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

Clark Gilbert Presentation Slides

 

Took some pictures of Clark Gilbert’s keynote presentation slides that he used at the Key Executive conference last week. See below.

Clark Gilbert Pic: Al Cupo

From DeseretDigital.com: Clark is the president and CEO of the Deseret News Publishing Company and Deseret Digital Media.  The Deseret News is Utah’s longest running business and one of the nation’s fastest growing newspapers, both in print and online.

Photo: News & Tech

Deseret Digital is one of the largest targeted media networks in the country.

It manages the commercial Web properties of the Deseret Media Companies: DeseretNews.com, KSL.com, DeseretBook.com, MormonTimes.com and LDSChurchNews.com.

Gilbert was a professor at Harvard Business School. While there he was an adviser to the American Press Institute‘s Newspaper Next project on ways for newspapers to transition to the digital age.

 

Recap: 2011 Key Executive Conference

Here are some prime take-aways from the 2011 Key Executive Multi-media conference, held in St. Petersburg, Florida, Feb 21-23.

Take your foot off the brake. You can’t make meaningful web revenue gains until you remove the internal chokepoints in your business plan and operations. Chokepoints commonly occur in areas like management & reporting structure, inventory management, conflict of objectives (ex: newsroom vs. sales) and compensation plans.

Run web like print. Just as you run your newspaper, use the same strict standards & objectives with your digital operations. Otherwise, your web business is likely to remain a money pit. Your digital competitors have a lower cost structure, which now forces you to measure items like ‘cost per story’. There’s also mounting pressure to consider even more outsourcing, and eliminating any content that’s not directly adding to the bottom line. Clark Gilbert’s slide showing cost structure comparisons between The New York Times and The Huffington Post says it all. (see photo)

Who’s in charge of digital? Does this person have their compensation tied to digital profitability? If not, why not? Would you ever allow the newspaper to be run by someone with little regard for profit margin? Recommended: designate an Internet general manager (or someone who plays that role) and compensate based on revenue & profit goals….NOT page-view, time spent on site or unique user goals.

Can you manage what you don’t understand? Do top management, publishers & owners have a strong grasp of digital opportunities, threats and sales tactics? Or do they simply delegate this to their digital guru or print manager? To make better decisions, custom training is mandatory for top management, publishers, and owners. Investment banks and private equity firms are upgrading their skill in this area. Are you ready for the tough questions they’ll be asking you?

News is not a business model. While journalism is a critical component of our operations and unique selling proposition, it’s unfortunately not the primary reason why many advertisers support our newspapers. Rather, local business wants to move product and digital marketing is increasingly what they want to try. Why not an offer digital or integrated solution to local business before someone else does?

Simplify. Far too many newspapers have complicated sales pitches, inventory management systems and pricing schemes. Sales reps struggle with talking points and overcoming common objections. Tips: Quote weekly instead of monthly pricing. Flat fee and share of voice programs work better than CPM models. Remove all geek speak and replace with language a small business can understand. To build confidence in sales force: create super premium ad units, reduce number of ad options and place pressure on limited inventory.

Vital research that will change everything. If sales reps can execute this simple task, they’ll make dramatic inroads towards digital success. Have reps ask clients about current marketing budget allocations, which new digital tactics they’re considering, and what types of pitches they’re getting from newspaper competitors. Understanding this info will ensure reps aren’t going into the market ‘blind’. Managers can use this intel to develop appropriate programs that advertisers increasingly want to buy.

Tap independent journalism. No matter how great your newsroom is, it can’t cover everything. Reaching out to select bloggers and online publishers is a compelling option to resolve this issue. These indies have an expertise in subjects that you can’t cover, or don’t have room for in the printed paper. They can also be considered a farm team, and they’re compensated via rev share. The very best writers can be featured in the printed paper and potentially be offered a full time position.

 

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

Hyper Local Competition

The MultiMedia Key Executives Conference gets underway on Monday, Feb 21 in St. Petersburg, Florida. One of the best sessions of the event will the opening keynote featuring Clark Gilbert of Deseret Media. Clark overlooks one of the finest examples of forward thinking, local media properties featuring KSL-TV in Salt Lake City.

On Wednesday morning, I will present a session called Hyper-local; What the Competition is up to and Strategies to Succeed. It will be a comprehensive look at the business and revenue models of Patch, the hyper-local initiative from AOL. Attendees get details of Patch’s current plan, how and what they’re selling to local business, and their potential plans for 2011.

This session also takes a broad look at other online-only companies going after local ad budgets: Reach Local, DataSphere, Groupon, Facebook, Google and various Hyper-local publishers. Most importantly, this fact-based program will offer proven methods to effectively sell against this new group of digital competitors.


Suburban Newspapers: Email Marketing 101

Suburban Newspapers of America hosted a recent webinar for Mel Taylor Media. Click below to watch a small collection of sample topics we covered from the session: The Basics of Email Marketing. Contact us for more info about our free webinars, as well as our premium, webinar training sessions.