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How Smart Radio Stations Leverage                                  11/2/2009
Interactive Assets




                         radio.com $
                             how smart radio stations
                           leverage interactive assets
                                       online revenue strategy
                                    & business model development
                                          UPDATED: Nov. 2, 2009



                                      MelTaylorMedia.com
                                              267-625-5313




                       radio web strategy ?




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                   1
How Smart Radio Stations Leverage                                                             11/2/2009
Interactive Assets




                               reality check
                          your radio website business plan
                                 from past 2 years…
                                         will likely not work
                                                   y
                                         over next 2 years

                                    you may need a local web sales
                                          ‘crisis intervention’




                                      mel taylor
                                           background




                     • radio      • newspaper    • sales management      • talent, reporter
                     • internet   • television   • content, production   • sales training




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                              2
How Smart Radio Stations Leverage                                                                                                     11/2/2009
Interactive Assets




                                  radio.com $
                     This is a collection of observations, realistic recommendations & tough love for Radio
                     & it’s emerging online business models. UPDATED 11/1/09
                                 g g                                       / /
                     Radio’s current, local online revenue share is about 2%. That small number can be easily
                     increased by adopting the information contained within.

                     Bottom line: For Radio to grow it’s online, and (more importantly) it’s overall revenue share, it
                     needs to smartly leverage it’s unique portfolio of assets, with online playing a major role.




                     Mel Taylor is a Philadelphia-based consultant, specializing in online revenue strategy
                     & sales training for local media.
                     Mel is a highly-rated and often provocative speaker/trainer, with a 13 year background in Radio that includes
                     on-air, sales & web management.

                     In 2002, Mel reluctantly exited the Radio industry to spend more time with TV, Newspaper & Online-only
                     companies, who were more advanced with online revenue at the time.

                     “I’m incredibly happy to finally return to Radio, sharing what I’ve learned about online revenue strategy from
                     those online market leaders”.




                           mel taylor media
                                                               what we do

                                        help local media develop
                               realistic & profitable web business models

                                 • training & consultation
                                       • sales & business model strategy
                                       • editorial & programming
                                       • video & multi-media

                                 • web 101 seminars for local business




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                                                                      3
How Smart Radio Stations Leverage                                              11/2/2009
Interactive Assets




                         sound familiar ?
                        • you invested in platforms, software & manpower
                        but… where’s the real money?

                        • you spent on research to help you sell
                        how do you consistently monetize this data?

                        • consultants helped you close quick, web revenue
                               lt t h l d         l      i k    b
                        eventually, this easy money went away

                        • radio execs follow other radio execs for web ideas
                        some say: blind leading the blind ?




                                 forces hurting
                              radio business model

                      • music & news as commodity
                      • listener & advertiser has more choices
                      • internal conflicts
                      • reduced staffing & resources
                      • erosion of barriers to entry
                      • economy pushing advertisers to web faster




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                               4
How Smart Radio Stations Leverage                                    11/2/2009
Interactive Assets




                             radio & web
                                    nowhere to go…but up




                                     2008 local web revenue shares




                           simple solution
                                      sounds too easy…. huh ?




                      1. look outside of radio for guidance
                      2. select tactics from web revenue leaders
                      3.
                      3 mix with radio’s unique strengths
                      4. leverage for increased market share




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                     5
How Smart Radio Stations Leverage                          11/2/2009
Interactive Assets




                     BEWARE of newspaper’s mistake
                     shovel ware
                     newspapers t k their print content,
                                 took th i    i t  t t
                     and ‘shoveled it’ online




                      is radio
                      making same mistake?




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                           6
How Smart Radio Stations Leverage                             11/2/2009
Interactive Assets




                                old thinking
                                    radio & web

                       web revenue primarily from:
                       • in-stream spot sales
                       • banner ads on website
                       • creating a “radio site”
                       • brand extension strategy




                            new thinking
                                    radio & web


                      grow overall revenue:
                      • leveraging all assets to grow share
                      • digital playing major role




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                              7
How Smart Radio Stations Leverage                                    11/2/2009
Interactive Assets




                        culture change
                                    job descriptions

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




                       mandatory re-think



                                programming/content
                              must think revenue too



Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                     8
How Smart Radio Stations Leverage                                                  11/2/2009
Interactive Assets




                                core radio
                                             business
                          • radio
                          • audio
                          • advertising
                                      g
                          • websites
                          • enabling commerce




                         core radio business
                                        local assets

                        • reach over 90% local consumers
                        via news, music, talk, audio formats

                        • sales force & support staff
                        • advertiser relationships & brand trust
                                                p
                        • traditional & digital distribution
                        • on-air, online, on-site

                                    notice the omission of ‘radio’ & ‘website’ ?




