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6/28/2011
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• Who they are • What they’re doing • How to beat them
Digital Competitors
MelTaylorMedia.com
Steps for Success
• Run Web like Business
• Understand Competition
• Leverage Digital – Operational Efficiency
– Increase Revenue Share
– Increase Audience Share
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1. profit
2. operations
3. editorial
in this order
Run Web like Newspaper Think like Publisher / Owner
Who Runs Website ?
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Webmasters
Designers
Editors
Tell you
what you can
and can’t sell
Always done it that way
Platform can’t do it
We don’t offer it
Don’t have time
Too expensive
Bad user experience
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• Hit our web budget
• Web rev up 500 %
• Web traffic is strong
• 50,000 Facebook Fans
Beware
Who Should Run Website ? Compensation tied to digital profitability
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TRADITIONAL • Other Papers
• Community News
• Specialty News
• Magazines
• TV
• Radio
• Cable
• Outdoor
• Yellow Pages
NON-TRADITIONAL • Google
• Groupon
• Digital agency
• Geo-Target national sites
• Self-publishing
• Hyper-local sites/blogs
• Yelp & review sites
• Craigslist, Angie’s list
• Monster, Cars, Realtor.com
Local Biz Bombarded
Advertiser TV
Newspaper
Radio
Direct Mail
Directories
Traditional Channels
Reach Local
Yellow Pages
Groupon
Patch
Indie Sites
Search
New Channels
Direct Relationship Twitter, Facebook, Business Websites
Local Consumer
Middle-Man Channels
Advertisers benefit from new, multiple ways
of reaching local consumer
MelTaylorMedia.com INVESTOR PRESENTATION 9 / 2010
between advertiser & consumers, avoiding middle-man channels
EX: Twitter, Database, Blogs, Social, Mobile
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Online deals = small
Newspaper sales = big
• Online is small %, but fastest growing
• Advertisers moving larger % to web
• Outsiders talking to clients. They’re buying
Skepticism
solving fear of cannibalization
if we don’t
offer digital…
somebody else will
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Who are they ?
Patch: Priority Plan
• Local news source
• Trusted community partner
• Local Media replacement
• Create excellent journalism
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AOL’ s
hyper-local play
for local ad dollars
via journalism
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Why is Patch doing this?
• AOL’s dial-up dwindle
• Need new revenue
• Local media downsizing
• 50% of local budgets on sideline
• Local media protecting legacy biz
837 Sites…so far 555 in Q4 2010
• 20 states
• Over 100 in California
• 73 in Massachusetts
• 40 in Georgia
• 30 in Philadelphia
• 3m uniques; Dec 2010
Launched in February 2009
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PATCH Traffic Growth
Oct 2010: 1.71 mil Dec 2010: 3.03 mil Feb 2011: 4.41 mil Ap 2011: 6.91 mil
ComScore
Philadelphia
Region
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
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Will Patch Succeed ?
•Who knows – Doesn’t matter
•Patch is more proof…
– Local dollars up for grabs
Huffington Post
• Traffic
• Low-cost
• Advertisers
• Profitable
$315m
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Costs
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Patch Marketing Staff… Freshest Breath in Town
FREE Holiday Parking Courtesy of Ardmore PATCH
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o Local Editor; $40k o MacBook Pro, camera, smart phone, police scanner
o $500 freelancer budget per month
o Regional Publisher; $80k
o Regional Editor; $80k o Oversee group of 12 Patch sites
401K match Performance bonus
Medical & Dental
Editorial Pay & Positions
o Ad Manager; $60k base o 5k signing bonus
o 90k at plan
o Cell, laptop, wireless card
o Budget
SALES Pay & Positions
401K match Performance bonus
Medical & Dental
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• Newspaper • TV • Cable • Yellow Pages • NAA • Bloggers
POACH
Recruitment
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Patch University
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• Be local online ad expert for small biz
• Host WEB 101 seminars for small biz
• Attend chamber & trade functions
• Convince buyers to shift budget to digital
• Visible presence in biz community
Sales Job Posting
Devil ads
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other LOCAL
competitors
Employees Dec 2009: 124
Dec 2010: 3,100
75% of Deal Market
Users 2008: 400 k
2009: 1.5 mil
2010: 40 mil
Average User Single
Female 18-34
Income: 70k+
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HARVESTING your audience
> Partner
> Run Groupon Ads
& Newspaper
NO
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Yellow Pages
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Cable
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Google Places
Google Business Photos
Orange County, CA Phoenix, AZ Bay Area, CA
San Antonio, TX St Petersburg, FL
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American Express
helping local business
buy banner campaigns
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Newspapers DIGITAL SERVICE
Divisions
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TRIBUNE DIGITAL SERVICES
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Online Radio
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o 94 mil REGISTERED users
o 34 mil ACTIVE users
o Est $200 mil revenue for 2011
o Top 50 national advertisers
o Growing sales force
o San Fran, NYC, LA, Chicago, Detroit, Dallas, Atlanta
Pandora
Pandora
# 2 all-time free iPhone app # 1 all-time free iPad app
Jan 2011
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Targeting of local ads
on NATIONAL SITES
o Geo-targeting
o By format
o Audio, Video, Display
o Mobile
Pandora
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Hyper-local sites
& Web Sales
for Local TV
o Quickie hyper-local sites for local TV
o No upfront costs
o Call center pitches local biz in TV’s name
o Rev share approx 60% to DataSphere
o Keeps primary relationship w/client
o DataSphere retains advertiser data
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How To Win
What can Newspaper do…
that others can’t ?
USP Unique Selling Proposition
USP • Superior local reach
• Feet on street
• Trust & Brand familiarity
• Client relationships
• Local content creation & curation
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How Newspaper Wins
Combine Newspaper USP with
New Digital Tools
USP Unique Selling
Proposition
Newspaper TOOLS
• Legacy
• Feet on street
• Local content creation
• Client relationships
• Brand familiarity
• Print / Traditional distribution
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New Newspaper TOOLS
• Video
• Social & Mobile
• Integrated / cross platform
• Multi-media newsrooms
• Aggregation
RUN ONLINE LIKE PRINT
SAME RULES
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Grade Yourself
• Newsroom knows Web-biz 101 ?
• Reps knows website basics ?
• Reps overcome common objections ?
• Reps know how local biz uses Web ?
• Reps help local biz understand Web ?
• Most web inventory sold local-direct?’
• ALL Executives Web-trained ?
Client Questions
• Current marketing allocation
• Current digital allocation
• Digital you are considering
• Who’s pitching you ?
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Early Steps
• Run as business, not hobby
• Who’s in charge?
• Comp adjustment
• Know & pitch current clients
• Simplify sales process
Overhaul Comp
• Revenue per rep & manager
• New business per rep (per month)
• Grow % of current clients
• High commission: new clients
• Low commission: transactional
• Bonus & PENALTY
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Reps Operating Blind
Fully aware of how clients are spending budgets?
• 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 & Separate Sales Reps
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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
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• cpm
• pageviews
• uniques
• click-thru rate
• leaderboards
• pixels
• impressions
REMOVE ALL
Geek Speak
?
Who Runs Website?
Mandatory Skill Set
1. Entrepreneurial
2. Biz-Dev & Direct Sales
3. Digital DNA
4. Traditional Marketing
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Online Journalism / Content looking for
Revenue Models
FAIL
Proven Revenue Models that support
Online Journalism / Content
SMART
