Roundtable 2005 levitt

Roundtable on Strategic

Marketing

Leon Levitt

VP/Digital media

Cox Newspapers

Changing Media Landscape

Up against HUGE lifestyle headwinds

Expectation that news/information is free

Way people get news and information- graze many different sources

Broadband is changing the game and has a big impact on newspapers

Wireless broadband will become ubiquities and along with thinner/cheaper laptops changes the way we must tune our sites

National competitors entering local markets


MSNBC and Yahoo News each have 26M UV and 16% reach (NYT 6.9 UV and 4.2% reach)

Google… $5B revenue, 300% growth, 35% margins

Ebay… Profitable from day one

AOL moving to a more free based model

Everyone launching better search (MSN in game)

RSS feeds allow us to be aggregated

Online 2005 retail sales up 22%, $172B

5.5% ALL non travel retail sales moved online


Real Estate… Who knows? What will the

industry look like?

Monster… Nearing $1B in revenue (only

20% $6B help wanted moved online)

Craig's List… Business model virus!

Roll of aggregators (Indeed, Oodle)

How we WIN….

Alignment print ad online business models & strategy

Aggregation of audience, driving online past 7-day market share and extending incremental reach (we will win)

Reengage youth (not all eyeballs are equal- fresh sockets!)

All about local audience (Differentiator)

Managing supply and demand (broadcast model)

Sales and business plans drive technology

Urgent focus on revenue transition from print to online (classified, retail, its just like Sunday)



MUST GET THE MESSAGE OUT…

While print is declining the aggregate portfolio, in many cases, is increasing market share

NP sites in July- 115M UV (Yahoo, MSNBC, CNN) combined 70M UV

Not just online, many other print products

Trade Associations, media companies much more aggressive in positioning the issue

Monster is the example

Aggregation of Audience

AJC print past 7-day reach is 51% (Scarborough)

AJC.com sites extend reach to 56% (10% bump!)

223,000 online only readers

Backfill younger demographics

Past 7-Day is gold standard

OPA project (5 vendors, different methodology)

Changing Media Landscape Business Model Alignment

E & P headline: Internet broadband growth <insert word> newspaper circulation…

Cox Philosophy

More than just a newspaper site (different medium)

Produce and tune for broadband (integrate video and interactivity)

Link content, convenience (utility), conversation

Aggregate before being aggregated (RSS)

Develop comprehensive best in class search

Produce & play into trends / Pockets of passion

Determine and own franchise topics (prep sports versus NFL, MLB…)

Reinforce local-local differentiators (think micro)

Own breaking news (back in that game)

Cox Philosophy

Think like users / Shout versus whisper

Make better decisions using “overnights”

Content that drives revenue (not all journalism)

Credibility is not the same as news judgment

Difference in edited/non-edited content (user

generate content and blogs)

Daypart content plans (broadcast model)

Airline or roller coaster (depends on time of day)

Must provide impact for advertiser

All about local audience

User Engagement

Study

Online Publishers Association (OPA)

Satisfaction

Satisfaction Engagement

Top Usage Drivers 1. Entertains & absorbs

me

2. Looks out for people like me

3. My personal timeout

4. Regular part of my day

5. A credible, safe place

6. Connects me with others

7. Touches me and expands my views

8. Makes me smarter

9. Turned on by ads

10. Easy to use

11. Helps and improves me

12. Worth saving and sharing

Unique to “Online”

Entertains and absorbs me

Connects me with others

Tailored for me

Guides me to other media

A way to fill my time

My guilty pleasure

Tries to persuade me

OPA User Project

Helps me feel smarter

I don’t want to be embarrassed

Helps me be clever, have the scoops, be

king of the water cooler

Gives me a dose of fun and serendipity

Use of Online Data

Registration versus non-registration (rich data

versus widest audience)

Ads/registration- user consideration in free model

ZAG versus full registration

Behavioral targeting (market size)

Plan on how to use!

Opt-in email

Linkage to newspaper subscribers

AJC.com Consolidated Sites

June- 3M unique visitors

June- 61.7M page views

Registered users- 30.5M page views (49%)

NDMA- 21.7M (71% of registered users and track

by county or ZIP)

Nonsubscribers- 24M (80% of reg users)

Registered users- 1.4M profiles

Active registered users- 465K past 30 days /

260K past 7 days (167K in NDMA)


Do we understand a very different business model? – Different news judgment and one revenue stream

How do we transition revenue across a federation of verticals (especially retail)?

Do we manage or push print erosion? (eyeballs versus dollars)

How will people’s info needs change in a world of wireless broadband & cheap/thin laptops?

How can we create strategic and business alignment across all of our products?

We must prioritize and reconcile what is cool with a sustainable business model


Content management systems/strategy

– Single positing efficiency (edited)

– Seamless blending user generated non-edited

content

Comprehensive search

Web order entry

Control of distribution

Sale structures and accountability


Tougher times… online is a big part of the

revenue answer… 40% revenue growth can

juice the overall enterprise!

Much of NP YOY revenue growth driven by

online (in some cases 70%)

Building a new asset!

Roundtable on Strategic

Marketing

Leon Levitt

VP/Digital media

Cox Newspapers