Post on 12-Jan-2016
description
Online NewsFinancial Independence
Have the Business Models Come of Age?
Presented by John Granatino5th International Symposium on Online Journalism
University of Texas, April 16, 2004
Agenda
• A bit about Belo
• Original registration goals
• Advertiser case study
• The results
A Bit About Belo
Belo Interactive is the Internet subsidiary of Belo – the nation’s 9th largest media company with more than 150 years of building loyal audiences.
Belo Interactive is the Internet subsidiary of Belo – the nation’s 9th largest media company with more than 150 years of building loyal audiences.
A Bit About Belo
Local market dominance
• BI attracts on average 5.5 million visitors generating over 110 million page views a month. 1
• DallasNews.com and projo.com are the most visited local news and information web sites for their markets. 2
• The following Belo Interactive Web sites are the most visited local television-affiliated sites in their markets: 3
- azfamily.com, Phoenix - KGW.com, Portland- KING5.com, Seattle - KHOU.com, Houston- KVUE.com, Austin - KMOV.com, St. Louis
1. BI Web Logs, 2003 2. Nielsen//NetRatings Q2 2003 Custom Report 3. The Media Audit – Phoenix 4/03; Seattle 6/03; Austin 5/02; Portland 6/03; Houston 8/03; St. Louis, 7/03
A Bit About Belo
Recognition from our peers• 2004
Murrow Awards: KGW.com, WFAA.com, KTVB.com, KMOV.com, WVEC.com, WWL-TV.com
AP Regional Awards: Dallas, Norfolk, Portland
• 2003 Sigma Delta Chi: KGW.com Online News Association: DallasNews.com EPpy award: DallasNews.com Murrow Awards: KGW.com and KREM.com AP Regional Awards: DallasNews.com, KGW.com, Projo.com
• 2002 Murrow Awards: KREM.com, WFAA.com, KVUE.com, NBC6.com,
WWL-TV.com NAA Digital Edge Award: Projo.com AP Regional Awards: DallasNews.com, WFAA.com, KGW.com,
KVUE.com
Registration Goals
1. Identify and value customer segments
2. Increase audience loyalty and value
3. Migrate audiences
4. Increase advertising impact
Registration Goals
October 2000: Planning
May 2001: Launch
August 2001: 1st email sale
February 2003: Audience management system
May 2003: Offer targeted online advertising based on declared or behavioral data profiles
September 2003: Launched broad suite of Precision Advertising Solutions
October 2000: Planning
May 2001: Launch
August 2001: 1st email sale
February 2003: Audience management system
May 2003: Offer targeted online advertising based on declared or behavioral data profiles
September 2003: Launched broad suite of Precision Advertising Solutions
Goal 1: Identify & Value Customers
Who are your heaviest users in recency, Who are your heaviest users in recency, frequency and amount, and what do you frequency and amount, and what do you know about them?know about them?
Represent 5% of total usersRepresent 5% of total users
Consume 51% of page viewsConsume 51% of page views
Tend to be higher income and slightly Tend to be higher income and slightly younger than print readersyounger than print readers
Do not subscribe to the newspaper (94%)Do not subscribe to the newspaper (94%)
Goal 1: Identify & Value Customers
Interests/HobbiesInterests/Hobbies DemographicsDemographics
Male 53%Female 47%
$0-$19,999 11%$20,000-$34,999 12%$35,000-$49,999 15%$50,000-$74,999 21%$75,000-$99,999 17%$100,000+ 24%
13-17 Years Old 2%18-24 Years Old 10%25-34 Years Old 25%35-44 Years Old 26%45-54 Years Old 26%55-64 Years Old 11%
Male 53%Female 47%
$0-$19,999 11%$20,000-$34,999 12%$35,000-$49,999 15%$50,000-$74,999 21%$75,000-$99,999 17%$100,000+ 24%
13-17 Years Old 2%18-24 Years Old 10%25-34 Years Old 25%35-44 Years Old 26%45-54 Years Old 26%55-64 Years Old 11%
BI’s customer profileBI’s customer profile
6.3 million registrations
1.9 Million targeted email subscribers
6.3 million registrations
1.9 Million targeted email subscribers
Automotive 14%Books/Literature 23%
Computers/Technology 22%Cooking 24%
Electronics 13%Entertainment/Movies 35%
Finance/Stock Market 13%Gaming Internet/Computer 12%
Golf 13%Health & Fitness 24%
Home Improvement 22%Music 30%
Outdoor Activities 22%Shopping 18%
Sports 31%Travel 28%
Automotive 14%Books/Literature 23%
Computers/Technology 22%Cooking 24%
Electronics 13%Entertainment/Movies 35%
Finance/Stock Market 13%Gaming Internet/Computer 12%
Golf 13%Health & Fitness 24%
Home Improvement 22%Music 30%
