62
Regaining Ubiquity The Path to Sustainable Advantage & Profitability New York Press Association April 4, 2014 Tom Ratkovich, Managing Partner
| Date post: | 14-Jun-2015 |
| Category: |
Marketing |
| Upload: | leap-media-solutions-llc |
| View: | 347 times |
| Download: | 1 times |
Regaining Ubiquity The Path to Sustainable Advantage & Profitability
New York Press Association
April 4, 2014
Tom Ratkovich, Managing Partner
My Perspective
Yes, I am a “vendor” – but I’m also a newspaper owner
Aurora Media Group
Aurora Sentinel
Buckley Guardian
ColoradoTable
Aurora Magazine
Aurora Business
Aurora Homes
FindIt! Aurora
My Perspective
Yes, I am a “vendor” – but I’m also a newspaper owner
I’m a Data Geek
Our prosperity will be determined not by how much we can charge for out content… …but by how much we know about our customers and our customers’ customers.
My Perspective
OLD PARADIGM: Static Subscription Profile “Customer Record 12,343 of 19,562”
The Day Member Profile “Carol and Michael Wiggins”
NEW PARADIGM: Dynamic Customer Profile “Carol and Michael Wiggins”
My Perspective
Yes, I am a “vendor” – but I’m also a newspaper owner
I’m a Data Geek
As long as we have audiences, we will have advertisers that want to reach them…
My Perspective
Yes, I am a “vendor” – but I’m also a newspaper owner
I’m a Data Geek
As long as we have audiences, we will have advertisers that want to reach them…but only if we can:
• Define
• Quantify
• Locate
• Access
“U-biq-ui-ty” – The Dictionary Definition
“the state or capacity of being everywhere, especially at the same time”
“Ubiquity” at the Aurora Media Group
“AMG must strive for and achieve “ubiquity” within the Aurora market.
“Ubiquity” at the Aurora Media Group
“AMG must strive for and achieve “ubiquity” within the Aurora market. Our brand – and all it represents – must be ever-present and seamlessly accessible across all platforms and communities.
“Ubiquity” at the Aurora Media Group
“AMG must strive for and achieve “ubiquity” within the Aurora market. Our brand – and all it represents – must be ever-present and seamlessly accessible across all platforms and communities. AMG must be viewed by its constituents – consumers, merchants, school systems, politicos, local associations, etc. – as
“Ubiquity” at the Aurora Media Group
“AMG must strive for and achieve “ubiquity” within the Aurora market. Our brand – and all it represents – must be ever-present and seamlessly accessible across all platforms and communities. AMG must be viewed by its constituents – consumers, merchants, school systems, politicos, local associations, etc. – as (1) the predominant resource for news and information about Aurora and its citizens,
“Ubiquity” at the Aurora Media Group
“AMG must strive for and achieve “ubiquity” within the Aurora market. Our brand – and all it represents – must be ever-present and seamlessly accessible across all platforms and communities. AMG must be viewed by its constituents – consumers, merchants, school systems, politicos, local associations, etc. – as (1) the predominant resource for news and information about Aurora and its citizens, and (2) the most effective media partner for community merchants to acquire and grow the value of their customers.”
