Convergence Selling: Presentation and Discussion

Convergence SellingOr…

“How to use your web assets to increase client sales”

Dave Shapiro

Presented to:

Noll: The Company We Keep

Who is Dave? Why should I care?

In the past two years…– Radio, TV stations, clusters &

associations– DR, Brand advertisers, agencies, small-

biz– Stand alone sites, networks, such as:

– Ask Jeeves, Snowbomb, Aptimus, Openroad, Jeteye, ileonardo, Rocket Fuel, Print2Click, and more…

Today, you’ll learn:

How to migrate from being a broadcast rep…– To being a marketing partner

How to move from “selling” to consultative selling by…

• Increasing your knowledge / confidence

• Leaving here with immediate action steps

Housekeeping, Rules! Jam through, ok!? Have fun! Participate, Q&A!

– No ‘rolling the eyes’ (varying degree of expertise here!)

Interactive WORKSHOP (see workbook): – Commit to writing– Future reference guide

Agenda The Internet: Broad Overview-”It” works too!

– Industry knowledge…Take My Quiz!! “Sell our Website(s)!”

– S.W.O.T.– Client expectations & Top Tips

Review: “My station: It works”– Tried ‘n True– Supportive Research, Prospecting

Assorted Goodies… – Trends, Case-Studies, Q&A…

The Digital World TodayAs YOU see it; enthusiasm is contagious!

List three Internet Industry news and/or current events: Topical, Interesting, Relatable

Group Exercise- Workbook page 3

The Digital World TodayAs YOU see it; enthusiasm is contagious!

Make it your business to stay current– Read Tech News every day– Subscribe to industry pubs– Digest news “headlines”

• RSS feeds There’s no excuse for ignorance

A word on ‘the economy’: We’ve been here before! Tips in this “Downtime Economy”

– Launch, or refine your media properties

– Promos! AAdvantage frequent-flyers programs, auto ‘rebates’

– Sell something adjacent (brand extension)• Instead of selling cars, sell parts &

service

Web 2.0

CONVERGENCE!– Mark Cuban’s IPTV: Personalized TV delivered

over the Net– NBCUniversal/News Corp: Hulu.com– Personalization: Mash-ups, Apps, Pull vs Push…– Socialization: ‘Sharing’ YouTube…

Privacy vs. Targeting (NebuAd/Facebook debacle)

Innovation -- especially now! – Technology, Creativity

Can you solve this puzzle?

S __ __ __ K __ N G

__ __ N K

Consumer Internet Access

Source: eMarketer: Historical data from U.S. Census

Broadband 154MM Dial-Up 35MM

Not Online 102MM

55%13%

32%

Top activities of Internet users

1. e-mail2. News, current events3. Made a purchase4. Paid bills5. IM6. Research Financial info7. Seek Sports news/info8. Played Games, entered contests! 9. Travel Planning (personal/business)10. Medical Info

Source: Mediamark Research (MRI) 2007

Top 5 multi-tasking activities while online

1. Watching TV

2. Reading the mail

3. Listen to the radio

4. Read newspapers

5. Read magazines

Source: Advertising Age, 2007

“America Voted!”

“…our buy-of all available banner inventory on ClearChannel Radio Station websites to promote the premier of American Idol-serves to confirm our belief that we need to follow consumers across all media; the radio websites help support and supplement our reach with the terrestrial stations”

Kay Bentley, SVP MarketingFox Broadcasting Jan ‘08

Type of video viewed

$50 Billion

UGCVideo Games

Sports Music Jokes/ Bloopers

TV Shows

/Clips / Excerpts

Weather Movie Previews

News Stories

Source: Mediamark Research (MRI) 2007

5%

6%7%

11%12%

13%14% 14%

18%

Web user summary:

– Interactive / Transactional– Entertaining/ Educational/Informational – Research

• Recommendations/Reviews/Alerts• Collaboration/Conversational

Online Ad Growth: It Works(This ‘ol Adage Applies: Advertisers Follow the Audience)

2005 2006 2007 2008 2009 2010

Source: E Marketer, Feb 2008

$13B$16B

$21B

$24B

$28B

$32B

Online ad buying by format

$50 Billion

Blogs/Pods

Newsltr/ Email

Games Mobile Classified Video Display Search

2%4% 4%

5% 5%

15% 15%

20%

30%

LeadGen.

Search = $8B; ~90% are locally oriented

Local spending = $15B

“It” (The ‘Net) Works!

