360 Advertising Sales Strategies Practices from Europe

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360 Advertising Sales StrategiesBest Practices from Europe

Presented by: Nancy Lane, President, Local Media Association and Steve Parker, Co‐Publisher, Recorder Community Newspapers

September 13, 2012, Local Media Association Fall Conference

360 Advertising Sales StrategiesBest Practices from Europe

• This report showcases the top takeaways from the WAN‐IFRA (World Association of Newspapers and News Publishers) study tour that took place April 23 – 27, 2012. The tour focused on 360 advertising sales strategies that were being implemented by some of the most innovative media houses throughout EEurope.

• Local Media Association President Nancy Lane and Local Media Foundation Chairman of the Board Steve Parker attended the study trip along with 11 other media executives from around the world.

360 Selling/Digital Agency/Offering Agency Services Hot Opportunities for Local Media Companies of All Sizes

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Overview:• 360 degree advertising sales strategies are gaining in popularity in Europe. In

some ways, the strategy is similar to the digital agency approach that many in the U.S. are starting to implement. In other ways, it is quite different.g p y , q

• For most of the companies that presented on the tour, the 360 selling approach focuses on effective multi‐media packages. Many no longer sell single products.

• Most packages include a mix of print, online and mobile. The higher end packages go even further and include editorial, supplements (print and microsites for example), video and events.

• The sales strategy focuses heavily on digital products and in fact, Europe is ahead in this area with most companies on the tour having at least 25% of their advertising revenue coming from digital (and a few have broken the 50% threshold).

Multi‐Channel Offerings Are the Norm:• European media houses are getting away from “silo selling” and moving into true multi‐media sales. Sales

executives are selling a large range of products in a “multi‐channel” kind of way. This means that having a staff that can effectively sell all of these products is also becoming the norm.

• All of the media houses are utilizing the 360 degree selling model which means that sales reps sell multi‐channel offerings to all advertisers (and never or rarely single products). The sales team is supported by strong digital experts in almost all areas.


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Multi‐Channel Offerings Are the Norm:

•A great example comes from Upsala where VP Sales & Marketing Theo Blanco, told the group that “sales reps are not allowed to sell less than 3 products at any time and all packages must include online”.

•At Axel Springer in Germany, it is not unusual to include up to 10 different products in a package buy. Advertising executives are expected to deliver results for their clients and that means a multi‐media package is developed for each customer. They never or rarely sell just one print product or just one digital product.

European Media Houses are Making Huge Investments in Mobile & Tablets:

• “Build It and They Will Come.” This represents the strategy of most of the companies that were visited on the tour.

• All of the European media houses that were on the tour have a clear and strategic mobile plan. Their web sites are optimized for mobile devices and they also have apps for the vast majority of their products. They all acknowledge that a shift is underway from online to mobile. They are all starting to monetize mobile in meaningful ways.

• While mobile does not represent a huge revenue stream for most yet, it was absolutely a top priority at all of the companies that we visited. The sales staff routinely included a mobile component in most of the packages that they offer.


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AFTONBLADET: “Mobile is no longer a small business for us” – Anders Berglund, Sales Director.

In fact, it will hit $6‐$10 million Euros for them in 2012. It grew 23% last year and is expected to grow substantially for the next five years. Visit: m.aftonbladet.se for the mobile version of their web site.

•Berglund spoke about the “mobile transformation” at Aftonbladet and noted that on some days in the early morning and late evening they have more visitors via mobile devices than desktop. They do have an app with 150,000 subscribers but their emphasis is on the mobile site. Their mobile site has 1.8 million monthly unique visitors (compared to 4 million on their main web site). Their average CPM for mobile is $13 Euro. Berglund thi k th t d t i t $20 000 E t t bil it d l dthinks that you need to invest $20,000 Euro to get your mobile site developed.

•Berglund also proclaimed, “A new transformation is underway – a few years back it was print to online; today it is online to mobile.” This reminded us of Gordon Borrell’s words during his opening keynote at the Borrell Local Online Advertising Conference in March, “There is a new disruptor lurking and that disruptor is mobile”.


• Telegraph Media Group (London) provide these statistics:

– Last year mobile advertising in the U.K. doubled.

f b l d l d h– 54% of mobile display ads were within apps.

– SMS advertising grew by 241% and video mobile advertising also increased dramatically.

– There are more “over 55 year olds on iPads than under 35’s”

– “50% of owners share their iPad with other members of their family”.

