FUTURE OF LATIN MEDIA

Is it going where it wants to go or where it should go?

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“Don’t tell me what you believe,tell me what you know”

From a grumpy old-timer to a flamboyant young politician in a TV show

Internet is a disruptive technology for media business

FACT #1

Disruptive technology changes the value proposition in any industry

FACT #2

The Chicago-based company now generates 85% of its revenue from digital sales, and also recently started offering a digital encyclopedia for tablet computers.

The company began digital publishing in the late 1980s with CD-ROM versions of the books, before going online in 1994. Online versions of the encyclopedia are now used by

around 100m people worldwide.

Some companies deliver new value

And some don’t …

“Newspapers took two cents of journalism and wrapped in ninety-eight cents of overhead and

distraction”

A very harsh vision of the newspaper value proposition by digital guru Seth Godin

SENSE OF BELONGING

COMMUNITY

TRUST & REPUTATION

BREAKING NEWS

NEWS CURATION

OPINION & ANALYSIS

DEALS & SALES

CLASSIFIEDS

SWEEPSTAKES & PROMOTIONS

SERVICES & GUIDES

PORTABLE

ON DEMAND

Newspaper value proposition in the Golden Age

Along came the Internet

SENSE OF BELONGING

COMMUNITY

TRUST & REPUTATION

BREAKING NEWS

NEWS CURATION

OPINION & ANALYSIS

DEALS & SALES

CLASSIFIEDS

SWEEPSTAKES & PROMOTIONS

GUIDES & SERVICES

PORTABLE

ON DEMAND

And changed this value proposition

The naked truth (FACT #2 )

The naked truth (FACT #2 )

The Internet disruption has happened, and the business has been irrevocably altered.

The only way to survive disruption is to understand the value you need to deliver and shape your oganization accordingly(and it will be painful …)

FACT #3

AUDIENCE ADVERTISERS

VALUE

ORGANIZATION

Where should LATIN MEDIA go?

1

The DO NOTS are much more clear than the DO’s

Profit from the time window opportunity and learn from the mistakes the big guys made

Try to avoid 6 frequent sins of digital transition for media companies

(the bigger the company, the higher the frequency)

Cold feet (a.k.a Denial)

When the net blossomed in the 90 s, why didn’t newspapers ′respond?

Because classified ads were a cash-cow and CEOs were responsible to Wall Street, so few had the courage to see Craigslist as a threat

and blow up their cash-cow.

And that is the Innovator’s Dilemma.The giants won’t eat their young.

Cold feet (a.k.a Denial)

When the net blossomed in the 90 s, why didn’t newspapers ′respond?

Because classified ads were a cash-cow and CEOs were responsible to Wall Street, so few had the courage to see Craigslist as a threat

and blow up their cash-cow.

And that is the Innovator’s Dilemma.The giants won’t eat their young.

IF SOME ELSE IS GOING TO TAKE YOUR REVENUES AWAY IT WOULD BETTER BE

YOURSELF, BUT PLAYING BY THE NEW RULES

Newsroom and product egocentrism

Forget about ‘content management’ and focus on ‘audience development’

Content is just a means to an end.

The end, and media’s greatest asset, is audience.Advertisers don’t pay to reach content , they pay to reach

audience

Newsroom and product egocentrism

Forget about ‘content management’ and focus on ‘audience development’

Content is just a means to an end.

The end, and media’s greatest asset, is audience.Advertisers don’t pay to reach content , they pay to reach

audience

DON’T LET YOUR STATUS QUO DETERMINE THE VALUE PROPOSITION.

DON’T FALL IN LOVE WITH YOUR CMS.

DON’T FALL FOR GEEKIE STUFF.

PRODUCT (TECH) & NEWSROOMS ARE CONSECUENCES, NOT CAUSES

But this theory that newspapers could have somehow won a war against the internet if they had just charged users for content misses the point.

The “original sin” of the online news business

A failure to charge for content when the web was new

The paywall mirage

Some publishers say, “They bought it before, they’ll buy it again,” or “We need to get people back into the habit of paying for news.”

But consumers never did pay the true costs.

Newspapers have never made the bulk of their income from readers who pay for content.

