Boosting digital publishing yields through advertising - editorial integration. Making sense of a digital world The Digital Training Academy
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1 Accelerating digital media brands Integration of advertising and editorial Boosting yields, building revenues by getting the model of integration right Digital Publishing Strategy Academy Getting online news media to earn real revenues is a tougher challenge than many newspaper directors expect. Web advertising spend may now be larger than newspaper advertising in many countries, but that doesn t mean newspapers can expect a big share. The search engines, portals and sales networks continue to dominate the sector, and as the next wave of revenue pours into social media like Facebook, newspaper sites need to fight to earn their share. Boosting digital publishing yields through advertising - editorial integration More information Contact: Danny@DigitalStrategyConsulting.com +44 (0) Digital Strategy Consulting Ltd & Partners Boosting yields, building revenues: getting the model of advertising / editorial integration right About these notes These notes are the handout materials to participants at IFRA s digital advertising conference in They summarise the key takeouts from a series of lessons from publishing management training from the Digital Publishing Strategy Academy programme. They cover issues of integrating online advertising into web editorial and the models and strategies to deliver this effectively. Getting online news media to earn real revenues is a tougher challenge than many newspaper directors expect. Web advertising spend may now be larger than newspaper advertising in many countries, but that doesn t mean newspapers can expect a big share. The search engines, portals and sales networks continue to dominate the sector, and as the next wave of revenue pours into social media like Facebook, newspaper sites need to fight to earn their share. This workshop covers the topics: Getting a perspective on your market share Understanding the relationship between content, traffic and advertising revenues Exploring the divergence of web advertising yields Reflecting on implications for content and product development Focusing on how to integrate editorial content and advertising in online newspapers The development of advertising targeting principles The application of contextual advertising service models Integrating advanced targeting into classic editorial content Integrating advertising into social media Exploring where behavioural targeting in online advertising fits Key steps to be careful about when setting up advanced systems The argument is that the principles of revenue strategy are changing fast and that advertising editorial integration has evolved to give a range of options that should drive the business, but only if they are properly deployed and based on a solid understanding of the models. To support this strategy workshop we have created an online classroom where you can post questions to Danny and other publishing strategy consultants at the Digital Training Academy. How to get in touch Mail me more of your questions after the event Danny Meadows-Klue CEO, Digital Training Academy CEO, Digital Strategy Consulting Previously Co-founder UK & European IAB associations, architect of more than 20 digital associations and initiatives Vice-president: NBC s European web businesses Managing director of e-retailers, search engines, social media platforms and platforms Government advisor BBC journalist VC advisor Publisher: UK s first online newspaper And a business coach who has helped 7000 firms Danny@DigitalStrategyConsulting.com +44 (0) Danny Meadows-Klue was the publisher of one of Europe s first online newspapers ( before co-founding the UK and European Interactive Advertising Bureau ( trade associations, being appointed to both as President and CEO, then founding the Digital Strategy Consulting group and Digital Training Academy ( For over ten years he has been helping online media brands boost their revenues and think through their strategies. Trainer Commentator Strategist Coach Making sense of a digital world The Digital Training Academy Coaching & training 10 Years 20 Countries 40,000 People 1
2 10 perspectives on integrating advertising and editorial 1. History and context 2. Remember the business model 3. Integration in simple editorial targeting 4. Integration and balancing advertising / editorial ratios 5. Integration: challenges in video 6. Yield management: a framework for guiding integration 7. Integration and targeting: search for clicks and branding 8. Integration with audience behaviour: behavioural targeting 9. Advanced integration with contextual targeting 10. Integration with user generated content History and context Where have we come from?...best practice tips and evaluations Lessons from 20 countries and hundreds of publishers Lessons from the Digital Publishing Strategy Academy Digital Publishing Strategy Online news media: case studies Since Europe s first online newspapers launched in the early 90s, growth in audiences has been rapid, and as the print sectors audiences stagnate, web readership makes for a staggering contrast. However, there are many rival strategies in play at the same time, and most newspapers have to compete heavily against internet pureplay businesses at both global and national level. By looking at the different approaches firms take, current strategy can be reviewed in the context of the winners and losers in the sector. Explore how the audiences of key titles have changed over time, media groups can learn about what the new benchmarks are for the new era. Formats evolve The Universal Ad Package: bigger and more impactful 180 X X X X 90 2