Advertisers really believe in this medium!– Spending from $900MM to over $23B in last 10

years: +2,400%* Local spending up BIG!! Now surpasses:

– Radio, Yellow Pages combined spending– Magazine, OOH combined spending…

Exceeding 10% of overall spend in the near future, as advertisers continue to shift $$$

*Source: Ad Age Data Center, Sept ‘08

Test Your KnowledgeTest Your Knowledge

Workbook pages4 - 7

Workbook Page 4 Answers

1. Sometimes

When an Ad Imp = Page View

One ad on this page

Ad Impressions/Page: Cluttered?

Flash Banner(88 x 31)

InteractiveWidget

Tower/ Skyscraper(120 x 600)

1/2 Leaderboard(364 x 45)

Workbook Answers (cont’d)

2. ACC3. PI = Per Inquiry

CPC = Cost per ClickCPM = Cost per ThousandCPA = Cost per Action / AcquisitionCPL = Cost per LeadCPE = Cost per Engagement

4. True5. Pixel: Picture Element: smallest unit of a picture,

used as dimension for ad unit

Workbook Answers (cont’d)

6. Pixel: Used to track user behavior7. Adserving and campaign management8. Internet Protocol. Address used for locating or

tracking user based on PC hardware access point.

9. User-Generated-Content10. D11. Both… “mostly” ABONUS: Should be your own stations website12. False. Inventory = Ad imps x page views

Workbook Answers (cont’d)

13. Unique visitors: unduplicated audience counted only “once”; based on an IP address

14. All found success by going direct online, bypassing current distribution channels.

15. Wrap-Around: combined top banner with side tower/skyscraper. Over-Lay: Less “intrusive/interruptive” messaging served “over” video unit.

16. Print 1; Direct Mail 2; Yellow Pages 3; TV 4; Radio 517. True Bonus #2: False, but good idea!

Workbook Page 7 Answers18. Web 2.0: Social Networking, Online-Community; based on

the idea of “Six Degrees of Separation”such as Facebook, Flickr, LinkedIn

19. Same as above.20. Eyeblaster21. ROAS: Return-On-Ad-Spend per dollar invested

ROI: Results achieved against objectives 22. a) $12 CPM b) 2.5MM c)$2,50023. Widget: Application that sits on a website w/interactive

features, usually added to social-networking profiles (e.g. rockyou.com slide show app for personal photo shows)

L.E.G.I.T.Lingo to Educate you on the Glossary of Internet Terms

Appendix: Dave’s TOP 10Not necessarily covered by our Quiz:

1. Content Integration 6. Polite banner2. Conversion Rate 7. I.A.B.3. Deep-Linking 8. User (browser)4. Re-Targeting 9. Pacing5. Optimization 10. Roadblock

S.W.O.T.Another Tip: Know your product AND your competition

Strengths

Weaknesses

Opportunities

Threats

Workbook page 8

Strengths

Personal Relationships, Prospecting Skills!

• Trust, consideration, loyalty: • Customer Service from YOU

Brand– Credibility, stability, resources

Leverage and utilize Station– Traffic-driver, exposure, X-Promo

Opps– Local

Sales 101!

Enthusiasm! Media, Advertising! – Handling Objections– Perseverance, ‘It’s a numbers game’…

Passion– Willing to learn, product knowledge

Empathy– Asking questions, understanding– Communicate value

Supportive RationaleLead with and leverage broadcast: 83% of respondents to a recent survey indicated they’d

visit a website after seeing the link during a TV commercial; 65% from a radio ad

--ThirdAge/JWT Boom Survey, 2007 “The public perceives broadcast advertising as the most

influential, authoritative, exciting, and persuasive” --Tvb.org

78% of employees now watch online video’s while at work -- ABC TV 20/20, 2007

Establish credibility via broadcast campaign, while driving “measured” traffic to your website

-- ThirdAge/JWT Study, 2006

“This just in” According to new MS&L study, some

84% of digital influencers go online to find out more about something only after first reading about it in magazines and newspapers or hearing about it on TV or the radio.

» Adage.com, Dec ‘08

Perfect Combo: Building your client’s business

Generate Awareness Engage / Involve

Develop Interest Enables Transaction

Gain Familiarity Ongoing Dialogue

Build brand credibility

Customer Relationship

Broadcast Website(s)

Weaknesses Decision-maker/Buyer: Are they up to speed? Content differentiation Ad Ops/Technology:

– UE/Functionality, engagement – Targeting capabilities

Yestimonials– Case studies, success stories

Criticism from new media pundits-attacking “Old Media”– “One-Way Shovel-ware” vs “Conversation & Tools to

help get things done” Audience

– Local, limited inventory hence: rev potential?

Opportunities

Growing buyer (decision-maker) acceptance and understanding… “ We know we need to start somehow”

Local Online Spending: up 50%!! –Borrell Assoc.

