6/10/2009

newspaper.com

internet revenue strategy

Halifax, Nova Scotia. June 6, 2009

MelTaylorMedia.com 267-625-5313

mel taylor
background

• radio • newspaper • sales management • talent, reporter

• internet • television • content, production • sales training

mel taylor media 1

 6/10/2009

Mel Taylor Media

recent client list

mel taylor media

what we do

help local media develop

realistic & profitable web business models

• training & consultation

• sales & business model strategy
• editorial
• video

• local business seminars

mel taylor media 2

 6/10/2009

Mel Taylor: Huge Fan of Canadian Fish n Chips

mel taylor media

recent success story

recent results from small market newspaper that applied much

of the info contained in this presentation

WEB REVENUE INITIATIVE  non‐classifieds, non‐remnant, primarily local retail

Month 2008 2009 Increase
February  $71,813  $134,847  88%
March  $97,304  $160,756  66%
April $110,000 $164,475 49%

mel taylor media 3

 6/10/2009

you may need a

local web sales
crisis
c s s intervention
e e o

old thinking
newspaper & web

web revenue primarily from:

• upsell classifieds
• banner ads
• ad networks

mel taylor media 4

 6/10/2009

new thinking
newspaper & web

to grow overall revenue:

• leveraging all assets to grow share
• digital playing major role

simple solution
sounds too easy…. huh ?

> look outside of newspaper for help

> select tactics from web revenue leaders
> mix with newspaper’s unique strengths

mel taylor media 5

 6/10/2009

today’s agenda
stuff u will learn

• current USA efforts

• smart & dumb web practices
• competitor update
• sales rep training
• overcome common objections
• closing new business

core business
• newspapers
• journalism
• websites
• enabling commerce
While newspapering & journalism are things we do in our business, it’s NOT our core business. Rather, it’s
connecting advertiser and consumer. For past 100 years or so, we leveraged the ability to produce and distribute
our newspaper, filled with news & info. Cost of entry was substantial, so we enjoyed a virtual monopoly in each
market.

mel taylor media 6

 6/10/2009

pulitzers 
never made newspapers 
great businesses

local distribution monopolies 
made newspapers 
great businesses

reality check
web business plans
from past 5 years…
won t work
won’t
over next 5 years

mel taylor media 7

 6/10/2009

2008 local web

revenue shares

newspaper revenue
worst year: history of industry

Recruitment 67%

Real estate 46%

Online
Automotive 43% 13%
National 26%

Retail 24%

* newspaper assn of america

mel taylor media 8

 6/10/2009

forces hurting
current business model
• news as commodity
• online ad networks
• specialty sites & aggregators
• worker agreements
g
• internal conflicts
• reduced staffing
• economy pushing advertisers to web

mel taylor media 9

 6/10/2009

why ?
local biz has
more choices

local businesses are figuring out how to use

twitter, facebook & email databases

mel taylor media 10

 6/10/2009

pizza shop has 1800 ‘followers’ on twitter.

when owner wants to drive business,
he sends out ‘tweet’
free toppings & soda 2nite 7p-mid !

mel taylor media 11

 6/10/2009

gourmet food truck sends tweets to

inform customers where they’ll be
parked that day, and at what time

mel taylor media 12

 6/10/2009

small business survey

most effective marketing methods

1. Email to customer list 7. Radio

2. Print Newspaper 8. Facebook, MySpace
3. Search Engine Marketing 9. Internet yellow pages
4. Coupons / direct mail 10. Blog
5. Banner advertising 11. Online Newspaper site
6. Print yellow pages 12. Online video

Opus Research 8/08

core business
local assets
• ability to reach audiences
via news/info gathering, curation & dissemination

• sales force & support staff

• relationships & brand trust
• traditional & digital distribution
notice the omission of ‘newspaper’ & ‘website’ ?

