2012 america east mel taylor

Profit First Profit First Profit First Profit First Run DigitalRun DigitalRun DigitalRun Digital

March 13, 2012

MelTaylorMedia.com 267-625-5313

Digital Business ModelsDigital Business ModelsDigital Business ModelsDigital Business Models

For Local MediaFor Local MediaFor Local MediaFor Local Media

No BSNo BSNo BSNo BS

Mel Taylor BackgroundMel Taylor BackgroundMel Taylor BackgroundMel Taylor Background

Bad NewsBad NewsBad NewsBad News• Phila Inquirer

• NYT regional

• Media General

• Chicago Sun times

• Chicago News Co-op

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 ?

Who do youWho do youWho do youWho do you

FOLLOWFOLLOWFOLLOWFOLLOW

☺☺☺☺

let’s partner ;)

I’m thinking retirement… bee-yatch

Digital ?Digital ?Digital ?Digital ?

‘Traditional print journalism

has value of about zero’

Your

Newspaper

Private

Equity

New sales product each week

‘The Firehose’

Unending stream of products

No one knows what works, til you try

Not a Business Model

NEWSNEWSNEWSNEWS

Online Journalism / Content looking for

Revenue Models

FAIL

Proven Revenue Models that support

Online Journalism / Content

SMART

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

Newspapers

Journalism

Communications

Advertising

Enable Commerce

Core businessCore businessCore businessCore business

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

Product LineProduct LineProduct LineProduct Line

What you want to sell ?

What they want to buy ?

Small Business

Needs

SearchWeb

Presence

Social

Database

Video

Promotion

Customer Database

Social

Newspaper Needs

Journalism

Pageview

Paywalls

MobileApps

Social Followers

CPM

Internal Internal Internal Internal

PoisonPoisonPoisonPoison

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

Digital Digital Digital Digital

OperationsOperationsOperationsOperations

ManualManualManualManual

Do you have one?

• How we do it

• Style guide

• Process

• System

• Rules

Digital Ops

Manual

How many in charge of digital?

Salary or performance based?

Who’s in Charge

I’m ready to give

Rob Curley

the hook

Burn Thru Cash

ONE PERSON

compensation & job security

tied to digital profitability

Mel Taylor Media - Dec 2010

Who ManagesWho ManagesWho ManagesWho Manages

Digital ?Digital ?Digital ?Digital ?

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 ?

• 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?

Always done it that way

Platform can’t do it

We don’t offer it

Don’t have time

Too expensive

Bad user experience

• We hit our web budget

• Web rev up 500 %

• Web traffic is strong

• 50,000 Facebook Fans

• CPM selling

BewareBewareBewareBeware

a) John Patonb) Jay Rosenc) Jeff Jarvis a

b

c

New Business Models for News

Where are sales experts in this picture?

The day I discovered that AOL PATCH

had no idea how to make money.

Research

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

Don’t Train

your sales staff

Until publisher is trained

Until managers are trained

Train the trainer

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

Internal Internal Internal Internal

PoisonPoisonPoisonPoison

• Print Sales Superstar

• Hits budget w/o Web

• 75% of clients buy web

• From competitors

Meet DickMeet DickMeet DickMeet Dick

Know how clients

are spending budgets?

Reps Reps Reps Reps OOOOperating Blindperating Blindperating Blindperating Blind

Client QuestionsClient QuestionsClient QuestionsClient Questions

• Current marketing allocation

• Current digital allocation

• Digital you are considering

• Who’s pitching you ?

• 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

• 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

> 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

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

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

VendorsVendorsVendorsVendorsBest Product & PriceBest Product & PriceBest Product & PriceBest Product & Price

Financially motivated?

Lowest cost & best features

Low Cost OperationsLow Cost OperationsLow Cost OperationsLow Cost Operations

New CMS ModelsNew CMS ModelsNew CMS ModelsNew CMS Models

Costs

Freekin’

SCARYMedia Kits

Easy to understand ?

For local business & reps ?

Advertiser focused ?

Sales Kit

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

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

• 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.

• 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.!)

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

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

Media Kit

2 Yrs old

Leaderboard

should be called

TOP BANNER

Complexity

& Inside-Talk

Kills Sales

2012

How to

Fix the Kit

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

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

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

Helping SARASOTA Business

ON AIR & ONLINE

3 Simple Packages

InventoryInventoryInventoryInventory

ManagementManagementManagementManagement

% sold local direct?

DumbDumbDumbDumb

Ad Networks

on Home Page

& Section Fronts

Remnant

Ad Network

on Home Page

Cause for Dismissal

Remnant Ad

on Home Page

Remnant Ad

on Home Page

Competitor

Remnant Ad

Competitor

Remnant Ad

Remnant

Ad

Logo

Competitor

Remnant Ad

on AUTO Page

Logo

> 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

CPM’sCPM’sCPM’sCPM’s

Bigger

Not

Always

Better

CPM CPM CPM CPM RoadKillRoadKillRoadKillRoadKill

Ex-CEO

Rate Card& Pricing

Supply & Demand

(not CPM)

Smart Practiceweekly instead of monthly rates

$ 400. per month sounds

expensive

sounds

reasonable $ 95. per week

Mon

Tues

Wed

ThursSat

Sun

PricingPricingPricingPricing

Fri

$100 $150 $175

Super Dumb Practice

Protect ‘rate card integrity’ @ $10 cpm

and then…..

Sell unsold inventory

to ad networks @ $1 cpm

LOSE PRICING POWER

Un-limited Supply

+

Commodity Unit

+

Limited Demand

• 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

Internet Prime Time

Mon-Fri 9a-5p

Morning

6a-10a Mid-day

10-3p

Evening

8-11p

At Work Day-part

Is your site full of non-proprietary content

that users can easily get elsewhere?

Your site: Reader & Advertiser Friendly ?

Train-wreck of content ?

Client EducationClient EducationClient EducationClient Education

TRIBUNEDigital

Services

Get OnlineGet OnlineGet OnlineGet Online

• 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

Web Marketing 101For Local Business

Web Marketing 101For Local Business

Web Marketing 101For Local Business

Exercise

Caution

Intermediaries,

Middle men

BewareBewareBewareBeware

Toll TakerToll TakerToll TakerToll Taker

30% to Steve…

Proceed with Caution

Share croppingShare croppingShare croppingShare croppingBuilding business on land you don’t own

FrenemyFrenemyFrenemyFrenemy

Centro

• Started out as ADVOCATE for Newspaper Web sites

• NOW….They rep ANY & ALL sites

Centro

Raised $22.5 million

• expand sales force

• target mid-tier advertisers / agencies

• automated media-buying software

Centro

• Middle man

• Commoditize

• Hidden spread

• Can’t sell premium ops

• Less reliant on Newspaper

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

Profit First Profit First Profit First Profit First Run DigitalRun DigitalRun DigitalRun Digital

March 13, 2012

MelTaylorMedia.com 267-625-5313