Subscription prices and newsstand sales have always been subservient to advertising.

Besides paywalls are a privilege only for a few producers of differentiated content.

Some publishers say, “They bought it before, they’ll buy it again,” or “We need to get people back into the habit of paying for news.”

But consumers never did pay the true costs.

Newspapers have never made the bulk of their income from readers who pay for content.

Subscription prices and newsstand sales have always been subservient to advertising.

Besides paywalls are a privilege only for a few producers of differentiated content.

ENCOURAGE READERS TO SEE THEMSELVES AS MEMBER OF AN EXCLUSIVE CLUB WITH PERKS

AND REWARDS.

BUILD RELATIONSHIP FIRST, THEN MONETIZATION FLOW FROM THERE.

Direct response immitation

Advertising dollars are already online, just going elsewhere (evil companies …)

This confirms a much feared trend. By and large, in a news context, the performance of digital advertising is on the decline.

All indicators are now flashing red: CPM (cost per thousand impressions), cost per click, volumes, yields, etc.

NOBODY CLICKS ON A BANNER IN A NEWS SITE

The cause is well-known, and way more acute for digital than for print: ads and news contents do compete for the same eyeballs.

DELIVER ADDED VALUE FORMATSRICH MEDIA

CONTENT MARKETING

INTRUSIVE ADVERTISING

BRANDING SOLUTIONS LEAVE TRANSACTIONAL TO GOOGLE

Boxing Mike Tyson

Do everything pure play Internet companies are doing but with a worst value proposition

We did it many times and failed. But lucky enough, we knew how to fail fast.

(let me share our two worst cases …)

SELF SERVICE ADVERTISINGPLATAFORM

VIDEO PORTAL

We did it many times and failed. But lucky enough, we knew how to fail fast

IF YOU ARE GOING TO FAIL, FAIL FAST

[The iPad is] a fatal distraction for media companies. Too many publishers looked at the tablet as the road home to their magazine

format, subscription model, and expensive full-page ads.

The format of a single device does not change the fundamental ecosystem underneath it, and this shiny tablet has taken media

companies’ eyes off of the ball.

Probably you will only be successful in migrating your actual faithful base of paper products to a new device.

The tablet paper replica illusion

[The iPad is] a fatal distraction for media companies. Too many publishers looked at the tablet as the road home to their magazine

format, subscription model, and expensive full-page ads.

The format of a single device does not change the fundamental ecosystem underneath it, and this shiny tablet has taken media

companies’ eyes off of the ball.

Probably you will only be successful in migrating your actual faithful base of paper products to a new device.

The tablet paper replica illusion

REMEMBER. NEW GAME & NEW RULES

ZITE AND FLIPBOARD ARE SETTING THE BENCHMARK

REGARDLESS OF THE CAPABILITIES OF THE DEVICE, VALUE IS STILL THE ONLY THING THAT MATTERS

The one thing Latin Media should do?

BUILD A NEW VALUE PROPOSITION FOR AUDIENCE AND ADVERTISERS

MEDIA SUPER HERO

VALUE MANDOCTOR CONVERGENCE

CAPTAIN BUNDLELADY PAST GLORY

TECHIE SERIAL COPIER

Fights a legion of super-villians in the QUEST FOR

VALUE

Custom Publishing

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Chinesse walls strategy

FOCUS IN FINDING THE VALUE PROPOSITION OF EACH BUSINESS

Autonomy

Independent decisions

Specialization

Focus

No interest conflicts

Sacrcity

The need to survive

100% responsible of your future

Alive and kicking

357.920

246.948

2008 2009 2010 2011 2012

Newspaper Sunday circulation

150,000

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200,000

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250,000

275,000

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325,000

350,000

375,000

357.920Ejemplares

246.948Ejemplares

Fuente IVC – Venta Neta total de ejemplares día domingo Enero 2008 - Marzo 2012

2008 2009 2010 2011 2012

+44%

2008 2009 2010 2011 Abr-12 Objetivo 20120

100000

200000

300000

400000

500000

600000

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800000

215.136

267.794

403.251

539.048573.409

687.500

Club La Nación

LA NACION and Impremedia

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