1. 6/28/2011
Digital
Competitors
• Who they are
• What they’re doing
• How to beat them
MelTaylorMedia.com
Steps for
Success
• Run Web like Business
• Understand Competition
• Leverage Digital
– Operational Efficiency
– Increase Revenue Share
– Increase Audience Share
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2. 6/28/2011
Run Web like Newspaper
Think like Publisher / Owner
1. profit in this order
2. operations
3. editorial
Who Runs
Website ?
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3. 6/28/2011
Webmasters
Designers
Editors
Tell you
what you can
and can’t sell
Always done it that way
Platform can’t do it
We don’t offer it
Don’t have time
Too expensive
Bad user experience
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4. 6/28/2011
Beware
• Hit our web budget
• Web rev up 500 %
• Web traffic is strong
• 50,000 Facebook Fans
Who Should
Run Website ?
Compensation tied to
digital profitability
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5. 6/28/2011
Local Biz Bombarded
TRADITIONAL NON-TRADITIONAL
• Other Papers • Google
• Community News • Groupon
• Specialty News • Facebook
• Magazines • Digital agency
• TV • Geo-Target national sites
• Radio • Self-publishing
• Cable • Hyper-local sites/blogs
• Outdoor • Yelp & review sites
• Yellow Pages • Craigslist, Angie’s list
• Monster, Cars, Realtor.com
Middle-Man Channels
Advertisers benefit from
new, multiple ways Traditional Channels New Channels
of reaching local consumer
Indie Sites
Newspaper
Facebook
TV
Advertiser Patch Local
Consumer
Radio Groupon
Yellow Pages
Direct Mail
Reach Local
Directories
Search
Direct Relationship
Twitter, Facebook, Business Websites
MelTaylorMedia.com INVESTOR PRESENTATION 9 / 2010
between advertiser & consumers,
avoiding middle-man channels
EX: Twitter, Database, Blogs, Social, Mobile
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6. 6/28/2011
Skepticism
Online deals = small
Newspaper sales = big
• Online is small %, but fastest growing
• Advertisers moving larger % to web
• Outsiders talking to clients. They’re buying
solving fear of
cannibalization
if we don’t
offer digital…
somebody else will
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7. 6/28/2011
Who are they ?
Patch: Priority Plan
• Local news source
• Trusted community partner
• Local Media replacement
• Create excellent journalism
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8. 6/28/2011
AOL’ s
hyper-local play
for local ad dollars
via journalism
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9. 6/28/2011
Why is Patch doing this?
• AOL’s dial-up dwindle
• Need new revenue
• Local media downsizing
• 50% of local budgets on sideline
• Local media protecting legacy biz
837 Sites…so far
555 in Q4 2010
• 20 states
• Over 100 in California
• 73 in Massachusetts
• 40 in Georgia
• 30 in Philadelphia
• 3m uniques; Dec 2010
Launched in February 2009
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10. 6/28/2011
PATCH Traffic Growth
Oct 2010: 1.71 mil
Dec 2010: 3.03 mil
Feb 2011: 4.41 mil
Ap 2011: 6.91 mil
ComScore
Communities Avg size: 50-70k
PATCH Philly Regional Publisher:
Former Publisher @ Journal Register
Lehigh County
Bucks County
Main Line
Philadelphia
Region
Chester County
Today: 30
Summer 2011: 60
South Jersey
Delaware County
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11. 6/28/2011
Will Patch Succeed ?
