Turning a profit with your news site
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Turning a Profit with your news site MelTaylorMedia.com Twitter: @MelTaylorMedia [email protected] 267-625-5313 Fort Worth, Texas March 10, 2011
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Transcript of Turning a profit with your news site
Turning a Profitwith your news site
MelTaylorMedia.com
Twitter: @[email protected]
267-625-5313
Fort Worth, Texas March 10, 2011
How we help Newspaper
refresh
blow up
overhaul & rebuild
outdated web business models
Mel Taylor Media
Mel Taylor Background
o Life blood of local journalism
o Why are we stuck ?
o Patch business model
o Other models……successful
o Cherry pick solutions that work
Agenda
Are YouVulnerable?
AggregatorAggregatee
DUMB ?News from
PATCH
Aggregation: Good
But...
Use Carefully
USE EVERY TOOL To Grow • audience share• revenue share
USP Unique Selling
Proposition
Newspaper TOOLS
• Legacy
• Feet on street
• Local content creation
• Client relationships
• Brand familiarity
• Print / Traditional distribution
Newspaper TOOLS
• Video
• Social & Mobile
• Integrated / cross platform
• Large newsrooms
• Aggregation, Blog networks
Content
Aggregation
RSS
Curation
Blog Posts
WebsiteSeed
SyndicatePrint
Digital First
Steps for Success
• Understand Competition
• Know USP
• Leverage Digital for Share
Online Journalism/Content looking for
Revenue Models
Proven Revenue Models that support
Online Journalism/Content
FAIL
SMART
Revenue Friendly PLATFORMSoft Content & Services
Sustainable Journalism - Platforms & Systems3/14/2011 MelTaylorMedia.com
Ecommerce
Sponsored Features Advertorial
Offline Revenue, Events Digital Marketing Services
Web 101 Workshops
Ad & Content Networks Syndication
Journalism Support SystemSoft Content & Services Subsidize Hard Content
(Just like in Newspapers)
Hard News Watch Dog Community
Video, Social, Mobile Directory, Classifieds
Limited, Direct Advertiser Support
Life Blood of NewspaperLocal Advertiser Dollars
TRADITIONAL• Other Papers
• Community News
• Specialty News
• Magazines
• TV
• Radio
• Cable
• Outdoor
• Yellow Pages
NON-TRADITIONAL• Google
• Groupon• Facebook
• Digital agency• Pandora & digital radio
• Geo-Target national sites• Self-publishing
• Hyper-local sites/blogs• You-Tube
• Yelp & review sites• Free directories
• Craigslist, Angie’s list• Service Magic
• Monster, Cars, Realtor.com
Local Biz Bombarded
what should we do
?
Mobile
Video
Apps
Coupons
Blogs
RUN ONLINE LIKE PRINT
SAME RULES
1. profit
2. operations
3. editorial
in this order
Run Web like NewspaperThink like Publisher / Owner
• New revenue development
• Operational efficiencies
• Bottom line & profit margin
Reduce Costs• Open source• Outsource• Partner• Aggregate• Automate
Costs
RUN WEBLIKE
1. Compensation
2. Management
3. Simplify inventory
4. Apply pressure
5. Raise Rate
Online deals = small
Print sales = big
• Online is small %, but fastest growing
• Advertisers moving larger % to web
• Outsiders talking to clients. They’re buying
Skepticism
Cannibalize Print ?
solving fear of cannibalization
if we don’t
offer digital…
someone else will
SIMPLE First Steps
• Who’s in charge?
• Ask client about ad spend
• Compensation adjustment
• Pitch current print clients
• Simplify ads & packages
Who Runs Site
• make it impressive • drive page-views • win awards • sell more print
Financially motivated or….
?
Editorial vs. Sales
Internal Conflict
Overhaul Comp
• Revenue per rep & manager
• New business per rep (per month)
• Grow % of current clients using web
• High commission rate: new clients
• Lower commission rate: transactional
• Bonus & PENALTY
Reps Operating Blind
Fully aware of how clientsare spending budgets?