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                   9
How Smart Radio Stations Leverage                                                                 11/2/2009
Interactive Assets




                                       slaughter these
                                  sacred cows
                       • programming & marketing fully control site
                       • build commodity content, dump off to sales
                       • your brand is enough to win online
                       • cpm only banner selling
                         cpm-only
                       • over-reliance on ad networks
                       • over-reliance on streaming terrestrial signal




                                questions to assess your
                           online revenue strategy
                     Radio GM’s focus on business profitability first. Do your Web managers?
                     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? Many Interactive VP’s in the broadcast industry have come
                     up through the tech/content side. We believe this is a main contributor to
                     why most broadcasters struggle to grow profitable, online business models.

                     Caution: you might be building sites filled with content that continues to
                     be commoditized. The financial returns on these types of efforts are
                     typically weak, limited, or are in decline.




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                                 10
How Smart Radio Stations Leverage                                                                   11/2/2009
Interactive Assets




                                questions to assess your
                           online revenue strategy

                     Does your local webmaster, PD or marketing director run the site? If so, you
                     don’t yet have a web revenue strategy….you might only have resource
                     hog that makes little or no money.

                     Is Web commission structure similar /better than new biz commission?
                     Are you sure sales reps are not just moving spot 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?




                                questions to assess your
                           online revenue strategy
                     Who is running your digital portfolio ? For web to be an integral part of
                     revenue growth, Broadcasters need leaders with the following qualities:
                     • proven sales, biz-dev, and training background
                     • entrepreneurial mind
                     • awareness & comfort in fast changing, media environment
                     • understands how Radio can exploit it’s unique portfolio of assets

                     What kind f t i i
                     Wh t ki d of training are you providing to your staff? I it ongoing?
                                                       idi   t        t ff? Is       i ?
                     Is staff being trained by someone with proven online sales experience?
                     Someone with experience in selling against and for: Newspaper, TV, and
                     online-only companies?

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




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                                   11
How Smart Radio Stations Leverage                                                                   11/2/2009
Interactive Assets




                                 Is your website: listener & advertiser friendly?
                            Or: a train-wreck of marketing/programming content?




                                 Is your site full of non-proprietary content that users
                                      can easily get on other online properties?
                     How much hi-value, advertiser-friendly, proprietary content is on your site?




                      typical
                      radio website ?


                     • dumping ground
                     • fun & games
                     • value-add stuff
                       value add
                     • non-IAB.net units




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                                   12
How Smart Radio Stations Leverage                                            11/2/2009
Interactive Assets




                       excellent radio site        on-air & online synergy
                       advertiser friendly         custom ad sponsorships
                       proprietary content         database & promotions




                      • primarily a marketing & programming site…not good
                      • driving lo-value page-views via ‘chicks that rock’




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                            13
How Smart Radio Stations Leverage                                              11/2/2009
Interactive Assets




                         what online content
                                 should radio build ?

                      determine local content hole
                      >> local consumer need NOT being met online

                      >> of little interest to national, online only company

                      >> can leverage support of on-air


                      determine advertiser demand
                      >> what categories want to advertise in this content?




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                              14
How Smart Radio Stations Leverage                     11/2/2009
Interactive Assets




                                    recent findings
                          online spending trends

                      • banner ads      down


                      • email
                      • search
                      • video            up
                      • directories
                      • promotions




                                    online video
                                      that pays




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                     15
How Smart Radio Stations Leverage                                                                  11/2/2009
Interactive Assets




                         best revenue-producing
                                    VIDEO practices

                                • video in banner
                                • sales-based video player
                                • search optimize video
                                • online info-mercials
                                         info mercials
                                • seed multiple channels

                                    it’s NOT pre-roll….yet




                         video micro-site
                                                              • t k share from tv/cable
                                                                take h    f    t / bl
                                                              • ad-vertorial
                                                              • ez & cheap to produce
                                                              • your biz seen by more
                                                              • b tt search results
                                                                better    h     lt
                                                              • never a wasted play


