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‘Media Transformation: Top 3 Trends’ Nancy Lane, President, Local Media Association Virtual Advertising Conference, July 26, 2016
Transcript of ‘Media Transformation: Top 3 Trends’ › downloads.localmedia.org › ... · • Metroland...
‘Media Transformation: Top 3 Trends’
Nancy Lane, President, Local Media Association
Virtual Advertising Conference, July 26, 2016
1. Na&veAdver&sing2. DigitalMarke&ngServices(digitalagencies)3. Events
Top 3 Trends In Media Transformation…
Progressivelocalmediacompaniesarelaunchingna&veadver&singstrategies;webelievethismodelisheretostayCompaniessuchasBuzzFeedhavesetthebarhigh(it’s100%oftheirbusinessmodelandtheyemploy10dataanalyststoworkonthesecampaigns)Who’sdoingitwell?VictoriaAdvocate(TX)–30Kcirc.,DeseretDigital,EveningPostPublishingGroup
Native Advertising/Sponsored Content
BestPrac&ces:• Clearlylabelassponsoredcontent• Incorporatevideointothestory• Figureoutyourbestcontentstrategy
• LotsofgreatoutsourcepartnersorDIY
• Contentmustbehighquality• Neverallowasalespitch• Chargealargepremium• Don’tsellone-&mepackages• Contentshouldbeevergreen• Mustbedisplayedinna&veformat
Native Advertising/Sponsored Content
Digitalservicesrepresent42%ofthe$714BU.S.marke&ngspend(BorrellAssociates)Whoiskillingit?• GateHouse/PropelMarke&ng-$50millionin2016• NexstarBroadcas&ng-$33million(nowrepresents1/3oftheirdigitalrevenue)• DallasMorningNews–over$40millionin2015• AdvocateDigitalMedia–sevenfiguresandgrowing• SanFranciscoChronicle–twoagencies46MileandLocalEdge
Digital Marketing Services/Digital Agencies
Thelargercompaniesaremakingbigbetsinthisareaandthesmallercompaniesarestar&ngtofigureitoutaswell(ageralotoftrialanderror!)CompaniessuchasGateHouse,Hearst,Gannei,EntercomCommunica&ons,Hubbard,DigitalFirstMediaandmorehavesetthebarhighWho’sdoingitwellonthesmallside?VictoriaAdvocate(TX),BigFishWorks(MN),InformedInterac&ve,FusionFarm(IA),WSPD(KY)
Digital Marketing Services/Digital Agencies
WinningStrategies:
• TreatasaseparatebusinessunitwithseparateP&L• Employadedicatedstaffordigitalexpertsattheveryleast(mostareusingacombina&onof
digital-onlyexpertsandexis&ngstaff)• Investinthisnewbusinessunit• Provideworld-classtrainingtothestaff(mustbeongoing;thedigitalworldchangesdaily)• Nameyouragencybutalsoleverageyourmediabrand–bestofbothworlds• Facebookmustbepartofyourstrategy(PropelMarke&ngwentfrom$0-$7.5millioninthelast12
months;FBadsnowrepresent15%oftheirrevenueandgrowing)
Digital Marketing Services/Digital Agencies
ConsiderStrategicAcquisi8ons:
• GateHouse’sPropelMarke&ngjustpurchasedThriveHive,aplamormthataddressestheneedsofverysmallbusinesses(10employeesandless).TheyarenowintheprocessofaggressivelystaffingacallcenterinNewHampshire(hiring100FTE’s)togrowthisnewlineofbusiness.Theyarealsolookingatotherstrategicinvestmentsandacquisi&onsinareasthatmightsurpriseyou.
• CordilleraTelevision’sInformedInterac&veisalsomakingstrategicacquisi&onsasthenextphaseoftheirgrowthplan.Ackmann&Dickensonisawebandmobileapplica&ondevelopmentagencythatwasacquiredinAprilofthisyear.Theybringastaffof60includingengineersandthisallowsthemtoworkwithcompaniesinnewandinteres&ngways.In2014theyacquiredacrea&veagencyandtheyareexpectedtomakeafewotherstrategicacquisi&onsyetthisyear.
• TheDallasMorningNewsacquiredthreemarke&ngcompaniesin2015andpartneredtolaunchedSpeakeasyin2012.Bytheendof2015,revenuefromdigitalmarke&ngservicesrepresented27%oftheirtotaladver&singrevenue.
Digital Marketing Services/Digital Agencies
Mustbetreatedasaseparatebusinessunit
Deliveringprofitmarginsof30-50%Who’skillingit?• GateHouseMedia(liveandvirtual)• ChicagoTribune($5million&growing)• MetrolandMedia(Toronto)• CedarRapidsGazeie• UtahMediaGroup($7million&growing)• TownsquareMedia(radio–justboughtaCarnivalcompany!)• EmmisCommunica&ons–Incite(radio–focusoncausemarke&ng)
Events – 3rd Leg of the Media Transformation Stool
BestPrac8ces:• Treatasaseparatebusinessunit(don’texpectexis&ngstafftohandlethistoo!)• Hiresomeoneinyourmarketwitheventplanningexperience• Picktherighteventsforyourmarket• B-to-Beventsrepresentahugeopportunityw/higherprofitmargins• Diningandfoodeventsareeasytosellandmanage• CreateseparateP&L’sforeacheventandaimforaminimumprofitmarginof30%• Bringingacauseintoeventscanincrease&cketandsponsorshipsaleswhiledoinggoodforthe
communityatthesame&me(EmmisCommunica&on’sIncitedivisiongets30%oftheirrevenuefromnon-profits)
• Tieeventsinwithpromo&onsandcontests(SecondStreetworkswithalotofmediacompaniesusingthisstrategy–especiallyfor“BestOf”promo&ons)
Events – 3rd Leg of the Media Transformation Stool
MAKINGABUSINESSOFDIGITALSERVICES–LMAandBorrellAssociateshaveteameduptoproducethis1.5daysummit(August17-18attheGleacherCenterindowntownChicago).Highlights:• Facebookkeynote:YoussifAbdulhamid,SMBGrowth(willtalkabouthowtomanageFacebookads
atscaleandtheadvantagesofworkingwithatechpartner(theirrecommenda&on)vsdoingityourself.He’llalsosharewhichsolu&onsdrivethebestresultsforlocalbusinessesandmoreinforma&onontheFacebookMarke&ngPartnerProgram)
• CaseStudies:GateHouseMedia/Propel,CordilleraTelevision/InformedInterac&ve,HubbardRadio/2060Digital,DallasMorningNews
Informa8on/Registra8on:hip://www.localmedia.org/digital-agency-summit/
Digital Agency Summit
Na8veSummit:November9,2016,GleacherCenter,Chicago• Willfeatureawiderangeofcasestudiesfromcompaniessmalltolargeacrossallmediaplamorms• Who’sdoingitwellandhowaretheystructured?• Opportuni&eswithvideo,programma&c,combiningwithprint/broadcastandmore!EventsSummit:November10,2016,GleacherCenter,Chicago• FacultymembersfromcompaniesthatareKILLINGitwithevents• Howtogetto50%profitmargins• Pickingtherightevents–prosandconsofeachtype
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