3 Previous: banner ad sizes Banners and Buttons 468 x 60 Traditional Full Banner 234 x 60 Half Banner 120 x 240 Vertical Banner 120 x 90 Button #1 120 x 60 Button #2 Previous: Rectangles Rectangles or Pop-ups 180 x 150 SIZE AD SPACE (Rectangle) 240 x 400 SIZE AD SPACE (Vertical Rectangle) 336 x 280 SIZE AD SPACE (Large Rectangle) 250 x 250 SIZE AD SPACE (Square Pop-up) 300 x 250 SIZE AD SPACE (Medium Rectangle) 125 x 125 Square Button 88 x 31 Micro Button Previous skyscraper advertising sizes Skyscrapers 160 x 600 SIZE AD SPACE (Wide Skyscraper) 120 x 600 SIZE AD SPACE (120 Skyscraper) 125 x 600 SIZE AD SPACE (125 Skyscraper) The new digital media mix Instant messenger PR Search maps Web TV Web Chats Skyscrapers Keywords Podcasts Branded content Streaming Video Editorial IMUs Rich Media Contextual Search Affiliates Directories Paid For Listings RSS Affiliate Marketing Pop-unders Banners Microsites Sponsorship nline directories Online PR Video Pop-ups ads Buttons Advertorial Web radio In page video Streaming Audio Roadblocks Surround sessions Interstitials Brands own websites ECRM Skyscrapers Direct feeds Integrated SMS 3
4 Digital s s 16 groups of online marketing formats 1. Search - paid for (PPC) and optimisation (SEO) based approaches 2. Text links, directory listings and classifieds 3. Graphical embedded (banners, skys, mpus etc) 4. Graphical interruptive (pop-ups, expandables, rich media etc) 5. Audio and video formats (in-stream, in-banner etc) 6. Sponsorships 7. Brand websites & Microsites 8. and ECRM 9. Viral & Buzz 10. Affiliates & Syndication 11. Ecommerce placements & Tenancies 12. PR activity & Online events 13. Social media marketing techniques 14. Widgets & Applications 15. Product placement & Advertorials 16. In-game advertising formats Source: , updated 2008 Remember how formats can be combined together such as a banner containing video, or integrated into a journey such as an triggering a link to a microsite with a video Online: The sum of all media Best practice issues for publishers Best practice tips from Digital Keep surveying audience expectations Keep the viewer in mind all the time Stay close to the data and analytics Keep testing different ad formats for impact and response Keep front of mind the balance between integration and interruption Keep expecting to change so build this in to your plan Takeout Key takeouts from the Digital Publishing Strategy Academy: Building coaching stronger for internet digital publishers teams Expectations of audiences and advertisers shift quickly in a rapidly evolving media channel. 4
5 Making sense of a digital world Lessons from the Digital Media Sales Academy Digital Media Sales Academy Getting to grips with advertising revenue strategy Digital Training Academy Planning your online sales means taking a strategic look at your inventory. Do you forecast your advertising inventory for the next year, and do you plan how to use it? Without accurate forecasting and planning it s easy to sell what isn t there, and even easier to oversell low yield advertising instead of retaining the right space for premium CPMs. With online advertising targeting there s now a whole extra layer of challenges. This introduction raises the issues and will get you thinking about how you can maximise your inventory. Remember the business model Simple revenue model: critical factors Advertising yield (rate) Visits per month Ads per page Visitors Months of use of site Page views per person Latent demand for media space Sell through rate Simple revenue model: critical factors Simple model 1 page = A ad impressions per page 1 visit = B page impressions per visit 1 person = C visits per person per month Number of months = D of involvement Volume of ad impressions in the lifetime of a visitor (potential AdViews) = Simple example A x B x C x D 1 page = 2.5 ad impressions per page 1 visit = 6 page impressions per visit 1 person = 8 visits per person per month Number of months = 6 of involvement Volume of ad impressions in the lifetime of a visitor = 2.5 x 6 x 11 x 14 = 2310 potential ad impressions 5