The Benefits of Ubiquity
Intelligence
Customer
Intelligence
Platform
Address / CDS
Subscribers
Demos & Lifestyles
New Movers
Registration
E-Commerce
Loyalty
Events
Mobile
Merchants
The Benefits of Ubiquity
Intelligence
Audience
Intelligence-Driven Audience Optimization
Phase I: Acquisition
Define & invest in audiences based on key criteria
• Transaction history
• Product usage
• Demographics
• Lifestyle attributes
• Channel preference
• Merchant relationships
• Contact history
Seg A
Seg B
Seg C
Seg DSeg E
Seg F
Seg G
Seg H
Seg I
Seg J
The Targeted Growth Model
-25
0
25
50
75
100
125
150
175
200
225
250
275
-10 15 40 65 90 115 140 165 190
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
24
25
26
23
27
28
29 30
31
32
33
34
35
36
37
38
39
40
41
42 43
44
45
46
47
48
49
50
51
52
53
54 55
56
57
58
59
60
61
63
64
65
66
Low--------------------------------------------Ability to Attract-------------------------------------------High
Lo
w
----
----
----
----
----
----
----
----
----
Ab
ilit
y to
Reta
in--
----
----
----
----
----
----
----
---
Hig
h
Not all customers were created alike
-25
0
25
50
75
100
125
150
175
200
225
250
275
-10 15 40 65 90 115 140 165 190
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
24
25
26
23
27
28
29 30
31
32
33
34
35
36
37
38
39
40
41
42 43
44
45
46
47
48
49
50
51
52
53
54 55
56
57
58
59
60
61
63
64
65
66
Low--------------------------------------------Ability to Attract-------------------------------------------High
High Retention, Hard to Acquire
Low Retention, Hard to Acquire
High Retention, Easy to Acquire
Low Retention, Easy to Acquire
Lo
w
----
----
----
----
----
----
----
----
----
Ab
ilit
y to
Reta
in--
----
----
----
----
----
----
----
---
Hig
h
Transactional data reveals tendencies
-25
0
25
50
75
100
125
150
175
200
225
250
275
-10 15 40 65 90 115 140 165 190
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
24
25
26
23
27
28
29 30
31
32
33
34
35
36
37
38
39
40
41
42 43
44
45
46
47
48
49
50
51
52
53
54 55
56
57
58
59
60
61
63
64
65
66
High Retention, Hard to Acquire
Low Retention, Hard to Acquire
High Retention, Easy to Acquire
Low Retention, Easy to Acquire
Incremental penetration may be costly. Not sensitive to price, so raise prices instead.
Discounting or pricing with migration to full price. Worth spending more to acquire.
Move marketing $ elsewhere, or micro-target based on desirable characteristics.
Early, consistent engagement and reinforcement of value
Strategy may be varied based on attributes L
ow
----
----
----
----
----
----
----
----
----
Ab
ilit
y to
Reta
in--
----
----
----
----
----
----
----
---
Hig
h
Low--------------------------------------------Ability to Attract-------------------------------------------High
-25
0
25
50
75
100
125
150
175
200
225
250
275
-10 15 40 65 90 115 140 165 190
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
24
25
26
23
27
28
29 30
31
32
33
34
35
36
37
38
39
40
41
42 43
44
45
46
47
48
49
50
51
52
53
54 55
56
57
58
59
60
61
63
64
65
66
High Retention, Hard to Acquire
Low Retention, Hard to Acquire
High Retention, Easy to Acquire
Low Retention, Easy to Acquire
Incremental penetration may be costly. Not sensitive to price, so raise prices instead.
Discounting or pricing with migration to full price. Worth spending more to acquire.
Move marketing $ elsewhere, or micro-target based on desirable characteristics.
Early, consistent engagement and reinforcement of value
Optimize the return on your marketing investment L
ow
----
----
----
----
----
----
----
----
----
Ab
ilit
y to
Reta
in--
----
----
----
----
----
----
----
---
Hig
h
Low--------------------------------------------Ability to Attract-------------------------------------------High
Intelligence-Driven Audience Optimization
Phase I: Acquisition
Phase II: Customer Lifecycle Management • Automated, multichannel curriculum
• Optimizes cross-sell/up-sell opportunities
• Improves operational efficiency
• Drives retention and customer profitability
Erie Times-News: CLM Calendar
Intelligence-Driven Audience Optimization
Phase I: Acquisition
Phase II: Customer Lifecycle Management • Automated, multichannel curriculum
• Optimizes cross-sell/up-sell opportunities
• Improves operational efficiency
• Drives retention and customer profitability
Phase III: Engagement • Increased engagement with content, community
• Enhanced customer intelligence through newsletter registrations
• New revenue through sponsorships and advertising
Automated Content Marketing
The Benefits of Ubiquity
Intelligence
Audience
Revenue
Monetizing Ubiquity
“Never forget that media isn’t in the content business; it’s in the advertising business. Its audience is what it sells. Whether targeted, contextual, niche or mass, audience is the ‘product’ of media.”