• Who knows
– Doesn’t matter
• Patch is more proof…
– Local dollars up for grabs
Huffington Post $315m
• Traffic
• Low-cost
• Advertisers
• Profitable
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12. 6/28/2011
Costs
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13. 6/28/2011
Patch Marketing Staff…
Freshest Breath in Town
FREE Holiday Parking
Courtesy of Ardmore PATCH
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14. 6/28/2011
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15. 6/28/2011
Editorial
Pay & Positions
o Local Editor; $40k
o MacBook Pro, camera, smart phone, police scanner
o $500 freelancer budget per month
401K match
o Regional Publisher; $80k Performance bonus
Medical & Dental
o Regional Editor; $80k
o Oversee group of 12 Patch sites
SALES
Pay & Positions
o Ad Manager; $60k base
o 5k signing bonus 401K match
Performance bonus
o 90k at plan Medical & Dental
o Cell, laptop, wireless card
o Budget
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16. 6/28/2011
POACH
• Newspaper
• TV
• Cable
• Yellow Pages
• NAA
• Bloggers
Recruitment
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17. 6/28/2011
Patch University
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18. 6/28/2011
Sales Job Posting
• Be local online ad expert for small biz
• Host WEB 101 seminars for small biz
• Attend chamber & trade functions
• Convince buyers to shift budget to digital
• Visible presence in biz community
Devil ads
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19. 6/28/2011
other
LOCAL
competitors
75%
of Deal Market
Average User
Single
Female 18-34
Income: 70k+
Users
2008: 400 k Employees
Dec 2009: 124
2009: 1.5 mil
Dec 2010: 3,100
2010: 40 mil
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20. 6/28/2011
HARVESTING
your audience
& Newspaper
> Partner
NO
> Run Groupon Ads
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21. 6/28/2011
Yellow Pages
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22. 6/28/2011
Cable
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23. 6/28/2011
Google Places
Google Business Photos
Orange County, CA
Phoenix, AZ
Bay Area, CA
San Antonio, TX
St Petersburg, FL
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24. 6/28/2011
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25. 6/28/2011
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26. 6/28/2011
American Express
helping local business
buy banner campaigns
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27. 6/28/2011
Newspapers
DIGITAL SERVICE
Divisions
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28. 6/28/2011
TRIBUNE
DIGITAL
SERVICES
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29. 6/28/2011
Online Radio
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30. 6/28/2011
Pandora
o 94 mil REGISTERED users
o 34 mil ACTIVE users
o Est $200 mil revenue for 2011
o Top 50 national advertisers
o Growing sales force
o San Fran, NYC, LA, Chicago, Detroit, Dallas, Atlanta
Pandora
# 2 all-time free iPhone app
# 1 all-time free iPad app
Jan 2011
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31. 6/28/2011
Pandora
Targeting of local ads
on NATIONAL SITES
o Geo-targeting
o By format
o Audio, Video, Display
o Mobile
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32. 6/28/2011
Hyper-local sites
& Web Sales
for Local TV
o Quickie hyper-local sites for local TV
o No upfront costs
o Call center pitches local biz in TV’s name
o Rev share approx 60% to DataSphere
o Keeps primary relationship w/client
o DataSphere retains advertiser data
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33. 6/28/2011
How To Win
What can Newspaper do…
that others can’t ?
USP
Unique Selling Proposition
USP
• Superior local reach
• Feet on street
• Trust & Brand familiarity
• Client relationships
• Local content creation & curation
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34. 6/28/2011
How Newspaper Wins
Combine Newspaper USP
with
New Digital Tools
Newspaper TOOLS
• Legacy
• Feet on street
• Local content creation
• Client relationships USP
Unique
Selling
• Brand familiarity Proposition
• Print / Traditional distribution
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35. 6/28/2011
New Newspaper TOOLS
• Video
• Social & Mobile
• Integrated / cross platform
• Multi-media newsrooms
• Aggregation
RUN ONLINE
LIKE PRINT
SAME RULES
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36. 6/28/2011
Grade Yourself
• Newsroom knows Web-biz 101 ?
• Reps knows website basics ?
• Reps overcome common objections ?
• Reps know how local biz uses Web ?
• Reps help local biz understand Web ?
• Most web inventory sold local-direct?’
• ALL Executives Web-trained ?
Client Questions
• Current marketing allocation
• Current digital allocation
• Digital you are considering
• Who’s pitching you ?
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37. 6/28/2011
Early Steps
• Run as business, not hobby
• Who’s in charge?
• Comp adjustment
• Know & pitch current clients
• Simplify sales process
Overhaul Comp
• Revenue per rep & manager
• New business per rep (per month)
• Grow % of current clients
• High commission: new clients
• Low commission: transactional
• Bonus & PENALTY
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38. 6/28/2011
Reps Operating Blind
Fully aware
of how clients
are spending budgets?
Integrated & Separate
Sales Reps
• All reps as super sellers
• Slowly grow web-only force
• 1 point of contact for client
• Offer many solutions
• Reach & power of all platforms
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39. 6/28/2011
Compensation
• Revenue & New Business
• Per rep & manager
• Per month
• Commission
• 25% or more for new biz
• 10% or below for transactional
Overhaul
Compensation
> Grow % of clients using web
> Bonus & PENALTY
• Don’t hit web ? Lose PRINT bonus
• Don’t hit web….all the time?
> Lose acct or job
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40. 6/28/2011
REMOVE ALL • cpm
Geek Speak • pageviews
• uniques
? • click-thru rate
• leaderboards
• pixels
• impressions
Who Runs Website?
Mandatory Skill Set
1. Entrepreneurial
2. Biz-Dev & Direct Sales
3. Digital DNA
4. Traditional Marketing
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41. 6/28/2011
FAIL
Online Journalism / Content
looking for
Revenue Models
SMART
Proven Revenue Models
that support
Online Journalism / Content
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