FUTURE OF LATIN MEDIA Is it going where it wants to go or where it should go?
Nov 01, 2014
FUTURE OF LATIN MEDIA
Is it going where it wants to go or where it should go?
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SPANISH LATAMBRAZILSPAIN
“Don’t tell me what you believe,tell me what you know”
From a grumpy old-timer to a flamboyant young politician in a TV show
Internet is a disruptive technology for media business
FACT #1
Disruptive technology changes the value proposition in any industry
FACT #2
The Chicago-based company now generates 85% of its revenue from digital sales, and also recently started offering a digital encyclopedia for tablet computers.
The company began digital publishing in the late 1980s with CD-ROM versions of the books, before going online in 1994. Online versions of the encyclopedia are now used by
around 100m people worldwide.
Some companies deliver new value
And some don’t …
“Newspapers took two cents of journalism and wrapped in ninety-eight cents of overhead and
distraction”
A very harsh vision of the newspaper value proposition by digital guru Seth Godin
SENSE OF BELONGING
COMMUNITY
TRUST & REPUTATION
BREAKING NEWS
NEWS CURATION
OPINION & ANALYSIS
DEALS & SALES
CLASSIFIEDS
SWEEPSTAKES & PROMOTIONS
SERVICES & GUIDES
PORTABLE
ON DEMAND
Newspaper value proposition in the Golden Age
Along came the Internet
SENSE OF BELONGING
COMMUNITY
TRUST & REPUTATION
BREAKING NEWS
NEWS CURATION
OPINION & ANALYSIS
DEALS & SALES
CLASSIFIEDS
SWEEPSTAKES & PROMOTIONS
GUIDES & SERVICES
PORTABLE
ON DEMAND
And changed this value proposition
The naked truth (FACT #2 )
The naked truth (FACT #2 )
The Internet disruption has happened, and the business has been irrevocably altered.
The only way to survive disruption is to understand the value you need to deliver and shape your oganization accordingly(and it will be painful …)
FACT #3
AUDIENCE ADVERTISERS
VALUE
ORGANIZATION
Where should LATIN MEDIA go?
1
The DO NOTS are much more clear than the DO’s
Profit from the time window opportunity and learn from the mistakes the big guys made
Try to avoid 6 frequent sins of digital transition for media companies
(the bigger the company, the higher the frequency)
Cold feet (a.k.a Denial)
When the net blossomed in the 90 s, why didn’t newspapers ′respond?
Because classified ads were a cash-cow and CEOs were responsible to Wall Street, so few had the courage to see Craigslist as a threat
and blow up their cash-cow.
And that is the Innovator’s Dilemma.The giants won’t eat their young.
Cold feet (a.k.a Denial)
When the net blossomed in the 90 s, why didn’t newspapers ′respond?
Because classified ads were a cash-cow and CEOs were responsible to Wall Street, so few had the courage to see Craigslist as a threat
and blow up their cash-cow.
And that is the Innovator’s Dilemma.The giants won’t eat their young.
IF SOME ELSE IS GOING TO TAKE YOUR REVENUES AWAY IT WOULD BETTER BE
YOURSELF, BUT PLAYING BY THE NEW RULES
Newsroom and product egocentrism
Forget about ‘content management’ and focus on ‘audience development’
Content is just a means to an end.
The end, and media’s greatest asset, is audience.Advertisers don’t pay to reach content , they pay to reach
audience
Newsroom and product egocentrism
Forget about ‘content management’ and focus on ‘audience development’
Content is just a means to an end.
The end, and media’s greatest asset, is audience.Advertisers don’t pay to reach content , they pay to reach
audience
DON’T LET YOUR STATUS QUO DETERMINE THE VALUE PROPOSITION.
DON’T FALL IN LOVE WITH YOUR CMS.
DON’T FALL FOR GEEKIE STUFF.
PRODUCT (TECH) & NEWSROOMS ARE CONSECUENCES, NOT CAUSES
But this theory that newspapers could have somehow won a war against the internet if they had just charged users for content misses the point.
The “original sin” of the online news business
A failure to charge for content when the web was new
The paywall mirage
Some publishers say, “They bought it before, they’ll buy it again,” or “We need to get people back into the habit of paying for news.”
But consumers never did pay the true costs.
