hyper local competition

Transcript

1. • Who they are • What they’re doing • How to beat them Digital Competitors MelTaylorMedia.com
2. Online Journalism / Content looking for Revenue Models FAIL Proven Revenue Models that support Online Journalism/Content SMART
3. Life Blood of Newspaper Local Advertiser Dollars
4. TRADITIONAL • Other Papers • Community News • Specialty News • Magazines • TV • Radio • Cable • Outdoor • Yellow Pages NON-TRADITIONAL • Google • Groupon • Facebook • 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
5. Advertiser TV Newspaper Radio Direct Mail Directories Traditional Channels Reach Local Yellow Pages Groupon Patch Facebook Indie Sites Search New Channels Direct Relationship Twitter, Facebook, Business Websites Local Consumer Middle-Man Channels
6. Cannibalize Print ?
7. Online deals = small Print sales = big • Online is small %, but fastest growing • Advertisers moving larger % to web • Outsiders talking to clients. They’re buying Skepticism
8. solving fear of cannibalization if we don’t offer digital… somebody else will
9. Who are they ?
11. Patch: Priority Plan • Local news source • Trusted community partner • Newspaper replacement • Create excellent journalism
12. AOL’ s hyper-local play for local ad dollars via journalism
13. 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
14. 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
15. 33 New Sites New Hampshire Iowa South Carolina
16. 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
17. Patch Expands AOL Investment • $ 70 mil 2010 • $160 mil 2011
18. Will Patch Succeed ? • Who knows – Doesn’t matter • Patch is more proof… – Local dollars up for grabs
19. Huffington Post • Traffic • Low-cost • Advertisers • Profitable $315m
21. • Costs front loaded • Cheap to scale • Low overhead
22. Costs
23. Patch Office Space
24. divert attention
25. • $50 mil investment • Mc cookie cutter sites • Working conditions • Fake Journos
26. Patch Grows • Local business connection • Multiple revenue ops • Walmart effect
27. Patch Value • Acquisitions • Content & ad net • Monetizable reach • Monetizable data
28. • Grassroots • SEO • Social • AOL Network • Mapquest AWARENESS
29. Patch Marketing Staff… Freshest Breath in Town
30. FREE Holiday Parking Courtesy of Ardmore PATCH
34. Editor of Canon-McMillan Patch, with Mayor Rhome Pittsburgh Business Times
35. Mayor Flips Switch Hopkins, Minnesota Patch Site #500
37. 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
38. 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
39. • Newspaper • TV • Cable • Yellow Pages • NAA • Bloggers POACH
40. Recruitment
41. Patch University
43. • 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
44. Patch Sales Inventory
45. o Flat fee for SOV (share of voice) o Free Classifieds o Small fee $20 auto & jobs o Directory up-sells o Fee to post coupons o Newsletter Ads o Video Profiles $800 Current Ad Offers
51. Jana Shepherd
52. Devil ads
54. other LOCAL competitors
55. 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+
56. HARVESTING your audience
57. > Partner > Run Groupon Ads & Newspaper NO
58. Yellow Pages
61. Cable
62. Google Places
63. Google Business Photos Orange County, CA Phoenix, AZ Bay Area, CA San Antonio, TX St Petersburg, FL
76. • Over 45 US markets • Feet on street • Search Engine Marketing • Display / Banner • Video • Multiple digital solutions
77. Newspapers DIGITAL SERVICE Divisions
80. TRIBUNE DIGITAL SERVICES
82. Online Radio
83. o 60 million users o About half of all Internet listening o Avg 13 hrs of listening o $50 mil revenue. o 45 of top 50 national advertisers o Growing sales force o San Fran, NYC, LA, Chicago, Detroit, Dallas, Atlanta Pandora
84. Targeting of local ads on NATIONAL SITES o Geo-targeting o By format o Audio, Video, Display o Mobile Pandora
87. Hyper-local sites & Web Sales for Local TV
88. 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
89. Outsourced LOCAL Sales
90. How To Win What can Newspaper do… that others can’t ? USP Unique Selling Proposition
91. USP • Superior local reach • Feet on street • Trust & Brand familiarity • Client relationships • Local content creation & curation
92. How Newspaper Wins Combine Newspaper USP with New Digital Tools
93. Steps for Success • Run Web like Business • Understand Competition • Leverage Digital – Operational Efficiency – Increase Revenue Share – Increase Audience Share
94. 1. profit 2. operations 3. editorial in this order Run Web like Newspaper Think like Publisher / Owner
95. Who Runs Website ?
96. Who Runs Website? Mandatory Skill Set 1. Entrepreneurial 2. Biz-Dev & Direct Sales 3. Digital DNA 4. Traditional Marketing
97. Who Runs Your Site ? • make it impressive • drive page-views • win awards • sell more print Person motivated to… ?
98. Who Should Run Website ? Compensation tied to digital profitability
99. Client Questions • Current marketing allocation • Current digital allocation • Digital you are considering • Who’s pitching you ?
100. Reduce Costs via > Open Source > Crowd Source > Revenue Share • Vendor Deals • Aggregation & RSS • Local Indie-Journos • CMS Platforms • Local Ad Networks • Sales-Based Video Re-think EVERYTHING
101. RUN ONLINE LIKE PRINT SAME RULES
102. • Who they are • What they’re doing • How to beat them Digital Competitors MelTaylorMedia.com