mel taylor media 13

 6/10/2009

mandatory re-think

content/editorial staff
must think revenue too

slaughter these
sacred cows

• editorial fully controls site

• build content, dump off to sales
• your brand is enough to win online
• cpm banner selling
• over-reliance on ad networks

mel taylor media 14

 6/10/2009

right-sizing
who is being let go ?
• those that debate change.. purge poison
• valued
a ued in pas
past…
…less
ess valuable
a uab e for
o future
uue
• editorial w/o solid connection to revenue
• web staff w/o solid connection to revenue

30

mel taylor media 15

 6/10/2009

culture change
job descriptions

no longer
a newspaper company
• now: local news/info & marketing co.
• aggregate, distribute & sell multi-platform
• reps as mini-agencies
has HR updated this yet ?

how NBC local tv

changed culture

mel taylor media 16

 6/10/2009

dumb quotes
from past
there’s a world market for
maybe…. 5 computers
Thomas Watson, IBM, 1943

telephone: too many shortcomings

to be considered as means
of communication
Western Union memo, 1876

dumb quotes
from past
who the hell wants to hear actors talk ?
H.M. Warner, Warner Brothers, 1927

the
e wireless
e ess music
us c box
bo has
as
no imaginable commercial value
David Sarnoff's bosses at RCA, 1920

mel taylor media 17

 6/10/2009

dumb quotes
from today ?
web is small revenue stream

the big money is in newspaper

we’re trading dollars for dimes

web sales won’t replace print losses

dumb quotes
from today?
people NEED newspapers

google is stealing our stuff

we should
h ld charge
h for
f our site
it

we can’t support a newsroom,

purely on digital revenue

mel taylor media 18

 6/10/2009

questions to help you

assess your web revenue
& multi-platform business model

newspaper web revenue

strategy assessment tool
Questions to assess your online revenue strategy

Publishers are business-minded first & Web managers must think the same
way. Do the people running your digital division have what it takes to
build a profitable business?

Does your Interactive VP have a sales management & revenue-focused

background…as well as experience in editorial? If not, you might be
building
g sites filled with content that continues to be commoditized. The
financial returns on these types of efforts are typically weak or limited.

Run your digital portfolio like a business. For web to be an integral part of
revenue growth, you need someone with a proven sales background, an
entrepreneurial mind, a deep understanding of both of traditional & new
media, as well as a great respect for editorial.

mel taylor media 19

 6/10/2009

newspaper web revenue

strategy assessment tool

Questions to assess your online revenue strategy

Is your Web commission structure similar or better than your new biz
commission? Are you sure the sales reps are not just moving print dollars to
the Web line?

Can your sales staff comfortably sell Web and overcome common
objections? Do you know what these common objections are?

Do your managers have strong grasp of Web, and the competitive online
environment? If not, how will they effectively manage the effort?

newspaper web revenue

strategy assessment tool

Questions to assess your online revenue strategy

What kind of training are you providing to your staff? Is it ongoing?

Is staff being trained by someone with proven online sales experience?

Are you doing more than just selling banners and classified upsells ?

Do you know that video, search, email, directories & promotions are
some of the fasting growing revenue streams in 2009 and beyond?

mel taylor media 20

 6/10/2009

questions to assess
your web revenue plan

your advertisers are moving online

are you offering web to ALL of them?

what % use web advertising ?

d your reps know?
do k ?

what % of your clients

want to use web, but don’t know how ?

questions to assess
your web revenue plan

what
hat % of your
o r print clients
use your website ?

what % regularly offered web?

h
have plan
l to
t sellll non-newspaper clients
li t ?

reps know client’s marketing allocation?

mel taylor media 21

 6/10/2009

do you have plan to

sell non-newspaper
clients too?

all
local business
in market
current newspaper current
advertisers newspaper
using advertisers
newspaper website

newspapers struggle to get clients

on their own website

can newspapers tap the REAL upside?

offer web solutions to entire business community

HUGE issue
traditional reps & managers
fear cannibalization
¾ afraid to offer web

¾ trading dollars for dimes

¾ protect the way it’s always been
¾ potential loss of job

mel taylor media 22

 6/10/2009

HUGE issue
how to solve fear of
cannibalization
if we don’t offer web to client
someone else will

ONLY way
to fix that issue?

