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The Virtuous Cycle:Maximizing Revenues

Beyond Ads

By Dorian Benkoil

April 23, 2009

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The Virtuous Cycle

Print Revenues are Falling

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The Virtuous Cycle

Internet Revenue is Growing

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2007 2008 2009 2010 2011 2012 2013

US Online Ad Spending As a Percent of Total Media Ad Spending

Source: eMarketer.com

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The Virtuous Cycle

Newspaper Websites Often Lead

44% of all U.S. Internet users visited a

newspaper website in January.

Newspaper website growth outpaces

many other categories.

Newspaper websites are consistently

among the top-ranking nationally and

locallySources: Comscore, Poynter Institute, Follow the Media

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The Virtuous Cycle

So Why Isnt That Great News

For Newspapers, Online?

Source: IAB

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The Virtuous Cycle

Ads Are Not Enough

Ad growth is declining. Growth went down some 50% from 2007

- 2008.

After years of soaring growth, online advertisers have

started pumping the brakes. -

eMarketer

For many newspapers, ad revenues are down. NY Times revenuesslid 5.6 percent to $78.2 million from $82.9 million.

There is constant downward pressure on prices.

The supply [of advertising] is just growing so fast thatthe value of the inventory is going down.

- Stephen Brill

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So What Can

You Do?

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The Virtuous Cycle

Create a Virtuous Cycle

Events

Services

Memberships

Subscription Products

Yourpublication is

the BRAND at

the center

Community

Advertising

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The Virtuous Cycle

Optimize Advertising(and everything else)

Display sold directly

Networks

Remnant

Email

E-Commerce: Worth more than ads?

Use the cascade

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The Virtuous Cycle

Sample Ad Network DataRECENT AD PLACEMENT REVENUE DATA FOR ONE SITE SECTION

One Month (Late '08)

Placement Network Revenue Fill Rate Avg CPM CTR

300*250 Network A 603.92$ 27.18 1.00Network B 653.11$ 33.63 1.00

Network C 70.93$ 28.7 0.72

Network D N/A -

House Ads N/A 10.49

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The Virtuous Cycle

NY Convergence Example

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The Virtuous Cycle

Services and Subscriptions

What can you provide? Email

Web services (local businesses) Free level

Paid level

Seminars, Webinars, Courses

Combine with events (win for all)

Data, Stats, Information

Jobs Classifieds

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The Virtuous Cycle

Entice Visitors Toward ValueHigher Value

First Time

- Referred

- From Search

Repeat

- Direct

- Referred

- From Search

VisitorTy

pe

- More Frequent

- More Recent

Behavior

Purchase- Membership- Subscription- Product

Register

- Membership- Email

Interact-Inquired-Clicked Off

-On Site

View- More Time Spent

- More Pages Viewed

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The Virtuous Cycle

Value of Paid Members

PVs Mmbrs Paid Visitors

Feature 1 2015 638 283 982

Feature 2 955 190 503 262

Feature 3 968 197 268 503

Feature 4 1206 286 470 450

Feature 5 1042 199 409 434

Feature 6 1805 432 583 790Feature 7 1,134 213 553 368

0

500

1000

1500

2000

2500

Feature 1 Feature 2 Feature 3 Feature 4 Feature 5 Feature 6 Feature 7

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The Virtuous Cycle

Events

Marketing for the brand

Sponsorship

New member opportunities Sales, ancillary

Ear to the communityQuickTime and a

decompressorare needed to see this picture.

QuickTime and adecompressor

are needed to see this picture.

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The Virtuous Cycle

The Brand At The Center

Multiple, Offsetting Revenue Streams

Perform Differently in Opposing Conditions

Separate and Improved Cashflows Increased Marketing at Low Cost

Brand Luster

Added Service to Community

New Outreach Opportunities Mix Will Improve Your DSO and Other Financial

Measures Beyond Just Ads

Cost of Sales Will Go Down As Profitability Rises

Your publication is a trusted brand with a ready

community that you can serve and sell to in multipleways through digital media, creating:

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The Virtuous Cycle

TeemingMedia.com

Consulting: Strategic, Publishing and Financial

Training: Editorial and Business

Video Seminars: Finance for Media Professionals

Show: Naked Media (NakedMedia.org) Reports: Content Management Systems, How to

Build, Buy or Improve the One You Have

Dorian@TeemingMedia.com

646-258-7879