U-T TV / Native Advertising
MIKE HODGES | PRESIDENT & COO
August 2014
Digital Video
U-T TV’s Pivot
Digital video ad spending will increase 41.9% this year, reaching $5.96 billion. From 2014-2018 total spending is expected to increase 113% to $12.71 Billion
Growth in Video
Source: http://www.emarketer.com/Article/US-TV-Ad-Market-Still-Growing-More-than-Digital-Video/1010923 [Jun 12, 2014] 4
TV Ad Dollars Should “Go Digital” Faster Than Forecasts
188 million Americans watched 47 billion online content videos in March 2014, with the number of video ad views totaling 29 billion. (comScore)
Video ads reached 54% of the total U.S. population an average of 170 times per month. (comScore)
Video constitutes more than 50% of all mobile bandwidth and over 90% of Internet bandwidth. (Diode Digital)
72% of people watch YouTube or Vimeo videos (Pew Center)
Growth in Video
Source: http://www.adknowledge.com/blog/digital-video-winning-against-tv/ [June 11, 2014] 5
As accessibility to digital video becomes mainstream, traditional TV viewership is on the decline:
Among 18-24 year olds, traditional TV viewing has dropped for eight consecutive quarters. (Nielsen)
Average time spent per day with digital media was predicted to surpass TV viewing time in 2013. (eMarketer)
Mobile video ads will grow 119% this year to $1.44 billion, and that compares to a strong 26.4% growth rate for online video ads, which will generate revenue of about $4.45 billion this year.
Mobile Video Advertising To Double in 2014
Source: http://www.mediapost.com/publications/article/229283/mobile-video-advertising-to-double-in-2014.html [July 2, 2014] 6
In addition, the growth rate in mobile video ads will exceed traditional online video ads on desktops or laptops. By 2018, mobile video should hit $5.44 billion in revenue, putting it close to online video’s $6.83 billion, the report said.
Ways Used Internet/Apps in past 30 days
Mobile Video Advertising To Double in 2014
Source: Top 40 CBSA Markets; Scarborough 2014R1
9.9
%
13
.7%
17
.1%
20
.8%
24
.4%
1
9.3
%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
2010 2011 2012 2013 2014
Movies
Any Device Non-Computer
0.0
%
26
.8%
30
.2%
31
.7%
36
.1%
2
3.2
%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
2010 2011 2012 2013 2014
Video Clips
Any Device Non-Computer
7
The total digital video ad spending in SoCal by SoCal businesses will increase +125.4% by 2018
Borrell SoCal Digital Video Ad Spending
Source: http://news.magnaglobal.com/article_display.cfm?article_id=1538 [April 28, 2014] 8
2013 $230,438,300
2018 $519,437,000
Connected TV Use Grows 19% Year-Over-Year
About 63% of broadband homes now have at least one TV linked to the Internet.
113.2 million US consumers, or nearly 60% of digital video viewers, will use connected TVs in 2014. By 2018, that figure is projected to reach 90.0% of digital video viewers
Source: http://www.mediapost.com/publications/article/231005/number-of-connected-tvs-on-pace-to-double-in-three.html [ July 29, 2014] http://www.mediapost.com/publications/article/219993/connected-tv-use-grows-19-year-over-year.html [February 20, 2014] 9
According to a March Deloitte study, fewer than half of Millennials (44%) watch TV/video on actual TV sets. The key is leveraging video, regardless of platform, and having a cross-screen play, in order to keep the audience captivated.
Video Adoption
Source: http://www.mediapost.com/publications/article/230074/growth-trends-the-rising-influence-of-screen-agn.html [July 15, 2014] 10
U-T TV | Re-thinking digital video
Launch (May 2012) Re-launch (January 2014)
Distribution Cable carriage (Cox, AT&T) Digital, 3rd party, Social
Content 12 hours of programming
Personality and talk
Short form
News based
Monetization Day part advertising
Digital advertising
Studio rental and commercial production
3rd party inventory (i.e. Fox Sports)
11
Be the leader in on-demand video news for San Diego and for topics of national interest that originate in San Diego.
Deliver to the customer’s digital doorstep, wherever that may be – on the phone, in their Facebook feed, on their company web site, in their hotel room, TV or Web site.
Be best in class -- fast, first, free, the most authentic, the best informed, the most accessible, available and easily used in the market.
