how to beat patch
DESCRIPTION
from How to Beat PATCH webinarTRANSCRIPT
Digital Revenue Solutions for Newspaper, TV, Radio
& Hyper-Local
MelTaylorMedia.comUpdated 12/22/2010
and….
What Newspapers
Lostover past 15 years
• Help Wanted
• Real Estate
• Auto
• Coupons
• Inserts
• Grocery
• Movie Studios
• Dominance
• Share
• Poach Newspaper execs
• More advertiser choice
• Lower expenses
• Digital first
• Aggregation
Agenda
• Who, What, Why
• Potential plans
• How to beat them
• Other competitors
WebWhy Newspaper
& Local MediaStill Struggle
and how Patch can take local share…
Cannibalize Print ?
Web?I’m thinking retirement…
bee-yatch !
College Professors& assorted brainiacs
“searching for sustainable business models…yada, yada …crowd-sourcing …entrepreneurial journalism...community engagement…yada yada…grass roots via cloud…..yada…let’s do some more research….let’s tweet it…”
Hmmmmm…..
His lips are moving so he MUST be saying
something smart.
• Our traffic is up
• We’re trusted news brand
• Patch is lame blog
• Our sales plan is just fine
• Our VP Interactive speaks on many panels
Um, yeah, Mel….thx for stopping by
Put The Data Down
Hit The StreetNOW
No….but they’ll get a bit naughtywhen they gotta hit their numbers
Local Bloggers Paywalls
ROAD KILL ?
Local blogs& indie-sites
getting nervous?
1. profit
2. operations
3. editorial
in this order !
Run Web like NewspaperThink like Publisher / Owner
What is ?
• AOL’ s Hyper-local play to grab local ad dollars
• Run by ex-Googler
• Editorial & tech first
• Sales ramping up
Tim Armstrong
John Brod
Warren Webster
Why is Patch doing this?
• AOL’s dial-up dead
• AOL’s content-play struggles
• Need new rev stream
• They see local media downsizing
• 50% of local web budgets, still on sideline
• Local media protecting legacy business
Patch: Priority Plan
• Local news source
• Trusted community partner
• Newspaper replacement
• Create excellent journalism
Local Ad Dollars
Borrell
Local Online Advertising Share
Online Only
Pure Play47.2%
Newspaper
27.7%
Online Only
Pure Play51.7%
Newspaper
23.6%
2008 2009
600 Sites…so far(105 in California)
Philadelphia
Bucks CountyDelaware County
Lehigh County
Chester County
Main Line
Communities Avg size: 50-70k
Growing like a Weed
Revenue Streams
• Local • Regional • National
Short Term Objective
• Frantic pace of roll out
• Get hooks into local market… before others know what hit them
• TV, Radio, Newspaper, Yellow Pages… won’t respond quickly?
Strengths
• Digital first
• No legacy baggage
– Not protecting “way we always do it”
– Not impeded by old school
• Cost effective content creation
• Variety of sales tactics
Weakness (for now)
• Unfamiliar outsider
• Questionable local sales savvy
• Limited local relationships
• Clunky corporate structure
• Not as nimble as YOU
Patch Open HouseSuburban Atlanta
Patch Marketing Staff… Freshest Breath in Town
o Local Editor; $40k
o MacBook Pro, camera, smart phone
o $500 freelancer budget per month
o Ad Manager; $60k
o Managing group of sites
o Regional Publisher; $80k
o Regional Editor; $80k
o Oversee group of 12 Patch sites
Pay & Positions
401K matchPerformance bonusMedical & Dental
o Be local online ad expert for small business
o Host WEB 101 seminars for small business
o Attend chamber & trade functions
o Convince buyers to shift budgets to digital
o Visible presence in business community
Sales Job Posting
You’ll be working closely with local advertisers, as their local online advertising expert. You’ll know your own platform (and others) backwards and forwards so you can present complete advertising solutions.
You may decide to host local seminar on how to achieve the best results by advertising web.
As the top local business executive, you will attend chamber and trade functions, get involved in community groups, head up charitable efforts and maintain a highly visible presence in the business community.
Local Online Sales Exec is responsible for advertising sales to businesses in local markets. Will sell banner ads, e-newsletters, video & more. You will present promotional opportunities and display options to store owners/management. You will handle ad sales, inventory management and “own” the online advertising for assigned local markets.
As the Local Online Sales Executive you will also be responsible for assisting in coordinating local event sponsorships and attending them, possibly on weekends.
