endeavors_6-21-19.pdf

Transcript

1. View Slide

2. Texas Center for Community Journalism
   
   Fredericksburg, Texas / June 21, 2019
   Supercharge your
   Revenue Streams
   

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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.
   

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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
   

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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
   

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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.
   

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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.
   

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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.
   

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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.
   

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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
    

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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.
    

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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.
    

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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.
    

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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.
    

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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.
    

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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.
    

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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
    

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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.
    

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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
    

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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.
    

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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.
    

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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.
    

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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.
    

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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?
    

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25. “New mysteries.
    New day. Fresh
    doughnuts.”
    David Lynch
    
    American filmmaker
    

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