—First with the news
—Topics that matter
—Easy to consume:
—Clarity, context, simplicity, brevity
—High production value
U-T TV | Goals/Strategy
12
U-T TV | 2013 Regional Emmys
13
Nominations Awards
KGTV 18 12
FOX 5 20 10
NBC 7 22 10
Univision San Diego 12 7
U-T TV 11 5
CBS News 8 5 3
Channel 4 San Diego 3 3
Fox Sports San Diego 6 3
San Diego 6 News 8 3
KPBS 4 0
Our staff produces news on three platforms simultaneously
U-T TV | How we do it
14
U-T TV | Productivity
15
20 ANCHORED
UPDATES
5 WATCHDOG
REPORTS
15 SPORTS UPDATES
& PACKAGES
15 FIELD PRODUCED SEGMENTS
5 Q&A’S WITH REPORTERS
5 BUSINESS UPDATES
5 ENTERTAINMENT REPORTS
70 to 100 Clips Per Week
U-T TV | Planning is done in parallel
16
Military A
&E C
rim
e
TV Print
Digital
CONTENT TEAMS plan coverage. Stories are platform agnostic.
PUBLISHING TEAMS shape content to fit
each platform.
Coverage and publishing groups are managed separately. There is no hierarchical relationship between the groups.
TV Publishing Team
2 anchors
2 producers
2 editors
1 IT
U-T reporters write and present on air
U-T photographers shoot and edit video
U-T graphics department provides animated maps and motion graphics
U-T TV | Lean approach to resources
17
SHARED RESOURCES
UNIQUE RESOURCES
U-T TV | Workflow
18
Photographer & reporter collaborate on packages
1 2 3
Clips are incorporated in anchored news updates
Finished packages are featured in digital line-up
We track performance by topic and by individual staffer
U-T TV | Performance
19
Our video content strategy has greatly increased our total video views and has had a minimal impact on completion rates.
1st 8-weeks VS last 8- weeks [Plays:+826% | Social Referral: +89%]
UTSanDiego.com Video Timeline
0%
10%
20%
30%
40%
50%
60%
70%
0
50,000
100,000
150,000
200,000
250,000
300,000
20
14
-1
20
14
-2
20
14
-3
20
14
-4
20
14
-5
20
14
-6
20
14
-7
20
14
-8
20
14
-9
20
14
-10
20
14
-11
20
14
-12
20
14
-13
20
14
-14
20
14
-15
20
14
-16
20
14
-17
20
14
-18
20
14
-19
20
14
-20
20
14
-21
20
14
-22
20
14
-23
20
14
-24
20
14
-25
20
14
-26
20
14
-27
20
14
-28
20
14
-29
20
14
-30
Digital Video Statistics 2014
Starts Completion
Auto-Play [Index Pages]
20
Every video play is tracked in detail for weekly editor evaluation
Duration: 76 Seconds / Average View: 57 Seconds
Video Evaluations and Evolution
19% 81% 74% 68% 32%
<25% 25%+ 50%+ 75%+ 100%
-36%
21
Top Videos
TOP VIEWED VIDEO In July, the Navy will show off its $500 million electromagnetic railgun prototype at San Diego Naval Base, aboard the Joint High Speed Vessel Millinocket
TOP SOCIAL VIDEO Megadeth's leader & guitarist discusses his pending debut
with the San Diego Symphony & conductor Ken-David Masur
BEST COMPLETION RATE Most influential players in San Diego history
22
We’ve come a long way since last year and have learned a lot along the way. Realizing that there was substantial expense and limited opportunity with a traditional broadcast as a cable station without full-market coverage, we chose to pivot and focus on helping clients create compelling content that they could repurpose on their own channels and run that within our U-T content and out to digital audiences wherever they may be.
Create an environment where the client feels like they are the star and are actively involved in the creation of their content
Leverage the U-T TV digital live-stream as well as our on-demand content to offer clients pre-roll, billboards and sponsorships
By combining live-stream and on-demand marketing opportunities into simple bundles, we can deliver broadcast-style, scheduled messages with the broad reach and targeting capabilities of digital
Production of client video content and then airing that content within our online news stream and as pre-roll to our online on-demand videos
Automotive and real estate categories are the areas where we are seeing the biggest need for video creation
U-T TV | Where we’re at now…
23
Hosted Video Segment
Lengths of 5 minutes, 10 minutes and 15 minutes can be purchased by U-T clients. We will produce the segment for them that can then be repurposed on their website and social media. These segments can also be done with a U-T TV personality, but is not required. We can also offer the client to have their produced video be archived within the U-T’s website to help with SEO.