total buy-in
top managers
full staff

mel taylor media 23

 6/10/2009

ONLY way
to ensure buy-in

• overhaul compensation
• update job descriptions
• consistent web training for ALL
especially top & mid-management

* how can top & middle-managers “manage”…what they don’t fully understand ?

overhaul sales rep

compensation

• compensation
heavily commission-based
• bonus & penalty
when selling web

mel taylor media 24

 6/10/2009

sales team structure

hybrid approach for near term

• web specialists target new biz, web-only buyers
• web specialists assist
i t & ttrain
i traditional
t diti l reps

• mandatory web sales for print reps

• convert all reps to ‘super-sellers’ over time

goal: integration

• reps become super sellers

• 1 point of contact for client
• able to offer many solutions
• reps as ‘mini-agencies’
• sell total reach of platforms

mel taylor media 25

 6/10/2009

newspaper web sales

best practices
• online-only sellers
• traditional reps that can sell all products

• target non-newspaper clients

• client education & consultation

• reps as mini-agencies

• specialty sites, separate url’s

• sales-savvy editorial staff

• mandatory budgets w/ penalties

• consistent training (especially top management)

r u ready 4
more
competition ?

mel taylor media 26

 6/10/2009

competitors
offering web to YOUR clients…now
Offering

S
Searchh Engine
E i
• search engine marketing
Marketing Firms
• search optimization

• enhanced directory listing

Directories >> video, graphics

>> webpage with SEO

resell search

even cable sellers are offering web

to local businesses.
54

mel taylor media 27

 6/10/2009

beware

search engine & display marketing for local business

if you rely on ad networks:

reach local will feed these ads

(of your clients) onto your site
at low cpms

have a plan to deal with this

new reality ?
55

llocal business build 
lb b ld
& buy 
their ads
on national sites
using self‐serve
www.AdReady.com

mel taylor media 28

 6/10/2009

LOCAL ad
on national site

57

Google just stepped up it’s efforts

to target local business

mel taylor media 29

 6/10/2009

recent findings
online spending trends

• Banner ads down

• Email
• Search
• Video up
• Directories
• Promotions

newspaper

targeted email 
d il
online promotion

integrated 
campaign
build database
build database download coupon                  
join contest                 
watch video

data capture

mel taylor media 30

 6/10/2009

er
Newspape
Website
e
Seller
newspaper.com
old skool web sales

dumb practice
letting
ad networks
on home page
& section fronts

mel taylor media 31

 6/10/2009

think about it…

newspapers
p p are careful
about who gets a front page ad
in their print product
( hand-selected business pays premium )

but… they don’t follow the same

smart rules about ad placements
in their online product

a local
l l advertiser
d ti iin
this HOME PAGE
position would make
site look more LOCAL
& more successful

mel taylor media 32

 6/10/2009

even large markets

make this
common mistake

inventory glut
• 50% remnant
• middle men
• lowers
l cpm
• on site for cheap

mel taylor media 33

 6/10/2009

why an online
ad inventory glut ?
print newspaper:
lay out the ads first, then fill ‘NEWS HOLE’
w/ content.

online newspaper:
create & upload content first, then try to fill
always variable & massive ‘AD HOLE’

Is your website reader & advertiser friendly?

Or is it a train-wreck of ‘content for content sake’ ?

Is your site full of non-proprietary content that users

can easily get on other online properties?

How much hi-value, advertiser-friendly, unique content is on your site?

mel taylor media 34

 6/10/2009

smart practices

• determine revenue/profit first before content

• aggregation do what you do best, point to the rest
• reverse
e e se pub
publish
s if successful
success u oonline,
e, co
consider
s de pprint version
e so

• online & print no longer separate

bigger not always better

struggle to monetize

mel taylor media 35

 6/10/2009

bigger not always better

stop growing
lo-value, commodity page-views

start growing
‘high advertiser value’ content

what online content

should newspaper build ?

determine local content hole

>> local consumer need NOT being met online
>> of no interest to national pure-play

determine advertiser demand

>> what categories want to advertise in this content?

mel taylor media 36

 6/10/2009

traditional media
specialty sites
determine online content & revenue hole in market, fill with separately
branded web site & URL

Metromix.com
Tribune Media’s entertainment site 
LVBrideandGroom.com
Newspaper’s wedding site: using database collection strategy
ToastedRav.com
Bonneville Radio’s local entertainment portal in St. Louis
PHrequency.com
Philadelphia Newspaper’s local music website. 