Ask Client about Ad Spend
Their answers will surprise you
Bigger Not Always Better
News Hole
Online
Ad hole
LOGOsections
promo
LOSE PRICING POWER
Un-limited Supply+
Commodity Unit+
Limited Demand
How To Win
What can Newspaper do…
that others can’t ?
USPUnique Selling Proposition
USP• Superior local reach
• Feet on street
• Trust & Brand familiarity
• Client relationships
• Local content creation & curation
How Newspaper Wins
Combine Newspaper USPwith
New Digital Tools
Do advertisers care more about news…or selling their merchandise ?
2009
Critical Question
NEW LOCAL Competitors
What in Common?
Local Ad Dollars
View slide deck here:
http://www.businessinsider.com/the-aol-way
Patch: Priority Plan
• Local news source
• Trusted community partner
• Newspaper replacement
• Create excellent journalism
AOL’ s
hyper-local play
for local ad dollars
via journalism
Over 800 Sites…so far555 in Q4 2010
• 18 states
• Over 100 in California
• 73 in Massachusetts
• 40 in Georgia
• 30 in Philadelphia
• 3m uniques; Dec 2010
Launched in February 2009
PhiladelphiaRegion
Today: 30 Summer 2011: 60
Bucks County
Delaware County
Lehigh County
Chester County
Main Line
Communities Avg size: 50-70k
South Jersey
PATCH Philly Regional Publisher:Former Publisher @ Journal Register
Why is Patch doing this?
• AOL’s dial-up dead
• Need new revenue
• Local media downsizing
• 50% of local budgets on sideline
• Local media protecting legacy biz
Will Patch Succeed ?
• Who knows – Doesn’t matter
• Patch is more proof…
– Local dollars up for grabs
Deadly Mistakeonly focus on….
• traffic
• community
• banner ads
• journalism skils
tactic of diverting attention away from item of significance
Sweet.Newspaper is falling
right into our trap
Deadly MistakeAs we bad mouth
• 50 mil investment
• Mc cookie cutter sites
• Working conditions
• Corporate approach
Patch Grows• Efficiencies of scale
• Walmart effect
• Infra-structure
• Additional revenue ops
Patch Grows• Aquisitions
• AOL content & ad net
• Monetizable reach
• Monetizable data
Patch Marketing Staff… Freshest Breath in Town
Recruitment
POACH
• Newspaper• TV• Cable• Yellow Pages• NAA• Bloggers
POACH
Patch University
Patch Office Space
Editor of Canon-McMillan Patch, with Mayor Rhome
Pittsburgh Business Times
Mayor Flips SwitchHopkins, Minnesota Patch Site
#500
FREE Holiday ParkingCourtesy of Ardmore PATCH
o Local Editor; $40ko MacBook Pro, camera, smart phone, police scanner
o $500 freelancer budget per month
o Regional Publisher; $80k
o Regional Editor; $80ko Oversee group of 12 Patch sites
401K matchPerformance bonusMedical & Dental
EditorialPay & Positions
o Ad Manager; $60k baseo 5k signing bonus
o 90k at plan
o Cell, laptop, wireless card
o Budget
SALESPay & Positions
401K matchPerformance bonusMedical & Dental
Patch Sales
Inventory
o Flat fee for SOV (share of voice)
o Free Classifieds
o Small fee $20 auto & jobs
o Directory up-sells
o Fee to post coupons
o Newsletter Ads
o Video Profiles $800
Current Ad Offers
Huffington PostThe great roll up begins
similar to isps, cable, radio, newspaper
• Profitable• Pageviews & uniques• Management success• Leverage rules of web 2.0• Technology implementation • Social, viral , commenting
provides boost to aggregation /
automation portion of business
Warren Webster about Outside.in acquisition:
“We really believe in the model we have right now, pairing local journalism w/ tech and efficiency of scale.
Outside.in : outstanding technology to scale even faster.