U-T TV | Revenue Opportunities
24
Commercial Production
Lengths of :30 seconds and :60 seconds are primarily used by clients that utilize local TV stations to broadcast their commercial message. We will produce their commercial in-studio or for an additional charge at an off-site location. We can also offer them exposure within the U-T TV online video stream for as an upsell.
U-T TV | Revenue Opportunities
25
Billboards
Lengths of :05 seconds, :10 seconds and :15 seconds are offered to clients looking for exposure within the U-T TV live stream, but with a shorter length that a traditional commercial. These billboards can also act as pre-roll video content to run before U-T videos online or as a video banner ad.
U-T TV | Revenue Opportunities
26
Long-form Infomercials
These are traditionally produced as a 30 minute block for the client. Although we do not air these within the U-T TV stream or online, we have had success with clients looking to air their infomercial content on other local TV stations within the market. They usually take longer to produce and often require off-site footage, the client investment is greater than the other production offerings.
U-T TV | Revenue Opportunities
27
Native Advertising
MarketConnect
The big, bold idea…
Take the nascent idea of native content, customize it for the needs of our customers, build a brand around the concept and maximize its effectiveness through, print, search and social. Take SEO and reputation management back from the niche players and bring it home to our local media company.
Why it should never work
Nobody reads sponsored or native content.
There’s no way to make it profitable.
It’s highly limited in the categories where it will perform well.
Google will hunt us down for posting this as news.
MarketConnect
29
How it works
Variable-cost, outsourced (mostly local) content creators do the interviews and the writing.
In-house curator (part of an FTE) manages the program and maintains the standards.
Search and Social are a big part of the push.
Headlines and phrasing in the body of the piece is used purposefully to max the pop on Google’s algorithm.
MarketConnect
30
Why it worked
Advertisers love it.
They love to be published experts.
They love what it does to their SEO (right to the top).
They love the qualified leads they get from it.
Among a broad base of advertising verticals, this program has been one of the strongest new product launches we’ve done in several years. Over 12 months we have sold and executed nearly 600 ‘Market Connect’ pieces carrying a rate between $300 and $700 each depending on the bundle. Revenue from the program recently exceeded $200k on a margin of more than 70%.
Surprises
These Market Connect pieces are some of the best read things on our site.
There has yet to be a business we could not find an interesting angle to write about.
Clients understand the distinction between this and advertorial and like it.
We have created entire digital and print products using nothing but this.
News hasn’t complained (much).
MarketConnect
31
Results
Solid, consistent revenue on a small, scalable expense base.
Effective for everyone from SMB to $600k clients.
Account managers can learn to sell it quickly and the fulfillment process is fairly simple for most clients to complete in a 15 minute interview.
Clients who understand the program repeat monthly – if not more frequently.
MarketConnect
32
MarketConnect has expanded to include sections mirroring our main news: Health, Entertainment, Lifestyle, Home Improvement to name a few
Native Advertising
SD In Depth
SD In Depth | What is it?
34
SD IN DEPTH is like “60 Minutes” in Print. A Sunday special section with the following elements:
Deep local reporting into the biggest issues of the day
Focus on newsmakers, ideas and opinions
Weekly television complement (in development.)
Section also includes Opinion and Editorial Pages inside.
Presenting sponsors are underwriting best-in-class journalism based on shared values:
Includes the privilege to share a point of view with a full page of sponsored content each week in the ‘SD IN DEPTH’ section.
U-T San Diego has designated this special section to be available to only two highly-vetted civic-minded presenting corporations in San Diego County.
SD In Depth | Presenting Sponsorship
35
Quality
Community
Accountability
Integrity
Innovation
Achievement
36
Weekly front page ribbon featuring SDG&E logo, community message, and content refer to inside pages.
Weekly section front presenting designation featuring SDG&E logo
PRESENTED BY
37
Community Education
Innovation People
Environment Energy Issues
No other category/company shall be a presenting
sponsor of the U-T ‘SD IN DEPTH’ special section. It is
agreed to and understood that other corporate and
promotional partners will be a part of the U-T ‘SD IN
DEPTH’ special section.
However, the presenting sponsor will have exclusive
rights to its category.
SD In Depth | Category Exclusivity
38
Signed 2 presenting sponsors – ESET & SDG&E
Each sponsor runs 26 alternate weeks
2014 Revenue= $1.4M
SD In Depth | Where We’re At
39
U-T TV / Native Advertising
MIKE HODGES | PRESIDENT & COO
August 2014