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May 09 2013

14:54

The newsonomics of influentials, from D.C. to Singapore to Raleigh

singapore-skyline-cc

It’s a season of new product launches, but you have to roam around the country and the world to find them. You have to look for the niches they’re trying to serve. These launches tell us a lot about the emerging digital news economy and the new building blocks that form its foundation.

Our journey takes us from Washington, D.C. to Singapore to Raleigh and back again to D.C. Publishers — and broadcasters — are basing these new businesses on a set of surprisingly similar features.

In D.C., Atlantic Media — in the beehive of activity that is its headquarters in the Watergate Building, overlooking the Potomac — is putting the finishing touches on its latest launch: Defense One. The new digital-just-about-only product will debut this summer, Atlantic Media president Justin Smith told me last week.

Defense One aims to disrupt a set of incumbent defense-oriented publications: Jane’s, Gannett-owned Defense News, and Breaking Defense, among them. Atlantic Media believes it’s found an opening — a wide one — to exploit.

“We saw a gap,” says Tim Hartman, president of the Government Executive Media Group, the Atlantic Media brand under which Defense One will take flight. The company believes It may offer a market as much as three to seven times greater than Government Executive itself, a 40-year-old title that has largely made the transition to digital.

Hartman says the understanding of the opportunity popped out of strategic planning that began two and a half years ago. Quartz, the business site launched last fall (“The Newsonomics of Quartz’ business launch”) was the first new product to come out of the work. Defense One is the second. A third one will likely launch within the next two years, says Hartman.

If analytics derived from Government Executive’s audience and usage provided the notion, in-depth interviews with 40 defense sector players filled in a roadmap. The company conducted initial hours-long interviews with them, and then returned to a number of them for second or third talks as plans solidified.

Over time, Hartman says Defense One’s staff size will be similar to that of Quartz — about 18-20 in content creation and production. While the company is looking for a top editor, Hartman says its editorial mandate is clear: “an orientation for the future.” That’s what industry leaders want, a sense of what is more likely than not to happen tomorrow, and why.

Much of Atlantic Media’s sales, marketing, analytics and financial functions can be leveraged to support the new product, minimizing what would be similar expense for a one-off start-up. Also like Quartz, it is going free, looking to marketers to make it profitable. It isn’t just an ad play. Rather, it looks to an emerging model of higher-end sponsorship and content marketing — with the important adjunct of events marketing — to propel it forward.

Its offer to marketers will follow the playbook of what Atlantic Media’s half-dozen other publications (The Atlantic, The Atlantic Wire, The Atlantic Cities, Quartz, National Journal, Government Executive) now offers. It’s on-site sponsorship/share-of-voice placement, content marketing, and marketing services aid and placements and sponsorship of physical events.

That events business rides right alongside inclusion on its websites, providing marketers with a brand association that fluidly moves from online to off and back. It’s a strategy now well-employed in D.C. — also exploited by Politico and The Washington Post — and among events leaders like The Texas Tribune. Atlantic Media has turned events into a potent, higher-margin revenue source, now accounting for around 16 percent of revenues.

Even before Defense One’s product launch, it is well along in lining up speakers for its first event in November.

Atlantic Media targets influentials. It is a term you hear often in conversation with the company’s president, Justin Smith. Quartz targets business influentials. Government Executive and National Journal target government influentials. Now Defense One targets national security influentials. It’s a spin on the Meredith marketing positioning I noted a couple of weeks ago, as that company morphed from a women’s magazine company to a company expert at marketing to women.

“It’s really a B2B model,” says Smith, explaining in a few words much of Atlantic Media owner and chairman David Bradley’s plan to double company revenues and profits within five years. The best B2B companies deeply know their audiences and then plan numerous touchpoints to yield revenue. If they are number one in their field, they reap the benefits.

There are a lot of influentials in this world. The trick is in picking the right targets.