6 Simple revenue model: critical factors Simple model Average CPM = X per thousand impressions Sell out rate = Y % Potential ad impressions per month (padimps) = Z/1000 Monthly ad revenue = Simple example X x Y x Z Average CPM = 5 per thousand impressions Sell out rate = 75 % Potential ad impressions per month (padimps) = 50m/1000 Monthly ad revenue = 5 x 0.75 x 5m = 187,5000 Simple revenue model: critical factors To boost revenues look for More advertisers, plus More people on the website More regular visits to the site More pages or a longer duration per visit Advanced strategies Raising the average yield through improved targeting Raising the ad volumes per page with e-commerce deals Creating sponsored sections and microsites Building ecommerce partnerships and programmes Mining customer data Developing new digital products to boost contact points ( , RSS, mobile, microsites) Best practice tips from Digital Model: Learn the maths of your business model; calculate the ad views per viewed and the potential revenue per page Best practice Tips for online publishers KPIs: Set the right KPIs for the right variables; focus on volume and breadth of advertisers, breadth of marketing benefits sold and don t cling to yield and total revenues in times of change you need new approaches Integration: Consider advertising / editorial integration strategies by judging them against ROI Evaluation: Prioritise content and product development by using medium and long term revenue goals; create a separate track for short term microsites and product development to avoid relaying the plan Develop a decision making framework around these issues Strategy: Get the strategy right from the start and avoid paying the price of having team time wasted on weak projects 6
7 Key takeouts from the Digital Publishing Strategy Academy: Building coaching stronger for internet digital publishers teams Takeout Business modelling should drive advertising yield, product and integration strategies. Simple editorial targeting Placing the right advertising category in the right environment Lessons from the Digital Media Planning Academy Making sense of a digital world Digital Media Planning Academy Developing stronger digital media plans Digital Training Academy Learn how online media planning builds on the familiar concepts of reach and frequency from traditional media. Discover the wealth of online formats and how you can select the ones that are right for you. Learn how you can get your media space to work harder in your campaigns, and how setting smart campaign delivery goals can increase reach and minimise wastage. Find out what s worth tracking and why there are many false friends when it comes to accountability. Follow our hints and tips and discover a framework you can apply to any digital campaign. The starting point in targeting 7
8 Evaluation Strengths Weaknesses Simple model to explain Proven effectiveness Delivers brand uplift Delivers brand synergies Bedrock of advertising media planning Expected by viewers Limited audience reach Only touches customers when in category Can easily miss a large number of prospects Can risk only talking to expert customers Hygiene factor: all campaigns do this; there s a need to go further Best practice Tips for online publishers 8
9 Best practice tips from Digital Content: Divide the site into zones, group comparable content into single zones Hierarchy: Create a hierarchy to roll up one zone inside another Ad tags: Mirror the content structure with your ad tags Health check: Be cautious about being too granular in the breakdowns check you have a large enough audience to sell Commercial strategy: Let commercial demand for the zones prioritise content development Takeout Key takeouts from the Digital Publishing Strategy Academy: Building coaching stronger for internet digital publishers teams Boost the value to advertisers by delivering audiences in the right environment and context; but everyone expects this. Key takeouts from the Digital Publishing Strategy Academy: Building coaching stronger for internet digital publishers teams Making sense of a digital world Ad / editorial ratios Are the volumes in balance between advertising and editorial Lessons from the Digital Video Strategy Academy Getting online video advertising right Building the right model and formats for your online video advertising Digital s Video Advertising Academy Video advertising is changing the way online marketing works. We ve crossed a threshold in the development of internet marketing and getting video commercials to work well on the web is becoming a core element in integrated marketing. Online video advertising delivers powerful emotional messages that build brands and unlock the power of television. But how do you select the right technologies, harness the formats effectively and develop the right balance and model for where multimedia and video advertising fit around video and IPTV content? In this seminar we explore some of the key challenges and offer practical hints and tips for getting video right. 9