Newspapers have never made the bulk of their income from readers who pay for content.
Subscription prices and newsstand sales have always been subservient to advertising.
Besides paywalls are a privilege only for a few producers of differentiated content.
Some publishers say, “They bought it before, they’ll buy it again,” or “We need to get people back into the habit of paying for news.”
But consumers never did pay the true costs.
Newspapers have never made the bulk of their income from readers who pay for content.
Subscription prices and newsstand sales have always been subservient to advertising.
Besides paywalls are a privilege only for a few producers of differentiated content.
ENCOURAGE READERS TO SEE THEMSELVES AS MEMBER OF AN EXCLUSIVE CLUB WITH PERKS
AND REWARDS.
BUILD RELATIONSHIP FIRST, THEN MONETIZATION FLOW FROM THERE.
Direct response immitation
Advertising dollars are already online, just going elsewhere (evil companies …)
This confirms a much feared trend. By and large, in a news context, the performance of digital advertising is on the decline.
All indicators are now flashing red: CPM (cost per thousand impressions), cost per click, volumes, yields, etc.
NOBODY CLICKS ON A BANNER IN A NEWS SITE
The cause is well-known, and way more acute for digital than for print: ads and news contents do compete for the same eyeballs.
DELIVER ADDED VALUE FORMATSRICH MEDIA
CONTENT MARKETING
INTRUSIVE ADVERTISING
BRANDING SOLUTIONS LEAVE TRANSACTIONAL TO GOOGLE
Boxing Mike Tyson
Do everything pure play Internet companies are doing but with a worst value proposition
We did it many times and failed. But lucky enough, we knew how to fail fast.
(let me share our two worst cases …)
SELF SERVICE ADVERTISINGPLATAFORM
VIDEO PORTAL
We did it many times and failed. But lucky enough, we knew how to fail fast
IF YOU ARE GOING TO FAIL, FAIL FAST
[The iPad is] a fatal distraction for media companies. Too many publishers looked at the tablet as the road home to their magazine
format, subscription model, and expensive full-page ads.
The format of a single device does not change the fundamental ecosystem underneath it, and this shiny tablet has taken media
companies’ eyes off of the ball.
Probably you will only be successful in migrating your actual faithful base of paper products to a new device.
The tablet paper replica illusion
[The iPad is] a fatal distraction for media companies. Too many publishers looked at the tablet as the road home to their magazine
format, subscription model, and expensive full-page ads.
The format of a single device does not change the fundamental ecosystem underneath it, and this shiny tablet has taken media
companies’ eyes off of the ball.
Probably you will only be successful in migrating your actual faithful base of paper products to a new device.
The tablet paper replica illusion
REMEMBER. NEW GAME & NEW RULES
ZITE AND FLIPBOARD ARE SETTING THE BENCHMARK
REGARDLESS OF THE CAPABILITIES OF THE DEVICE, VALUE IS STILL THE ONLY THING THAT MATTERS
The one thing Latin Media should do?
BUILD A NEW VALUE PROPOSITION FOR AUDIENCE AND ADVERTISERS
MEDIA SUPER HERO
VALUE MANDOCTOR CONVERGENCE
CAPTAIN BUNDLELADY PAST GLORY
TECHIE SERIAL COPIER
Fights a legion of super-villians in the QUEST FOR
VALUE
Custom Publishing
On line Classifieds
Direct Response
Digital ContentsEventsNewspaper Magazines
Chinesse walls strategy
FOCUS IN FINDING THE VALUE PROPOSITION OF EACH BUSINESS
Autonomy
Independent decisions
Specialization
Focus
No interest conflicts
Sacrcity
The need to survive
100% responsible of your future
Alive and kicking
357.920
246.948
2008 2009 2010 2011 2012
Newspaper Sunday circulation
150,000
175,000
200,000
225,000
250,000
275,000
300,000
325,000
350,000
375,000
357.920Ejemplares
246.948Ejemplares
Fuente IVC – Venta Neta total de ejemplares día domingo Enero 2008 - Marzo 2012
2008 2009 2010 2011 2012
+44%
2008 2009 2010 2011 Abr-12 Objetivo 20120
100000
200000
300000
400000
500000
600000
700000
800000
215.136
267.794
403.251
539.048573.409
687.500
Club La Nación
LA NACION and Impremedia
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