[They have] tools for journalism to make us more robust; a fantastic group of engineers, product people, and business people.
otherLOCAL
competitors
Outsourcing
Yellow Pages
Cable
Google Places
• Over 45 US markets
• Feet on street
• Search Engine Marketing
• Display / Banner
• Video
• Multiple digital solutions
NewspapersDIGITAL SERVICE
Divisions
TRIBUNEDIGITAL SERVICES
Online Radio
o 60 million users
o About half of all Internet listening
o Avg 13 hrs of listening
o $50 mil revenue.
o 45 of top 50 national advertisers
o Growing sales force
o San Fran, NYC, LA, Chicago, Detroit, Dallas, Atlanta
Pandora
Targeting of local ads
on NATIONAL SITES
o Geo-targeting
o By format
o Audio, Video, Display
o Mobile
Pandora
112
LOCAL ad
on national site
Digital Outdoor
• Geo target• Day part• Production
Hyper-local sites
& Web Sales
for Local TV
o No upfront costs
o Call center pitch local business
o Use TV’s call letters
o Rev share approx 60% to DataSphere
Don’t help them
Don’t run their ads
Post tease & link back to site
Post tease & link back to site
EmployeesDec 2009: 124
Dec 2010: 3,100
75% of Deal Market
Users2008: 400 k
2009: 1.5 mil
2010: 40 mil
Average User Single
Female 18-34
Income: 70k+
HARVESTING your audience
> Partner
> Run Groupon Ads
& Newspaper
NO
Deals
Take your foot off the brake
think about it…
newspapers are careful about who gets a front page ad
in their print product
( hand-selected business pays premium )
but… they don’t follow the same smart rules about ad placements
in their online product
not smart
DUMB National Ad Networks( at local level )
REMOVEfrom home-page & section fronts
Consider day-parting
danger of ad networks
Ad unit designed to
look like editorial
DUMB National Ad Networks
1.Found money
2.No upfront costs
1.3rd party reps inventory
2.Inventory glut lowers pricing power
3.Local business gets on site…cheap
4.Commoditize your inventory
Good:
Bad:
National Ad Networks3rd Party Ads, Remnant, Google Ad Sense
National Ad Networks
REMOVEhome-page & section fronts
• Day-part• Secondary sections• Below fold• Non-prime positions
> 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
danger of ad networks
Ad unit designed to
look like editorial
TV Promoin prime position
Marketing Promoin prime position
TV Promoin prime position
Low CPM3rd Party Ad net
Great TV Stationlosing web dollars
on HOME PAGE
Sales/Marketing Promo
Sales/Marketing Promo
Would TV run nothing but non-paid promos & remnant ads in 11p newscast?
No.
Then why do it online..on this PREMIUM page?
Sales/Marketing Promo
3 home-page units ! devoted to DEALS
simplify
NEWS LOGO
NEWS LOGO
REDUCE Clutter !
NEWS LOGO
NEWS LOGO
Huh?
• cpm
• pageviews
• uniques
• click-thru rate
• odd pricing
• pixels
• impressions
Huh?
overcoming COMMONobjections
Overcoming Common Objections
Not Interested
Groupon
Newspaper
Doesn’t
Work
Already have Site
Cable No BudgetDon’t See
My Ad
Tried it. Did not Work
OLD SCHOOLweb sales DEAD
Website
Seller
NEVER
Call your site….THE INTERNET
Some prefer to read our paper:
• at work on computer
• on their iPhone
Better:
NEVER SAY
Wanna buy a banner ?
25% of our readers love
our Online Newspaper…
You need to be there too
Better:
Not interested in Web
Newspaper is Enough
• Great start !