10 No banners Balancing ad / ed ratios High volumes Balancing ad / ed ratios Video raises same challenges Checklist Key issues for publishers to consider Advertising format selection Pre-roll Mid-roll Post-roll Technology format selection Volume of advertising placements per screen Nature of editorial integration Models for frequency and reach Models for pricing 10
11 Case study: Telegraph Banner ad appears embedded within page Case study: Telegraph Video content follows Formats: options for integration Typical video formats Pre-roll Mid-roll Post-roll Also Companion banners Static ads while player buffers and downloads content Further ads on the page behind Question: What are the specific challenges for pre-rolls? rolls? And Audio ads for streamed radio and podcasts The new generation of pure IPTV 11
12 Pre-roll roll drop-off off (indicative) 0% Percentage audience continuing to view This indicative picture displays the steep drop off in the first few seconds of the play. Some publishers aim for pre-rolls that are 5-10 seconds Pre-rolls: rolls: the challenges The key challenge is striking the balance between guaranteed exposure of the commercial messages and the intrusion The longer the video, the fewer viewers will stay to the end The rate of drop off before the end of the video will vary with: The length of the video The relevancy of the advertising The quality of the advertising creative The site selection The user s expectation The user s previous experience Video metrics: ones to watch How do you measure effectiveness and ROI? Impressions / requests Reach Frequency Duration Involvement and engagement Minutes viewed Takeout Key takeouts from the Digital Publishing Strategy Academy: Building coaching stronger for internet digital publishers teams Don t overload video programming with high frequency advertising. and all of the usual ROI metrics from online 12
13 Strengths Weaknesses Evaluation Pre-rolls Audiences hungry for video High impact ad format Premium inventory Unlocks television creative Big branding impact Guaranteed viewing Limited audience reach Risks of over exposure Can prove too interruptive Rarely yet cost effective to deeply integrate and target Best practice tips from Digital Pre-roll duration: Keep them short and in balance with programming length Formats: Explore Flash as well as video Best practice Tips for online publishers Frequency: Get frequency wrong and the campaign will burn through its impressions without delivering reach; there s a risk of over-exposing a small audience segment to massive volumes of impressions Metrics and forecasting: Watch the audience volumes carefully be cautious about selling inventory that does not exist Advanced targeting: Unlikely to deliver significant incremental revenues, yet Advertising / editorial balance: It s dictated by the audience; too much and they ll disengage 13
14 Pre-rolls: rolls: getting length right The longer the video, the lower the audience Short video clips get the best viewing rates Longer clips loose their traction But a 2 minute news clip is different to a 30 minute programme The length of the pre-roll can be balanced by the length of the content: people are conditioned by their television experiences Mid-rolls enjoy high view-through because the audience is committed to maintaining concentration on the stream Post-rolls can also enjoy high audience rates if the creative is right Web video People s relationship with media and their expectations of advertising are changing rapidly. Web publishers started exploring online video ads with a crude imported model from television, just as the early days of television was simply the radio format with pictures. What evolves over the next ten years will be a rethinking of television formats, weaving non-linear broadcasting with product placement, behavioural targeting with day-parting, and uncovering metrics for ratings and engagement that reflect the real impact of web video. How much video advertising? Consider the mix of formats How much advertising will people see? Get the balance right Consider the length of commercial breaks How interruptive is the advertising? Consider the cultural norms for video and television Do US and UK viewers have different expectations? Consider the experience of the viewer How does the advertising experience feel? Consider the advertising / programming ratio Are you striking the right balance? 14
15 Key takeouts from the Digital Publishing Strategy Academy: Building coaching stronger for internet digital publishers teams Takeout Integrating advertising and editorial: listen to your customers and get the volumes right. Yield management: a framework Linking yield management with inventory forecasting Lessons from the Digital Media Sales Academy Making sense of a digital world Digital Media Sales Academy Getting to grips with advertising revenue strategy Digital Training Academy Planning your online sales means taking a strategic look at your inventory. Do you forecast your advertising inventory for the next year, and do you plan how to use it? Without accurate forecasting and planning it s easy to sell what isn t there, and even easier to oversell low yield advertising instead of retaining the right space for premium CPMs. With online advertising targeting there s now a whole extra layer of challenges. This introduction raises the issues and will get you thinking about how you can maximise your inventory. Yield management Consider your mix of potential advertising revenues Balance out longer-term lower valued deals with the premium CPMs you re after Look for a range of revenue types to create stability in your income Be cautious about over-estimating available inventory 15
