webinar1023

Audience Aggregation:Redefining Our Role in the Community: 

Audience Aggregation: Redefining Our Role in the Community

Obvious Stuff We All Know: 

Obvious Stuff We All Know

Slide3: 

Our business has changed – with more changes in the offing. And we’re “way-late” trying to catch-up. WE HAVE TO GET AHEAD OF THE CURVE

Slide4: 

IT’S IMPORTANT TO REMEMBER: WE GENERATE REVENUE BY BRINGING BUYERS (USERS OF OUR PRODUCTS) TO SELLERS (OUR ADVERTISERS). WHEN WE DON’T DELIVER ENOUGH BUYERS, WE DON’T ATTRACT ENOUGH SELLERS. WHEN WE DON’T ATTRACT ENOUGH SELLERS, REVENUES SUFFER.

Slide5: 

Our business is all about creating audiences.

Dilemma - I: 

Dilemma - I Our ad revenues are based on aggregating large audiences so those with something to sell can attach themselves to our products and services to reach their potential customers.

Dilemma I (cont.): 

Dilemma I (cont.) Historically daily and Sunday newspapers have dominated the local media space and provided advertisers with an effective an efficient vehicle to reach their potential customers.

Slide8: 

The Rub: Daily and Sunday newspaper readership is declining.

Slide9: 

For example: Young women are no longer coming to daily newspapers in large enough numbers to satisfy advertisers. And advertisers want to reach young women.

Slide10: 

Why are we losing young women? Too busy Don’t address their interests Newspapers are too cumbersome BUT, MOSTLY, NEWSPAPERS ARE NOT THEIR PREFERRED MEDIUM

Slide11: 

INK ON NEWSPRINT NEWSPAPERS ARE BECOMING LESS AND LESS THE PREFERRED MEDIUM OF THE YOUNG.

Slide13: 

Why are we losing 35-49 year-old men? More and more are becoming heavy Internet users Wider availability of sports/nation/world information Insufficient business coverage Political fragmentation

Slide14: 

We’re seeing readership declines among the best educated and most affluent.

Slide15: 

Why are we losing the best educated and most affluent? Heavy users of other media – particularly the Internet Some are young – and the young aren’t our best audience Some are 35-49 year old men

Slide16: 

Our problems Young adults – particularly young women 35-49 year old men The best educated The affluent Our best readers 50 and older 35-49 year old women The best educated The affluent

Slide17: 

In short, we’re seeing newspaper readership erosion among many traditional reader groups

Audience Aggregation:What It Is: 

Audience Aggregation: What It Is

The Goal:: 

The Goal: Touch as many people as possible, as often as possible or (perhaps more realistically) Touch as many advertiser targets as often as possible

The Strategy:: 

The Strategy: Create an effective and efficient product/service mix that attracts our defined target audiences multiple times per week.

The Tactics: 

The Tactics Develop ancillary products and services to attract – or retain - audiences that are leaving the ink on newsprint newspaper and current non-customers.

This approach is predicated on the belief that:: 

This approach is predicated on the belief that: If we deliver the audiences the advertisers seek, they’ll use our products and services to reach their potential customers.

Slide23: 

The two most important things to remember about audience aggregation are “audience orientation” and “audience solutions.”

Slide24: 

We need to begin viewing our business - from both a content and an ad perspective – from the audiences’ vantage point. We aren’t a collection of disconnected products; we provide audience solutions.

Dilemma - II: 

Dilemma - II To offset readership declines, newspaper companies have begun producing a wide variety of products and services, but with no system in place to demonstrate this additional marketplace power to advertisers.

Our Solution: 

Our Solution Audience aggregation: Aggregating the net reach of all our products and services into a single database so they can be reported out in whatever fashion is necessary to target specific market segments.

Slide27: 

In short, we’re evolving from a distribution to a usage model.