• Readers are online too
• Need your ad there
things to sayto client
totally understand
many of my clients felt same way
your customers still use
newspaper
but…
your customersare spending
more time online
Let me help you reach them
online
Internet Prime TimeMon-Fri 9a-5p
At Work Day-Part
Website: xx,000 Unique / readers
Mobile: x,000 Apps, alerts
Social: x,000 Facebook, Twitter
Email: xx,000 Opt-insYouTube: xx,000 Subscribers
Total Readership
Newspaper: xxx,000Online: xx,000 Total Reach: xxx,000
Total Online
SIMPLEMedia Kit
• Online• Print• Email (PDF)
________% of Philly (ages 18-54) are online
________% of (18-54) that use online for entertainment
________% of (18-54) that use online for local info
PW.com delivers:
______ Page-views per month
______ Unique readers on computer or mobile
PW.com - AT WORK DAYPART
PW.com features:
• High profile display ads
• Custom Sponsorships
• Audio & video ads
• Contests & Promotions
• Database & lead capture
• Social Media & Mobile
Reach Philly….in Print & Online
____ Email Subscribers
____ Facebook Fans
____ Twitter Subscribers
DEMO ONLY
PW.com - AT WORK DAYPART
Reach Philly….in Print & Online
DEMO ONLY
•Testimonials•Quick case study•Logos of current online advertisers•Local advertisers looking great on site
How Local Biz Decidesto buy your site
• Reads your newspaper
• Pageviews, CPM, Price
• Design
• Awards
• Twitter & Facebook & Video
Ad Mixdo they see
local business& competitors?
Premium Ads• Skins & site take-overs• Pre-rolls• Large format display
easiest ad unit to sell
Sliding Billboard
smart practice
Home Page Premium
Unit
Already Using
• Banners• SEO• Facebook• Website
& ONLINE
online promotion
* download coupon * join contest * watch video
capture:
* email* twitter* facebook fan
build database
* friend list* twitter * subscribers
targeted email
* tweets* facebook* messages
Integrated Campaign
Don’t See My Ads
• Day-part (9a-3p)
• Pick a day (wed)
• Pick a section (sports)
Target Impressions
Newspaper Stinks
• I understand your feelings
• Show online solutions
• Use Print to support Web
• Up-sell to print
• Show benefits of combo
Using Google / SEO
• Great start
• Reaches ACTIVE buyers
• You need PASSIVES too
– Those NOT buying now
To advertise your business
Would you only use Yellow Pages?
Too Expensive
Smart Practiceweekly instead of monthly rates
$ 400. per month sounds
expensive
soundsreasonable $ 95. per week
‘Your cpm is too high’
Avoid This Nonsense….instead….sell flat fee to local/directs
Interactive Media Queen
It’s NotWorking
ManageClient
Expectations
How will client track success?
• Increase sales• Store traffic• Brand awareness• Message awareness• Click thru rate• Download coupon• Subscribe email• Facebook / Twitter
HowWillClient Track Success
Manage Expectations
Brand Awareness
- Boston Pizza Logo
Message Awareness
- Boston Pizza; 3 locations. Now in Braintree
Direct Response
- Accountable performance
- Show (redeem) text message for free topping
3 Campaign Objectives
Top Reasonsfor
CANCELLATION
BADBanner Design
Creatives
Click here for…• Gift Cards• Menus• NYE Reservations
Well designed…• Branding• Message Awareness• Direct Response
Design Banner as if….• Speed by at 70mph
• 2 seconds of attention
Banner Design• KISS
• No Web Address
• Clear graphics / messaging
• Understood in 2 seconds
• What is Goal ?BrandingMessage awarenessDirect response
• Call to Action ?
Banner Design
Client Vanity
• What is Goal ?BrandingMessage awarenessDirect response
• Call to Action ?
