endeavors_6-21-19.pdf

Transcript

2. Texas Center for Community Journalism Fredericksburg, Texas / June 21, 2019 Supercharge your Revenue Streams
3. What I Don’t Know Won’t Hurt Me? It used to be you knew who your competitors were because they lived in your town, sent their kids to the same schools and showed up at the same Chamber meetings. The world has changed.
4. How Well Do Your Sales Reps Stack Up? In today’s world, even in small markets, they have to perform at a high level if you’re going to grow revenue and beat the competition. Functional Adult Responsible Adult Conscious Collaborator Formidable Competitor Dress appropriately for situation Make eye contact Speak clearly & confidently Show up on time Use manners & sit up straight Quote right price Accurate invoices Accurate scheduling Basic product knowledge Buck-stops-here approach Effectively resolve conflicts Listen actively & understand Manage time & set priorities Adapt approach to different people Ask open-ended questions “Wants” vs. “needs” “Features” vs. “benefits” In-depth competitor knowledge Understand advertiser strategy Move prospect thru sales process
5. Stop the World. I Want Off. With so many ways to spend their advertising budgets, business owners are becoming less likely to sign a long-term contract. But you don’t want to lose their dollars or go week to week. You need a NEW PLAN. Sample Rate Structure Spend Rate Q-1 Q-2 Q-3 Q-4 1,000 9.50 2,000 9.00 3,000 8.50 4,000 8.00 5,000 7.50 6,000 7.00 7,000 6.50 8,000 6.00 9,000 5.50 10,000 5.00 X X X X
6. Quarterly Contracts. I Need a WIFM. Easier to keep advertiser on track Easier to sell than long-term commitment More competitive with other media, especially digital Keeps you in the game each quarter Easier to show results for the advertiser • Short-term planning easier • Ensures ads run in timely fashion • More focused ad messages OK, here are FIVE.
7. Now for All the Details You shouldn’t change your rates willy-nilly, of course. But it doesn’t have to be a long, tiring, hand-wringing process either. Here are a few guidelines. Work backwards: Determine highest % discount you’ll give for highest spending. Base your rates on three-year historical spending and rates for the top 20-50 advertisers rather than all customers. Don’t be afraid to ask for signed contract. This is change. Ad reps hate change. Tell them to get over it. Nicely. But firmly. “Special” situations. Build the rate structure for newspaper, then make allowances for the few accounts that don’t fit.
8. Virtual TV News Station Spoiler alert: There is no tower, there is no studio, they’re not a network affiliate. But WKM does have a gaudy news van…and a loyal following.
9. Honey, I Shrunk the News You don’t have to go all-in on WKM’s model. You don’t even need a gaudy van. This is most definitely scalable. Rule 1: Facebook first. Rule 2: You’re not a newspaper. Rule 3: You’re not a TV station. All-in: Green room. Logo van, TV news video equipment. Designated staff (minimum 2 people). Professional editing software. Website separate from newspaper. Facebook page separate from newspaper. Money for Facebook boosting and ads. Next step: Instagram. Toe in the water: iPhone or inexpensive camera for video. iMovie for editing (or run raw video). Newspaper reporter(s). Voice-over rather than on-camera reporting. Separate Facebook page. Run on newspaper website.
10. This is Nice, but How Do You Make Money? Charge for video views • On the website • In-banner video • Social media platforms Charge for banner/tile ads • By number of impressions • By share of voice • By cost per thousand Charge for production • Commercials • Social media videos • Training videos • Business self-promotion • Weddings
11. Hidden Pricing Gems Too often newspapers let their advertising rates sit dormant, or simply change them with across-the-board percentages. But there are some easy ways to use your rates to put money on the bottom line. Raise the open rate to pave the way for contract discounts and other special rates. Seasonal rates for non-contract advertisers. Prime Day surcharge for non-contract advertisers on big days like Thanksgiving edition, fair week, etc. Saturation rate for all advertisers when you sample market-wide. Out-of-market rate for non-local businesses. Could be higher or lower than local rates depending upon your goal.
12. Max Out Website Revenue So your website traffic undoubtedly dwarfs every other site in your market. But too often it’s sold as an add-on to the newspaper. Or an ad in a special section. There’s a better way. Here it is, step by step. Step 1. Determine how many monthly pageviews your site generates on average. Step 2. Identify highly read pages you could sell at a premium (Hint: obits and record items). Step 3. What will your ad server do and not do? (Rotate three ads on leaderboard, for example) Step 4. Determine how many ad positions can work on your site without looking crowded. Step 5. Determine the “share of voice” each ad spot will receive. Step 6. Set the cost per thousand views; $10 is a good place to start.