16 Modelling your yields 2008 budget Contingency 20% Modelling yields Planning for inventory Premium CPMs 50% Planning for different types of advertisers Planning for optimal revenue allocation Long term agency deals 20% Long term CPA deals 10% Modelling the effects of business activity: traffic, weather, marketing, partnerships etc Inventory allocation Flexible/Contingency Flexible/Contingency Flexible/Contingency Flexible/Contingency Linking yield management to forecasting Premium CPM Key account deals Network buys Premium CPM Key account deals Network buys Premium CPM Key account deals Network buys Premium CPM Key account deals Network buys Q1 Q2 Q3 Q4 16
17 New frontiers: targeting Challenges in mixing together: New frontiers Editorial targeting Behavioural targeting Frequency capping Geographic targeting The risks of getting it wrong You pre-sell inventory you don t have Risks You sell at a low price early You re unable to fulfil the high value CPM deals You lose 40 percent of your potential revenue 17
18 Key takeouts from the Digital Publishing Strategy Academy: Building coaching stronger for internet digital publishers teams Takeout: Yield management and inventory forecasting are at the heart of web media sales strategies. Behavioural targeting User centric targeting Lessons from the Digital Advertising Targeting Academy Making sense of a digital world Digital Advertising Targeting Academy Standards for behavioral targeting Digital Training Academy In the science of advertising targeting there is a migration towards user-centric targeting from the established targeting and profiling of editorial environments. This is only possible with digital or databased marketing, and behavioural targeting takes it to the extreme by developing customer profiles based upon the internet users observed - rather than claimed - interests. It s an incredible set of tools, but one that needs special attention from advertising operations teams. What does it mean? Considering the content of an online newspaper is a good way to illustrate how behavioural targeting can create value. If someone is browsing the finance stories and then skips over to the sports results, then they are still a person interested in finance. If they happen to be in the sports section then it would be hard for a media planner to know whether they were the right audience for finance unless the website was able to remember that a moment ago the person was deep in a news story about mortgages, and before that the latest stock prices. Thanks to the cookie, the website can gain that sense of memory and recognise the person again. No questions to the viewer, no risk that their claimed behaviour varies from what they do in practice and no need for registration. And if these dynamic profiles build as the viewer moves from page to page, then a moment later, when they re on the French travel pages they can still be served financial advertising. 18
19 Watching where you go My claimed interests: Finance, IT, advertising, EU law, consumer technology My observed interests: SCUBA, travel, Belize, flying The age-old dilemma of marketing Targeting users, not content Rich data profiles on each viewer Observed behaviour rather than claimed More accurate profiles A new era in targeting and profiling Ends the era of under-valued inventory A breakthrough in marketing The effect on yields Raises the value of each and every viewing event Show me the money! Delivers massive step-change in value of some inventory Can enfranchise the long tail and the under-monetised web Unlocks pent-up demand Creates a learning engine that improves total targeting potential Delivering a step change in efficiency; audience value, volume, and targeting 19
20 The effect on yields Page volume Yield (log) 0 (log) Average yield (behavioural targeting) Average yield (today) Website content categories (illustrative) Before Revenue = Yield x Volume x Sell-through rate After Revenue = Yield (b1) x Volume x Sell-through rate (b2) How it works? Examples from the pioneers at Yahoo Technology since 2000, real rollout in last 3 years > 400% rise in CTRs > 300% rise in conversions and using less inventory, more effectively (b1) = higher average CPM / CPA (b2) = higher with more areas monetizable Behavioural targeting Favours sites with Large differentials in their yields Sold out areas of high value Broad content Evaluation High audience volumes 20