Seeking influentials across Asia

That’s who HT Media, publisher of a leading national Indian daily (the Hindustan Times) is targeting in Singapore. Mint is HT Media’s business newspaper, now six years old and published in eight Indian cities. The paper was cofounded by Raju Narisetti, who has since done stints at The Washington Post and The Wall Street Journal and was recently named senior vice president and deputy head of strategy for the emerging, separate News Corp.

For Mint and its digital Livemint, a highly readable, authoritative business news source, finding growth included finding influentials abroad and expanding upon its mission to be “a fair and clear-minded chronicler of the Indian dream.”

One month ago, it launched MintAsia in Singapore. Its targets: the large Indian expat business community. There are 4,500 Indian-owned companies in Singapore, which is fast becoming the multinational business center for its region. MintAsia is also aimed at those multinationals, for whom better knowledge of India, its economy, and its policies are central to their own growth plans.

The new MintAsia is both a weekly newspaper published on Fridays and a website. About a quarter of the weekly content is originated for the Singapore market — largely produced by Mint’s India-based staff of 140, with stories like “Top 10 Indian Health Startups” targeted for the strong health care business sector of Singapore. The rest of MintAsia’s content is chosen from Mint’s stream of web-first and daily print content. HT is sending a former head of ad sales to head up the MintAsia operation, and has employed a handful of Singapore locals to deal with circulation and logistics.

“The whole idea is to leverage our strength,” Sukumar Ranganathan, Mint’s editor, told me in Delhi. “For Singapore, it’s marginal costing.”

So, its costs are small, and its potential gain — in revenue, in branding, and in influence — is large.

Its business model is au courant. MintAsia is an all-access, print + digital product. It’s printing 3,000 copies to start, with a goal of reaching 10,000 within a few years. By branching out of its home market, it is not only testing a pay strategy; it’s a pay strategy that greatly exceeds what it can charge in its home market. India is just about the only major nation not suffering from the worldwide newspaper turndown. Advertising is growing robustly, and circulation is holding as well. That’s what adding millions of literate, better educated, striving-into-the-middle-class citizens a year will do for you.

But Indian dailies are among the cheapest in the world. Mint daily costs four rupees per copy — seven cents American! An annual subscription will set you back 500 rupees, or about $9.26.

In Singapore, Mint Asia costs six Singapore dollars, or US$4.87. Buy a year of print with access to the LiveMintAsia, and the price is 180 Singapore dollars or US$146. (Its paywall is now a hard one, but will go metered, powered by Press+, next month).

So we see minimal costs, good ramping all-access circulation money, and two other familiar streams of revenue: advertising targeting the financial and other needs of Singapore-based Indian influentials and events. MintAsia’s formal launch comes on May 28, when it hosts a conference in Singapore that includes the head of the Indian equivalent of the U.S. Securities and Exchange Commission. That event already has two paying sponsors; more sponsored events are in the works.

As with Atlantic Media, the niche strategy is more than a one-off. Hong Kong may be the next logical market, with other Asian markets farther down the list. If Mint moves into those markets, it will likely proceed much as it has in Singapore — checking its data for critical masses of likely readers and then following up with in-person visits to new cities, talking to to the influentials about influential publication potential.

Seeking influentials in North Carolina

Back in Raleigh, North Carolina, the WRAL’s TechWire product isn’t new, but its paywall is. It is certainly one of the first paywalls put up by a broadcaster, though in this case, Research Triangle (Raleigh/Durham/Chapel Hill) digital market leader WRAL isn’t putting one up on its main site — it erected its paywall on its technology vertical about a month ago. It follows the paywall paradigm, with a couple of twists.

TechWire charges $24.99 for an Insider annual membership, which includes numerous industry events and other discounts. Until May 16, the annual price is discounted by half. It also offers monthly passes for $2.49 and day passes for 99 cents.

