You’ve arrived at a blog about transforming the companies that publish newspapers. And it’s a blog with an unorthodox point of view.
Here it is: News will not save you.
Why not? Because the disruption that’s pounding newspaper companies is not about people Read the rest of this entry
What if your local media company had a product that could make local businesses say, “Wow! Can you really do that???”
That’s the Holy Grail of media sales — a solution that meets an urgent need for customers in a way they have never before thought possible.
I saw that kind of solution a couple of weeks ago. I promise you — it will be big.
Best of all, it’s within our grasp as local media companies, and nobody else seems to be taking it to the streets in our markets yet.
It won’t be long before someone does. We need to be the first.
What’s this exciting solution? It’s taking Big Data to Main Street.
That is, it’s helping local businesses use Big Data to hyper-target their most likely potential customers.
Big Data has been much discussed in the media business for several years. As used by marketers, the term refers to the incredibly detailed data now available about individual consumers and households, compiled from online and offline behavior. Included are websites visited, links clicked, purchases made online and offline and other sources that provide vast amounts of demographic and lifestyle data.
In the media business, it refers to using that data to direct marketing and advertising messages to the most promising target consumers.
So far, using Big Data for marketing has been a practice largely limited to sophisticated digital marketers and national brands.
But Big Data is coming to Main Street — you can count on it. And soon.
I’ve blogged briefly on this before — most recently a couple of months ago, in describing my vision of the next-generation local marketing agency. Big-data marketing services for local businesses are a great fit for that business model.
I first glimpsed this opportunity when I talked to a sales rep from Axciom, one of the big data providers, at a BIA/Kelsey conference a couple of years ago. He was there to pitch media companies about becoming resellers of Axciom’s big-data services to local businesses in their markets.
The idea took on a new level of excitement for me a couple of weeks ago, when Morris had a couple of presentations from vendors — LEAP Media Solutions and Marketing Solutions Group — that use Big Data for circulation marketing.
Their pitches were centered on matching up a newspaper’s existing subscriber data with online and offline sources of additional data. By doing this, they can add immense amounts of additional data to each subscriber record.
That way, they can identify the characteristics of the most likely new subscribers.
The data range from the simple and obvious — age, income, family status — all the way to amazingly precise information about buying habits, responsiveness to various media, interests and lifestyles.
The next step is to search the whole consumer population of your market to find non-subscribers who match your subscribers’ characteristics — sometimes called customer cloning — and market them.
These vendors offer turnkey marketing services — e.g., telemarketing, direct mail, email — to reach them. The Big Data on your subscribers even provides cues on which of these channels will be most effective.
I sat there, particularly in the MSG presentation, thinking that newspapers aren’t the only kinds of businesses that need this kind of precision marketing.
Every kind of business needs this.
No matter what your business sells — jewelry, pet supplies, financial planning, home improvement services, furniture, etc. — you want this. You don’t want to blast expensive marketing messages to everybody when Big Data can help you target the consumers who are most likely to buy, and can help you tailor the messages to the specific characteristics of different types of consumers.
Pitch this powerful capability to local businesses and you’ll get the Holy Grail response: “Can you really do that?” Followed by, “How much would it cost?” and “When can we start?”
Most local businesses have no idea that these capabilities are available — or, if they do, they have no idea how to take advantage of them.
During the MSG presentation, I asked Monica Bartling, their CEO, if she could perform the same service for businesses other than newspapers.
That is, if we could get a business to share its customer database, could she run the analysis to reveal the customers’ key characteristics? Could she run those characteristics against the entire population within a given radius of the store and identify the best prospective new customers? And which media would be most effective?
Not only could she do it, she’s done it. Later in her deck, she had a slide showing how a newspaper in the Quad Cities had her do that for a local jewelry store, enabling the newspaper to propose a killer marketing program using the most effective media to target the most likely jewelry customers.
Folks, this is the future. The days of selling blind, blanket-reach media solutions to local businesses are numbered.
The pitch of the future is not about selling a media product. It’s about selling the ability to reach exactly the consumers who are most likely to care about your product or service, using whatever channels and messages provide the highest yield per marketing dollar.
Facebook offers a similar solution under the name Custom Audiences. Businesses can upload their customer lists and then target banners ads to “lookalike” Facebook users. This doesn’t use the comprehensive online/offline data providers like Experian or Axciom, as the vendors above do. But Facebook does have massive amounts of data on its own users.
For local media companies to sell solutions like these, they have become target-audience obsessed and media-agnostic. Whatever works best for a given customer group, our salespeople need to be ready and able to sell.
Personally, I think it would be a blast to sell this solution.
And we wouldn’t just be selling advertising; we’ll be providing all the key elements of the pinpoint marketing plan:
- Customer-base analysis.
- Customer cloning.
- Tailored marketing creative for each important customer segment — both to win new customers and to generate more business from past customers.