• The Telegraph was early with their iPad app and gave it away for free for 6 months. They used this time to solicit input from users to find out what they liked and didn’t. What they liked: the product’s closeness to the newspaper as opposed to the web site; clean design/sections and the presentation of the advertising (many prefer the full page ad format on the tablet asand the presentation of the advertising (many prefer the full page ad format on the tablet as opposed to banner ads on web).


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The Telegraph executives noted the importance of understanding your mobile and tablet audience:

•Their iPad audience: 36% over 55; 72% are male; 27% live in London; 24% are key executives They went to aTheir iPad audience: 36% over 55; 72% are male; 27% live in London; 24% are key executives. They went to a paid version in April 2011 (consumers value it more when they pay for it) – and offered it free to print subscribers. They see day and evening peaks with their iPad audience. They run an ad after 3 pages and then after 7 pages. They may change the second ad to after 5 pages very soon. They base the price on a certain # of ad impressions. They started the year with 4 advertising slots and are now offering between 9 and 10 each day. Now they are looking at sponsored sections. They are also developing an app for the Olympics. Cascade is a new creative way to present advertising on the iPad. Ads that “cascade down” – they built it.

•Mobile average age is 30 (unlike 40 online, 52 on iPad and high 50’s for the paper). They are trying to find ways to engage with this younger audience.

•As for monetizing mobile, they think that the jury is still out on QR codes. They are also experimenting with augmented reality (point your phone at certain ads in the paper and more information is presented via video or in other engaging ways).



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Home Page Rules – Beautiful Design; Impressive Revenue Results:

• The home page of the newspaper’s web site is king. European media houses are able to monetize this premium space in huge ways. As a result, tremendous attention is paid to the design of the home page. Most of the companies had recently redesigned their site or were in the process of doing so.

• Creative ad placements were being sold for large amounts of money. Banner ads were still sold but most admitted that this is not an effective advertising vehicle except for branding. Many were going with larger ad sizes as a result. Take‐over ads were also very popular.


•Aftonbladet – They credit big formats on the home page as key to driving digital revenue for them The top position is sold at a premium (it rotates and if onerevenue for them. The top position is sold at a premium (it rotates and if one company bought all of the positions/rotations on the home page it would cost $120,000 Euro per day). Advertising revenue in 2012 will represent the first year that online is higher than print ($50 million euro for online and $45 million euro in print). “Online advertising works but you must have the right format” – for them that means takeover ads, large format ads, video and sponsored microsites. www.aftonbladet.se. They are launching a new site in June.

•They use the Scandinavian model online – which means that the home page “goes on forever” (scrolls down for a long time). High frequency, high loyalty g ( g ) g q y, g y yfreemium model has 150,000 subscribers. Freemium subscribers pay $3 Euro/month – they package these in a different way (a way that the readers want). Re: pay walls – they sell an incredible amount of revenue ($45‐$50 M euro) on their web site so not likely to put up a pay wall.


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•20 Minutes – recently designed their web site. It features a very colorful, photo‐h h All f th i i d t th d t t d bheavy home page. All of the news is mixed together and not segmented by category. This is called the “organized cows” format. The web site is also designed to be very participatory (they average 100,000 comments/month). This Shibsted‐owned free commuter paper boasts 5.8 million monthly UV’s and 112 million page views/month. www.20minutes.fr

•Le Monde – they just launched a new version of www.lemonde.fr and they refer to the new home page as “dazzling”. They decided to strengthen the editorial treatment of 10 areas (international economy society culture sports science &treatment of 10 areas (international, economy, society, culture, sports, science & more). Their goal is to become a multi‐media web site and this means more photos, videos, social interactions, user generated content, etc. The site currently has 6.8 million UV’s per month and like the others, they focus heavily on home page advertising opportunities.


•Le Figaro: www.lefigaro.fr – 8.579 M monthly unique visitors; 3 million g g y qmonthly UV’s on mobile

•Axel Springer: www.bild.de ‐ Branding is the main goal with digital and they do a lot of takeovers on their homepage. They block it for the whole day for exclusive clients. One day on the homepage costs about $100,000 Euro. They sell it out every day. Flip ad is also used on homepage. Branding & performance campaigns are designed to significantly increase click and conversion rates. Branding & targeting are also used to intelligently increase advertising impact. They reach more than 50% of the digital audience in Germany.