So far, WRAL general manager John Conway says he happy with the early results. Most subscribers are opting for the annual plan; unique visitor and pageview loss has been minimal for the site that’s recently averaged 125,000 unique visitors a month, the majority of whom are local. His goal: get 5-10 percent of those uniques paying for something.

The paywall is powered by Amsterdam-based Cleeng, a paywall provider whose clients include Epicurious, DailyMotion, and now, TEDMED, and which offers an architecture that works well with video content access control.

TechWire offers a hard paywall, with first paragraph offering for free on staff-written stories. (AP, Bloomberg and other non-local content makes up 50-60 percent of the site, and that remains accessible.)

Seeking influentials in D.C. politics

Up the road and back in D.C., Politico continues to build on its impressive Pro line of products (“Politico Pro grows into 1,000 organizations, moves into print”) — following the influential methodology. Roy Schwartz, the company’s chief revenue officer, now counts seven Pro products. Three of these — finance, tax and, interestingly, defense — debuted last September. They followed energy, health care, and technology, all launched in February, 2011, and transportation, which followed a year later.

These Pro products, too, borrow from the same marketplace understandings that drive Atlantic Media and Mint. In Politico’s case, it’s working richer veins of revenue. Politico Pro now claims more than 7,000 users, across more than 1,000 organizations.

Politico sells institutional subscriptions, on a largely per-seat basis, to groups within each niche that want an insider’s time and knowledgable view. Politico takes in mid-four digits a year for each subscriber, with pricing variable by niche and what the market will bear. It also sells sponsorships into the Pro products, the same kinds of marketing that funds its free Politico site. Then those sponsors’ reach is further extended — at an additional price, of course — into events. Last year, Politico hosted 90 events. On its roadmap, it makes sure that each of the Pro verticals will host an event a quarter. It’s sponsorship-fueled, value-added-to-membership relationship marketing.

Schwartz says the events are free to attendees and strive to match the allure of the Pro coverage. “It’s about convening thought leadership. What we find interesting, our audience finds interesting.”

So what do you do when you’ve bound together targetable groups of influentials? You put together an Influencer Upfront. On Wednesday, Politico hosted its first Influencer Upfront.

The upfront was a day of presentations, editorial and advertising, to significant advertisers. Politico is borrowing a page from the long-standing TV network upfronts, events held to showcase shows and sell fall ad campaigns in the spring. Digital upfronts are becoming all the rage, as this spring saw several in New York City’s, including one sponsored by Digiday.

Lessons learned

It’s no accident that each of these four newer products all touch business audiences and markets. The truism hold: It’s easiest to make money where money is changing hands. Make yourself an effective intermediary, and you can grab a little of it as it moves. It’s easiest to see these opportunities, clearly, in and around business. It’s an in-the-know kind of market, and it’s one — because of scale — that national publishers are now tending to exploit first.

Can it work regionally? Can regional newspapers find big enough niches to replicate this model? If I were a regional publisher, I’d be doing a whiteboard exercise bouncing off these emerging influentials models.

Among these four newer products, we can see the emerging new rules of publishing creation. Among them:

  • Critical mass enables growth. Niche product creation that builds on existing company infrastructure, knowledge and marketplace learnings is the cost-effective way to go. Each of these companies adapted what they learned to these new launches. Politico’s seven Pro products illustrate this most clearly; Atlantic Media’s cousin-by-cousin launches put a parallel spin on the notion. (Intriguing side note: Politico owner Robert Allbritton put his once-core TV station holdings on the market last week, saying he wanted to further invest in and around Politico. The “around” could include replicating the Politico business model in a new coverage niche.) This is a new power of incumbency. It’s not the ownership of a printing press, as it was for newspaper publishers in the old days.
  • Analytics leads the way; in-person follow-up seal the deal. You may have an intuition about a new market, but checking it out — doubly — is essential.
  • Help your audience deal with future and present shock. Covering a sector is one thing; covering in a way that embraces — and tries bring a bit of order to — the multiple change issues of any audience is another. That’s an aspirational and competitive editorial positioning, but we can see ongoing examples of it in the work that Mint, Quartz, and Politico already produce.
  • Events are emerging as both a vital new revenue source and an almost counterintuitive high-touch part of the mostly digital business mix. HuffPost Live, Google Hangouts, and assorted other ways to assemble online community are great experiments and promising tools, but old-fashioned in-person events are gaining strength as we all go more digital. That’s an important learning about the value of relationship, and how to reinforce it, even in the age of MOOCs.
  • It’s not print or digital. It’s digital and print, suited to audience reading habits — which of course are a moving target. Influentials, like all of us, toggle between the two.

