The Virtuous Cycle:

Maximizing Revenues
Beyond Ads
By Dorian Benkoil
April 23, 2009
 Print Revenues are Falling

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 Internet Revenue is Growing
US Online Ad Spending As a Percent of Total Media Ad Spending

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%
2007 2008 2009 2010 2011 2012 2013

Source: eMarketer.com

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 Newspaper Websites Often Lead

• 44% of all U.S. Internet users visited a

newspaper website in January.
• Newspaper website growth outpaces
many other categories.
• Newspaper websites are consistently
among the top-ranking nationally and
locally
Sources: Comscore, Poynter Institute, Follow the Media

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 So Why Isn’t That Great News
For Newspapers, Online?

Source: IAB

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 Ads Are Not Enough
• Ad growth is declining. Growth went down some 50% from 2007
- 2008.

“After years of soaring growth, online advertisers have

started pumping the brakes.” -
eMarketer

• For many newspapers, ad revenues are down. NY Times revenues

slid 5.6 percent to $78.2 million from $82.9 million.

• There is constant downward pressure on prices.

“The supply [of advertising] is just growing so fast that

the value of the inventory is going down.”
- Stephen Brill

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 So What Can
You Do?

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 Create a Virtuous Cycle
Advertising

Memberships

Community Services
Your
publication is
the BRAND at
the center

Subscription Products
Events

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 Optimize Advertising
(and everything else)

• Display sold directly

• Networks
• Remnant
• Email
• E-Commerce: Worth more than ads?
• Use the “cascade”

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 Optimization in Action
• Create a Cascade of Networks
– High Value Vertical (IDG, Glam, etc.)
– Moderate Value Horizontal (Burst, Adsdaq,
etc.)
– Auction-based, remnant (Ads.com,
Google.)
– E-Commerce in the mix

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 Sample Ad Network Data
RECENT AD PLACEMENT REVENUE DATA FOR ONE SITE SECTION
One Month (Late '08)

Placement Network Revenue Fill Rate Avg CPM CTR

300*250 Network A $ 603.92 27.18 1.00
Network B $ 653.11 33.63 1.00
Network C $ 70.93 28.7 0.72
Network D N/A -
House Ads N/A 10.49 <-- Imputed revenue

Total Rev for placement $ 1,327.96 100

160*600 Network A $ 659.70 30.93 1.25

Network B $ 665.63 21.77 0.28
Network C $ 29.04 20.2 0.20
Network D 15.97 17.1
House Ads N/A 10

Total Rev for placement $ 1,370.34 100

728*90 Network A $ 650.09 17.76 1.00

Network B $ 910.87 10.43 1.25
Network C $ 109.23 50.2 0.53
Network D $ 126.99 11.1 0.58
House Ads N/A 10.51

Total Rev for placement $ 1,797.17 100

Total Network Revenue $ 4,495.46

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 NY Convergence Example

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 Services and Subscriptions
• What can you provide?
– Email
– Web services (local businesses)
• Free level
• Paid level
– Seminars, Webinars, Courses
– Combine with events (win for all)
– Data, Stats, Information
• Jobs
• Classifieds

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 Entice Visitors Toward Value
Higher Value
Behavior
Purchase
- Membership
Repeat - Subscription
- Direct - More Frequent - Product
- Referred - More Recent
- From Search Register
- Membership
- Email
Visitor Type

First Time Interact

- Referred -Inquired
- From Search -Clicked Off
-On Site

View
- More Time Spent
- More Pages Viewed

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 Value of Paid Members
PVs Mmbrs Paid Visitors
Feature 1 2015 638 283 982
Feature 2 955 190 503 262
Feature 3 968 197 268 503
Feature 4 1206 286 470 450
Feature 5 1042 199 409 434
Feature 6 1805 432 583 790
Feature 7 1,134 213 553 368
2500

2000

1500

1000

500

0
Feature 1 Feature 2 Feature 3 Feature 4 Feature 5 Feature 6 Feature 7

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 Events
• Marketing for the brand QuickTimeª and a
decompressor
are needed to see this picture.

• Sponsorship
• New member opportunities
• Sales, ancillary
• Ear to the community
QuickTimeª and a
decompressor
are needed to see this picture.

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 The Brand At The Center
Your publication is a trusted brand with a ready
community that you can serve and sell to in multiple
ways through digital media, creating:
• Multiple, Offsetting Revenue Streams
• Perform Differently in Opposing Conditions
• Separate and Improved Cashflows
• Increased Marketing at Low Cost
• Brand Luster
• Added Service to Community
• New Outreach Opportunities
• Mix Will Improve Your DSO and Other Financial
Measures Beyond Just Ads
• Cost of Sales Will Go Down As Profitability Rises

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 TeemingMedia.com
 Consulting: Strategic, Publishing and Financial
 Training: Editorial and Business
 Video Seminars: ‘Finance for Media Professionals’
 Show: Naked Media (NakedMedia.org)
 Reports: “Content Management Systems, How to
Build, Buy or Improve the One You Have”

Dorian@TeemingMedia.com
646-258-7879

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