Borrell Local Online Advertising Conference Presentation on Digital Agency Strategy
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The Strategy DIGITAL AGENCY WORKSHOP – BORRELL 2014 -NYC BRANDON ERLACHER MONDAY, MARCH 3, 2014
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March 3, 2014 Presentation on Digital Agency Strategy during the Digital Agency Track at the 2014 Borrell Local Online Advertising Conference in New York City. Session Description: The Strategy: Why enter the crowded digital-services space at all? This session will examine three strategies and success of media companies in large, medium and small markets –including one that created a digital agency, then adjusted the strategy after a year. Moderator: Lee Smith, President & CEO of Sales Development Services Speakers: Brandon Erlacher, Publisher, The Elkhart Truth; Rob Weisbord, VP of Digital Interactive Solutions, Sinclair Broadcast Group
Transcript of Borrell Local Online Advertising Conference Presentation on Digital Agency Strategy
The StrategyDIGITAL AGENCY WORKSHOP – BORRELL 2014 -NYC
BRANDON ERLACHER
MONDAY, MARCH 3, 2014
The Market -South Bend/Elkhart Metro (Market #91)
-400,000+ HH
-3 Daily Newspapers
-CBS, NBC, Fox and ABC Affiliates
-Radio Stations everywhere
-Don’t forget the pureplays… Groupon, Craigslist, Google, Facebook, Foursquare, Yelp, LinkedIn
-10+ and counting Digital Agency start-ups
The Opportunity
Forget about my competition with other legacy media…
Online represents
$36 Million
in just Elkhart/Goshen Metro!
Newspaper Revenue
Source: Sources: Newspaper Association of America; Borrell© 2014 Borrell
Legacy Media’s Share of Digital(Current)
Source: Borrell© 2014 Borrell
Share of Local Digital Advertising
Legacy Media’s Share of Digital(Future)
Source: Borrell© 2014 Borrell
Share of Local Digital Advertising
The Strategic Foundation HBR Case from May of 2005:
◦ Building Breakthrough Businesses Within Established Organizations by Vijay Govindarajan and Chris Trimble
NewCo (Digital Agency) and CoreCo (Legacy) must
-Forget◦ NewCo must not report to CoreCo◦ NewCo needs a new dashboard◦ Be patient with financial results
-Borrow◦ NewCo should leverage CoreCo assets◦ Empower NewCo so power does not shift back to CoreCo
-Learn◦ Hold separate meetings (oil and water do not mix)◦ Do less faster◦ Measure nonfinancial metrics
Implementation Strawberry Fields Marketing Agency born in April of 2013
-Own space, staff, measurement, financials
-No agreement with CoreCo to start.
-Borrowed relationships and brand
-SEO, SEM, Reputation Management, Retargeting, Website Development and Social Media Management
-Leader, five direct sellers, four in fulfillment
Measure and Adjust -Small margins (digital dimes vs. analog dollars)
-CoreCo vs. NewCo Culture
-Leadership
-Educating the SMB (setting clear expectations)
-High cost of vendors/ need scale
-Talent and training
-Power struggles related to borrowing and turf
-Product selling vs. SMB ROI
Value to SMB
Which is most valuable to the advertiser?
Mass• 70,000 Audience• Rate based on
reach of product• 150 sales
Targeted• 5,000 Audience• Higher rate
because it is more efficient
• 150 sales
Digital• Hyper Targeted• Click-thru, CPM or
performance• 150 sales
New Strategy -New partnership with Federated Media
-Provides direct sales, training to legacy and serves as innovation incubator
-Direct and integrated approach
-Limit product mix
-Package design incorporates legacy products for legacy reps
-Keep direct sellers from Strawberry
-Fulfillment for all Federated companies based in one place
-Heavy emphasis on training
-Legacy operators are not penalized ◦ Profit given back to companies◦ Legacy staff can focus◦ Easier to ask for help and call in support
And remember $36 Million? Conservatively can bet on 4x that much
by including the radio markets in South Bend
and Fort Wayne…
Comparison of Old vs New Strategy
Federated Interactive
• Balance forgetting, borrowing and learning
• Direct & integrated sellers
• Focus on training
• Packaged products (Digital and Legacy)
• Legacy operators not penalized
• Scale and efficiency via partnership (Do less faster)
Strawberry Initiative Alone
• Forgetting (culture, metrics, financial, management, separate staff and location)
• Borrowing (capital, brand, knowledge, lists)
• Learning (separate meetings, metrics and need for patience)
• Direct sales only
Thank You Brandon Erlacher Publisher | The Elkhart Truth
@bserlacher
Digital Services Visibility Solutions
Lead Generation• SEO –Search Engine Optimization • SEM-Search Engine Marketing
Social Engagement• Reputation Intelligence Tool- Reputation Management dashboard that helps claim listings and monitor, reply to reviews &
monitor the competition• Social Media Marketing Tool- Dashboard tool that clients can schedule posts thru Facebook, twitter & Google+ and also
find leads that pertain to their business• Concierge Service- We do the service for you!
Responsive Web Design & Development• Beginner’s Presence Builder- For those clients that do not have a website but know they need a presence. Very affordable!
• Custom Responsive Web Design – Custom built websites
Training for Legacy RepsDay 1: Training Overview & Lead Generation• New Digital Solutions Combined with Existing Interactive Solutions• SEO-What is SEO? How to educate your client to understand it• Fulfillment Process after the Sale
Day 2: RWD & Lead Generation• RWD- Custom Responsive Website Design and Beginner’s Websites• SEM- What is SEM? Why Federated Interactive for SEM? Why is this the highest ROI?• Fulfillment Process after the Sale
Day 3: Branding & Social Engagement• Behavioral Targeting- What is BT? How does it work? • Reputation Intelligence, Social Media Marketing & Concierge Service• Fulfillment Process after the Sale