Photo of Singapore skyline by Thibault Houspic used under a Creative Commons license.

February 25 2011

15:00

This Week in Review: TBD gets the axe, deciphering Apple’s new rules, and empowering more news sources

Every Friday, Mark Coddington sums up the week’s top stories about the future of news.

The short, happy-ish life of TBD: Just six months after it launched and two weeks after a reorganization was announced, the Washington, D.C., local news site was effectively shuttered this week, when its corporate parent, Allbritton Communications (it’s owned by Robert Allbritton and includes Politico), cut most of its jobs, leaving only an arts and entertainment operation within the website of Allbritton’s WJLA-TV.

TBD had been seen many as a bellwether in online-only local news, as Poynter’s Mallary Jean Tenore documented in her historical roundup of links about the site, so it was quite a shock and a disappointment to many future-of-newsies that it was closed so quickly. The response — aptly compiled by TBDer Jeff Sonderman — was largely sympathetic to TBD’s staff (former TBD manager Jim Brady even wrote a pitch to prospective employers on behalf of the newly laid off community engagement team). Many observers on Twitter (and Terry Heaton on his blogpointed squarely at Allbritton for the site’s demise, with The Batavian’s Howard Owens drawing out a short, thoughtful lesson: “Legacy managers will nearly always sabotage innovation. Wall of separation necessary between innovators and legacy.”

Blogger Mike Clark pointed out that TBD’s traffic was beating each of the other D.C. TV news sites and growing as well. The Washington Post reported that while traffic wasn’t a problem, turning it into revenue was — though the fact that TBD’s ads were handled by WJLA staffers might have contributed to that.

Mallary Jean Tenore wrote an insightful article talking to some TBD folks about whether their company gave them a chance to fail. Lehigh j-prof Jeremy Littau was unequivocal on the subject: “Some of us have been talking today on Twitter about whether TBD failed. Nonsense. TBD wasn’t given enough time to fail.”

While CUNY j-prof Jeff Jarvis lamented that “TBD will be painted as a failure of local news online when it’s a failure of its company, nothing more,” others saw some larger implications for other online local news projects. Media analyst Alan Mutter concluded that TBD’s plight is “further evidence that hyperlocal journalism is more hype than hope for the news business,” and Poynter’s Rick Edmonds gave six business lessons for similar projects from TBD’s struggles. Journal Register Co. CEO John Paton ripped Edmonds’ analysis, arguing that Allbritton “can’t pretend to have seriously tried the hyperlocal business space after a six-month experiment it derailed half-way in.”

Applying Apple’s new rules: Publishers’ consternation over Apple’s new subscription plan for mobile devices continued this week, with Frederic Filloux at Monday Note laying out many publishers’ frustrations with Apple’s proposal. The New York Times’ David Carr and The Guardian’s Josh Halliday both covered publishers’ Apple subscription conundrum, and one expert told Carr, “If you are a publisher, it puts things into a tailspin: The business model you have been working with for many years just lost 30 percent off the top.”

At paidContent, James McQuivey made the case for a lower revenue share for Apple, and Dan Gillmor wondered whether publishers will stand up to Apple. The company may also be facing scrutiny from the U.S. Justice Department and Federal Trade Commission for possible antitrust violations, The Wall Street Journal reported.

