You Exec (youexec.com) Pitch Deck

Transcript

Video Publishing: Transitioning to the Digital Age 15 July 2017 It’s difficult being a Publisher migrating to digital today... AD AGENCIES AFFILIATES WANT BLIND INVENTORY WANT DUMB CONTENT Own Audiences Own Audiences Limited view of ad performance Commoditizing Ad sales Limited view of content performance Cannot improve content without audiences, we will not survive We must own audience/ data to refine content and optimise our revenues Already moving to own Ad Sales So we are forced to build digital strategies out of compulsion MEDIUM TERM SUCCESS SHORT TERM SUCCESS CONTENT REACH CONTENT REACH LONG TERM SUCCESS CONTENT REACH Data Data Data SALES SALES SALES Initial Mandate: • Set up Data and Programmatic Ad Sales capability Current Need: • Need to sustain pipeline for data and ad sales • Set up Partnerships to expand reach Expanded Scope: • Full-fledged Digital Product + Content Strategy across owned products and digital syndication Let’s begin from the basics – Digital Publishing is a lot like TV CONTENT REACH Audience For TV, Panel Data drives all decision making and revenue For Digital it is Digital Audiences (DMP) SALES We have to choose our strategic focus... CONTENT REACH Audience Each of these is an “Engine” or Business Function – we can choose to retain or outsource them as we please SALES So how do we approach Data, Content and Sales? Content is our lifeblood and needs to be continually tailored based on audience CONTENT REACH response and saleability. Audience Data is hygiene for survival, and Audience immediately needed across partnership/ syndication/ owned products Sales is critical to control to get continuous feedback on financial performance of our SALES assets, but can be traded away for very few key partners/ JVs Before we get to Reach... there are 3 currencies in any partnership: Content, Audience, and Technology Traditional Video Publishers CONTENT AUDIENCE Digital Newspapers TECH We have content but a limited digital audience (and audience data). Limited tech stack. CONTENT AUDIENCE TECH Newspapers per definition have a lot of content and often big audiences, but may be interested in premium video as a niche. Sales networks AdTech CONTENT AUDIENCE TECH AdTech companies often provide tech to other partners being Publishers or Advertisers. In pure form no own content and audience CONTENT AUDIENCE TECH The sales networks business model is to provide audience across properties, either utilizing own tech or using adtech. Social Networks CONTENT AUDIENCE TECH The two big ones are masters in audience and tech – but do not own and produce own content. Publishers must trade content for Reach and Data (Audience) Publisher alliances are one defence, but not a real strategy Data Threat Publishers that see Facebook and Google as the main threat can build a moat by forming a data alliance that will enable them (in theory) to provide better targeting data in their market. It is key to get as many publishers as possible into the alliance. It will be a “public goods” game in the market, a defensive move that will benefit all. Examples: - Emetriq - Nonio Mkt share Threat For publishers that focus on increasing market share the zero-sum game is not appealing. They can instead choose to form alliances with select partners in the market to gain an advantage of scale and take market share from non-members. Typically we see these collaborations as combined sales and data setups. Examples: - DUN - Aunia - The Pangea Alliance - Schibsted/ DAX/ Acast – Discovery partnership Publishers are scrambling to find a play that will strengthen their position vs. Google and Facebook AND increase market share ...so let us get to Reach, what are the models available to us? REACH Digital Syndication Immediate Scale, Tech + Data Investment, Data Modeling Strategic Partnership JVs Owned Products Long-term, high investment, Rich User Data CONTROL/ EFFORT/ INVESTMENT Digital publishers need to let go of the “ownership fallacy” Web Ocean • Add behavioural Data • Build reach • Sell ads Embed Player • Add behavioural Data • Build reach • Sell ads Own app contributes only 3-5% of traffic*, but takes up maximum investment Each channel monetized proportional to reach Partnership • Add behavioural Data • Build reach Own App • Build rich user profiles • Control user experience • Sell ads Core Identity built off Own App, extended and used to sell ads and refine content So what does modern Digital Publishing end up looking like? Own Products Reach Partner A Reach Partner B JVs Digital Syndication Outsourced Distribution Owned Ad Sales Content Flagship e.g. Olympics, Kids Short Form Mid Form Data/ Identity Flagship derivatives Always Owned This demands an entirely new toolkit WIP: Will display Adobe tools here, relevant to a publishing ecosystem spread across owned and syndicated properties