21 Strengths Weaknesses Proven effectiveness Large audience reach Touches customers not just when in category Builds incremental revenue within existing inventory Complex model to explain Unpredictable volumes Does not deliver on brand synergies Can undermine part of the unique value proposition of niche content sites by making their audiences more accessible Best practice Tips for online publishers Best practice tips from Digital Define the profiles carefully Set up the categories with future-proofing as a key objective Be cautious about creating categories that are too granular Forecasting inventory is challenging and critical Plan for optimising campaigns and improving yields Research and evaluate new profiles Takeout: Key takeouts from the Digital Publishing Strategy Academy: Building coaching stronger for internet digital publishers teams Behavioural targeting can transform revenues; but benefits vary. Review best practice Incorporate new generation ideas about profile building through modelling 21
22 Making sense of a digital world Contextual targeting Placing the right advertising content by learning about what the page is really about Lessons from the Digital Media Sales Academy Digital Media Sales Academy Getting to grips with advertising revenue strategy Digital Training Academy Planning your online sales means taking a strategic look at your inventory. Do you forecast your advertising inventory for the next year, and do you plan how to use it? Without accurate forecasting and planning it s easy to sell what isn t there, and even easier to oversell low yield advertising instead of retaining the right space for premium CPMs. With online advertising targeting there s now a whole extra layer of challenges. This introduction raises the issues and will get you thinking about how you can maximise your inventory. Case study: ifa online Even smarter targeting by triggers in the content Case study: Grapeshot Examples at (Related Media) and (Related Downloads) Ads appear on article pages, not all pages! Idea is to provide text and brand logo (or media icon) to attract user to click on related information We can get CTRs of 0.5%, 2%, even 10% User enjoys related ads that add to the editorial experience Less noise, more relevance, increased CTRs all from one line of HTML code per page 22
23 Case study: Grapeshot Case study: MyCustomer.com Very tight editorial integration Grapeshot DNA inserts the keywords or categories into the standard ad tag call In this example, detecting a Finance DNA triggers a specific ad placement via Helios IQ Case study: Grapeshot Weaving technologies together Evaluation 23
24 Strengths Proven effectiveness Scaleable Automated Touches categories that would be otherwise unmanageable Delivers on brand synergies Builds incremental revenue within existing inventory Builds incremental revenue through new spaces Can also automate rapid building of page tagging Weaknesses Complex model to explain Risky when poorly implemented Unpredictable volumes Does not deliver on brand synergies Not all advertisers are ready Best practice Tips for online publishers Best practice tips from Digital Test: Test it out to measure the revenue gain for your title Select: Work with core advertisers to deliver additional value or introduce to new clients Fast track: Consider contextual search to fast track the automated building of editorial page content and classifications Evaluation: Set up measurable tests it could trigger a new sales strategy Takeout Key takeouts from the Digital Publishing Strategy Academy: Building coaching stronger for internet digital publishers teams Contextual targeting can remove many challenges and take you straight to the optimal result. 24
25 Making sense of a digital world Integrating ads and user generated content Frontiers in digital advertising integration Lessons from the Digital Media Sales Academy Digital Media Sales Academy Getting to grips with advertising revenue strategy Digital Training Academy Planning your online sales means taking a strategic look at your inventory. Do you forecast your advertising inventory for the next year, and do you plan how to use it? Without accurate forecasting and planning it s easy to sell what isn t there, and even easier to oversell low yield advertising instead of retaining the right space for premium CPMs. With online advertising targeting there s now a whole extra layer of challenges. This introduction raises the issues and will get you thinking about how you can maximise your inventory. Social media: one part of Web 2.0 Case study: The Guardian Simon Waldman, Director of digital strategy and development, Guardian To be honest, despite the fact that we have had community elements on our site since launch nearly a decade ago, we still have much to do here. But we are learning all the time. Comment is free is one of the most ambitious engagement projects launched by any newspaper. Built around the bedrock of the newspaper s comment - we have brought in dozens and dozens of new contributors; and each day we have hundreds and hundreds of comments. We don t pre-moderate comments, but we do remove those that are abusive or potentially defamatory. I would be lying if i said it had been entirely easy - perhaps the best way to describe it is to paraphrase the old nursery rhyme: when it is good, it s very, very, very good - but when it s bad, it s horrid. 25
