9. College Professors
& assorted brainiacs
“searching for sustainable business models…yada, yada …crowd-sourcing
…entrepreneurial journalism...community engagement…yada yada…
grass roots via cloud…..yada…let’s do some more research….let’s tweet it…”
11. His lips are moving
so he MUST be saying
something smart.
12. Um, yeah, Mel….thx for stopping by
• Our traffic is up
• We’re trusted news brand
• Patch is lame blog
• Our sales plan is just fine
• Our VP Interactive speaks on many panels
18. Run Web like Newspaper
Think like Publisher / Owner
in this order !
1. profit
2. operations
3. editorial
19. What is ?
Tim Armstrong
• AOL’ s Hyper-local play
to grab local ad dollars
• Run by ex-Googler
John Brod
• Editorial & tech first
• Sales ramping up
Warren Webster
20. Why is Patch
doing this?
• AOL’s dial-up dead
• AOL’s content-play struggles
• Need new rev stream
• They see local media downsizing
• 50% of local web budgets, still on sideline
• Local media protecting legacy business
21. Patch: Priority Plan
• Local news source
• Trusted community partner
• Newspaper replacement
• Create excellent journalism
28. Short Term Objective
• Frantic pace of roll out
• Get hooks into local market…
before others know what hit them
• TV, Radio, Newspaper, Yellow Pages…
won’t respond quickly?
31. Strengths
• Digital first
• No legacy baggage
– Not protecting “way we always do it”
– Not impeded by old school
• Cost effective content creation
• Variety of sales tactics
32. Weakness (for now)
• Unfamiliar outsider
• Questionable local sales savvy
• Limited local relationships
• Clunky corporate structure
• Not as nimble as YOU
36. Pay & Positions
o Local Editor; $40k
o MacBook Pro, camera, smart phone
o $500 freelancer budget per month
401K match
o Ad Manager; $60k
Performance bonus
o Managing group of sites Medical & Dental
o Regional Publisher; $80k
o Regional Editor; $80k
o Oversee group of 12 Patch sites
37. Sales Job Posting
o Be local online ad expert for small business
o Host WEB 101 seminars for small business
o Attend chamber & trade functions
o Convince buyers to shift budgets to digital
o Visible presence in business community
38. Wanted: Online Sales Executive
You’ll be working closely with local advertisers, as their local online advertising expert. You’ll
know your own platform (and others) backwards and forwards so you can present complete
advertising solutions.
You may decide to host local seminar on how to achieve the best results by advertising web.
As the top local business executive, you will attend chamber and trade functions, get
involved in community groups, head up charitable efforts and maintain a highly visible
presence in the business community.
Local Online Sales Exec is responsible for advertising sales to businesses in local markets.
Will sell banner ads, e-newsletters, video & more. You will present promotional
opportunities and display options to store owners/management. You will handle ad sales,
inventory management and “own” the online advertising for assigned local markets.
As the Local Online Sales Executive you will also be responsible for assisting in coordinating
local event sponsorships and attending them, possibly on weekends.
40. Current Ad Offers
o Self-Serve for $15 cpm….discontinued
o Now: flat fee for SOV (share of voice)
o Free Classifieds: merchandise, services offered
o Small fee $20 auto & jobs
o Directory up-sells
o Enhanced video
o Fee to post coupons
o Newsletter Ads
44. Yahoo Local
• Now in 30 US neighborhoods
• California, Michigan, New York, San Fran, Brooklyn
• Content from local pubs
• Community reporters
• Feeds from other pubs
45. 75%
of Deal Market
Average User
Single
Female 18-34
Income: 70k+
Users
2008: 400 k Employees
Dec 2009: 124
2009: 1.5 mil
Dec 2010: 3,100
2010: 40 mil
46. o No risk… ‘only pay if people buy’
o Customers not clicks
o Performance
o 66 % open rate
o Gets 50% of sales revenue
47. Crazy Growth (said no to recent Google offer)
Many on this call are helping them
…..by running their ads
Groupon is HARVESTING your readers
57. Pandora
o 60 million users
o About half of all Internet listening
o Avg 13 hrs of listening
o $50 mil revenue. Now profitable
o 45 of top 50 national advertisers
o Growing sales force
o San Fran, NYC, LA, Chicago, Detroit, Dallas, Atlanta
60. Now Hiring
• Advertising Sales Representative - Oakland, CA
• Senior Account Manager - Chicago, IL
• Advertising Operations Technical Lead
• Inside Sales Manager
• Manager - Pricing and Yield Management
• Online Ad Trafficker
• Sales Planning Supervisor
• Senior Advertising Project Manager
• Senior Revenue Analyst
• Vice President - Research and Marketing
62. o Quickie hyper-local sites for local TV
o No upfront costs
o Call center pitches local biz in your name
o Rev share approx 60% to DataSphere
o Primary relationship w/client. Retains data
69. Take This Test
• What % of print clients buy web ?