- Multi-channel message-delivery plans using the channels that deliver the most response for the least money.
- Analysis of results and adjustment of ongoing marketing.
- Year-round marketing programs to keep new customers coming in and old ones coming back.
But wait — can we get local businesses to hand over their customer data for this kind of analysis? We’ve never been able to do that in the past.
Monica says that in her experience, no business has ever said no once they understood what the benefits would be. And customer lists can be ingested and analyzed in just about any form — a business doesn’t have to have a sophisticated system to participate.
Based on the capabilities of these vendors, a local media company could get started on this new opportunity right now, using the marketing channels they currently support — direct mail, email and telemarketing.
But a couple of additional channels need to be added — programmatic buying of targeted banner and video advertising on the web, and social media marketing. These are top contenders for best ROI, and they would be a perfect fit with a data-driven approach.
At Morris, we can probably figure out the former because we’ve been selling targeting and retargeting across the web for a couple of years now. And maybe we can figure out social, too.
It would be best if all these channels were integrated and available now. But let’s not wait until everything is perfect.
Let’s start now.
In the traditional media, we’ve been witnessing the painful exodus of advertising and marketing dollars for 20 years. We’ve been the victims of wave upon wave of disruptive innovation.
This time, let’s take the lead. Let’s be the ones who take Big Data to Main Street.
Twenty years ago, my family had a problem.
We were the sole and devoted owners of a successful stand-alone daily newspaper in Monroe, MI. But our principle shareholders — my father and his brother and sister — were advancing in years and had no solution in place to transfer ownership into my generation. It seemed we had two options. Read the rest of this entry
When your comfortable, well-established business model is being disrupted, one of the toughest challenges is looking beyond your old business model to visualize what you must become.
In past posts on this blog, one by one, I’ve pointed out a host of new opportunities that are emerging in local media markets. In this post, I’m going to roll them up into a single new business entity we can visualize and work to develop. Read the rest of this entry
For local news media, the most crippling disruption served up by the Internet isn’t in news — it’s in advertising.
And it’s not just other players getting the ad spending we used to get, although there’s plenty of that going on.
The more insidious advertising disruption is that local businesses need less and less advertising than they once did. Read the rest of this entry
Sounds like a great session for a publishers’ conference, doesn’t it? It’s a big topic for local media businesses these days, as mobile web traffic surpasses desktop traffic for more and more newspapers, magazines and broadcast stations.
That’s why I spent an afternoon searching the Web recently. Read the rest of this entry
A recent email from Internet Retailer grabbed my attention.
Its purpose was to plug their new annual Top 500 Guide — a huge directory packed with stats on who’s big in e-commerce, who’s growing market share and who’s not.
But what caught my eye was their take on what’s new in the data.
For years, it said, previous guides had shown big-box stores getting drubbed in e-commerce sales by web-only e-tailers.
“But,” the email said, “…that began changing in 2013, when the chains closed the gap by growing their online sales by 16.7%, taking market share away from manufacturers and catalogers…. Read the rest of this entry
Lots of people understand that the traditional business model around news is breaking down. Far fewer realize it’s not just the business part — advertising — that’s broken. It’s also news itself.
Why is this so hard to understand?
A planet full of people is going from a daily diet of a newspaper and a couple of news broadcasts to constant access to almost everything there is to know. Inevitably, this is causing people today to want and expect different things from their time spent on content than people did 20 or 50 years ago.
But what we produce as news has hardly changed. Read the rest of this entry
For those of us in traditional media, it’s the source of our problems, and it’s also the uncharted space of our new opportunities.
With bandwidth rising toward infinity and costs falling to near zero, it’s enabling all sorts of new content models to eat our lunch. “Free” digital bandwidth has enabled all of our disrupters, from early ones like Craigslist and Facebook and to newer ones like BuzzFeed, Instagram and SnapChat. And more will keep coming. Read the rest of this entry
It’s the Year of the Millennials, according to Pew. In 2015, at ages 18 to 34, they will surpass Baby Boomers in the U.S. to become the largest living generation. And a major new report by the Media Insight Project, just released at the NAA mediaXchange, sheds a lot of new light on their consumption of news.
The report (pdf, html) emphasizes the bright side, stressing the finding that most Millennials do value news and consume it regularly. But the most worrisome finding for newspaper companies is that they rarely go to traditional news providers to get it. We are far back in the loop, when we’re in it at all. Read the rest of this entry
Media folks, can we all agree on this statement?
- We’re in the audience business.
If you disagree, we need to talk, and we’ll do that in a minute.
But first, here’s the nut graf:
As an audience business, we’re overdue for a drastic rethink of what we do. Too often, we’re still doing 20th-century audience thinking amid the starkly different realities of the 21st century. We’re getting pounded on the audience front, and we have to figure out what audience strategies will work in this new environment. Read the rest of this entry