The fresh issue regarding Apple’s subscription policy this week, though, was the distinction between publishing apps and more service-oriented apps. The topic came to the fore when the folks from Readability, an app that allows users to read articles in an advertising-free environment, wrote an open letter ripping Apple for rejecting their app, saying their new policy “smacks of greed.” Ars Technica’s Chris Foresman and Apple blogger John Gruber noted, though, that Readability’s 30%-off-the-top business model is a lot like Apple’s.

Then Apple’s Steve Jobs sent a short, cryptic email to a developer saying that Apple’s new policy applies only to publishing apps, not service apps. This, of course, raised the question, in TechCrunch’s words, ”What’s a publishing app?” That’s a very complex question, and as Instapaper founder Marco Arment wrote, one that will be difficult for Apple to answer consistently. Arment also briefly noted that Jobs’ statement seems to contradict the language of Apple’s new guidelines.

Giving voice to new sources of news: This month’s Carnival of Journalism, posted late last week, focused on ways to increase the number of news sources. It’s a broad question, and it drew a broad variety of answers, which were ably summarized by Courtney Shove. I’m not going to try to duplicate her work here, but I do want to highlight a few of the themes that showed up.

David Cohn, the Carnival’s organizer, gave a great big-picture perspective to the issue, putting it in the context of power and the web. Kim Bui and Dan Fenster defended the community-driven vision for news, with Bui calling journalists to go further: “Let’s admit it, we’ve never trusted the public.” There were several calls for journalists to include more underrepresented voices, with reports and ideas like a refugee news initiative, digital news bus, youth journalism projects, and initiatives for youth in foreign-language families.

The J-Lab’s Jan Schaffer gave 10 good ideas to the cause, and Drury j-prof Jonathan Groves and Gannett’s Ryan Sholin shared their ideas for local citizen news projects, while TheUpTake’s Jason Barnett endorsed a new citizen-journalism app called iBreakNews.

Three bloggers, however, objected to the Carnival’s premise in the first place. Daniel Bachhuber of CUNY argued that improving journalism doesn’t necessarily mean adding more sources, recommending instead that “Instead of increasing the number of news sources, we should focus on producing durable data and the equivalent tools for remixing it.” Lauren Rabaino warned against news oversaturation, and the University of Colorado’s Steve Outing said that more than new sources, we need better filters and hubs for them.

Blogging’s continued evolution: The “blogging is dead” argument has popped up from time to time, and it was revived again this week in the form of a New York Times story about how young people are leaving blogs for social networking sites like Facebook and Twitter. Several people countered the argument, led by GigaOM’s Mathew Ingram, who said that blogging isn’t declining, but is instead evolving into more of a continuum that includes microblogging services like Twitter, traditional blog formats like Wordpress, and the hybrid that is Tumblr. He and Wordpress founding developer Matt Mullenweg shared the same view — that “people of all ages are becoming more and more comfortable publishing online,” no matter the form.

Scott Rosenberg, who’s written a history of blogging, looked at statistics to make the point, noting that 14 percent of online adults keep a blog, a number he called astounding, even if it starts to decline. “As the online population becomes closer to universal, that is an extraordinary thing: One in ten people writing in public. Our civilization has never seen anything like it.” In addition, Reuters’ Anthony DeRosa argued that longer-form blogging has always been a pursuit of older Internet users.

Reading roundup: I’ve got a few ongoing stories to update you on, and a sampling of an unusually rich week in thoughtful pieces.

— A couple of sites took a peek at Gawker’s traffic statistics to try to determine the effectiveness of its recent redesign. TechCrunch saw an ugly picture; Business Insider was cautiously optimistic based on the same data. Gawker disputed TechCrunch’s numbers, and Terry Heaton tried to sort through the claims.