• tech
why do we
talk like this?

it’s confusing for

client & rep ! • cpm
• pageviews
• uniques
• click-thrus
• weird vocabulary
• monthly pricing

mel taylor media 37

 6/10/2009

super dumb practice

protecting ‘rate card integrity’

@ $10.00 cpm

and then…..

selling large amounts of unsold

inventory to ad networks
@ 75cent cpm

really dumb practice

web sellers quote monthly,
instead of weekly rates
(broadcast & newspaper quote weekly)

sounds I can’t afford almost

expensive
$2,000 per month !

sounds I can handle

reasonable
$475 per week

mel taylor media 38

 6/10/2009

Why do we call this

a LEADERBOARD?

call it what it looks like:

a TOP BANNER

It looks like a CUBE,

use vocabulary so call it a CUBE
that local advertisers
STOP using ‘medium
& reps
rectangle’
can easily understand

smart practice

home page
cube 300x250
above fold

mel taylor media 39

 6/10/2009

smart practice

easiest ad unit to sell

sliding
g billboard
http://www.tribuneinteractive.com/clients/091908_jcpenney/demo1.htm

sliding billboard
• exclusive & limited supply
• ez for rep to sell
• ez for client to see value
• ez to design & execute
• see vendor: AD-INTERAX

mel taylor media 40

 6/10/2009

Newspaper & Online Synergy

http://www.tmccreatives.com/

EZ web selling
smart practices

mel taylor media 41

 6/10/2009

smart practice….DUH

reps carry laptop

w/wireless card
how can you sell site,
if reps don’t show it off to client ?

smart practice
• sellll web
b like
lik paper when selling local direct
• show ranker small biz can’t fully grasp unique & page
view numbers being discussed. a simple ranker easily shows dominance
of local online newspaper.

• circ DOWN,
DOWN readership UP
more are reading paper online…your ad needs to be there too

• talk in PRINT terms

‘online readers’ instead of ‘unique users’

mel taylor media 42

 6/10/2009

overcoming
common
objections

‘not interested in web’

mel taylor media 43

 6/10/2009

Ignored Amazon.com

mel taylor media 44

 6/10/2009

Ignored MP3’s and I-tunes

mel taylor media 45

 6/10/2009

reaching critical mass

50 million users

Phone Radio TV
74 years 38 years 13 years

Internet Ipod Facebook

4 years 3 years 2 years

‘the paper is enough’

• great start !
• people reading paper online
• need your ad there too

mel taylor media 46

 6/10/2009

i totally
y
understand…
many of my clients
f lt the
felt th same way

your customers
are spending
more time
online

mel taylor media 47

 6/10/2009

Let me help you

reach them
there

here are some

web marketing
trends

mel taylor media 48

 6/10/2009

online growth
lehigh valley

top local sites

mel taylor media 49

 6/10/2009

73% of lehigh valley

went online (395k)

65% (256k)
visit mcall.com

PRINT readership:
p 332,400
,
WEB readership: 225,500

557 500
557,500
adult readership

mel taylor media 50

 6/10/2009

reach 81%
of lehigh valley adults

‘already use google’

• good start !
• reaches ACTIVE seekers
• you need PASSIVES too.
• those NOT looking for you

mel taylor media 51

 6/10/2009

to advertise
your business
would
ld you only
l use
yellow pages?

mel taylor media 52

 6/10/2009

mel taylor media 53

 6/10/2009

branding
g
keep name out there

message awareness
educational (ex: sale)

mel taylor media 54

 6/10/2009

If you think this is a

valuable place for
your ad message
in the paper….