AdOps: Station site capabilities are evolving - “coming in ‘09”; a little ‘rich media’ will go a long way! (DCLK study)

Resources (in some cases) to build, grow, and leverage strengths:– Partnerships waiting to happen

Threats Digital Ad Networks

– Targeted inventory at “low-low” prices! – Tribal Fusion, Value-Click, Broadband Enterprises

Newspaper, Cable, Mag Sites & Joint Ventures– QuadrantONE, CBS local, Canoe, Yahoo! Texterity

Rep, Publisher Networks– Digerati, MediaSpan, Centro (agencies)

Local Search, Site & Portal Options– CPC, Top Branded Placements, Contextual Channel

Targeting– Yodle.com, Craigslist, zvents.com, YP.com, SuperPages,

CitySearch, etc…etc…

Thestate.com

Local tie-in attracts local readers

Top Ad Networks

Rank

Site Uniques % Reach

1 Advertising.com 150M 85%

2 ValueClick 129M 73%

3 Casale 113M 64%

4 Tribal Fusion 112M 63%

5 Vendare/TMP 104M 59%

6 Blue Lithium 92M 52%

7 DRIVEpm 92M 52%

8 Specific Media 91M 52%

9 24/7 Real Media 90M 51%

10 Precision Click 76M 43%

11 AdBrite/Adify * Rocket Fuel!! 50M 30%

• A “Giant Baseball Mitt” for raw and summary data

• Agnostic to the type of data

• Focus is on correlations of any data to advertising response

• Massive data -> scalable audiences

43

FordAd32CTR is.18%

Yahoo!Autos FP

CTR is .5%

Cookie A382QClickedAd828

Facebook10-11pm CTR is

1.7x base

All data is good

Rainingin 94025

next 3 days

nnnn

Next Gen Targeting: Audiences Designed for Your needs

• One Size doesn’t fit all• Precise models

• “this user should like a specific credit card offer”• “ should work better on page943 in the afternoon”

• Automated model creation – no guessing required!

Introducing QuadrantONE

“Unlike Google, AOL and other Web sites, newspaper sites haven’t been able to supply the metrics and sophisticated tools that advertisers are now looking for, until now.”

Ken Doctor, Research Analyst

Newspaper solution: “‘The network effect’ by aggregating content from Hearst, New York Times Co, Tribune and Gannett.”

Dana Hayes, SVP, Tribune Interactive

Reps/Media Network

Enables local media companies to create, deliver and monetize content and advertising across traditional and digital platforms.

Automating the process of creating, buying, and placing TV spots for local and national advertisers.

Video ad network for online communities.

Magazine MigrationCase-Study: Spin Magazine

“The tracking and reporting data I can now observe is unbelievable”Tom Hartle, Publisher

Spin Magazine

Consultative Resource

Ask these questions, be prepared to answer these…

Workbook page 9 -11

Become a true Marketing Partner! Consultative Approach: Ask the right questions

– What’s worked in the past?• What hasn’t? Sites? Placements? Other Targeting?• Time of day? Zip Codes? Etc…• What do you consider a success?

Be able to answer key questions:• Which adserving technology do you use?• How can I target my message?• How do you drive/build traffic to your site?

No Substitute for Good Follow-Up

Clients respect Reps who ask:

– “How successful was the campaign?”– “Did we meet your objectives?”

• As measured or defined by specific performance, results

– “What could we have done differently? Or better?

Prospecting & Qualifying

Workbook 12 - 13

Efficient prospecting: Ya Think?

Effective Selling!

Top Tips for Success!

As described by Marketers: Online buyers, direct, agency, business owners

#1: Industry Knowledge, “ABC’s”

Communicate effectively: Provide supportive data,

site ‘metrics’ and case studies

Don’t know; B.S.

Your ABC’s

– Ad Serving– Benefits– Cost

A: Advertising Operations Dynamic vs. Static Delivery

– Broadcast = Fixed and Pre-scheduled– Online = Estimated on historical traffic and fluid

• Browser: Users/Visitors/Audience = PV’s = Imps = defines your available ‘Inventory’

• ‘Inventory’ surges on news/events (cnn/tmz.com) Ad Server (Propriety/3rd Party)

– Manages inventory, scheduling, targeting, serving, tracking, optimizing, reporting, etc.

