Advanced Strategies in Audience Monetization: Roundtable 2014 Daniel Williams

Advanced Strategies in Audience Monetization

Daniel L. Williams | Chief Executive Officer | Leap Media Solutions

Newspaper Revenue Trends (2008-2013)

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

201320122011201020092008

Print Ad Revenue Digital Ad Revenue Subscription Revenue

Source: Inland Press Association

The ROUNDTABLE | August 20-22, 2014

Paid content models: the new rage…


Price Elasticity? Only a small audience will pay

meaningful dollars

Small audience weakens our appeal to advertisers

Small audience undermines BIG Data…and little data

Small audience erodes the value of the brand

Sub

scri

be

rs

Cost

The slippery slope of paywalls


Price Elasticity? Only a small audience will pay

meaningful dollars

Small audience weakens our appeal to advertisers

Small audience undermines BIG Data…and little data

Small audience erodes the value of the brand

These factors and the continuous pressure to raise prices compromise our competitive advantage of efficiently connecting local merchants with high-potential consumers

Sub

scri

be

rs

Cost

The slippery slope of paywalls


ONE COMPANY’S JOURNEY

The Day Publishing Company


Three year brand repositioning (2010-2012)


“A hub of distributed content and conversation with a local connection from a trusted source.”

Four strategic imperatives

1. Unify the content management and digital publishing infrastructure

2. Derive a fair value from proprietary content and services

3. Create a customized user experience, with single sign-on authentication

4. Build synergistic business model that regards customers as strategic assets


Stakes in the ground

We will preserve our direct relationship with the reader

We will be ubiquitous in the market

We will create a “blue ocean strategy” rendering the competition irrelevant


Metering: a tactic supporting the strategy


Rewards: create value for our members


Evolution of Audience Monetization (Past)

40 Cove Road Stonington, CT 06371

Telemarketing Start October 3, 2010

Active Mon-Sun Subscriber Enrolled in EZ Pay since 2011

$653.10 in subscription revenues in past 3 years

Wet paper delivery Complaint last Tuesday

Address-based


Leveraging Data Assets >> Competitive Advantage


CUSTOMER INTELLIGENCE

SYSTEM

Address

Demographics

Subscribers

Registered Users

Periodicals

Newsletters

Deals

Contests

Rewards

Merchants

Evolution of Audience Monetization (Present)

Address-based

60 years old – member 58 years old - member

HH Income > $150,000 Homeowners

$780.16 in Consumer Revenues since 2009

Six daily deals Purchases since 2011

Two-week vacation every July since 2009

Signed up for mobile breaking news alerts

Registered for weekly Business e-newsletter

Reads Grace and Sound & Country magazines online

Acxiom Lifestage: 15M – Mature Wealth

Indexes high for online purchasing

Twelve activations on rewards site since 2012

Indexes high for Interest in Community

Active Daily subscriber Registered on website

User-based


Evolution of Audience Monetization (Future)

Active subscriber households

Fully-activated Members

Retention Lift

Address-based User-based

Predictive


“Big Data” becomes “Actionable Intelligence”


(2) Transactional

(1) Relational (3) Behavioral

(4) Predictive

Actionable

Intelligence (aka “Big Data”)

“Direct” Consumer Revenues • Metering (relational) • Subscriptions (transactional) • Point of Sale (transactional) • Merchandise (transactional) • Photo reprints (transactional) • Archives / back issues (transactional) • Gift memberships (transactional) • eCommerce (transactional)

“Indirect” Consumer Revenues • Contest marketing (relational) • Affinity content marketing (relational) • e-Newsletters (relational) • Sponsored surveys (behavioral) • Merchant services (behavioral) • Onsite targeting (behavioral) • Site personalization (predictive) • Offsite re-targeting (predictive)


Data as a new currency of exchange


Anonymous visitors manifest themselves

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Jan

-09

Ma

r-0

9

Ma

y-0

9

Jul-

09

Se

p-0

9

Nov-0

9

Jan

-10

Ma

r-1

0

Ma

y-1

0

Jul-

10

Se

p-1

0

Nov-1

0

Jan

-11

Ma

r-1

1

Ma

y-1

1

Jul-

11

Se

p-1

1

Nov-1

1

Jan

-12

Ma

r-1

2

Ma

y-1

2

Jul-

12

Se

p-1

2

Nov-1

2

Jan

-13

Ma

r-1

3

Ma

y-1

3

Jul-

13

Se

p-1

3

Nov-1

3

Jan

-14

Registered Users (5-year trend)