26 Evaluation Strengths Massive new volume of inventory Volume growing disproportionately Better profanity and content filters Large audience reach Special opportunities for sparking social media discussion Weaknesses Complex model to explain Key strategic risks if not well managed Lower CPM Mixed experience of responsiveness to advertising Less appropriate for some brands Quality / environment may not be appropriate for some brands Best practice tips from Digital Evaluate the content carefully Consider the best advertising model Best practice Tips for online publishers Run scenarios to identify risks Be cautious about opening to all advertisers Link to behavioural targeting engines to boost yield Stay close to best practice as it evolves Partner only with agencies and brands that understand the model 26
27 Key takeouts from the Digital Publishing Strategy Academy: Building coaching stronger for internet digital publishers teams Takeout Massive new volume of inventory; unpredictable quality, watch for the key risks. What counts in tracking market share? Lessons from the Digital Analytics Academy Making sense of a digital world Digital Analytics Academy Masterclasses for web publishers Digital Training Academy Capturing and interpreting the signals from the market gives you a sense of where your brand is today and can be the early warning system for changes heading towards your business. Get it right and your competition tracking and KPIs act as the digital nervous system for your business; driving decisions and fuelling strategy. How well are you doing? Traffic Your potential target for growth? Other sites Time 27
28 How well are you doing? Traffic Industry average Not so great How well are you doing? Traffic Average of addressable market (indexed) Your site Zone for most companies in your sector 100 Time Time Key takeouts from the Digital Publishing Strategy Academy: Building coaching stronger for internet digital publishers teams Takeout Let the analytics grow from business process and you ll analyze what counts. Lessons from the Digital Media Targeting Academy Making sense of a digital world Digital Media Planning Academy Online targeting within web advertising Digital Training Academy Wastage is the media planners key enemy. Whatever the brand, the media channel or the campaign objective, at some point it all boils down to one deceptively simple challenge: a definition of the audience you re looking for and the search to find them. Follow our hints and tips and discover what you need to know. 28
29 Marketing s s journey Marketing s s journey One to all One to many One to few One to very few One-to-one and now Them-to-you: participatory marketing Online targeting s evolution 1994: Whole website Environment: sections within sites Niche environment: niche sections within sites Previous exposure (frequency) Time of day (day-parting) Geography (national, with IP address) Geography (regional, with IP address) Demographic (database) Behavioural (reading behavior from previous pages viewed) Integration with other data sets Now: many of these combined Next: all of these combines Then: carrying the user profile across all platforms Tip for your marketing toolbox Always be cautious about new techniques 29
30 Anticipating the future? Take-up among publishers 100% Helping you spot trends in the market Cross platform Contextual Dayparting Yield management Simple behavioural re-targeting Advanced behavioural targeting Google AdSense Frequency capping Graphical formats Simple editorial targeting The yield goal Advertising yield 0 Website content categories (illustrative) Average yield (potential) Average yield (today) ISPs Social media 0% Time Recap 10 perspectives on integration 1. History and context 2. Remember the business model 3. Integration in simple editorial targeting 4. Advertising / editorial ratios 5. Integration in video 6. Yield management: a framework 7. Integration and targeting search 8. Integration with audience behavioural 9. Advanced integration with contextual targeting 10. Integration with user generated content Key takeouts from the Digital Publishing Strategy Academy: Building coaching stronger for internet digital publishers teams In the executive classroom: what publishing directors told us Digital Publishing Strategy Academy The history, future and trends of marketing The challenges publishers describe...best practice tips and evaluations 30