Wanted: Online Sales Executive
• Newspaper• TV• Cable• Yellow Pages• NAA• Bloggers
POACH
o Self-Serve for $15 cpm….discontinued
o Now: flat fee for SOV (share of voice)
o Free Classifieds: merchandise, services offered
o Small fee $20 auto & jobs
o Directory up-sells
o Enhanced video
o Fee to post coupons
o Newsletter Ads
Current Ad Offers
No phone?
otherLOCAL
competitors
Yahoo Local
• Now in 30 US neighborhoods
• California, Michigan, New York, San Fran, Brooklyn
• Content from local pubs
• Community reporters
• Feeds from other pubs
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+
o No risk… ‘only pay if people buy’
o Customers not clicks
o Performance
o 66 % open rate
o Gets 50% of sales revenue
Crazy Growth (said no to recent Google offer)
Many on this call are helping them
…..by running their adsGroupon is HARVESTING your readers
HARVESTING your readers
• Over 45 US markets
• Feet on street
• Search Engine Marketing
• Display / Banner
• Video
• Multiple digital solutions
• Active advertiser count 13,200 to 16,700
• Revenues up $48m to $70m
• Add senior sales 143 to 246
• Add junior sales: 256 to 395
Tags
Boost
o 60 million users
o About half of all Internet listening
o Avg 13 hrs of listening
o $50 mil revenue. Now profitable
o 45 of top 50 national advertisers
o Growing sales force
o San Fran, NYC, LA, Chicago, Detroit, Dallas, Atlanta
Pandora
Local Targeting of Ads
o Geo-targeting
o By format
o Audio, Video, Display
Pandora
Now Hiring
• Advertising Sales Representative - Oakland, CA
• Senior Account Manager - Chicago, IL
• Advertising Operations Technical Lead
• Inside Sales Manager
• Manager - Pricing and Yield Management
• Online Ad Trafficker
• Sales Planning Supervisor
• Senior Advertising Project Manager
• Senior Revenue Analyst
• Vice President - Research and Marketing
o Quickie hyper-local sites for local TV
o No upfront costs
o Call center pitches local biz in your name
o Rev share approx 60% to DataSphere
o Primary relationship w/client. Retains data
OutsourcedLOCAL Sales
DataSphere = SmartWTSP TV = Dumb
• What % of print clients buy web ?
• What % is sold local direct ?
• Plan to reach non-print ?
• Know marketing plan of clients?
• Are your managers in the field ?
Take This Test
slaughter
Web Sacred Cows
• Need more page-views
• Editorial controls site
• Remnant, 3rd party ad networks
• We hit our (very low) web budget.
• Web rev up by 500%. (off low comps)
• Web traffic is strong. (distraction from profit margin talk)
• We’re doing fine. (compared to other industry losers)
• Print is where $ is. (yet, web is fastest growing rev stream)
Beware the BS
Newspaper USP unique selling proposition
What can Newspaper offer…
that PATCH can’t ?
Newspaper USP
• High % of local reach
• Feet on street
• Local content creation
• Client relationships
• Brand familiarity
• Print / Traditional distribution
How Newspaper Wins
Combine Newspaper USP
with
New Digital Tools
BROADCAST
or PRINT
Online Promotion
* Download coupon * Join contest * Watch video
Capture:
* Email* Twitter* Facebook fan
Build Database
* Friend list* Twitter * Subscribers
Targeted
* Tweets* Facebook* Messages
Integrated Campaign
Mandatory Steps for Success
Treat Web As Business
Run it just like your Newspaper
Remove Internal
Sabotage
Overhaul Comp
• Revenue per rep & manager
• New business per rep (per month)
• Grow % of current clients using web
• High commission rate: new clients
• Low commission rate: transactional
• Bonus & PENALTY
Digital Sales Training Who does most training?
It’s a FACT.More training = more revenue
REDUCEcommodity page-views
GROWhigh ‘advertiser value’
Bigger Not Always Better
simplify
why do we talk like this?
confusing for client& sales rep !
• cpm
• pageviews
• uniques
• click-thrus
• weird vocabulary
• monthly pricing
Endorsed by Internet Expert: Shemp Howard
NEWS LOGO
NEWS LOGO
REDUCE Clutter !
NEWS LOGO
NEWS LOGO
DUMB National Ad Networks( at local level )
REMOVEfrom home-page & section fronts
Consider day-parting
> 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
Can’t sell premium unit
on home page?
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
how local biz decides to buy web
• loves your newspaper
• design & tech
• editorial
• twitter & facebook
• audio & video
Ad Mixdo they see
local competitors?
Super Premium
Ad Units
Breaking News
Sponsored Promotions
Market to Advertisers
• Rte 9 is closed
• Lady Gaga tix on sale Friday
• Phillies beat Astros 3-1
• Deal of Day
• Coupon download
• Win Trip
• Ticket Raid location
• Stand by rate now avail
• Home page unit now avail
• Spring special 50% off
multiple uses
LEADS
New Business Development
Cold Calling
Phone Blitz
STINKEROO
#1 Current Print Clients
Meet Dick. 25 years in the Newspaper biz. Always hits his print budget without fail.
Dick always wins sales contests, like this one to a tropical island. But because Dick is a print-sales superstar, he gets a pass when it comes to web.