                                    http://essentials.baltimoresun.com/micro_clients/lifebridge/




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                                  16
How Smart Radio Stations Leverage                                                 11/2/2009
Interactive Assets




                         online info-mercials




                                    Click here to watch sample
                                    http://meltaylorclientsamples.blogspot.com/




                           online photo-mercials




                                    Click here to watch sample
                                    http://meltaylorclientsamples.blogspot.com/




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                 17
How Smart Radio Stations Leverage                              11/2/2009
Interactive Assets




                        common video mistakes
                                that scare advertisers


                      • inconsistent quality
                         – production value
                         – composition, sound & lighting
                      • f
                        fear of user generated content: UGC
                              f            t d    t t
                      • subject matter doesn’t require video
                      • clips gets limited views




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                              18
How Smart Radio Stations Leverage                      11/2/2009
Interactive Assets




                           video prospects
                                •existing clients
                                •TV wanna-be’s
                                •ego-driven clients
                                •newspaper clients
                                •cable & tv clients




                                large format banners




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                      19
How Smart Radio Stations Leverage            11/2/2009
Interactive Assets




                     • page takeover
                     • site take-over
                     • section sponsorship
                     • roadblock




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                            20
How Smart Radio Stations Leverage                                11/2/2009
Interactive Assets




                                      radio
                        king of promotions
                            web + radio + promotions = revenue




                      70% of Super Bowl Advertisers
                                used integrated promotions
                                           (2008 cpg)




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                21
How Smart Radio Stations Leverage                                                           11/2/2009
Interactive Assets




                                                radio



                          targeted email 
                          targeted email
                                                             online promotion
                                            integrated 
                                          radio campaign
                         build database                     download coupon 
                                                              join contest               
                                                              j i
                                                              watch video


                                             data capture




                        dumb practice
                         letting
                      ad networks
                     on home page
                     & section fronts




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                           22
How Smart Radio Stations Leverage                                  11/2/2009
Interactive Assets




                          ad networks on home page




                        not smart




                                client cancellations
                        common reason: poor banner design




                                      Design your banner as if: 
                                      • Speed by at 70 mph
                                      • 2 seconds of attention




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                  23
How Smart Radio Stations Leverage                               11/2/2009
Interactive Assets




                           banner design
                      1.    KISS keep it simple stupid
                      2.    clear graphics/ messaging
                      3.    understood in 2 secs ?
                      4.    no web address needed !




                           banner design
                      5. what is goal ?
                            > branding
                            > message awareness
                            > direct response: call to action




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                               24
How Smart Radio Stations Leverage                                                                 11/2/2009
Interactive Assets




                                     traditional media
                                specialty sites
                     These print & broadcast companies determined the online content &
                     revenue hole in market, then filled with separately branded web site & URL

                     Metromix.com
                     Tribune Media’s entertainment site 
                     LVBrideandGroom.com
                     Newspaper’s wedding site: monetizing targeted database 
                     ToastedRav.com
                     Bonneville Radio’s entertainment portal, supported by 4 stations
                     PHrequency.com
                     Philadelphia Newspaper’s local music website. 




                      do you have plan to
                         sell non-radio
                          clients too?
                                                                              all
                                                                        local business
                                                                          in market
                         current radio                     current
                          advertisers                       radio
                             using                        advertisers
                       radio web assets




                                          radio struggles to get clients
                                              on their own website

                                  can radio tap the REAL upside?
                          offer web solutions to entire business community




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                                 25
How Smart Radio Stations Leverage                                            11/2/2009
Interactive Assets




                           new competitors
                            offering web to local business
                                              Offering



                        Search Engine         •search engine marketing
                          Marketing
                                              •search optimization



                                               •enhanced directory listing

                        Directories            >> video, graphics
                                               >> webpage with SEO

                                               • resell search




                                    where radio’s
                                auto spend is going ?