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Print is Important; Leverage It to Grow Digital:

•While digital is the focus for most of the European media houses that we visited print is extremely importantvisited, print is extremely important.

•They regularly leverage print to grow digital (At Aftonbladet they lead with digital but they always incorporate a print component – for example, they love to conduct mobile workshops and then sell print to support it/drive traffic to mobile).

• They also showcased a lot of innovation on the print side including:– Large paper formats (Axel Springer)

– 3D promotions (Axel Springer)3 p o ot o s ( e Sp ge )

– Creative print ad placements (Axel Springer & others)

– Wraps that are clear (see example from The Telegraph)

– Wraps that are 100% advertising (A&N Media sells “cover wraps” for Metro – very expensive with a 4 time premium ‐ 4 pages that wrap the front cover of Metro)

Development of attention-grabbing print ad specials

Trends

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Silhouette Inner circleFloating ad


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Print is Important; Leverage It to Grow Digital:

More Info/ResourcesThe Local Media Innovation Alliance issued a report in June on the key takeaways from

the WAN‐IFRA study tour. The report provided tremendous detail on the lessons learned during the tour.

The Local Media Innovation Alliance produces monthly case studies, written by respected industry consultants, that focus on new trends, sustainable business models & digital revenue growth. Recent reports include:

November 2011 – ShopTalkDecember 2011 – Digital Agency (you already have this one)

January 2012 – Daily Deals 2.0February 2012 – Using Free Open Source Software

March 2012 – Mobile StrategiesApril 2012 – SOLOMO – Social, Local, Mobile

May 2012 – Event MarketingJune 2102 – 360 Advertising Sales Strategies/Top Trends in Europe

July 2012 – Reseller & Partnership OpportunitiesJuly 0 Reseller & Partnership Opportunities

To subscribe to LMIA reports ($1,750/year or only $146/month USD for single market companies; $3,500 for multiple market companies or just $292/month) visit www.localmedia.org to subscribe (10% discount for pre‐pay in full + receive the first 6 reports for free).


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#1 Print is Still Important; Leverage It to Grow Digital

•Print ads still produce the best•Print ads still produce the bestresults and should be included in allmulti‐channel buys

•A weekly campaign online is equalto one ad in the paper. “All media isnot created equal.”

•From ad efficiency pov, print is stillthe best, banner ads are the worst


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TAKEAWAY #2Editorial Can Support 360º Advertising Strategies

• As in the US, separation between editorial and advertising is sacred to most of the media houses that we visited But nearly all of them were nowof the media houses that we visited. But nearly all of them were now working with the news department in new and exciting ways to support the 360º advertising sales strategy.

• Increasingly, advertisers are interested in packages that include an editorial component. A&N CEO Kevin Beatty: “the demands from advertisers are shifting to content type opportunities and not just buying ad space”.

• Advertorial is not viewed favorably by the companies that we visited. In order to meet the needs of advertiser, a new solution was developed. The editorial department now writes the content for these types of packages. p yp p gThey are able to maintain control and that is ultimately what is important to them. Countless of examples were shown throughout the study tour.

• Some of the companies have created separate divisions (or in‐house agencies) to work with these types of clients.

Telegraph Media Group – UK

• launched Telegraph Create in 2010.•Print, video, mobile, social, promotions—in‐house agency•total team consists of 50 employees (14 sales executives, 12 project managers, 20 editorial/artists/video). It now represents the fastest growing piece of their business –growing at 20‐30% per year.


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Case study – Sainsbury’s

•Campaign: “Restaurant quality food that you can eat at p g q y yhome.” In addition to print, they built a web site, rented a restaurant in South London and brought in a Michelin award winning chef – he cooked just using Sainsbury’s foods. Did this for 5 weeks and had a contest where readers voted. 45% of their readers recalled the campaign. •Pricing: 1.4 x the print price (they do a P&L on every project).

TAKEAWAY #3Facebook can be monetized

Le Monde •323,000 fans on Facebook and 743,000 followers on Twitter‐‐in a community of 1 million people. •Just launched a social reader app on Facebook . •Worked out a deal to keep the revenue from the leaderboard and a big box.


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TAKEAWAY #4TV /Video – Ad Migration Has Begun

• In the next few years channels will be of less importance;In the next few years channels will be of less importance; people will want special programs – on demand on the web, PC and/or mobile/tablets.

• Ad money will migrate from linear TV to web TV.