13. Why Go Through the Six Steps? Lots of reasons. Mostly because you’re bringing order and accountability to your website ad sales. We’ll illustrate with this tracking sheet. Madison Courier 2019 Website Inventory January February March April May June 728x90 1) Craig Toyota $450 $450 $450 $450 $450 2) KDH $450 $450 $450 $450 $450 3) Koehler Tires $450 $450 $450 $450 $450 4) $0 $0 $0 $0 $0 5) $0 $0 $0 $0 $0 300x250 1) Advantage Home Health $299 $299 $0 $0 $0 2) Alcorn, Sage, Schwartz & Magrath $250 $250 $250 $250 $250 3) Brenda's Accounting & Tax Service $0 $250 $250 $250 $250 4) Farmers Bank of Milton $350 $350 $350 $350 $350 5) Great Clips $249 $250 $250 $250 $250 6) Greves TV & Appliance $299 $350 $350 $350 $350 7) Madison Apothecary $299 $350 $350 $350 $350 8) Century 21 $0 $0 $250 $250 $250 9) $0 $0 $0 $0 $0 10) $0 $0 $0 $0 $0 11) $0 $0 $0 $0 $0 12) $0 $0 $0 $0 $0 300x600 1) Big O Tires $369 $370 $370 $370 $370 2) $0 $0 $0 $0 $0 3) $0 $0 $0 $0 $0 4) $0 $0 $0 $0 $0 728x90 Obit page only 1) Lytle-Welty Funeral Homes $0 $350 $350 $350 $350 2) Community Foundation of Jefferson Co. $0 $350 $350 $350 $350 300X250 Obit page only 1) Searcy Monument Co. $99 $200 $200 $200 $200 2) Morgan & Nay Funeral Centre $0 $300 $300 $300 $300 3) $0 $0 $0 $0 $0 4) $0 $0 $0 $0 $0 5) $0 $0 $0 $0 $0 6) $0 $0 $0 $0 $0 7) $0 $0 $0 $0 $0 8) $0 $0 $0 $0 $0 9) $0 $0 $0 $0 $0 Total $3,564 $5,019 $4,970 $4,970 $4,970 Waiting on answer from: Bear's Furniture Edward Jones Chandler Chevrolet Goals automatically set. Easy to see what’s sold and what’s not. Waiting list for advertisers to move up.
14. Lifers Subscribers until they die, barring a huge screwup by the newspaper. Make sure paper gets there on time, in right place & in good condition. Back & Forth Sometimes subscribe, sometimes buy on the newsstands. Stop Saver = “Let’s make a deal.” Impulse Buy a single copy once in a while or, more likely, when prompted. Three things: 1) front page, 2) front page, 3) easily seen at outlet All Readers Are Not Created Equal How people buy newspapers in small markets mostly has to do with generational differences. Understanding them is the key to effective circulation sales. S I L E N T B A B Y B O O M E R S G E N X M I L L E N. Regulars Subscription is a habit as long as no “perfect storm” when up for renewal. Best prospects for Stop Saver. Newsstand Habit Regularly buy single copies as part of their routine or lacking money for a subscription. Three things: 1) on time to outlet, 2) easy to find, 3) front page.
15. Was It Something I Said? Subscribers quit subscribing for a variety of reasons. Problems with delivery service. Ran out of money before bills. If you’re going to try to keep them with a Stop Saver program, here are some guidelines. Rule 1: It’s easier to keep a subscriber before you stop sending them a paper. Stick with it. Every day. Every week. Every month. Not “when we have time.” Call people in the evening or on weekends, not during business hours (possible exception: cell numbers). If you have to mail/email people, give them benefits of subscribing, not “We miss you.” Track results at every step of the process. Save your best offer as a last resort. Don’t give it away up front.
16. You’re Not Alone. You don’t have to create every revenue-generating product from scratch. Vendor partnerships can get you in the game quicker. Here are five we’ve worked with. High-quality content & upscale print niche products aimed at bringing back advertisers who have left newspapers for shiny magazines. Work on site with your sales team to sell more of your own website inventory & for longer commitments. An integrated marketing solution involving gift certificates and an e-commerce site for your readers to buy the certificates at discount. White label widget-based platform that lives on your website. You become the “publisher” of community’s social media. Digital display ads on national websites, but shown only in customer-selected geographic areas & on relevant websites.