Registered users of theday.com


Bundled content model stabilizes subscriber levels

5,000

7,000

9,000

11,000

13,000

15,000

17,000

19,000

21,000

Jan

-09

Ma

r-0

9

Ma

y-0

9

Jul-

09

Se

p-0

9

Nov-0

9

Jan

-10

Ma

r-1

0

Ma

y-1

0

Jul-

10

Se

p-1

0

Nov-1

0

Jan

-11

Ma

r-1

1

Ma

y-1

1

Jul-

11

Se

p-1

1

Nov-1

1

Jan

-12

Ma

r-1

2

Ma

y-1

2

Jul-

12

Se

p-1

2

Nov-1

2

Jan

-13

Ma

r-1

3

Ma

y-1

3

Jul-

13

Se

p-1

3

Nov-1

3

Jan

-14

Individual Paid Subscriptions (5-year trend)


U.S. trend = (7%)

annual decline


All-access content + rewards drive activation

5,000

7,000

9,000

11,000

13,000

15,000

17,000

19,000

21,000

Jan

-09

Ma

r-0

9

Ma

y-0

9

Jul-

09

Se

p-0

9

Nov-0

9

Jan

-10

Ma

r-1

0

Ma

y-1

0

Jul-

10

Se

p-1

0

Nov-1

0

Jan

-11

Ma

r-1

1

Ma

y-1

1

Jul-

11

Se

p-1

1

Nov-1

1

Jan

-12

Ma

r-1

2

Ma

y-1

2

Jul-

12

Se

p-1

2

Nov-1

2

Jan

-13

Ma

r-1

3

Ma

y-1

3

Jul-

13

Se

p-1

3

Nov-1

3

Jan

-14

Membership Activation (5-year trend)

Fully-activated Members


U.S. trend = (7%)

annual decline


Print Subscription Revenues (2008 – current)

2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

2010Q3

2010Q4

2011Q1

2011Q2

2011Q3

2011Q4

2012Q1

2012Q2

2012Q3

2012Q4

2013Q1

2013Q2

2013Q3

2013Q4

2014Q1

Subscriptions


Consumer Revenue Diversification (2008 – current)

2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

2010Q3

2010Q4

2011Q1

2011Q2

2011Q3

2011Q4

2012Q1

2012Q2

2012Q3

2012Q4

2013Q1

2013Q2

2013Q3

2013Q4

2014Q1

Subscriptions Contests



2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

2010Q3

2010Q4

2011Q1

2011Q2

2011Q3

2011Q4

2012Q1

2012Q2

2012Q3

2012Q4

2013Q1

2013Q2

2013Q3

2013Q4

2014Q1

Subscriptions Contests Deals



2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

2010Q3

2010Q4

2011Q1

2011Q2

2011Q3

2011Q4

2012Q1

2012Q2

2012Q3

2012Q4

2013Q1

2013Q2

2013Q3

2013Q4

2014Q1

Subscriptions Contests Deals Sponsored Content



2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

2010Q3

2010Q4

2011Q1

2011Q2

2011Q3

2011Q4

2012Q1

2012Q2

2012Q3

2012Q4

2013Q1

2013Q2

2013Q3

2013Q4

2014Q1

Subscriptions Contests Deals Sponsored Content Digital Subs


The opportunity – key themes in newsmedia today

• New and evolving ways to monetize audience

• Convert “big data” into actionable customer intelligence

• Strengthen brand affinity and loyalty through engagement

• Pursue revenue diversification in a meaningful way

• Accelerate business model transformation


Please welcome


Ginny Sohn, Publisher The Santa Fe New Mexican

Laura Inman, Director of Audience / Engagement Group Lead Atlanta Journal-Constitution / Cox Media Group

Carole Stein, Principal Stein and Associates

Date post:	14-Jun-2015
Category:	Marketing
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Advanced Strategies in Audience Monetization: Roundtable 2014 Daniel Williams

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