— A couple of Middle East/North Africa protest notes: The New York Times told us about the response to Egypt’s Internet blackout and the role of mobile technology in documenting the protests. And Amy Gahran of the Knight Digital Media Center gave some lessons from the incredible Twitter journalism of NPR’s Andy Carvin.

— The Daily is coming to Android tablets this spring, and its free trial run has been extended beyond the initial two weeks.

— Matt DeRienzo of the Journal Register Co. wrote about an intriguing idea for a news org/j-school merger.

— Alan Mutter made the case for ending federal funding for public journalism.

— At 10,000 Words, Lauren Rabaino had some awesome things news organizations can learn from tech startups, including thinking of news as software and embracing transparency.

— And here at the Lab, Northwestern prof Pablo Boczkowski gave some quick thoughts on how we tend to associate online news with work, and what that means. He sheds some light about an under-considered aspect of news — the social environments in which we consume it.

August 12 2010

14:00

The Newsonomics of TBD

[Each week, our friend Ken Doctor — author of Newsonomics and longtime watcher of the business side of digital news — writes about the economics of the news business for the Lab.]

Thirsting for good news, the welcome given TBD.com by news observers has been a bit overwhelming. In a desert of too-scarce good news about the news business, TBD represents one of the potential oases, like its smaller — and largely nonprofit — counterparts from San Diego to Austin to the Twin Cities to New York.

Most of the first appraisals have focused on the site’s product innovations. Let’s now take an early look at the size of this possible oasis and the unique business model under it, to gauge what kind of a test it may be. Let’s look at the Newsonomics of launching what is the nation’s first combined local online news startup/24-hour news channel.

That combination is the most basic to understanding the business of TBD, informing both TBD’s cost structure and revenue models. If TBD turns profitable within two to three years, it may become a prototype for digital/video/TV city-based news businesses.

While there may be two dozen or more metro news channels in the U.S, none has yet combined with a online news site to the extent that TBD is doing. The only parallel may be Cablevision’s News 12, its longstanding Long Island/Connecticut/New Jersey-oriented station that got a new cousin when the parent company bought Newsday from Tribune in 2008. In a post on that acquisition, I noted the potential synergies in the deal:

  1. Joint ad sales.
  2. Synergistic news-gathering and production.
  3. Monetizing cable-produced news video through Newsday’s site.

Since then, we haven’t seen a lot of that synergy in New York, as the cable news site and Newsday.com remain separate, with those who don’t subscribe to either having to pay for direct access. A cursory look at the sites doesn’t betray much sharing, but there may be more under the hood.

It is those three principles, though, plus an all-important fourth one — promotion — that should define this next, and bigger, experiment, as TBD.com and TBD TV (which has been rebranded from the former NewsChannel 8) take flight.

Let’s look first at the costs of TBD. TBD has added 50 new positions, all additional to the approximately 50 jobs ported over from the former NewsChannel 8. Jim Brady, TBD’s general manager, outlined the 50 for me: “About 30 doing news, including 15 reporters, six editors, two senior editors, six community engagement people. Another 20 doing tech, sales, product, and design.”

That tells us that the nut for TBD is about $3.5-4 million, salaries and operating costs combined. It needs to find new revenue — exclusive of what the former NewsChannel 8’s sales staff of seven brought in — to get to profitability. Profitability is a key goal for this for-profit company, and one key to proving out the model for use in other metro areas. The cost side is one of the areas that distinguishes the TBD experiment; it’s two to four times bigger than most of the local online news startups we’ve seen.

Key to our understanding here is that TBD — the website and the cable news station — is one organization. Brady is in charge of the P&L of it, though he has a dotted-line relationship to the ad sales heads. While it adds costs to do 24-hour cable news as well as 24-hour digital news, it offers more revenue opportunities as well.

The key synergy: a kind of virtuous circle of promotion to stoke growth of audience and advertising dollars.