The TV Analogy:: 

The TV Analogy: Measure each program’s viewership – by demos. Combine programs to help advertisers reach the desired number of their target market – gross rating points. A usage rather than distribution model

(Again) Don’t Forget: 

(Again) Don’t Forget Our business is about aggregating audiences so sellers can present their products and services to buyers – news and information are just two ways to build audience. We’re not in the news and information business, we’re in the audience aggregation business!

Who We Are: 

Who We Are Our job is to “fill the auditorium” so our advertisers can preach to them. Our “revenue job” is bringing buyers to sellers.

What’s Our Goal with AA?: 

What’s Our Goal with AA? In the short term: Integrating audience targeting for advertisers into our mass distribution capabilities. In the longer term: Redefining how we sell advertising.

Why Adopt Audience Aggregation?: 

Why Adopt Audience Aggregation? The digital revolution has changed information delivery. The declining newspaper footprint reduces our effectiveness Media fragmentation – advertisers have lots of choices News/ad competitors are proliferating Growing demand from consumers and advertisers for more precise targeting and accountability

What Changes With Audience Aggregation?: 

What Changes With Audience Aggregation? How we prepare to go to market How we view our role in the community and with advertisers How we present ourselves

Total 7 Day Reach of News Journal Products  By Age: 

Total 7 Day Reach of News Journal Products By Age 5.3 4.6 5.0 5.6 5.7 7-day frequency

Total 30 Day Reach of News Journal Products By Age: 

Total 30 Day Reach of News Journal Products By Age

Total 7 Day Reach of News Journal Products  By Household Income: 

Total 7 Day Reach of News Journal Products By Household Income 4.6 5.4 5.4 5.1 5.7 7-day frequency

Sunday Plus Net Reach of News Journal Products By Gender & Age: 

Sunday Plus Net Reach of News Journal Products By Gender & Age

Audience Based Selling : 

Audience Based Selling The big change for the ad staff is thinking about selling the audiences we aggregate rather than selling into pre-selected products. Product/service bundling is the key to audience based selling The right product mix is the key to successful bundling.

Slide39: 

Audience aggregation is about having the most effective product mix to maximize our market reach That means being quick to market and flexible – what works today may not work tomorrow

What We Need to Know: 

What We Need to Know What’s the user profile of each product we produce? Are we reaching the targets we’re chasing? Are we reaching them often enough? What’s the combined power of product combinations? What audience segments are we under-serving?

How Do We Get There?: 

How Do We Get There? Expanding our market footprint – our reach and frequency – with: Website expansion Improved TMCs Weeklies/non-dailies Specialty, audience target products – YRPs, magazines, etc. Broadcast opportunities Continued improvement of our newspapers

Product Measurement – The Research: 

Product Measurement – The Research Measure every product and service on a scheduled basis. Is that annually? Bi-annually? Requires a large sample so geographically limited products can be measured accurately Include extensive demographics as well as behavioral and psychographic measures Measure competing products and services

The Problems: 

The Problems New products that are unmeasured Accurately measuring online traffic Measuring the website by page views Software Training the sales staff to think differently and sell audiences rather than products

Gap Analysis: 

Gap Analysis Identify where we’re falling short with desirable targets – both consumers and advertisers. Establish the correct product/service mix to reach the “right” targets Refine the portfolio and advertiser solutions

Where Are We With Audience Aggregation?: 

Where Are We With Audience Aggregation? Nearly half our markets have data – including nearly all our metros We’re testing Scarborough as the audience aggregation vendor – they’re doing our upcoming Cincy study A few sites – but not enough – are executing audience based selling Gathering the data is relatively easy; executing an AA strategy is the challenge

Elements of Strategic Solutions and Priorities: 

Elements of Strategic Solutions and Priorities Complete gap analysis The correct product mix An efficient distribution system Adequate promotion Targeted sales strategies Flexibility and speed to market

Why Is Audience Aggregation Important?: 

Why Is Audience Aggregation Important? Provides detailed product assessment – how effective are our products? Identifies the audience segments each product is reaching – and how often. Identifies the audience segments your products are under-serving. Allows advertisers to maximize their ad buy.