WWSB Sarasota; TV Web Sales Overhaul

Local television is not exactly known for it’s excellence in online business and sales models. That’s too bad, since the power of it’s on-air reach and sales force could make their digital efforts a real winner.

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. 

Meredith TV Hyper Local Fail. DataSphere Wins Again.

Meredith TV admits they can’t sell local web. The broadcaster recently handed off one of the most critical pieces of their business to the crew of  20-somethings at DataSphere; the tech company/call center in Bellevue, Washington. WATCH VIDEO BELOW.

Meredith Television joins the now infamous group of local media companies like Gannett, Raycom and Fisher Communications, all of whom outsource a big slice of their local internet sales effort to DataSphere Technologies.

DataSphere is one smart company. They created a cheap and easy, hyper-local solution for hyper-short sighted, local broadcasters. It’s a perfect offering for TV general managers and Internet VP’s that just can’t figure out how to sell local web. That’s too bad. Digital marketing is the fastest growing expenditure for local business owners. Local broadcasters need to keep control of that action, since small business is the life blood of local media.

As we reported last year, (read here) (and here) these types of deals might look good on the surface, but they’re deadly. (quick web revenue with no disruption of sales force)

Broadcasters who drank the DataSphere Kool-aid, were given awards and honored for their lapse of fiduciary responsibility. “Innovator’s Awards” were bestowed upon those who let outsiders build primary relationships with local clients. Gotta admit, that certainly is innovative if the goal was to fully automate a TV station sales force.

What’s the real deal about how Meredith and other broadcasters use Datasphere? The local TV station outsources web development and local sales to DataSphere, where they represent the local station…to local advertisers.  A boiler room operation that cold calls your local business community….using your call letters…..hard selling them on questionable, online offerings that have a too high chance of churn.

We hear the howls from local Meredith sales reps. No doubt, they’re heads are exploding as they learn of how Meredith corporate hired a room full of green horns to destroy the very relationships that the TV sellers took decades to build up.

Oh yeah. It get’s worse. DataSphere has the primary relationship with the local client, and keeps a VERY LARGE percentage of the revenue. Sweet.

Hyper Local Business Models for News Media

What’s the best business model for a newspaper, broadcast or hyper local news site? What if the answer was as simple as running your website like a real business, with a profit-first strategy? This kind of talk flies right in the face of those who preach entrepreneurial journalism and editorial first strategies.

We know that’s either too damn scary or time-consuming for some old school journalists and media executives. Learning new skills and changing workflow takes time. But when Reach Local, Patch and indie sites like AroundMainline.com are taking bigger chunks of revenue out of the market, you might want to ‘eat your peas’ and get with the program.

In this month’s DIGITAL REVENUE REVIEW (video below), we expose the choke points killing our companies from within.

Jim Schachter from The New York Times giggles about his lack of web-sales, as Warren Webster from PATCH shakes his head in amazement. J-school professors; Jay Rosen and Jeff Jarvis are also in our cross-hairs. (These guys may want to reconsider their interest in teaching entrepreneurial journalism)

Mike Agovino from Triton Media talks the downside of CPM, and so does Randy Michaels from Merlin Media. (Sam Zell makes a guest appearance)

Steve Lanzano from the TVB chats up hyper local TV efforts.

Researchers are skewered for the foolishness of actually asking people to pay big bucks for un-needed, local media research.

Alden Global Capital; the private equity firm with a heart, is on a tear as they quietly grow it’s portfolio of distressed media properties like the Journal Register Company, Gannett and the Philadelphia Inquirer. 

Hyper Local mis-steps; In-Jersey, Loudoun Extra and TBD.com are outed for the real reason of their demise. Hint: it’s not what side-line commentators like  Alan Mutter or Rick Edmunds from Poynter have suggested.

Watch the amazingly spectacular video here:

Mega Conference Recap 2011

Inlander April 2011 Mel Taylor

Key Executive Multi-Media; Patch

Just got back from the Multimedia Key Executives Conference in St. Petersburg, Florida. It was a record breaker as the SNA, Inland Press and SNPA joined forces to create this ‘must attend’ event of the season. Close to 500 attendees from the newspaper industry gathered for 3 days where digital was a top priority.