17. WIFMs? We Have WIFMs. Use the code TCU2019 before the end of this year and receive special pricing. • $200 off prep fee • 25% revenue share (vs. 30%) on sales up to $25,000 • 20% revenue share (vs. 25%) on sales over $25,000 • 1st month platform fee waived ($349) • No travel cost other than food & lodging • 1st month platform free with 6- month agreement ($299 value) • Discount of $1 per 1,000 impressions for any campaign 50,000 impressions+ per month • $200 off setup fee (normally $300) • No per-advertiser fees for first 2 months • 15% off monthly administrative fee • 3% discount on content and/ or printing • Can pay monthly or annually
18. In a Class of your Own You can give your classifieds new life and generate additional revenue by selling a “sponsorship” for each category and giving it prominent display. Sponsor gets first spot in category. Put a screen over the ad or logo naming them as “category sponsor.” Sell for minimum 3- to 6-month commitment. Premium position = premium price. Let’s Look at the Numbers 20 classified categories Each sponsor pays $30 per week x 52 weeks = $31,200 new revenue in a year Look for non-traditional or non-local advertisers, not your regulars.
19. Rack Cards That Entice and…SELL Well-designed rack cards are effective point-of-purchase advertising for newsstand sales, grabbing attention and influencing impulse buyers. This is how you do rack cards right. Inside today’s Back-to-School Supply Lists Special Section inside this Midweek’s
20. An Old Idea That Can Work Today Not gonna lie, hawkers require time and persistence from your circulation manager, both to set up and to oversee. Still, they generate a lot of attention for your newspaper. And advertisers are watching. The greatest benefit might be the visibility and excitement hawkers bring. Independent contractors: Get signed agreements and issue 1099s at year’s end. Sell them papers at wholesale rate. They should pay you up front. Definitely. Expect them to earn tips from regular buyers. They will find the best places to sell on their own…And they will become territorial. They likely will involve their family members.
21. Put the “Special” Back in Special Sections Still putting out those same special sections, calling on every business in town to meet the revenue goal? Quit. Just quit. Seriously. There’s a better way. If you can’t get a premium rate, question whether you even should be doing the section. Value = matching specific readers with specific advertisers eager to reach those readers. Value = unique, useful, entertaining and compelling content, not generic filler. Value = selling to relevant advertisers, not everyone you think you can talk into buying an ad. Think “frame of mind.” Newspaper WIFMs: less time away from other sales, higher average rate, less likely to shuffle dollars. Value = ad that actually accomplishes something important for the advertiser.
22. Hyerlinked Service Directory The Mom and Pop service businesses are out there promoting what they do, always looking to stretch their small advertising budgets as far as possible.
23. How to Make It Work Give them as much value as possible for a small investment. Go for longterm commitment. Sell by phone, and not with your outside sales reps. House ads promote to readers, not to potential advertisers. If they have a physical storefront, they do not belong here. Sample Value Package • B/W or color ad in the paper every week. • Online ads in color and hyperlinked to their website, Facebook page or email. • 100 free business cards. • Free help wanted classified ad 2x per year.
24. Decisions Decisions Decisions So many good ideas. Which will make you famous, which will flop? How do you evaluate them? Trial and error? Coin toss? Stay in your comfort zone? You need a PROCESS. Sanity Check Does this make sense? Seriously. After running the numbers and talking it over, does this make sense? (But don’t confuse “making sense” with “feeling comfortable.”) Bob the Builder Versus “I Ain’t Doin’ It” This is all about the willingness and ability of your sales reps. Will they support this? Even if they love it, do they have the necessary, specific skills to make the venture successful? Swimming in Cash, Treading Water or …? If you’re operating nicely in the black or have cash in the bank, you have more options: longer timeframe for payoff, riskier, etc. If you’re barely making it, opt for quicker return and more certainty. ROI and MPH Consider opportunity costs. Then look at them again. Jot down costs and realistic revenue projections, month by month. Which projects will put the most on your bottom line — and the quickest?
25. “New mysteries. New day. Fresh doughnuts.” David Lynch American filmmaker