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                            26
How Smart Radio Stations Leverage                                          11/2/2009
Interactive Assets




                          even cable sellers are offering web
                                  to local business
                                                                      53




                                       local business now using
                                twitter, facebook & email databases




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                          27
How Smart Radio Stations Leverage                                                        11/2/2009
Interactive Assets




                             pizza shop has over 1800 ‘followers’ on twitter.
                      when owner wants to drive immediate business, he sends‘tweet’
                              that says.. free toppings & soda 2nite 7p-mid




                                           gourmet food truck sends tweets to inform
                                         customers where they will be parked that day,
                                                  and at what specific times




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                        28
How Smart Radio Stations Leverage                                                   11/2/2009
Interactive Assets




                                                                 local business
                                                                build & buy ads
                                                                on national sites
                                                                using self-serve
                                                               www.AdReady.com




                      sales team structure

                            hybrid approach for near term
                     • web specialists target new biz, web-only buyers
                     • web specialists assist & train traditional reps
                     • mandatory web sales for reps
                     • convert all reps to ‘super-sellers’ over time




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                   29
How Smart Radio Stations Leverage                                                                      11/2/2009
Interactive Assets




                              goal: integration

                     • reps become super sellers
                     • 1 point of contact for client
                     • able to offer many solutions
                     • reps as ‘mini-agencies’
                     • sell total reach/power of all platforms




                         how to get buy-in
                                              from all staff


                         • overhaul compensation
                         • update job descriptions
                         • consistent web training for ALL
                               it t     bt i i     f
                              especially top & mid-management


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




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                                      30
How Smart Radio Stations Leverage                                         11/2/2009
Interactive Assets




                               overhaul comp

                      • revenue targets per rep
                      • new business per rep
                      • % of current clients using web
                           f       t li t      i     b
                      • close non-radio clients




                        why do we talk like this?    • tech
                         it’s confusing for client
                              & the sales rep !
                                                     • cpm
                                                     • pageviews
                                                     • uniques
                                                     • leaderboards
                                                     • click-thrus
                                                       c c      us
                                                     • weird vocabulary
                                                     • monthly pricing



Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                         31
How Smart Radio Stations Leverage                                         11/2/2009
Interactive Assets




                       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 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                         32
How Smart Radio Stations Leverage                             11/2/2009
Interactive Assets




                             another tactic
                         to drive web revenue

                      web advertising 101 seminars
                                     for local business




                     why a client               seminar ?
                                      local advertisers
                                    want to buy web, but…

                        • confused / lack of knowledge
                        • don’t totally trust sales rep
                        • think Google or website is enough
                        • never been offered web




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                             33
How Smart Radio Stations Leverage                                 11/2/2009
Interactive Assets




                       client seminar benefits

                         • provide education to local biz
                         • taps consultative approach
                         • immediate web revenue
                         • sales rep training
                         • more effective than cold call




                                      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


                            Times Shamrock Communications
                       • $238,000 new annual business




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                 34
How Smart Radio Stations Leverage   11/2/2009
Interactive Assets




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                   35
How Smart Radio Stations Leverage               11/2/2009
Interactive Assets




                     How to invite
                     local advertisers:

                     This invitation
                     was sent to
                     local print advertisers
                     of Philadelphia Inquirer




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                               36
How Smart Radio Stations Leverage                                                                                11/2/2009
Interactive Assets




                                           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 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                                                37
How Smart Radio Stations Leverage                                                                           11/2/2009
Interactive Assets




                                                Mel Taylor Media
                                popular WEB                SALES programs
                                             custom programs available upon request

                     >> Web Revenue Boot Camp for Local Media         (1 day in market, suggested agenda)

                     • 8a-Noon Web-sales best practices for reps
                     •NNoon-1p C
                             1    Combined lunch session: competition overview
                                       bi d l     h     i           titi       i
                     • 1p-3p      Web Sales for Management
                     • 3p-5p      Programming/Marketing/Tech… revenue/ ad inventory issues
                     • Delivered 2 weeks later: custom report on findings & recommendations

                     >> Web Marketing 101 Seminar for Local Business

                     • 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
                     • Close business on the spot
                     • Video clips from recent event here: www.MelTaylorMedia.com

                     >> Online Business Model Analysis & Recommendation for Radio

                     • 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.