The Renaissance Vinoy Resort was filled with publishers, ad managers, owners and vendors that were seriously focused on the challenges and opportunities that the Internet is serving up. Of note, it was refreshing to see a full house right up until the end of the event on Wednesday afternoon. It was a fully packed, 3 day conference.

Clark Gilbert from Deseret Media in Salt Lake City set the tone as keynote speaker. He pulled no punches and knocked it out of the park.

I was especially grateful for being invited to speak at this prestigious gathering. After watching Clark deliver a frank and very compelling session…I just HAD TO take it up a notch with my session focused on how newspaper can beat Patch and other local competitors.

View or download my presentation deck below.

Key Take-Aways

  1. Run web the same way you run print; #1 Profit, #2 operations, #3 editorial. In that order.

    Photo: News & Tech

  2. Is person running your digital assets financially motivated to make a profit?
  3. Do top managers, CEO’s & owners have a strong grasp of digital competition and tactics to win? How can someone manage what they don’t fully understand?
  4. Do sales reps have compensation plans that feature bonus & penalty?
  5. Do reps know which competitors are offering digital products to clients?
  6. Are you cheapening site by using 3rd party and remnant ad networks?
  7. News is not a business model.

 

Key Executive Conf.; Your Local Dollars

Local Dilemma: Integrate or Separate?

Your print & web folks…side by side…in the newsroom; the integrated newsroom.

Forward thinking newspapers are evolving into multi-media news organizations; where print employees are mandated to see web as equally important as print…..and in some cases, MORE important than print.

Does the print ad director sit next to the web sales manager? What is the bonus/commission structure like? How many reps sell web only? How many sell both print and web? How do they avoid sales cannibalization and in-fighting? How do they push more than just convergence up-sell packages? This is the stuff that can get really hairy at local media companies; building new revenue and sales models.

Experts suggest that media companies MUST turn their web efforts into separate businesses, complete with stand alone sales forces, offices, etc……and for the most part… we agree. Yet with that strategy comes a few near term landmines. The biggest hurdle I believe, will be to find strong online sellers/managers to staff these online-only efforts, especially within the confines of a bootstrap budget. This will not be easy.

A big can of worms.These newly hired web-only sellers could then be calling on the very same agencies and major advertisers that the traditional reps already have relationships with. Unless the financial motivation/bonus structures are adjusted, this will just cause an awful lot of in-fighting amongst reps. In addition, the media buyer would prefer just ONE point of contact with your company. These overworked agency types would HATE to carve out more meetings to learn about your company’s web packages, especially from eager green horns who hammer them all day with cold calls and email.

I’ve seen this firsthand: traditional reps selling against web reps; literally bad-mouthing the online offerings of the parent company. This happened because the commission structure and job description needed a refresh. The traditional manager offered up a measly 2% commission for each web sale. Behind closed doors, traditional reps would lament; “2% was not worth their time”. They also knew they would NOT catch heat, for NOT hitting their web budget.

Solution: Adopt a hybrid approach for the near term. Train and financially motivate traditional sales staff, while you build a separate web sales force to go after businesses that has been, for the most part, ignored. Maybe most importantly, make sure that the upper level managers get trained in all things web. How can they manage a web sales force, if they barely have a grasp of the online marketing space themselves?

Here’s a quick test to determine if you are managing and maximizing your web sales efforts properly. In regards to traditional sales staff, ask yourself these questions:

  • Does each seller have a mandatory web budget to hit? How did you arrive at that number?
  • Is the commission structure similar or better to what your NEW BIZ commission is?
  • Are there penalties in place if the rep DOES NOT hit their web budget?
  • Do you have senior reps that reluctantly sell web? Do they know their clients online strategy?
  • What is the total local online spend in your market? What is your share?
  • Does top management have strong grasp of web marketing? If not, how will they effectively manage the effort?