Here’s part #1 in a series leading up to the event, put on by the SNA, Inland Press & SNPA.

As readers know, we’re wickedly focused on the fast changing business models of local media. We’re also a bit curious when a really smart news exec with limited sales & biz-dev background, is put in charge of digital operations.

Recently, Rick Surkhamer; president of the Chicago Sun Times ( and keynote speaker at the Mega-Conference ) announced a new business operation called STM Digital, which will be lead by Fred Lebolt, his senior vp of news. Lebolt will oversee all Sun-Times Media digital content delivery and advertising sales, and will coordinate online activities throughout the company.

We love the fact that Fred has the news chops, but wonder if Lebolt’s editorial-first focus will affect STM’s ability to reach profitability. We suggest that Mega-Conference attendees review the pros & cons associated with placing a salaried newsroom exec in charge of your new ‘digital start-up’.

That being said, we wish the Sun Times all the best with this move, and look forward to checking in on future results.

The following report speaks to some of the issues we just described.

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Consultants told you to hire a separate digital sales staff to win online. You were told that traditional staffs could never sell interactive marketing to local business. So, upon that consultant’s recommendation, you hastily hired a bunch of hip 20-somethings with i-Phones and limited sales chops to start knocking on doors.

Outside of a few success stories, this strategy is a money loser and massive time suck. Not because the digital reps are weak, (many are really great) but because they’ll likely be set up to fail by reporting up to a print manager. While newspapers waste precious resources trying to make this work, Reach Local, Google and the Yellow Pages actively steal local dollars right from under your nose.

We’ve seen it first hand. A newspaper hires a separate digital sales team and the print team immediately shuts down. The ‘burden’ of selling digital was taken off their shoulders. As time goes by, the print team falls even further behind with understanding digital. Why should they care? The digital reps do all of that really hard, icky stuff.

We’ve know many so-called ‘old-school’ print & broadcast vets selling digital like a pro. How does this happen? It’s simple. These legacy sales teams have excellent client relationships and the maturity to sell just about anything. All you have to do is provide regular training, attractive financial motivation, a simple sales process and smart leadership from the top.

So think twice before someone tells you that your print or broadcast staff can’t be trained for web. It’s a total fabrication and it’s incredibly disrespectful to the sales reps. It’s also foolish to avoid teaching digital reps about traditional sales. They’re very interested in becoming multi-platform pros. The digital team is not only in front of many new business targets, but they’re also in the best position to upsell digital advertisers to print.

Need more details on this issue, we have plenty of well documented case studies. Email or call us. Here’s one example: Major Newspaper companies like Morris Communications now merging their once separate teams.

TOP REASONS:  Separate web-sales will hurt your online and traditional business

1. Internal civil wars will erupt between print & web teams. (bank on that one)

2. Print reps look out-of-touch when they can’t talk about, and sell simple web marketing concepts.

3. Digital rep not properly incented to sell print and other non-digital products to advertiser.

4. Where do you find good digital sellers? If they’re good, they’re already living large with a pure-play.

5. Multiple points of sales contact between a media company & advertising client is always bad.

7. Allows boss to blame poor web sales on digital reps, not current sales system & traditional team.

8. You failed to fully understand the unique situation of Deseret Media in Salt Lake City.

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Lead by Business Savvy Executive (just like a traditional media business)

• Leader equally serves 2 masters: consumer and advertiser
• Executive in charge has personal income and job security tied to financial performance of site
• Run site as profit first business, just like the newspaper or broadcast property
• Run digital efforts like a start-up business
• Think like an entrepreneur…NOT just a manager or journalist
• Leverage power of Print, Broadcast and feet-on-street relationships to beat online-only companies
• Borrow tactics from local, online revenue leaders (Google, Reach Local, Yellow Pages)
• Hard news & data as commodity loss-leader. Subsidize with soft news, info & services

Lean & Efficient with Content, Platform, Process

• Newsroom personnel proficient in search, social, mobile and video
• Aggregation & curation. Do what you do best, point to the rest
• 24/7 news cycle via Twitter, smart phones & other aps/tools
• Convert personnel to multi-media journalists. Proficient in digital new gathering, text, photos, video & audio, spending majority of time in field.
• Laptop edits, GPS and 4G upload ability
• Tap outside content development:  feeds, blogs, out of work journalists, digital stringers
• Use optimized data as excellent traffic driver, convert portion of that traffic to revenue