                                   radio web sales
                                                 best practices

                     run online as business                         training of traditional reps


                     leverage web for greater overall share         target non-radio clients too


                     at least 1 online-only sellers                 client education & consultation


                     non-radio sites, separate url’s                reps as mini-agencies


                     mandatory budgets w/ penalty                   web training for management




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                                           38
How Smart Radio Stations Leverage                                                       11/2/2009
Interactive Assets




                          smart practices

                     • determine revenue/profit first before content
                     • aggregation do what you do best, point to the rest
                     • reverse pub s if successful o e, co s de o e version
                        e e se publish success u online, consider offline e s o
                     • online & broadcast no longer separate




                        mel taylor media
                                      recent success story

                                      results from mid-market media company,
                              that applied info contained within this presentation


                                                   2008       2009           Increase

                            February 
                            February             $71,813 
                                                 $71,813     $134,847 
                                                             $134,847          88%

                             March               $97,304     $160,756          66%

                              April              $110,000    $164,475          49%




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                                       39
How Smart Radio Stations Leverage                                  11/2/2009
Interactive Assets




                         radio.com $
                             how smart radio stations
                           leverage interactive assets
                                       online revenue strategy
                                    & business model development
                                          UPDATED: Nov. 2, 2009



                                      MelTaylorMedia.com
                                              267-625-5313




Mel Taylor Media 267-625-5313
www.MelTaylorMedia.com
Meltaylor2000@Gmail.com                                                  40

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Radio Web Sales Strategy 11/09