• What % is sold local direct ?
• Plan to reach non-print ?
• Know marketing plan of clients?
• Are your managers in the field ?
70. slaughter
Web Sacred Cows
• Need more page-views
• Editorial controls site
• Remnant, 3rd party ad networks
71. Beware the BS
• We hit our (very low) web budget.
• Web rev up by 500%. (off low comps)
• Web traffic is strong. (distraction from profit margin talk)
• We’re doing fine. (compared to other industry losers)
• Print is where $ is. (yet, web is fastest growing rev stream)
72. Newspaper USP
unique selling proposition
What can Newspaper offer…
that PATCH can’t ?
73. Newspaper USP
• High % of local reach
• Feet on street
• Local content creation
• Client relationships
• Brand familiarity
• Print / Traditional distribution
79. Overhaul Comp
• Revenue per rep & manager
• New business per rep (per month)
• Grow % of current clients using web
• High commission rate: new clients
• Low commission rate: transactional
• Bonus & PENALTY
80. Digital Sales Training
Who does most training?
It’s a FACT.
More training = more revenue
81. Bigger Not Always Better
REDUCE
commodity page-views
GROW
high ‘advertiser value’
83. why do we
talk like this?
• cpm
confusing for client
& sales rep ! • pageviews
• uniques
• click-thrus
• weird vocabulary
• monthly pricing
Endorsed by Internet Expert:
Shemp Howard
84. NEWS LOGO
REDUCE
NEWS LOGO
Clutter !
NEWS LOGO
NEWS LOGO
86. How GREAT sites
lose money
> 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.
96. multiple uses
• Rte 9 is closed
Breaking
News • Lady Gaga tix on sale Friday
• Phillies beat Astros 3-1
• Deal of Day
Sponsored • Coupon download
Promotions • Win Trip
• Ticket Raid location
• Stand by rate now avail
Market to • Home page unit now avail
Advertisers
• Spring special 50% off
99. #1 Current Print Clients
Meet Dick. 25 years in the Newspaper biz.
Always hits his print budget without fail.
Hi.
Dick always wins sales contests, like this I’m Dick.
one to a tropical island. But because Dick is
a print-sales superstar, he gets a pass when
it comes to web.
Dick NEVER pitches web. Yet 90% of Dick’s
clients buy alot of digital.
Dick’s print clients buy online video, SEO,
Groupon, banners and social media….
…from Dick’s competitors.
Dick’s clients LOVE him. They would buy
Web from Dick……if only he offered it.
100. #2 Call Center to Set Appts
Keep Sellers On The Street.
Use classified phone room down-time
to set up appointments…or consider
off-shoring this activity to countries
that would LOVE this job.
Your sales reps should be in front of
clients and potential clients, as much
as possible.
Expensive reps & sales managers
sitting behind a desk making a few
half-hearted cold calls, is a poor use
of limited resources.
102. Web 101 for Local Business
Why ?
Local biz wants to buy web…
• confused / lack of knowledge
• doesn’t totally trust sales rep
• think Google or website is enough
• never been offered web
103. Web 101 for Local Business
Benefits
• Provide web education to local biz
> they buy more web !
• Immediate web revenue
• Sales reps get trained
• Better than cold call
• Superior, qualified lead generation
106. Test Yourself…
Higher score, better chance to beat Patch
Compensation Web 101
Bonus, Penalty, MBO’s for Local Business
All Staff Training Sell
Management & Owners Non-Print Products
Simple Packages…
Job Description Refresh
No CPM’s
Online Media Kit,
Reporting Structure
Direct Contact to Rep
Plan to Reach
No Ad Networks
Non-Advertisers
109. online video
that pays
Remember all that video stuff
you bought for the newsroom?
Take back half of it, and give it
to the sales department.
