street fight prezo

Hyperlocal Revenue 

Some Good Company....

Let’s Start at the Very BeginningA very good place to start

There Is No New Revenue StreamRobert Niles: bit.ly/biz-check

“For all those hopeful newspaper managers, searching for a new revenue model that will save good, old-fashioned newsroom journalism, I have a message for you: You're wasting your time. Please, stop. There is no new revenue model for journalism.”

What Are They?

●Advertising●Direct Purchase●Donations

The Positive Side

Constraints are a Good Thing

http://bit.ly/cool-constraint

We can Still Do a Lot!

This does not mean we can’t improve, experiment, update, adapt old revenue models. It just means that some things change and some things.... stay the same.

Some things HAVE changed.....

●But it’s not the revenue streams - it’s the production mode, production cost.●Qualitative changes abound: Relationship with audience, engagement, etc. These can be positive on the revenue stream.... but revenue streams are the same.

Let's talk about each of these

●Advertising●Direct Purchase●Donations

Advertising What we really mean is ..... for

Direct Purchase

for

Donations

for

10 presentation points for the audience member that gets this reference

I had a 4 year experiment around donations

Theory:Giving people: Transparency and Participation in the donation process will increase donations.

Apologies for going into numbers....

Donations.....NPR can get 1/12 listeners. Perspective: KQED has roughly 750k listeners and is the second largest NPR station in the country.Average donation $125.Total yearly take: 7.8 million

Don't forget the content.....

All this assumes your content is good. Otherwise you’re in trouble

***

Overall stats Spot.Us ●All data based on a database replica from 1:10 AM December 16th 2011●Breakdown:

● Number of members: 12,588● Number of donors: 6,647 ➔ 52.8 % of the community donates

***Community

●Number of donations: 13,020●Average number of donations:

● Per Spot.us community: 1.05● Per donor: 1.93

●Average donation: $38.17●Average time between donations: ~ 59.9 days

**Doing some math

●If Spot.Us Could Get 200,000 people to join....

●Keep same level and occurrence of donations ($76 from 1/2 community)

●That’s 7.6 million.

*

●I’M RICH!!!! and I beat KQED!

●but wait.......

**Reverse Numbers Game●Percent of Traffic that Joins: 1.9%●Means - Every 1k visitors = 20 new members!●Percent of joiners who donate (50%)●Means every 2k visitors = 20 donors●100,000 donors needs: 10 million eyeballs●OR: 833k a month (KQED traffic)●NOTE: NPR throughout the country = +30 million listeners

*

Final ConclusionsIf I were a pure scientists - it would be apples and oranges. My "sample" is contaminated. At best I could say "inconclusive" at worst "theory doesn't hold true."

But apples and oranges are always there

And I'd argue they play in favor of my theory We are an unknown brand Managed by a team of 3-4 people (at our height) Our content was good - but I'm willing to admit we didn't win any Pulitzers.

And that's without bringing up the pink elephant in the room.

**Spot.Us - as example but extrapolate....●MinnPost●Voice of San Diego●Bay Citizen●etc. etc.●Let’s take LARGE foundation grants out of it. ●Their current mechanism of donations is traditional - but if they were 100% donations - they’d have to hit numbers similar to KQED. ●Can we lower that barrier?

*

Advertising How can we re-think this.

for

Advertising

How about ........

for

Google Consumer SurveysREAD THIS ARTICLE

Early Results at Mission Loc@l

20% conversion rate80% abandonment rate

So the real question is.......

What is more valuable.

20

vs.

80

($15 eCPM) ($2-$5 eCPM)

These are early results - I expect the brains to do better over time

Advertising How can we re-think this.

for

Advertising How can we re-think this.

for

NowSpots

AdGlue

Be Mission Market - Direct Purchase

The Screenularity

66% of American's say television is their main source of news.  That's down from 74% in 2008 Down from 82% in 2002

Are you Ready to Compete in Video?

Open Fields For Those That Can Grab it

Bottom of the second inning.

Thank you

David Cohn - @digidave Current project: @circa