Outdoor Activities 22%Shopping 18%
Sports 31%Travel 28%
62%
77%
Goal 2: Grow Audience Value
New visitor/TrialNew visitor/Trial
Retention/GrowthRetention/Growth
Loyal customerLoyal customer
Grow Grow loyalty/ loyalty/ usageusage
• NewsNews
• CustomerCustomer experiencexperiencee
• PromotionPromotion
Goal 2: Grow Audience Value
Full audience management• Technology enables “behavioral” tracking on our
websites• Integrates registration data to enable demographic or
interest category targeting • Ad server designed to predict, deliver, report on
audience segments
REGISTER AUDIENCE
DEFINEAUDIENCEGROUPS
DELIVER TARGETED
ADVERTISING
Ad Serving System
MEASURE BEHAVIOR
Audience Management
System
Goal 2: Grow Audience Value
Online ads can be served based on:
Content Section
News Sports Weather Business Entertainment
Traditionalsite targeting
Traditionalsite targeting
Demographics
Gender Income Age
Lifestyle/Interest
Entertainment Shopping Travel
Purchase Intent
Real Estate Employment Automotive Financial
New targeting options
New targeting options
Goal 3: Migrate Audiences
Dallas Morning News circulation(785,000)
DallasNews.comregistered users
(1,825,000)
Reach opportunityfrom online
Reach opportunityfor BI
Frequency from duplicated audience
(As of Jan, 2004)(As of Jan, 2004)
Goal 4: Increase Advertising Impact
Unleash the Internet’s power to deliver “one to one” or Unleash the Internet’s power to deliver “one to one” or addressable marketing. addressable marketing.
Define specific audiences – be Define specific audiences – be likelike traditional media traditional media
Increase results – Relevance, efficiency, Increase results – Relevance, efficiency, performanceperformance
Develop unique solutions – be Develop unique solutions – be differentdifferent than than traditional traditional mediamedia
Goal 4: Increase Advertising Impact
We are able to deliver targeted messages directly to advertisers’ most valuable customers, no matter where those customers travel throughout our sites.
Goal 4: Increase Advertising Impact
Traditional placement: reach large groups with similar profiles
Goal 4: Increase Advertising Impact
Client’s message will only reach most valued customer segment, no matter where customer travels on our site
Client’s message will only reach most valued customer segment, no matter where customer travels on our site
Precision placementhits the exact target every time
Goal 4: Increase Advertising Impact
Targeted Segments:
Visitors to the automotive section of DallasNews.com in the past 30 days
Measurable Results:
»Response rate of 7.7%
»Credit applications doubled
»Mitsubishi automobile searches increased by 17% on site
»Campaign generated 44% of calls at a time when eight promotions were running in other media
Targeted Segments:
Visitors to the automotive section of DallasNews.com in the past 30 days
Measurable Results:
»Response rate of 7.7%
»Credit applications doubled
»Mitsubishi automobile searches increased by 17% on site
»Campaign generated 44% of calls at a time when eight promotions were running in other media
Targeted Campaign Yields Dramatic Results for Auto Dealer
Results: A Competitive Advantage
Untargeted audiences:
Commodity impressions
Lower performance
Low consumer relevance
Unknown audience reach
Targeted audiences:
Powerful delivery combinations
Efficiency
Superior performance
Audience relevance
Reach and frequency
Results: More Efficiency for Advertisers
• Email revenue more than doubled in 2003 Since 2002, we have delivered more than 1,500 email campaigns We now have over 700 email clients
• Average CPM for a targeted campaign is more than double an untargeted CPM We have delivered more than 150 targeted campaigns We now have over 50 targeted clients and 20 were new clients to
Belo Interactive
• I can pay for a larger news staff Belo spends its money disproportionately on journalists, so success
in targeting leads to success in content
Results: More Money for the Web Site
Targeted Revenue as % of Total
0%
4%
8%
12%
16%
20%
24%
2002 2003 2004 Expectation
DallasNews.com targeting revenue grew 143% from the first quarter of 2003 to the last quarter
Online NewsFinancial Independence
Have the Business Models Come of Age?
Presented by John Granatino5th International Symposium on Online Journalism
University of Texas, April 16, 2004