110. Re-think
EVERYTHING
• Vendor Deals
• Aggregation & RSS Reduce Costs
• Local Indie-Journos via
• CMS Platforms > Open Source
• Local Ad Networks > Crowd Source
• Sales-Based Video > Revenue Share
• Management
111. The New Workshop from Mel Taylor Media
Online Business 101
for Editorial, Programming & Web Producers
When content creators understand online business models…
they create more advertiser-friendly & profitable websites
112. Local Media Primary Primary Potential
Position Background Responsibilities Weakness / Limitations
• Owner • Increase shareholder value • Delegate strategy to content first executive
Building • Manage overall operations • Thinks only brand extension strategy
• CEO / COO • Drive top line growth
Profitable Business • Over reliance on internal, traditional managers
• Investor • Increase profit margin • Tough keeping track of online competitors
• Build & manage digital platforms • Little or no direct sales & revenue experience
VP Digital Content & Tech • Drive online traffic • Compensation primarily based on traffic
• Content & tech development • Employs content first, not profit first strategy
Local Sales • Sell traditional inventory • Prefer to sell traditional
Traditional Sales • Sell web inventory (secondary goal) • Limited or no web sales training
Management • Manage sellers • No web business model experience
• Compensation favors traditional sales
• Traditional media creation • Prefers traditional content development
Local Content Traditional Media • Web media creation • Thinks only brand extension strategy
Management • Increase audience numbers • Limited or no web development training
• No web business model experience
• Sell traditional inventory • Prefer selling traditional
Local Sales Reps Traditional Sales • Sell web inventory (secondary goal) • Limited experience selling web
• Limited or no web sales training
• Compensation favors traditional
Why Traditional Media Struggles w/ Online Revenue Growth
113. TOP 10 Revenue Mistakes
of Local Online Media
1. Management, owners & CEO’s lack specialized web training
2. Dangerous thinking: ‘selling web cannibalizes print sales’
3. Limited web training of sales reps
4. Management structure conflicts
5. Poor attention to fast changing, online environment
6. Setting web budgets too low
7. Ineffective inventory & yield management
8. Confusing media kits, sales packages & pricing
9. Director of Interactive; tech & content background only
10. Over-reliance on vendors & research for sales strategy
Read full report here:
http://meltaylormedia.com/2010/08/top-10-web-revenue-mistakes-of-tv-radio/
114. Middle-Man Channels
Advertisers benefit from Traditional Channels New Channels
new, multiple ways for reaching local consumer for reaching local consumer
of reaching local consumer
Niche Sites
Newspaper
Google Places,
SEM, Facebook
Wants to reach local consumer
TV
Patch,
Advertiser Hyper-local Local Consumer
Radio Groupon
YP360,
Direct Mail Local.com
Reach Local
Directories
Hulu, Pandora
Direct Relationship
between advertiser & consumers, avoiding middle-man channels
EX: Twitter, Database, Blogs, Social, Mobile
115. Advertisers Content
• National, Regional, Local Local Media Eco-System • Laid off journalists & photographers
• Traditional media news
• Moving dollars online
Business Models that Support Local Journalism • Indie-sites & pro-am bloggers
• Pro-active plan that exploits economic pressures • Watch Dog Journos
• info & pubic domain data feeds
Agy com Local Ad Network
• Enables local commerce, that subsidizes local news
• Community & citizen participation
• Proven revenue management systems (RMS)
• Move quicker from investor support, to self-support
Traditional & Digital • Leverage efficiencies of outsourcing and open-source Local Ad Network Revenue share
Fees Agency commission
Marketing Services • Multiple online & offline revenue streams
• Scalable via networks, franchising & co-ops Sales, Marketing, Training, Tech Co-op
& Business Support Efficiencies
Rev share Self-serve, Outbound tele-sales
RMS & CMS Platforms Licensing fee and/or revenue share
Fees, sponsorships Events & Training Workshops
lead aggregation
Stringer & Syndication & Licensing Per Diem & fees
Creative
• Marketing Agencies Outsource / Fees
Hyper-Local Incubator Outsource / Fees
Marketing
• Promotions
• Video, Indie-Producers News, Community, Services & Support • Event, Contesting
• Designers & Developers for Local, Media Markets • Social
Traditional & Digital Marketing Services
Fees
Destination Site Commission, fees & rev-share
Aggregation, Curation, Editorial Display, search, lead capture
Local Ad Network
Rev share, Agy com
CMS & RMS Platforms
Co-op Resources Mobile, RSS, Email, Social Ad supported
Licensing fee, Rev share For Independent Bloggers & Sites
Sponsor supported
• Sales support, network & services Events & promotions
Fees Stringers, Syndication & Licensing and/or fees
• Content network & syndication
• Tech & back-office support
• Pre-vetted platforms & apps
Traditional & Public Media • Representation and investments
Local Community & Readership
Growing need to reduce costs,
• What if Newspaper shuts down?
increase local coverage & revenue •Central hub for public affairs & local information
116. Digital Revenue Solutions for
Newspaper, TV, Radio
& Hyper-Local
and….
MelTaylorMedia.com
Updated 12/22/2010