Understanding of Advertiser Need & Interest

• Enabling local commerce is priority #1 for sales departments
• Advertising presented as valuable content, not an interruption
• Offer agency-like services to local marketplace. Local & regional advertising networks
• Reps gather local market intel via client needs analysis.
• Replace 3^rd party research w/home-grown tactics
• Local business education via Web 101 workshops
• Mix self-serve and outbound tele-sales into traditional sales efforts

Review, Re-negotiate or Replace

• Review every expense: CMS, Apps, hosting, other content vendor offerings
• Re-negotiate often, or replace vendor services with cheaper/better alternatives
• Watch faster cycle of vendor offerings. Leverage falling prices and better functionality
•  WordPress as multi-purpose CMS, themes, plug-ins, widgets

Online Inventory Management and Pricing

• Web inventory monitored by commissioned sales exec for maximum ROI
• Offer hi-impact ad units & sponsorships. Reduce ad clutter.
• Reduction or removal of remnant & third party ad networks
• Easy to understand, flat-fee package pricing & features
• Offer social, mobile, database, search & video benefits to print client
• Leverage premium value of key day-parts & section fronts with higher prices
• Reduce or eliminate CPM & CPC selling
• Most inventory sold local/direct, based on supply & demand

Non-traditional Revenue Streams

• Charge license fees for editorial, photo & video. Act as a regional ‘associated press’
• Charge license fees to local TV stations for HD video captured by your staff
• Rev-share, transaction fees, affiliate programs & e-commerce
• Marketing services for local business

Sales Management Structure & Process

• Mandatory budgets for Sales management and reps. (bonus & penalty)
• Managers lead by example, not from behind desk
• Employ hybrid model, not separate staff for digital
• Reduce 3^rd party direct sales to clients. Ex: 4-legged calls w/consultants, DataSphere cold calling

Digital & Multi-Media Training

• CEO/Manager training for digital comes first. You can’t manage what you don’t understand
• General, all staff training. Check for compliance via online proficiency test
• Custom training: sales, programming, newsroom, marketing, promotion & webmaster

Sales and Marketing Collateral

• SEO optimized- online media kits. Easy to find ADVERTISE HERE link on home page
• PDF & print one-sheets: brief, well designed and focused on client benefits, not site stats
• 3 basic packages always ready to provide based on client inquiry
• iPads loaded with sales collateral and contract forms
• In-house system to continually monitor competition and ad placements

Offer Local Advertisers What They Want

• Good looking, functional business website
• Get found in Google via search engine optimization
• Customer email database, Facebook fans, Twitter followers
• Local business video profiles; online infomercial
• Ad-vertorial & services that boosts local business SEO

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On the other hand, most college grads have totally sweet Facebook pages.

Take a look at this collection of video clips from 2008. I moderated an expert panel of media execs for students of Drexel University in Philadelphia. Have things changed for the better since then?

Featured on this Philly panel is Jim McGuinn from WXPN & Y-100 radio, Dan Pohlig of WHYY radio, and Gil Edwards from WYSP radio and Red Lasso.

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Publishers are steamed. They lost valuable time in trying to ramp up endeavors that were not only expensive, but they created internal warfare that local advertisers found appalling; ex: stay away from my client with your Internet stuff !

Thought leaders warned that traditional sellers were incapable of learning new sales skills. We think that’s a large pile of elitist bunk designed to keep publishers & GM’s in the dark and hooked on outside help.

Almost any Newspaper or Broadcast sales rep can become an excellent digital seller. You accomplish that by addressing the core issues: compensation, management culture, job descriptions, product line, in-house market intel and training.

We’ve seen it first hand. Applying old school sales & business principles to digital is much more effective than pouring scarce budgets into tech, manpower, separate divisions, outsourced sales trainers, research firms and expensive conferences.