Uppsala (Sweden): 2017 is already here• launched“hyper‐local CNN” in 2010. 20 minute cycles –yp y10 minutes of news/sports – 1 minute commercial – 2 minutes of weather/ entertainment – 6 minutes of a program – 1 minute commercial.

KEY TAKEAWAYS FOR A SMALL OR MID‐SIZE MEDIA HOUSE

1. Implement a social media reader (check out Paperlit f F b k) t ti i l difor Facebook) as a way to monetize social media audience.

2. Partner with a digital‐savvy advertising agency to provide 360 degree digital expertise to SMBs. And look beyond local DMA. An out of area agency may offer better rates to get customers they could never hope to find much less service themselveshope to find, much less service, themselves.

3. Investigate Google Currents as a free alternative to building own newspaper app. 150 papers have signed on in the E.U. since its launch in December. Monetize by selling specialty pubs (ex. bridal) and via ad spots


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KEY TAKEAWAYS (CONT.)4. To ramp up “coolness factor” of print product, introduce

some augmented reality (beyond QR codes). The Telegraph i L d id l ti t th d il din London provides real time answers to the daily cross word via a reader’s smartphone camera.

5. Move to multi‐channel sales. Sell combo print/digital packages with your print competition. We need to deliver a bigger audience than the pure plays. The enemy of my enemy is my friend.

6 Last but not least accelerate move to iPad and find a6. Last but not least, accelerate move to iPad … and find a vendor who can facilitate insertion of full‐page ads—they command premium rates.


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Local Media Association Update

September 14, 201229

Consumer behavior and trends drive the business need

It starts with consumers…

89% f t ll b i t h 89% of consumers expect all businesses to have awebsite, regardless of size

33% of all consumer searches are done on mobiledevices; in 2013, mobile will represent over half of allsearches

66% of adults use social networks


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The opportunity is massive: SMB marketing spend will grow in next 5 years, as will digital share of overall spend

Advertising & Marketing Spend By U.S. SMBs

$ Billion

s

Overall SMB spend will grow in large part due to new products that transactions

We aim to be the best, and possibly the biggest…

Our vision

Propel Marketing will be the premier digital marketing services provider for small and mid-sized businesses in the US.

Propel’s competitive advantage:

Trusted local brands

Small to mid-sized markets, primarily in Midwest: under-penetrated byGoogle, ReachLocal, Groupon, etc

Personal customer relationships

Local infrastructure


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Propel’s business objectives will meet SMB’s needs

oDeliver customer results (Performance-based marketing; new to Gatehouse culture)

oOffer full range of turnkey, high impact & timely products, package in bundles

Key Business Objectives

oProvide high-quality customer service. Focus on customer lifetime value.

oLeverage technology to create efficient delivery, communication and reporting

Propel’s business objectives will meet SMB’s needs

oDeliver customer results (Performance-based marketing; new to Gatehouse culture)

oOffer full range of turnkey, high impact & timely products, package in bundles

Key Business Objectives

oProvide high-quality customer service. Focus on customer lifetime value.

oLeverage technology to create efficient delivery, communication and reporting

Guiding Principles

o Everything built to scale: high volume of lower-value transactions

o Highly-efficient, centralized technology-driven product support and distributiondistribution

o Partner early to scale, fill gaps

o Build where we, can over time

o Own customer data

o Easy to do business with, and within


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Our product set is well-rounded, and will evolve and expand

Current Products:

Website design, developmentMobile site developmentSocial presence (Facebook, Twitter,LinkedIn, YouTube)

Directory listings cleansing

Future Products on roadmap:

Responsive website design, developmentDesktop and mobile site content management

system for SMB’sSocial media management – DIY & DIFMEmail marketing managementDirectory listings, cleansing

Google Places, SEOReputation monitoringSEMReverse proxy and JavaScript rewriteSocial media managementDisplay advertising, audience extension, re-

targetingCall tracking

Email marketing managementEmail marketing – 3rd party distribution

lists/targetingDomain registrationIYPVideo creation, esp for YouTube

Future Products under consideration:

Directory listings, cleansing (in-sourced)E commerce social commerceE-commerce, social commerce

Two primary long-term objectives: 1) owning all customer data and 2)developing proprietary product fulfillment capabilities

Note: Green labeling denotes proprietary fulfillment and/or technology

Our customer segmentation model informs everything we do


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Value packages drive new customer acquisition