  • 1. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets radio.com $ how smart radio stations leverage interactive assets online revenue strategy & business model development UPDATED: Nov. 2, 2009 MelTaylorMedia.com 267-625-5313 radio web strategy ? Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 1
  • 2. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets reality check your radio website business plan from past 2 years… will likely not work y over next 2 years you may need a local web sales ‘crisis intervention’ mel taylor background • radio • newspaper • sales management • talent, reporter • internet • television • content, production • sales training Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 2
  • 3. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets radio.com $ This is a collection of observations, realistic recommendations & tough love for Radio & it’s emerging online business models. UPDATED 11/1/09 g g / / Radio’s current, local online revenue share is about 2%. That small number can be easily increased by adopting the information contained within. Bottom line: For Radio to grow it’s online, and (more importantly) it’s overall revenue share, it needs to smartly leverage it’s unique portfolio of assets, with online playing a major role. Mel Taylor is a Philadelphia-based consultant, specializing in online revenue strategy & sales training for local media. Mel is a highly-rated and often provocative speaker/trainer, with a 13 year background in Radio that includes on-air, sales & web management. In 2002, Mel reluctantly exited the Radio industry to spend more time with TV, Newspaper & Online-only companies, who were more advanced with online revenue at the time. “I’m incredibly happy to finally return to Radio, sharing what I’ve learned about online revenue strategy from those online market leaders”. mel taylor media what we do help local media develop realistic & profitable web business models • training & consultation • sales & business model strategy • editorial & programming • video & multi-media • web 101 seminars for local business Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 3
  • 4. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets sound familiar ? • you invested in platforms, software & manpower but… where’s the real money? • you spent on research to help you sell how do you consistently monetize this data? • consultants helped you close quick, web revenue lt t h l d l i k b eventually, this easy money went away • radio execs follow other radio execs for web ideas some say: blind leading the blind ? forces hurting radio business model • music & news as commodity • listener & advertiser has more choices • internal conflicts • reduced staffing & resources • erosion of barriers to entry • economy pushing advertisers to web faster Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 4
  • 5. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets radio & web nowhere to go…but up 2008 local web revenue shares simple solution sounds too easy…. huh ? 1. look outside of radio for guidance 2. select tactics from web revenue leaders 3. 3 mix with radio’s unique strengths 4. leverage for increased market share Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 5
  • 6. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets BEWARE of newspaper’s mistake shovel ware newspapers t k their print content, took th i i t t t and ‘shoveled it’ online is radio making same mistake? Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 6
  • 7. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets old thinking radio & web web revenue primarily from: • in-stream spot sales • banner ads on website • creating a “radio site” • brand extension strategy new thinking radio & web grow overall revenue: • leveraging all assets to grow share • digital playing major role Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 7
  • 8. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets culture change job descriptions no longer a radio company • now: local content & marketing co. • aggregate, distribute & sell multi-platform • reps as mini-agencies has HR updated this yet ? mandatory re-think programming/content must think revenue too Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 8
  • 9. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets core radio business • radio • audio • advertising g • websites • enabling commerce core radio business local assets • reach over 90% local consumers via news, music, talk, audio formats • sales force & support staff • advertiser relationships & brand trust p • traditional & digital distribution • on-air, online, on-site notice the omission of ‘radio’ & ‘website’ ? Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 9
  • 10. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets slaughter these sacred cows • programming & marketing fully control site • build commodity content, dump off to sales • your brand is enough to win online • cpm only banner selling cpm-only • over-reliance on ad networks • over-reliance on streaming terrestrial signal questions to assess your online revenue strategy Radio GM’s focus on business profitability first. Do your Web managers? 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? Many Interactive VP’s in the broadcast industry have come up through the tech/content side. We believe this is a main contributor to why most broadcasters struggle to grow profitable, online business models. Caution: you might be building sites filled with content that continues to be commoditized. The financial returns on these types of efforts are typically weak, limited, or are in decline. Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 10
  • 11. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets questions to assess your online revenue strategy Does your local webmaster, PD or marketing director run the site? If so, you don’t yet have a web revenue strategy….you might only have resource hog that makes little or no money. Is Web commission structure similar /better than new biz commission? Are you sure sales reps are not just moving spot 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? questions to assess your online revenue strategy Who is running your digital portfolio ? For web to be an integral part of revenue growth, Broadcasters need leaders with the following qualities: • proven sales, biz-dev, and training background • entrepreneurial mind • awareness & comfort in fast changing, media environment • understands how Radio can exploit it’s unique portfolio of assets What kind f t i i Wh t ki d of training are you providing to your staff? I it ongoing? idi t t ff? Is i ? Is staff being trained by someone with proven online sales experience? Someone with experience in selling against and for: Newspaper, TV, and online-only companies? Are you doing more than just selling banners and spot upsells ? Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 11
  • 12. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets Is your website: listener & advertiser friendly? Or: a train-wreck of marketing/programming content? Is your site full of non-proprietary content that users can easily get on other online properties? How much hi-value, advertiser-friendly, proprietary content is on your site? typical radio website ? • dumping ground • fun & games • value-add stuff value add • non-IAB.net units Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 12
  • 13. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets excellent radio site on-air & online synergy advertiser friendly custom ad sponsorships proprietary content database & promotions • primarily a marketing & programming site…not good • driving lo-value page-views via ‘chicks that rock’ Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 13
  • 14. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets what online content should radio build ? determine local content hole >> local consumer need NOT being met online >> of little interest to national, online only company >> can leverage support of on-air determine advertiser demand >> what categories want to advertise in this content? Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 14
  • 15. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets recent findings online spending trends • banner ads down • email • search • video up • directories • promotions online video that pays Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 15
  • 16. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets best revenue-producing VIDEO practices • video in banner • sales-based video player • search optimize video • online info-mercials info mercials • seed multiple channels it’s NOT pre-roll….yet video micro-site • t k share from tv/cable take h f t / bl • ad-vertorial • ez & cheap to produce • your biz seen by more • b tt search results better h lt • never a wasted play http://essentials.baltimoresun.com/micro_clients/lifebridge/ Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 16
