing to outside firms for clients’ website/mobile development

… aaaaaaaand, stations’ DIY efforts to stick-build, manage for clients

• Continuity in sales training with outside consultants • Fine-grain targeting of owned/operated inventory • SMS marketing • Sourcing ‘brochure’ native apps for clients

19

Bets still on table, no clear payoff yet

• Email, all deployments • Digital-only AEs, focused on non-legacy business • Sourcing to our own technology firm for clients’website/mobile, app development, SEO • Low-margin digital media buying • Paid search, paid social ads • Locally sold native ads on owned/operated

20

Bets that paid off

• Contests and related promotions we run for clients • Mid-margin digital media buying

• Display and video reach extension, w/targeting and retargeting

• Digital sales specialists aimed at legacy clients, sales teams • Refusal to run network native ads

• Outbrain, Taboola et al • Integrating performance data/metricsfor clients, sales teams

21

Bets yet to be made

• Content marketing (help clients fill the space/time we sell) • SMB-scale web/mobile development, SEO

• Offer finite service layer atop major out-of-the-box suppliers

• Beyond data/reports, true analysts, marketing consultants • Better tiering, combinations of adand marketing services

• Digital and TV • Pseudo-AOR/retainer relationshipswith key clients

22

‘Why didn’t you say anything about…’

• AI? AR? VR? Need to understand game before we bet • Fast followers at best

• Over-The-Top? Shifting from one-app-per-outlet to bundles • Starting to feel like broadcasters’ deals with cable, satellite

• Agency branding? Any approach can work • But all require brand-building investment

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Thanks!jay@cordilleradigital.com

THE OLDEST COMPANY IN TEXAS KNOWS TEXANS.

BELO + Company Bring Your Customer Into Focus + Deliver Measurable ROI

1. Focus on the “M” in SMB

2. Two companies: One service, one reseller

3. One-stop “money manager” approach

Six years into marketing services...Three bets for 2018 and

beyond

HOW WE GOT HERE: Built, bought, and partnered

Sept. 2012

Social media agency

Feb. 2013

Media analytics and performance marketing

company

Jan. 2014

Food and wine festival

Apr. 2014

May 2014

Jun. 2014

Jan. 2015

Search agency, marketing automation software,

print broker

Events and experiential marketing division

Beer and musicevents across Texas (Sold 2017)

Programmatic audience extension division Spatial

analytics (investment)

2017

CUSTOMER FUNNELHOW WE GOT HERE: Reselling to SMBs, 2012-2015

➢ Reselling third-party products & services w/ AVO of $1,500

➢ Low margin w/ COGS to vendor, Google, etc

➢ Relatively high sales cost ➢ 85% annual churn ➢ Lack of control put core revenue

at risk ➢ Didn’t make money*

CUSTOMER FUNNELHOW WE GOT HERE: Filling out the funnel, circa 2016

FUNNEL MEETS SILO

FUNNEL MEETS SILO

OUR NEW WORLD

Internal brand serving both B+C & BMG. “Switzerland,” trying to drive revenue without regard to silo.

● Product dev & packaging

● Research ● Training (w/ HR) ● B2B Marketing ● BI / Analytics ● Sales

Infrastructure ● Ad Design & Ops ● M&A Support ● Presale Support

Delivering the biggest and most targeted audiences in North Texas.

Strategic, ROI-driven marketing services for clients regardless of location. Sold directly and via resellers, including (and especially) BMG.

➢ Sells all “traditional” products

➢ Sells B+C services & products in DFW area

➢ Sells B+C services and products anywhere

➢ Services all B+C accounts ➢ Only sells Native for BMG

(legacy) ➢ Taking on O&O digital ad

fulfillment (2018)

➢ Creates salable packages for BMG

➢ Coordinated B2B marketing for both ○ Prospect generation

➢ Presales “caddies” ➢ Synthesized analytics and data

lake ➢ Sales & product training ➢ Tier 1 pitches ➢ Research ➢ “Plumbing” to serve both ➢ Switzerland

○ “Splitting the baby since 2017”

Best ROI for

client

Most EBITDA for AHC

Whatever else

2018 BETS

#1FOCUS ON MID-

MARKETTargeting companies of $10 million -

$750 million in revenue; at least $1 million marketing spend

Enough margin to deliver value-add strategy and focus on bottom-line ROI

Lower churn

More opportunity to differentiate

Still send low $$ campaigns to former partner

Small businesses

WHY NOT?Low margins, high COGSIf we wanted to work for Google, we’d apply

Learned from our core business — 80/20 problem looks more like 92/8 Selling tactics & tools vs resultsLOTS of competition

High churn Unsophisticated marketers without time to invest

Orren’s law: The hassle of working with a client is inversely proportional to the size of the bill Corollary: You can’t control what you don’t control

Can a small spend really drive results? Or does it just take business from remedial to grade-level and then plateau?

Google: 52% of client churn is avoidable

(Means that 48% is NOT)

#2TWO BRANDS

B+C as direct seller & service;BMG as channel reseller for DFW

Component brands of B+C showed vertical expertise, but meant silos; redundancies;

confusion; lack of full synergy

Reorganized around “one hand to high five; one throat to choke”

Leverage BMG relationships / scale of salesforce for specific packages;

programmatic & email

Frees B+C to fish upstream and to work with additional media company channel resellers

You know, if you’d invest more in creative instead of search…

I can’t convert the junk you’re sending from social media

Your keywords are weak… You know, I bet we could do that better in our shop.

The programmatic ads would work better if your creative didn’t suck...

I just want freakin’

conversions at a

reasonable cost

WE’VE ALL BEEN IN THIS MEETING...

40% of marketers note “too many agencies to

manage” as a top-three challenge

#3ONE-STOP SHOP“Money Manager” strategy allows

nimble pivots & true ROI-driven tactics

Optimize to the result, not the silo and let insights drive strategy

Initial plan is a budget, not a set-in-stone tactical laundry list

Aligns our interests with clients

Relationships reduce churn

Requires transparency and patience on both sides

Less scalable

Can put skin in game

EARLY TAKE ON BETS

B+C Growth, 2015-2017(Aggregated entities)

OVERALL B+C ➢ 94% revenue growth 2015-2017 ➢ 61% operating income growth (always positive) ➢ 28% of AHC advertising / marketing revenue; 17% of

total ➢ Making up 97% of traditional advertising and circulation

revenue decline

SINCE 2017 CONSOLIDATION ➢ Revenue up 15% through Q2; services revenue up 50% ➢ Average order +40% ➢ Average recurring order +58% ➢ BMG channel drives 26% of revenue; ~60% of growth

○ Is 8% of BMG’s revenue target ➢ Getting active in M&A

○ Filling service gaps; growing customer portfolios; cutting out middlemen

Mike Orren mike.orren@belointel.com

Preso link: http://bit.ly/BeloLMA17

Parting thought:It is possible to serve any market well - Small, medium or large.

But it is almost impossible to serve more than one well.

Pick the one that most closely matches your core business (or where your core business is going).