31 CEO, multinational newspaper group Commercial director: global publishers We don t have the models or the roadmap. What does success actually look like in this space and how do you perform when there s no intuition? March 08 Our business is propped up on high yield recruitment advertising. Can anyone show me sites that are keeping those yields on the web? April 08 Our analysis? Publishers are often paralyzed by a lack of intuition and insight. Our analysis? Your business model from the classic channel may not transfer into digital. CEO digital start-up: on switching to print It s unbelievable: they bring me in to create the innovation they re lacking, but their board just aren t listening. How do I get them to understand? March 08 Leading magazine digital director: on leaving print It s great to be in a pure play rather than inside an old publisher looking over your shoulder all the time and having to fight the politics April 08 Our analysis? The right people can t t perform in the wrong organizational culture. Our analysis? There s s a constant brain-drain from print to digital. 31
32 Advertising sales: the challenge The digital skills crisis In their own words In print advertising I only had to focus on prices, relationships and spaces. In online have to do the same, but also know digital formats, web analytics, marketing theory and web publishing. This is much harder. The digital difference? Extras they need Online ad formats Online currencies Online research methodologies Web analytics Wider marketing theory Web publishing strategy Management training and development is the key Tips for organising digital publishing effectively 1. Help the existing teams learn enough to have the basic sales conversation 2. Focus on a few digital experts who can take it further and deeper for clients / agencies who already use online extensively 3. Blend internal promotion and training with external recruitment 4. Focus on the cultural flashpoints (editorial change, ad sales motivation), invest senior management for goal alignment 32
33 Over 40 topic areas All at orientation and advanced level Further comments and ideas Publishing Strategy Academies Driving traffic, media sales, website design, ad trafficking Marketing Academies for Publishers Analytics, , integrated marketing, marketing strategy, media planning, mobile, PR, research, search engines, viral & buzz Content Academies for Publishers Blogging, community, publishing, product dev., site design, social media, Web 2.0, writing for the web Commerce Academies for Publishers Getting more sales, increasing conversions, increasing traffic Log on to your Digital Classroom Boosting yields, building revenues: getting the model of advertising / editorial integration right About these notes This workshop covers the topics: Getting a perspective on your market share Understanding the relationship between content, traffic and advertising revenues Exploring the divergence of web advertising yields Reflecting on implications for content and product development Focusing on how to integrate editorial content and advertising in online newspapers The development of advertising targeting principles The application of contextual advertising service models Integrating advanced targeting into classic editorial content Integrating advertising into social media Exploring where behavioural targeting in online advertising fits Key steps to be careful about when setting up advanced systems The argument is that the principles of revenue strategy are changing fast and that advertising editorial integration has evolved to give a range of options that should drive the business, but only if they are properly deployed and based on a solid understanding of the models. To support this strategy workshop we have created an online classroom where you can post questions to Danny and other publishing strategy consultants at the Digital Training Academy. How to get in touch Mail me more questions after the event Danny Meadows-Klue CEO, Digital Training Academy CEO, Digital Strategy Consulting Previously Co-founder UK & European IAB associations, architect of more than 20 digital associations and initiatives Vice-president: NBC s European web businesses Managing director of e-retailers, search engines, social media platforms and platforms Government advisor BBC journalist VC advisor Publisher: UK s first online newspaper And a business coach who has helped 7000 firms Danny@DigitalStrategyConsulting.com +44 (0) Trainer Commentator Strategist Coach Boosting digital publishing yields through advertising -editorial integration 33
34 Accelerating digital media brands Integration of advertising and editorial Boosting yields, building revenues by getting the model of integration right Digital Publishing Strategy Academy Getting online news media to earn real revenues is a tougher challenge than many newspaper directors expect. Web advertising spend may now be larger than newspaper advertising in many countries, but that doesn t mean newspapers can expect a big share. The search engines, portals and sales networks continue to dominate the sector, and as the next wave of revenue pours into social media like Facebook, newspaper sites need to fight to earn their share. More information Contact: Danny@DigitalStrategyConsulting.com +44 (0) Digital Strategy Consulting Ltd & Partners 34
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