“They have the big megaphone [of promotion],” points out Phil Balboni, now CEO of startup GlobalPost, but also a veteran of New England Cable News, which he built and operated. “They can push TBD on every program. Within a short period of time, they will get great brand awareness.” So, yes, TBD TV pushes people to the website, but TBD.com also pushes people to the cable news channel. And WJLA, the ABC7 affiliate also owned by Allbritton, promotes both. JLA’s been the second-ranked station in the broadcast market.

The idea: Big promotion drives in samplers. Then the site must convert a good 20 percent of them to regular customers.

So what does TBD need to get to profitability — and make itself the model to match? Let’s quickly look at the two big qualifiers, audience and sales.

A big audience: Let’s remember that TBD starts with a significant audience, though one far smaller than WashingtonPost.com, just to drop a name. It gets traffic from both WJLA and the former NewsChannel 8; both of their former websites now point to TBD.com. According to Nielsen, WJLA pulled in about 327,000 unique visitors and 1,516,000 page views in July, while NewsChannel 8 appeared to attract a small fraction of that.

Make no mistake: Gaining attention in a crowded media marketplace won’t be simple — and is one of the reasons for the fast-out-of-the-chute TBD Community Network of 129 bloggers.

The Post is formidable competition. It is a premier regional website (built by Brady and others) and in a June Nielsen report, showed a 5.27-percent increase in unique visitors year over year, to 10,089,000 unique visitors and 106,387,000 pageviews. It zigged — up — while the news category zagged down 2.74 percent overall for the same period.

So figure that TBD.com needs a web audience of between 10 and 20 million page views a month at some point in the next 24-36 months to get to profitability. That’s a fifth to a tenth of the Post’s online audience, which, we should keep in mind comes more from outside D.C. than in within it.

Significant new revenue from both TBD.com and TBD TV: The revenue will be mainly advertising. As a for-profit, TBD.com is taking a different route than non-profits MinnPost and Texas Tribune, for instance, both of which are focusing strongly on membership and corporate/institutional sponsorships. The nonprofits are thinking that maybe a third — or less — of their revenue will come from traditional “advertising.” For TBD, though, it’s all about the sale of advertising. Just as TBD TV is critical to TBD.com site promotion, its own revenue growth will be key.

Figure that as much as 30 percent of new revenue generated out of the new enterprise could come from new TV revenue; to the extent it does, the site’s growth could trend more to the 10 million monthly page views, than 20 million, and still be profitable.

Brady says a new online-only sales staff of four will drive both online-only and bundled sales, working with the established sales force. “You start with a sales force that has relationships with an auto dealer, for instance, ” says Brady. “You don’t need a million uniques to get a meeting with them.”

The questions here are familiar ones for local broadcasters and for newspaper publishers: How do you a traditional ad sales staff — one mainly used to selling “time” — to sell the web effectively? How do you blend the online-only sales force with TV-oriented one? How much do you emphasize online-only sales, or continue a focus on bundling with TV time?

It’s a complex sell, combining sales of space, time, and pay-for-performance advertising. “They need to sell four or five different kinds of advertising,” says Arul Sundaram, an industry consultant who formerly was vice-president of strategy for Internet Broadcasting, which has powered dozens of local broadcast station websites. Beyond selling cost-per-thousand display advertising, Sundaram ticks off various pay-for-performance (largely search-based), video, and mobile ad products that the operation should learn to sell as well.

Pioneering models is a tough business. As the news business looks for new models, the man of the moment is man behind the TBD curtain, Robert Allbritton, CEO of his eponymous company. Allbritton’s gotten credit for seeing, and seeing through, Politico, his first web venture, to on-again, off-again profitablity. Importantly, he’s been credited with allocating sufficient resources, even in cash-negative startup times to create journalistic products that attract audiences.

As Phil Balboni sees it, Allbritton’s move, especially in this economic climate, is “a gutsy statement.” In 2010, especially, no guts, no glory.

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