Read how Morris Communications is reconfiguring its divisions, executive team, and sales operations…..Morris Digital Works (MDW) is being folded back into the main corporate structure at Morris Publishing. They spelled out two specific goals for the company:

1. Turn Morris Publishing Group from contraction to growth by 2013.

2. Change MPG from a newspaper company into a Digital-First media company that publishes newspapers.

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WWSB Channel 7 is the local ABC affiliate in Sarasota, Florida. This Calkins Media TV property has the associated website called MySunCoast.com. As you might have noticed, that’s one heck of a valuable URL. Too bad it’s still being wasted inside a typically lame, TV station website. On the upside, MySunCoast.com is a high-potential property that will likely get a serious tune-up with the recent arrival of new CEO; Mark Contreras.

On a related note, the expected sale of the Sarasota Herald Tribune by the New York Times regional newspaper group will provide an opportunity for all Sarasota media. We think MySuncoast.com could take advantage of that change-over chaos and have a shot at becoming the dominant news and info site for the region.

But Calkins better move fast. The next owner of the Sarasota Herald Tribune is Michael Redding and his Halifax Media group. Halifax is known for snapping up distressed newspapers, streamlining operations, and placing more emphasis on digital content and sales.

Here’s some video from a recent ‘Digital Diagnostic’ webinar we did, focused on WWSB and the Sarasota market. 

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While old-schoolers seek refuge in 2012 political advertising season, these short-term dollars mask the underlying, growing crack in Radio’s future business models. That crack is the blind allegiance to the past and questionable leadership at the top.

Those who lead the Radio industry in the past are greatly appreciated. They did an admirable job. But today, many of those leaders are ill-equipped to lead the industry into much more difficult times. That’s why many say it’s time to take off the blindfold, get real, and put smarter leadership into place.

Like my Dad said, ‘the fish always stinks from the head down’. That’s a home grown way of saying that you can always predict the success rate of an organization by looking at its head, or leadership team. Think Radio’s current leadership is getting the job done and is qualified to drive the bus?

Leaders like Katz Radio Group EVP; Mary Beth Garber, aren’t doing Radio any favors by dismissing competitors so easily. Ms. Garber’s ill-advised put down of PANDORA could certainly be seen as a way to provide a spin for media buyers, and keep Radio execs blind to the growing threats around them. And under growing pressure from Radio execs, Katz  360 President; Brian Benedik, recently showed his growing insecurity about the digital future by dropping Pandora as a client.

Admittedly, it has to be scary to see Pandora pulling down half of all online streaming ad dollars. Lew Dickey from Cumulus is certainly not amused by his bet against Pandora. Lew’s partnership with iHeart Radio isn’t looking so loving either. Neither is the sour taste of his late to the game, Sweet Jack deal product. But Lew’s cool. He smartly sees that Radio is no longer about formats and community, but rather it’s about investor interest and finance.

These foolish moves by Radio remind me of similar mistakes made by Newspaper, where they once enjoyed a virtual monopoly in the classified revenues of Real Estate, Jobs and Automotive. Newspaper ignored Craigslist, Monster.com and AutoTrader.com. Today, those parts (classifieds) of their business are just about kaput.

The RAB; Radio Advertising Bureau recently reported a nose dive in revenue & relevance. When you take a look at those RAB salaries, one can’t help to imagine the need for a Broadcaster’s version of an Occupy/Tea Party movement. The average hardworking Radio employee is the 99% that could be camping out in front of RAB & NAB headquarters right now.

New Media; Darling or Distraction? Are you kidding me? That’s a session from the recent NAB Radio Show in Chicago. Is the NAB & RAB still debating the validity of digital? Are they trying to hide the digital future from its membership?

Clear Channel’s Bob Pittman is on tour. The corporate jet flying mogul is being courted to speak at conferences. That’s a real head scratcher since what he’ll say will be of questionable value to those in attendance. His speeches try to goose the stock price of Clear Channel. That’s a good thing if you’re a stockholder. Even more so if you own a big piece like Bob. Having keynote speakers like this is purely a trick to drive attendance to conferences. Unfortunately, attendees walk away empty handed when listening to speakers like Mr. Pittman, or panels that offer nothing but platitudes and bloviating from researchers or analysts.