We’ve worked across GH divisions to develop turnkey, integrated packages, including for real estate and auto categories

1) REPRESENTATIVEPrint ads (TBD by market, 2X/wk )HomeFinder Enhanced Listings Package (unlimited)HomeFinder Single Property Web Sites (3‐50 depending on customer needs)HomeFinder SOV Display

REAL ESTATE PACKAGES

OnTarget (20K impressions for brokers and larger agents)Propel Reputation Monitoring

2) COMPETITIVEEverything in GOOD package plus:

Propel Social (includes Propel Reputation Monitoring)

3) PROMINENTEverything in BETTER package plus:

Propel MobilePropel Search


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Our sales coverage model will ultimately comprise GateHouse newspaper rep sales, direct Propel sales and 3rd party re-sellers

• Initial current GateHouse customers pursuit with GH newspaper reps, but use Propel reps if a customer has not bought Propel products after 90-180 days of Propel launch in that market

• Early focus: NE, SureWest, Large Daily markets, select Community markets

• Propel direct sales territories: primarily zip-based within a market, with some category focus, enabling reps to capitali e on the local GH brand al ereps to capitalize on the local GH brand value

GH 130K Customers

GH markets 1.4M prospects

Non-GH markets 26M

prospects

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GH reps (digital-savvy)

Propel repsPartner re-

sellers

Product Product Product Product Product Product Product Product

Sales and Marketing Learning Portal

PropelSearchPaid search, or search engine marketing (SEM), increases the visibility of a business’ website in the advertising sections of search engine results pages (SERPs). Paid search ads appear at the top of the SERP and to the right of the organic listings on th Ad ti l th bli h (G l Y h Bi t ) h

Sales ToolsQuestioning GuideCase StudiesCustomer Testimonialsthe page. Advertisers only pay the publisher (Google, Yahoo, Bing, etc.) when

someone clicks on an ad.

Product Sales Summary• Ideal Clients/Prospects for this Product • Description of the Product • Essential features and benefits of the product (need to know)• Value Proposition/Best way to introduce product to a client• Tools and Resources available for more detailed information• Success Story or Testimonial• Clues that might indicate a need for this product

Customer TestimonialsProduct FAQ’s

Product AssessmentsLevel 1Level 2

Training ResourcesTraining DeckTraining VideoProduct RefresherOnline Training

g p• Questions to ask to understand potential needs, issues, and drivers • Key information needed to qualify client/move the sale forward• Align product benefits and common client needs• Common objections and responses• Competitive positioning (key competitors and respective strengths/weaknesses)• Technical requirements for this product

Recent SalesCompany NamesCompany NamesCompany NamesCompany Names

Level 3

Example of a product page


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Why Agency?• Serving local businesses is core to your mission and role in your community

• Maintaining the relationship as the trusted advisor and partner is critical to your long term success

• Filling the advertiser need and guiding them through the process will solidify your positionthrough the process will solidify your position

• Solution‐based selling builds trust• Can ultimately sell more print

What does it take to be successful?


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UnderstandingUnderstandingMarketing vs. Advertising

Needs‐based selling for REAL


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Decision:To package or not to package?

The decision:e dec s o


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In‐house• Need dedicated resources with experience in digital, video, mobile, and social media

• Tight operational efficiencies need to be developed to protect margins

• Average investment of companies we surveyed $200,000 many newspaper companies have i d l i h hinvested several times more than that

• Need to stay on top of rapidly‐changing trends• Ability to quickly and nimbly scale

Outsource option: Dream Local


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Solution ComponentsCore Offering

• Online marketing strategy

Optional

• Video optimization, distribution, marketing

development

• Social Media channel design

and ongoing management

• Reputation Management and SEO

• Email marketing

distribution, marketing

• Mobile marketing solutions (sites, promotions)

• PR

• SEO / SEM

• Agency level service (media • Email marketing

• Web site development

• Blog posting management

planning, etc)

• Event promotion (flyers, etc)

What would partnership look like?• You own advertiser relationship• Dream Local offers support in:pp

• Marketing and sales

• Seminar strategy and facilitation

• Expertise and training • Continually evolving / cutting edge productContinually evolving / cutting edge product line

• Fulfills all of your sales


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For LMA attendees:A free evaluation of your options

[email protected]

www.facebook.com/dreamlocal207‐593‐7665


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360 Advertising Sales Strategies Practices from Europe

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