Banner Design
Banner Design good or bad ?
if we don’t offer digital…
someone else will
SELL Current Print Clients
His clients would buy Web if….• offered consistently
• offered with passion
• offered as a ‘great idea’ (not just banner ads)
Print Sales SuperstarWins Sales ContestsHits Budget w/o Web
Use Classified Call Center to set appointments
• Cold calling is weak
• Keep sellers on street
• Use classified dept
• Consider outsourcing to call center
Web 101 for Local Business
Seminars
• Designate premium HOME PAGE unit
• Sell 24 hour exclusive
• Limit inventory…7 only…Pick a day
• Pricing
• Flat Fee
• Raise rate as you sell out
• 12 week commitment
Starter Web Sales Plan
Overhaul
Compensation
• Revenue & New Business • Per rep & manager• Per month
• Commission• 25% or more for new biz• 10% or below for transactional
Overhaul
Compensation
> 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
Compensation
DO NOT bonus based on:
• Page views
• Unique users
instead…
bonus & compensateon revenue & profit
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
local business using twitter & facebook
food truck sends tweets
inform customers where they’ll be,
and at what time
Hyper Local
Blogger NetworkFarm System
for Newsroom
Hyper-Local IncubatorRevenue, Sales, Tools & Support Services
3/11/2011 MelTaylorMedia.com [email protected] PH: 267-625-5313
The Revenue Engine, Platform & Systemfor Hyper-Local News, Independent Websites & Content Creators
UPDATED 3/11/2010
• Hyper Local Networks• Competing with Patch• Sustainable Models
*for demonstration purposes only
Advertising & Content NetworkBlogs / Independent Journalists / Online Content Creators
Hyper-Local Incubator
3/14/2011 MelTaylorMedia.com
Local Media Eco-SystemBusiness Models that Support Local Journalism
• Enable local commerce to subsidize local news• Proven revenue management systems (RMS)• Move from investor/foundation support, to self-support• Leverage efficiencies of outsourcing & open-source• Multiple online & offline revenue streams
Destination SiteAggregation, Curation, Editorial
Mobile, RSS, Email, Social
Commission, fees & rev-shareDisplay, search, lead capture
Events & promotionsSponsor supported and/or fees
Ad supported
Stringers, Syndication & Licensing
CMS & RMS Platforms
Local Ad Network
Traditional & Digital Marketing Services
Licensing fee, Rev share
Rev share, Agy com
Fees
Fees
Property of Mel Taylor Media. OCT. 1, 2010 www.MelTaylorMedia.com
Local Ad Network
Traditional & Digital Marketing Services
Agy com
Fees
Events & Training WorkshopsFees, sponsorshipslead aggregation
Self-serve, Outbound tele-sales
Creative• Marketing Agencies• Video, Indie-Producers• Designers & Developers
Outsource / FeesMarketing
• Promotions• Event, Contesting• Social
Outsource / Fees
RMS & CMS Platforms
Local Ad Network
Stringer & Syndication & Licensing
Sales, Marketing, Training, Tech & Business Support
Licensing fee and/or revenue share
Per Diem & fees
Revenue shareAgency commission
Co-op Efficiencies
Co-op ResourcesFor Independent Bloggers & Sites• Sales support, network & services• Content network & syndication• Tech & back-office support• Pre-vetted platforms & apps• Representation and investmentsTraditional & Public Media
Growing need to reduce costs, increase local coverage & revenue
Local Readership• What if Newspaper shuts down?
• Central hub for public affairs & local info
Content• Laid off journalists & photographers
• Traditional media news• Indie-sites & pro-am bloggers• Info & pubic domain data feeds• Community & citizen participation
Advertisers• National, Regional, Local
• Moving dollars online
News, Community, Services & Supportfor Local Media Markets
Rev share
Hyper-Local Incubator
Revenue Friendly PLATFORMSoft Content & Services
Sustainable Journalism - Platforms & Systems3/14/2011 MelTaylorMedia.com
Ecommerce
Sponsored Features Advertorial
Offline Revenue, Events Digital Marketing Services
Web 101 Workshops
Ad & Content Networks Syndication
Journalism Support System
Soft Content & Services Subsidize Hard Content(Just like in Newspapers)
Hard News Watch Dog Community
Video, Social, Mobile Directory, Classifieds
Limited, Direct Advertiser Support
536,893 Unique Readers per month
News 10
Sacramento
• All reps as super sellers
• Slowly grow web-only force
• 1 point of contact for client
• Offer many solutions
• Reach & power of all platforms
Integrated & SeparateSales Reps
Tools For Traffic
SEO, Title Tags
Keyword rich
Syndication, RSS
Share / Social
Flickr, YouTube
Tapping These ?