why should you miss

getting your ad message
in front of those reading
the paper….. online

mel taylor media 55

 6/10/2009

‘i don’t see
my ads’

target
impressions
• daypart (9a-3p)
• pick a day (wed)
• pick a section (sports)

mel taylor media 56

 6/10/2009

best practices

• extra-large ad units
• unique use of site
• more than just a banner

mel taylor media 57

 6/10/2009

mel taylor media 58

 6/10/2009

http://concepts.philly.com/approvals/TDBank/SBB/slidingbillboard.html

mel taylor media 59

 6/10/2009

‘newspaper sucks’

• lead with WEB

• show online solutions
• use print to support web
• upsell to print
• show benefits of combo

reverse value add

mel taylor media 60

 6/10/2009

online video in canada

comscore April 09

• Global
Gl b l leader
l d iin online
li video
id viewing
i i

• 88% Canadian Web users viewed web video in Feb

• Canada…605 mins
• UK
U.K…. 540 mins
i
• Germany… 466 mins
• France… 390mins
• U.S… 312 mins

best VIDEO practices

• it’s NOT pre-roll

• video in banner mixpo
• sales-based video player
p y
• search optimize video
• online info-mercials

mel taylor media 61

 6/10/2009

online video
that pays

online info-mercials

Click here to watch example

mel taylor media 62

 6/10/2009

online photo-mercials

Click here to see PICASA

video micro-site
on newspaper site

• online
li info-mercial
i f i l
• take share from TV
• ez & cheap to produce
•y
your biz seen by
y more
• search optimized
• never a wasted play
http://essentials.baltimoresun.com/micro_clients/lifebridge/

mel taylor media 63

 6/10/2009

another tactic
to drive web revenue

web advertising 101 seminars

for local business

why a seminar ?
local advertisers
wanna buy web, but…

• confused / lack of knowledge

• don’t totally
y trust sales rep
p
• think Google or website is enough
• never been offered web

mel taylor media 64

 6/10/2009

seminar benefits

• provide education to local biz

• taps consultative approach
• immediate web revenue
• sales rep training

mel taylor media 65

 6/10/2009

mel taylor media 66

 6/10/2009

mel taylor media 67

 6/10/2009

Actual invitation/mailer that was

sent to the local print advertisers,
of the Philadelphia Inquirer

mel taylor media 68

 6/10/2009

mel taylor media

‘web advertising 101’ for local business
success stories

& Cablevision
• $146,000 new quarterly business
• 26 new contracts

• $ 144,000 new quarterly business

• 41 new contracts

mel taylor media 69

 6/10/2009

WARNING
clients will buy web
from you….
or the competition
CAUTION:
Avoid using internal web-sales manager to present Web Marketing 101 seminar.
Many have tried this method, but results are always poor.
Use objective 3rd party expert to ensure a non-sales approach, & high client attendance.

Mel Taylor Media

popular WEB SALES programs
custom programs available upon request

>> Web Revenue Bootcamp for Local Newspapers

(1 day in market, suggested agenda)

8:15a-9a Meet with top management

9 15 2
9:15a-2p W
Web-sales
b l b bestt practices
ti for
f reps
2p-4p Editorial/tech: revenue/ ad inventory issues
4p-5p Meet w/management to discuss findings & recommendations

>> Web Marketing 101 Seminar for Local Business

• Close new business on the spot

• In-market visit 4 wks prior to seminar, includes Web Revenue Boot Camp
• Half day of additional rep training, day before seminar
• Copy of all sales materials / templates
• Market exclusivity
• Video clips from recent event here: www.MelTaylorMedia.com

>> Online Business Model Analysis & Recommendation

• We do a ‘deep dive’ into your current digital sales efforts & your local market’s
competitive environment. Key deliverables include a comprehensive set of
recommendations & specific instructions on implementation.

mel taylor media 70

 6/10/2009

charles darwin
it’s not the strongest
th t survives
that i
nor the most intelligent
but
the one most responsive
to change

newspaper.com

internet revenue
strategy
June 2009

MelTaylorMedia.com
267-625-5313

mel taylor media 71