Terry Heaton, Reinvent21
Business performance metrics tanked
• Revenue
• Profit
• Margin
• ROE
• Market share
Survival efforts focused on Profit/Margin
• Cost reduction
• Operational efficiencies
• Consumer monetization (aka “paid content”)
Relegation of ad share growth strategies to second tier status
• New digital services/products not withstanding
Impact of Digital Disruption in Legacy Print Media
Strategic Imperative: Ad Share Growth The size of the pie is growing
The share for many has eroded precipitously…
• Newspapers
• Magazines
• Snail mail
• Telemarketing
…while digital channels grow
• Web
• Social
• SEO/SEM
• Mobile
• Digital video
• The bottom line…
We must consume other media’s share of the pie
•Print (paid/free/niche)
•Web
•Mobile
•Video
•Search
•Social Media
•Snail Mail
•Telemarketing
The Newsmedia Brand as Infomediary
Content
INFOMEDIARY •Print (paid/free/niche)
•Web
•Mobile
•Video
•Search
•Social Media
•Snail Mail
•Telemarketing
Infomediary Defined (the short version)
An information intermediary – or “infomediary” –
provides credible, valuable, relevant and timely
information between commercial enterprises and
receptive consumers through a channel most likely
to generate a response.
I’ve been arguing that media should stop thinking they’re in the content business and start believing they are in — or should be in — the relationship business. But we don’t know jack about people. We see people as a mass. We lived for a glorious century by the myth of mass media: that all readers see all ads so we can charge all advertisers for all readers. Thus we simply wanted *more* readers (or unique users, whatever you prefer to call us). Media companies are proud when they learn our email addresses but, of course, that is nothing but an excuse to spam us. My email address says *nothing* about me.
Ubiquity Enables Us to Know “Jack”
Customer
Intelligence
& Campaign
Management
Address / CDS
Demos & Lifestyles
Subscribers
User Reg Profiles
Periodicals
e-News
Deals
Contests
Rewards
Merchants
Impediments to Ubiquity
Paywalls
Alan Mutter (Newsosaur)
“Now that roughly a third of the nation’s newspapers are charging for access to their web and mobile content, the early evidence suggests that digital audiences aren’t nearly as enthusiastic about paying for news as publishers are about charging for it.”
The Slippery Slope of the Pure Paid Content Strategy
Price Elasticity?
Only a small audience will pay meaningful dollars
Sub
scri
be
rs
Cost
Highly inelastic
Highly elastic
Digital Content is “Free”
It may not be your content, but “exchangeable”
The Google factor – information can be found without cost
Curation adds value – but value that too few will pay for
The Slippery Slope of the Pure Paid Content Strategy
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 combine to compromise our ability to become UBIQUITOUS
Sub
scri
be
rs
Cost
Highly inelastic
Highly elastic
Paid Content
Paid Content
MEMBERSHIP
A consumer monetization hierarchy…
Site Visitor Qualified Prospect Fully-Activated
THE DAY PASSPORT The Day Publishing Company (New London, CT)
Create Value
Build Customer Intelligence
Drive Brand Loyalty through Engagement
Higher Value Proposition Drives Retention Gains
Active subscriber households
Fully-activated Members
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
0 wks 4 wks 8 wks 13 wks 26 wks 39 wks 52 wks
Annual % Member Retention (5-year trend)
2009 2010 2011 2012 2013
Retention Lift
Grow Consumer Revenue
Active subscriber households
Fully-activated Members
-220,000 -260,000
70,000
360,000
420,000
2009 2010 2011 2012 2013
Consumer Revenues (5-year trend)
Annual Revenue Gain Loss
Impediments to Ubiquity
Paywalls
“Digital first” mandate
“Digital First” A clever catchphrase but a dubious strategic mandate
Our leverageable assets include:
• Content creation
• Brand
• Merchant/consumer relationships
• Data
• Integration
By putting platform first, we marginalize those assets
More effective approach is to:
• Diversify platforms/channels – not eliminate them
• Optimize the performance of those channels through data
• Integrate channels to maximize ROI for merchant community
UBIQUITY is platform agnostic
Digital First
Digital First
CUSTOMER FIRST
The Importance of Print
Print readers pay for the platform – not for content
Print readers are “different” (not just older!)
• Discoverers vs. Seekers
• Content should be different as well
Print advertising works
The Importance of Print
Print readers pay for the platform – not for content
Print readers are “different” (not just older!)
• Discoverers vs. Seekers
• Content should be different as well
Print advertising works
64% of digital ads tied to a print buy in 2012 (NAA)
Integration with other channels
Our print audiences are significant sources of:
• Data
• Customers for other print/digital products
• Revenue
Impediments to Ubiquity
Paywalls
“Digital first” mandate
Undermining TRUST through:
• Lack of Relevance
• Failure to deliver Value
• Poor Service
• Privacy abuse