Where will Radio find new ideas and leadership? One place to look would be to those sticking their neck out in new and prudent ways:

Genesis Communications is led by Bruce Meduri. It’s a small, yet full of potential media group that consists of six Radio stations and websites serving Central Florida in the regions of Tampa, Orlando and Melbourne-Titusville. For their new site, NewsTalkFlorida.com, Genesis Communications uses the power of 6 stations to drive awareness of its central online news hub.

Genesis also made some gutsy, yet smart moves by breaking away from Triton Media as a CMS (Content Management System) vendor. NewsTalkFlorida.com is built using WordPress; the easy to use platform that many big name companies already adopted. (CBS, CNN, The New York Times)

Giving Newspapers a run for their money, Merlin Media wants to own the news franchise online and on-air. Merlin is led by Randy Michaels. Fresh off of leading the Tribune Company, Randy and his investors snapped up some prime Radio real estate in NYC, Chicago and Philadelphia in order to make his move against struggling Newspapers. Watch for Randy to break some rules, take some chances and do his best to assist in this leadership mission.

As an industry, it’s time for Radio to clean house. It’s time to find new captains with a clear action plan designed for today and tomorrow, not 1985. Don’t assume that Radio’s current crop of CEO’s have the chops to lead you to the promised land of Internet revenue fulfillment. We also caution against Radio consultants that have not made the jump to digital revenue proficiency. Just because you can build a website or an app, doesn’t mean you can build a realistic online business model for Radio.

Watch this short video clip of a webinar we did for a group of Radio executives in October. We call it a Digital Diagnostic for Radio. Sometimes we have to get real, bend over, and do a thorough evaluation of our inner workings in order to honestly assess and fix what ails us.

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When the local business community understands basic Web marketing, they start investing in it. That’s why Web 101 Workshops are the quickest & most effective way to grow your online sales and advertiser base.

1. Immediate Web revenue on the books
2. Real world sales training for your reps
3. Works better than a cold call
4. Superior, qualified lead aggregation

Attendees enjoyed networking, as well as a delicious breakfast and lunch served up by the Shore Diner in Egg Harbor, and the Sandi Pointe Bistro in Somers Point, New Jersey.

Below: view photos from events

Below:  Interactive email campaign from event

Below: Radio commercial promoting event

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As I finished the best-selling biography of Steve Jobs by Walter Isaacson, I wondered what would happen if Jobs, with his highly combustible yet potent management style had decided to become the publisher of a Newspaper, instead of being the king of Silicon Valley. It’s this kind of hardcore leadership, combined with brutal austerity measures that Newspapers (and Broadcasters) would certainly benefit from today. Introducing someone like this into your operation wouldn’t be easy. But as they say – if you want a great omelet, you have to break a few eggs.

How would Steve Jobs stop the bleeding? How would he re-invent the Newspaper industry, in much the same way as he did to rescue Apple from the brink of bankruptcy in 1996? With digital advertising on the verge of becoming the second largest money maker for media, what are some of the first things he would do as your boss?

Based on tactics I gleaned from the book, here’s a top 10 list of stuff that Steve Jobs would likely do if he was the Publisher of your Newspaper.

#1.  Remove the bozos. Clean house and get rid of B level players. Strive to have all A players since they prefer to be around A players, whereas B players surround themselves with C players. Dismiss those just putting in time while cruising towards retirement. Ditch those with little passion or vision for the future, or those who would prefer to protect the way it’s always been. Watch this short clip from a recent News conference to see the type of journalist you don’t want in your newsroom.

#2.  Simplify. Identify. What business are we in? Apple dumped the word ‘computer’ from their company name because they saw it as limiting. Today, the word ‘newspaper’ is being replaced with ‘media’ at many news organizations. That’s a good start, but it’s not enough. As Apple Computer morphed into a consumer technology company, Newspapers would be wise to stop seeing themselves as Newspapers with a website. Rather, they must become the dominant news, information and marketing source in their market…no matter what the format, product or service.

#3.  Fix it or ditch it. Prioritize, then eliminate any distractions that are not singularly focused on core products and competencies. Identify the worst performing 50% of your website and take it offline until further notice. Direct all resources towards the best performing ‘top half’ of your web efforts.