– “Data is the New Creative” David Verklin, Former CEO, Aegis America

B: Benefits… = ValueThe Internet M-E-A-T!! Advertisers will continue to shift $$ because:

– Measurable , Quantifiable-see texterity.com for Mags – Engagement, Interactive (with their product/service)– Actionable, Transactional – Target-ability

Benefits: Supportive tidbits…

“The more engaging the environment, the more likely an advertisers’ message will get noticed.”– Darian Heyman, Founder Beyond Interactive,

1998

“Internet marketing works because it offers performance ‘feedback’ while delivering measurable, quantifiable data.”– Dean DeBiase, CEO Fathom Online/SEO Digital

Marketing, 2007

Higher Learning Sources/Resources:

– eMarketer, netlingo.com, google– IAB.net– AdAge.com:

http://adage.com/images/random/digitalfactpack2007.pdf e-Newsletters/blogs:

– MediaPost– ClickzGood Reads:– “The Long Tail: Why the Future of Business is Selling Less to More”,

Chris Anderson, Wired Magazine Editor – “Watch This. Listen Up. Click Here.” David Verklin, CEO, Aegis

Americas

C: COST:

CPW: CPM/CPA/CPC/CPL/CPE/Rev-Share Superior Targeting Capabilities Benefits: Established, Perceived Value Supply & Demand (‘fair rates’ vs ‘value-add’) Do the math! Quantify vs. ‘Flat Fee’

Various Pricing Terms, Factors

More Pricing Considerations

1. Use facts, rationale to support your pitch

2. Focus on site uniqueness3. Keep content current and relevant4. Use appropriate and ‘best’ advertisers

to build and stimulate demand Q: Is YOUR site a place where you can

impact your client’s business!?

#2: Price Sensitivity

Test budget; Minimize ‘Risk’ and pricing

terms? Perishable: CPWOverly expensive submission

#3: Performance and Results

Establish value by defining, quantifying your online audience

Flat ‘monthly' fee; with no or low perceived value

Online Media Kits Very few stations feature a media “kit” for their

online assets (formal benefits package): A typical station “kit” might suggest:

• Customized on-air/online packages • Local reach with on-air/site promotion • Association with highly trusted local brand • Reaching your target audience 24/7 • Building user database through registration • Reaching "at work audience" • Flexibility in delivering your ad campaign

Online Media Kits (cont’d)

– Exclusivity by category – Integrated content sponsorships – Integrated content targeting weather, sports,

health and more. – Targeted opt-in email campaigns (Text and

HTML) – Streaming video sponsorships – Delivery to wireless devices – Contest driven promotions – On-air support driving traffic to your content

Post your site visitor profile

• 54% Female / 46% Male

• 70% HHI $75k+

• 94% Shopped online in past 30 days

• 81% College Educated

• 72 % Married

• 43% 1+ children in HH

• 81% own a residence

Be sure to include Source of data

#4: Bring New Ideas; Drivers!

Inventive, creative, customized, exclusive & most

of all: LEVERAGE! Same pitch, different day

Dave’s Killer Bread: Integrated Campaign Summary Station produced 3 min video-cast Created ‘Client of the Week’ Feature &

Channel on Station Website…fixed position! Supported spot schedule with :10 tags

(web-drivers) and 30x/wk on-air promos (awareness/traffic)

Results: Sales +400%, Local TV Coverage

Dave’s Killer Bread

Engaging with community

List of local winners gives legitimacy to promotion and connects station to listeners

Demonstration of new ad formats:

Flash demo:Shows the stepsfor using Vongo

Lead form: collects data for Vongo to follow up with interested consumers later.

Complex, Multi-purpose Ad

Video: Their commercial gives the consumer more information on this new product.

Capture leads for your clients

Exclusive, unique

and data collection: all in one!

#5: Accuracy in Numbers

Realistic (even conservative) about inventory

Overly aggressive with avails

Station Package: Pitching By the Numbers 20,000 impressions/month (even distribution) generated from:

o :15-second audio or video pre-roll o A combination of leaderboard, skyscraper and cube advertisements…

exclusive, fixed positions on our Local Sports pages…o In-stream commercial ad insertion (accompanied by a synchronized,

linked banner in the player while they play. These ads can be static, animated gif or flash)

800,000 Drive time impressions/month generated from on-air full : 10-second commercial messages (5X :10’s per week M-F 5AM - 7PM).

3 month total impressions delivered: 3,660,0003 month net investment: $xCPM: $x

Page Take-Over: Package

Your Station

Logo Here

Sponsor

Sponsor

Sponsor

728 X 90 LEADERBOARD

160 X 600WIDE SKYSCRAPER300 X 250 MID-REC

Home Stretch: Immediate Impact!

Broadcast + Web: A Natural Combo– Workbook Pages 14-15

Supportive Research– eMarketer, Pew, Forrester

Building YOUR story, YOUR PLAN! – Customized for your clients!– Testimonials, case-studies

Workbook Appendix

Internet Jargon Supportive Research Integration: Consumer Buying-Cycle RFP Samples

»Workbook Pages 16-21

You’ve Been a Wonderful Audience!

Final Q & A Evaluation

Thank Each And Everyone of You! Steve Martin, 1975

Dave [email protected]

(415) 609-8911