Dick NEVER pitches web. Yet 90% of Dick’s clients buy alot of digital.
Dick’s print clients buy online video, SEO, Groupon, banners and social media….…from Dick’s competitors.
Dick’s clients LOVE him. They would buy Web from Dick……if only he offered it.
Hi.I’m Dick.
#2 Call Center to Set Appts
Keep Sellers On The Street.
Use classified phone room down-time to set up appointments…or consider off-shoring this activity to countries that would LOVE this job.
Your sales reps should be in front of clients and potential clients, as much as possible.
Expensive reps & sales managers sitting behind a desk making a few half-hearted cold calls, is a poor use of limited resources.
#3 Web 101 for Local Business Seminars
• confused / lack of knowledge
• doesn’t totally trust sales rep
• think Google or website is enough
• never been offered web
Local biz wants to buy web…
Web 101 for Local BusinessWhy ?
• Provide web education to local biz
> they buy more web !
• Immediate web revenue
• Sales reps get trained
• Better than cold call
• Superior, qualified lead generation
Web 101 for Local BusinessBenefits
Compensation
Bonus, Penalty, MBO’s
Web 101
for Local Business
All Staff Training
Management & Owners
Sell
Non-Print Products
Job Description RefreshSimple Packages…
No CPM’s
Reporting StructureOnline Media Kit,
Direct Contact to Rep
Plan to Reach
Non-AdvertisersNo Ad Networks
Test Yourself…Higher score, better chance to beat Patch
WatchDeseret News, Salt Lake City
Newspaper..Broadcast..Web
Clark GilbertDigital Rock Star
WatchGawker Media
Nick DentonDigital Rock Star
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
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
• Owner• CEO / COO• Investor
Local Sales Management
VP Digital
Local Sales Reps
Local Content Management
• Build & manage digital platforms• Drive online traffic• Content & tech development
• Sell traditional inventory• Sell web inventory (secondary goal)• Manage sellers
• Sell traditional inventory• Sell web inventory (secondary goal)
• Increase shareholder value • Manage overall operations• Drive top line growth• Increase profit margin
Primary Responsibilities
Primary Background
• Little or no direct sales & revenue experience• Compensation primarily based on traffic• Employs content first, not profit first strategy
• Prefer to sell traditional • Limited or no web sales training• No web business model experience• Compensation favors traditional sales
• Prefer selling traditional• Limited experience selling web • Limited or no web sales training• Compensation favors traditional
• Delegate strategy to content first executive• Thinks only brand extension strategy• Over reliance on internal, traditional managers• Tough keeping track of online competitors
Potential Weakness / Limitations
• Traditional media creation• Web media creation• Increase audience numbers
• Prefers traditional content development• Thinks only brand extension strategy• Limited or no web development training• No web business model experience
Local MediaPosition
Building Profitable Business
Content & Tech
Traditional Sales
Traditional Media
Traditional Sales
Why Traditional Media Struggles w/ Online Revenue Growth
1. Management, owners & CEO’s lack specialized web training
2. Dangerous thinking: ‘selling web cannibalizes print sales’
3. Limited web training of sales reps
4. Management structure conflicts
5. Poor attention to fast changing, online environment
6. Setting web budgets too low
7. Ineffective inventory & yield management
8. Confusing media kits, sales packages & pricing
9. Director of Interactive; tech & content background only
10.Over-reliance on vendors & research for sales strategy
TOP 10 Revenue Mistakes of Local Online Media
Read full report here:
http://meltaylormedia.com/2010/08/top-10-web-revenue-mistakes-of-tv-radio/
Local ConsumerAdvertiser
Reach Local
YP360,Local.com
Groupon
Patch,Hyper-local
Google Places,SEM, Facebook
Niche Sites
Hulu, Pandora
TV
Newspaper
Radio
Direct Mail
Directories
Wants to reach local consumer
Traditional Channels
for reaching local consumer
New Channels
for reaching local consumer
Direct Relationshipbetween advertiser & consumers, avoiding middle-man channels
EX: Twitter, Database, Blogs, Social, Mobile
Middle-Man Channels
Advertisers benefit from new, multiple ways
of reaching local consumer
Local Media Eco-SystemBusiness Models that Support Local Journalism
• Pro-active plan that exploits economic pressures • Enables local commerce, that subsidizes local news• Proven revenue management systems (RMS)• Move quicker from investor support, to self-support• Leverage efficiencies of outsourcing and open-source• Multiple online & offline revenue streams• Scalable via networks, franchising & co-ops
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
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 Community & Readership• What if Newspaper shuts down?
•Central hub for public affairs & local information
Content• Laid off journalists & photographers
• Traditional media news• Indie-sites & pro-am bloggers• Watch Dog Journos• 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
Digital Revenue Solutions for Newspaper, TV, Radio
& Hyper-Local
MelTaylorMedia.comUpdated 12/22/2010
and….