#4.  Break down the silos. Steam would be blowing out of Steve Jobs’ ears when he found out that some Newspapers are creating separate sales forces or so-called digital divisions. Smart operators like Morris Communications, are now bringing everything under one roof and moving to a digital first plan that forces everyone in the company to row in the same direction. A separate division for digital allows your traditional staff to get even weaker. It also silently conveys to a local advertiser, that their print rep can no longer be trusted to keep them up to date with all forms of marketing.

#5.  Tell it like it is. No sugarcoating. As you’ll find by reading the book, Steve Jobs would either think your idea was great or a ‘piece of shit.’ No middle ground here. Is your online game plan awe-inspiring? Is it a cheap knock-off of what other publishers are doing, or what you picked up from a conference panel? Are you uncomfortable calling your editor or VP of Digital on the carpet about the lack of a realistic business plan associated with their cool new idea ? Steve wouldn’t be.

#6.  Play by your rules, on your own field Steve Jobs hated the thought of being controlled by anyone, especially a competitor. That’s one reason why Flash animation never made it to the iPad and iPhone. Jobs didn’t want to make programing decisions based on someone else’s (Adobe) timetable or software. As a Newspaper publisher, Jobs would banish anything that allowed outsiders to meddle with the actual value of the product.

For example: Jobs would hate the online CPM model. He wouldn’t take too kindly to accepting a middleman’s valuation of his online ad inventory. He would also discourage journalists’ fanaticism in the placing of so much time and content on Facebook & Twitter. We certainly understand the need to leverage these platforms, but not having a well-defined business plan for social media is a recipe for disaster.

#7.  Cannibalize your business. Steve understood that the iPad could hurt sales of his line of desktop computers. But he knew it’s better to cannibalize your own company, rather than let someone else do it. That’s why any executive that fought against the future, and saw digital as a distraction, would be sent packing…pronto.

#8.  Impute.  Jobs was heavily influenced by early Apple investor, Mike Markkula, who preached the concept of ‘impute:’ People do judge a book by its cover. We may have the best product, the highest quality and most useful software. If we present them in a slipshod manner, they will be perceived as slipshod, if we present them in a creative, professional manner, we will impute the desired qualities.

Let’s apply the concept of ‘impute’ to our printed Newspapers. The design and layout is executed with great care and precision. We have the most comprehensive news coverage, highest editorial integrity and substantial reach in each market. Now let’s compare that to our Newspaper websites. In this example, we see a visually confusing train wreck of text, images, navigation, poorly designed banner ads and other promotional muck. This reflects or imputes poorly on the integrity of our Newspaper’s journalism and marketing expertise. We would never put out a paper that looks and acts like this, but we accept it in our digital version. Why?

Impute can also apply to the sales effort. The sales team exudes passion and expertise in selling the benefits of the paper, but imputes negatively when it comes to digital.  In terms of collateral and marketing materials for our Internet products, Jobs would not suffer fools if he saw substantially less professional collateral developed for Web, compared to the printed product. What do you think that tells a prospective client?

#9.  Dump the market research. Jobs didn’t ask consumers if they wanted an iPod connected to iTunes. He simply connected the dots: he knew they loved music but didn’t want to rent it or be forced to buy the whole CD. The ability for them to carry an entire music collection in their pocket was icing on the cake.

Instead of staking the success of your media company on expensive 3^rd party market research, your local staff should bone up on the lost art of the CNA; client needs analysis. Mandate them to have a solid understanding of the one customer that pays most of your bills: the advertiser. That’s simple business 101. If you’re delegating marketing research & analysis to an outside contractor, you lose that valuable face-to-face interaction with customers. Fortunately, that flawed model is already being phased out at many media companies today.

#10.  Share best practices.  Steve Jobs loved creating products that would literally change the world, or as he would describe it: ‘put a dent in the universe.’ As mortality crept closer, he put more into the challenge of building a company and culture that would survive long after he was gone. This is the reason behind Apple University; case studies to train future employees. Imbue them with fundamental Apple DNA. Some Newspaper organizations, like the Southern Newspaper Publishers Association, have been trying to embrace this idea with online training tools like www.SNPAdigital.com.

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