  • 17. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets online info-mercials Click here to watch sample http://meltaylorclientsamples.blogspot.com/ online photo-mercials Click here to watch sample http://meltaylorclientsamples.blogspot.com/ Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 17
  • 18. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets common video mistakes that scare advertisers • inconsistent quality – production value – composition, sound & lighting • f fear of user generated content: UGC f t d t t • subject matter doesn’t require video • clips gets limited views Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 18
  • 19. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets video prospects •existing clients •TV wanna-be’s •ego-driven clients •newspaper clients •cable & tv clients large format banners Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 19
  • 20. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets • page takeover • site take-over • section sponsorship • roadblock Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 20
  • 21. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets radio king of promotions web + radio + promotions = revenue 70% of Super Bowl Advertisers used integrated promotions (2008 cpg) Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 21
  • 22. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets radio targeted email  targeted email online promotion integrated  radio campaign build database download coupon  join contest                j i watch video data capture dumb practice letting ad networks on home page & section fronts Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 22
  • 23. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets ad networks on home page not smart client cancellations common reason: poor banner design Design your banner as if:  • Speed by at 70 mph • 2 seconds of attention Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 23
  • 24. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets banner design 1. KISS keep it simple stupid 2. clear graphics/ messaging 3. understood in 2 secs ? 4. no web address needed ! banner design 5. what is goal ? > branding > message awareness > direct response: call to action Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 24
  • 25. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets traditional media specialty sites These print & broadcast companies determined the online content & revenue hole in market, then filled with separately branded web site & URL Metromix.com Tribune Media’s entertainment site  LVBrideandGroom.com Newspaper’s wedding site: monetizing targeted database  ToastedRav.com Bonneville Radio’s entertainment portal, supported by 4 stations PHrequency.com Philadelphia Newspaper’s local music website.  do you have plan to sell non-radio clients too? all local business in market current radio current advertisers radio using advertisers radio web assets radio struggles to get clients on their own website can radio tap the REAL upside? offer web solutions to entire business community Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 25
  • 26. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets new competitors offering web to local business Offering Search Engine •search engine marketing Marketing •search optimization •enhanced directory listing Directories >> video, graphics >> webpage with SEO • resell search where radio’s auto spend is going ? Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 26
  • 27. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets even cable sellers are offering web to local business 53 local business now using twitter, facebook & email databases Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 27
  • 28. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets pizza shop has over 1800 ‘followers’ on twitter. when owner wants to drive immediate business, he sends‘tweet’ that says.. free toppings & soda 2nite 7p-mid gourmet food truck sends tweets to inform customers where they will be parked that day, and at what specific times Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 28
  • 29. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets local business build & buy ads on national sites using self-serve www.AdReady.com sales team structure hybrid approach for near term • web specialists target new biz, web-only buyers • web specialists assist & train traditional reps • mandatory web sales for reps • convert all reps to ‘super-sellers’ over time Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 29
  • 30. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets goal: integration • reps become super sellers • 1 point of contact for client • able to offer many solutions • reps as ‘mini-agencies’ • sell total reach/power of all platforms how to get buy-in from all staff • overhaul compensation • update job descriptions • consistent web training for ALL it t bt i i f especially top & mid-management * how can top & middle-managers “manage”…what they don’t fully understand ? Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 30
  • 31. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets overhaul comp • revenue targets per rep • new business per rep • % of current clients using web f t li t i b • close non-radio clients why do we talk like this? • tech it’s confusing for client & the sales rep ! • cpm • pageviews • uniques • leaderboards • click-thrus c c us • weird vocabulary • monthly pricing Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 31
  • 32. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets 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 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 32
  • 33. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets another tactic to drive web revenue web advertising 101 seminars for local business why a client seminar ? local advertisers want to buy web, but… • confused / lack of knowledge • don’t totally trust sales rep • think Google or website is enough • never been offered web Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 33
  • 34. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets client seminar benefits • provide education to local biz • taps consultative approach • immediate web revenue • sales rep training • more effective than cold call 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 Times Shamrock Communications • $238,000 new annual business Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 34
  • 35. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 35
  • 36. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets How to invite local advertisers: This invitation was sent to local print advertisers of Philadelphia Inquirer Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 36
  • 37. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets 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 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 37
  • 38. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets Mel Taylor Media popular WEB SALES programs custom programs available upon request >> Web Revenue Boot Camp for Local Media (1 day in market, suggested agenda) • 8a-Noon Web-sales best practices for reps •NNoon-1p C 1 Combined lunch session: competition overview bi d l h i titi i • 1p-3p Web Sales for Management • 3p-5p Programming/Marketing/Tech… revenue/ ad inventory issues • Delivered 2 weeks later: custom report on findings & recommendations >> Web Marketing 101 Seminar for Local Business • 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 • Close business on the spot • Video clips from recent event here: www.MelTaylorMedia.com >> Online Business Model Analysis & Recommendation for Radio • 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. radio web sales best practices run online as business training of traditional reps leverage web for greater overall share target non-radio clients too at least 1 online-only sellers client education & consultation non-radio sites, separate url’s reps as mini-agencies mandatory budgets w/ penalty web training for management Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 38
  • 39. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets smart practices • determine revenue/profit first before content • aggregation do what you do best, point to the rest • reverse pub s if successful o e, co s de o e version e e se publish success u online, consider offline e s o • online & broadcast no longer separate mel taylor media recent success story results from mid-market media company, that applied info contained within this presentation 2008 2009 Increase February  February $71,813  $71,813 $134,847  $134,847 88% March  $97,304  $160,756  66% April $110,000 $164,475 49% Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 39
  • 40. How Smart Radio Stations Leverage 11/2/2009 Interactive Assets radio.com $ how smart radio stations leverage interactive assets online revenue strategy & business model development UPDATED: Nov. 2, 2009 MelTaylorMedia.com 267-625-5313 Mel Taylor Media 267-625-5313 www.MelTaylorMedia.com Meltaylor2000@Gmail.com 40