Online Videoshow me the money
Remember all that video stuff you bought for the newsroom?
Take back half of it, and give it to the sales department.
online videothat pays
4 Types of Video
• Story extender
• Story teller
• Gotta see it, to believe it
• Client promo / demo
• Pre-Roll• Frequency cap
• :10, :15, or :30 based on length
• No video? Use static billboard
• Lower Third
Online VideoBest Practices for Revenue
online
photo-mercials
online photo-mercials
Newspaper USP unique selling proposition
What can Newspaper offer…
that PATCH & OTHERS can’t ?
Reduce Costsvia
> Open Source> Crowd Source> Revenue Share
• Vendor Deals
• Aggregation & RSS
• Local Indie-Journos
• CMS Platforms
• Local Ad Networks
• Sales-Based Video
• Management
Re-think EVERYTHING
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
Our ‘Web 101 for Small Business’ seminar was a huge success
• $140,000 in new revenue and signed 26 NEW advertisers
• Increased average revenue per account by 18%.
Mel is charismatic, well spoken and easily captures attention of the crowd. He takes the time to build a story
that can make the most difficult concepts seem easy.
Before the client seminar (where Mel trained our sales staff) he addressed the most common objections. Mel
helped give the sales staff more confidence, and made them fully prepared to sell.
At the client seminar, Mel engaged the audience, spoke in terms that made them comfortable, and made
professional reference to promote our Newspaper website, without losing credibility as a professional, outside
consultant.
Dan Sarko ; VP of Interactive; Tribune
mel taylor media testimonials
We generated over $140k of new (quarterly) online business.
The seminar results far exceeded our expectations.
Mel’s presentation was also a very effective learning tool for our print sales staff, reinforcing our in-house web training.
One key to our success was Mel’s presentation style. He was able to build the advertisers’ web comfort by using non-tech, easy to understand methods & terminology.
John D’Orlando, VP Advertising; Orlando Sentinel
mel taylor media testimonials
o Your knowledge and experience in what works, and what doesn't, to generate online revenues is sorely
needed in the Broadcast industry. Your recommendations are simple, practical, and can be executed
immediately. Feedback from attendees was as high as we've ever gotten.
John Potter VP Training; Radio Advertising Bureau
o As an event planner, I have the opportunity to place many different types of speakers on various industry
programs. Rarely do I encounter a speaker of the caliber of Mel Taylor. Not only is he extremely
knowledgeable in and well-prepared for his subject matter, he is also a very entertaining speaker and a
pleasure to work with. He is an asset to any program.
Marsha Stoltman; America East Newspaper Conference
o Mel, Thank you so much for helping Clear Channel Philadelphia take 100% share of the “Cirque Du Soleil”
Theatre buy. $60 thousand dollars for us! Your “integrated marketing approach” blew the client away. We
even took $10,000. of their print budget ! The client said they were VERY impressed with your presentation
and program, ….and they don’t impress easily !
Tara Kelly, Clear Channel Radio
o Mel Taylor has sold new media for newspapers, radio and television, and knows what it takes to get past low
CPM’s and remnant ads. We hired Mel Taylor Media at WTEN in Albany and saw immediate benefits. In
addition to innovative internet training and development for our sales team, Mel worked closely with the
news director and web developer. Our site now looks better and is more appealing to our advertisers as well
as our viewers. The best part: revenue is up. Mike Sechrist, WTEN TV, Albany, NY
mel taylor media testimonials
Mel Taylor Mediasuccess story
Results: 90 day web-sales initiative
2008 2009 Increase
February $71,813 $134,847 88%
March $97,304 $160,756 66%
April $110,000 $164,475 49%
Turning a Profitwith your news site
MelTaylorMedia.com
Twitter: @[email protected]
267-625-5313
Fort Worth, Texas March 10, 2011
