How to build sustainable revenue from digital media 2014 john barnes

London | February 25th, 2014
Sustainable Revenue from Digital Media
@JohnMNBarnes
MD Incisive Media

Digital Publisher of the year 2010 & 2013

Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating

We’ve heard the allure
of digital revenue for
more than a decade
Yet many publishers still
report that print
supersedes digital
And a majority of
publishing organizations
continue to structure
people, processes, and
tools to support a printfirst environment.


But, what has worked in the past
doesn’t always work in the future...


…and what we think will work in
future may have serious flaws…



The three horizons of growth



London | February 25, 2014

Sustainable Digital Revenue

Evolution of Incisive Digital strategy over time

BUILD BUSINESS

EXTEND AND DEFEND

1990’

2000’

2010’

Platform

Brand

Audience /
Community

Short-term
extensions / products

Reach / Platform /
Brand

User engagement/Multiscreen / Synchronous use

Focus on reach and extensions
of print brands into online, and
adjacent markets

“Multi-screen”, web-first strategy
focused on engaging communities
through multiple media – web,
print, tablet, mobile

CREATE VIABLE OPTIONS

“Deep and narrow” strategy
focusing on vertical communities
served with print publications

1995

2014

1st Banner ad
served

2+ Billion ad
imps served
18



Digital revenue exceeded print revenue for the first time in 2012





In the multi screen first world, we are not competing for attention
between content and adverts anymore…





..but between activity and screens, and detailed knowledge of the users!

Source Google 2012


The vast majority of our daily media interactions are screen
based

10


Our online time is spent between four primary media devices

11


Context drives device choice

12


There is no secret formula for
sustainable digital growth but, data
is now the key driver!



Each device has very
different peak usage times
throughout a typical day,
highlighting their varying use
cases and value propositions
to the digitally-connected
consumer.





A user day, risk.net

15


There are two modes of multi screen use

16


Smartphones are the most common starting place for online
activities

17


What does this mean to us?
 Rather than assuming users consume digital on different devices in
silos, the multi screen world will:

Be based on a trusted relationship between the publisher and the
user, across devices

Users will be tracked across devices to close the loop on
attribution

For example a user sees a Ford ad on a tablet, they play around
on the Ford site the next day on their smartphone, and book a
testdrive from their desktop PC at work later that day

Agencies and advertisers cannot know they are the same person
Publishers can
Using tools like PPID (publisher provided ID) and MD5#

 Our goal is multidevice and multichannel attibution, with a more
engaged and loyal customer



Making audience the purchase, not the platform
Different Devices – same audience – different strengths

Browsers, Editions & Apps – strategic positioning

Smart Phone
One hand
Digit
Multi function
On demand
Compulsive
Tablet
Two hands
Gestures
Linear task
Lean back
immersive

Browsers, Editions & Apps – Computing
Computing
Computer

Computer
Desk
Type and Pointer
Multitask
Lean forward
Practicality

Browsers

Editions & Issues

Computing.co.uk
Fortnightly zMag
Will be fully responsive Moving to App Studio
on unified template by
HTML 5.0 Browser
Q2
version in Q2

Apps & Tools
chrome app

SmartPhone

m.Computing.co.uk
Fully responsive

?

Google Currents

Tablet

t.Computing.co.uk
Fully responsive

Quark app studio
produced version in
Apple and Android
Stores

CTG Resources
(available on IoS and
Android, available in
Apple, Android,
Samsung and Amazon
app stores)

All have a browser, mail client, apps & digital issues!

It is now not about size, but the quality! Large
circulations are less valuable than custom
audiences, and command the highest prices
20




This is why we needed Scout
To understand and collect:

Data on the way company’s and individuals were
engaging with our content

a platform that combined engagement data with
revenue

Made the insight accessible and actionable by
our sales and marketing teams

Helped us to track platform use
To allow us to measure engagement data and

revenue to increase retention and life time value

Understanding who users are, what devices
they use, when and where in the day, and why
is now at the heart of our revenue strategy

22


23




The Most Valuable Audience: Subscribers

JB

24




Owning the inbox
Prior to 2013 our complex matrix of brands,
products and customers prevented delivery on
our email vision at speed and at scale.
We now have a single system that automatically
creates newsletters that adapt to device:

For 127 newsletter templates
Across 26 products
Built on dynamic news feeds and a library of specific
marketing messages





What’s a MD5 Hash?

=

jb@incisivemedia.com

26




What’s a MD5 Hash?

=

43307bb5a669b247270a4d81cce6f3ff

27




Dynamic templates customise the experience

Adapts to screen size
Specific marketing feeds
and messages

Delivered to specific data
sets

Pre-selected XML feeds
from the CMS matched
to data


Dynamically inserted ads
via DFP or Live Intent



And MD5# allows us to create custom segments

Retention

15% OFF
Just for
you, JB!

29

Re-activation

We’ve
missed
you, JB!

Supression

Don’t tell
JB!




More efficient
 Daily emails require NO editorial intervention
 Emails are compiled and despatched to a specified list
automatically
 Deployed to all brands within 3 months





More effective
The daily update is now a vital engagement
channel for Risk.net subscribers via email

51% of people read the 6am email on our mobile
enabled format (and are all tracked with MD5#).




The future:
Automated corporate emails
Content matched to behaviour
Segmented by status

Owning the relationship with the customer in
the inbox and beyond





The Right Impression, Everywhere (MD5# or PPID)

= jb@incisivemedia.com = 43307bb5a669b247270a4d81cce6f3ff

33




Hashes are Cross Device & Cross Platform

34




Engagement data & revenue is combined & accessible




Scout delivers on retention and value




Custom audiences and the private ad exchange…
 First stage was upgrading to Doubleclick for Publishers (DFP)
premium

Single integrated platform
Extending DFP solution to include Bid Manager, Ad-X, Optimise and Audience
Adding Admeld, Live Intent and OnScroll tech to our solution

 Streamlined management across platform and functionalities

This included video, mobile audience and data management
With a focus on monetisation and audience segmentation
Using concept of eCPM to evaluate and tune house campaigns

 Key goals were to:

Maximise value of inventory, and Improve trafficking efficiency
Create new advertising opportunities, and Showcase our product offering





Incisive Ad operations now have clear objectives..

 To maximise the opportunities and value for our advertisers,
both internal and external, we have:

increased the effectiveness of our direct and house
advertising in order to maximise inventory

taken full advantage of our high-worth audience on
private exchanges and premium

Monetised first and third party data on our own and other
networks, including audience extensions and our email
inventory

And truly understood the value of our data by operating
as buyers and sellers in the programmatic environment





Markets – prior to the private exchange we sold markets as verticals





Post private exchange we sell audience across verticals e.g. Lawyers

Using retargeting within our own network




Most inventory is traded on data!

3rd Party Behavioral

3rd Party assumed intent

1st Party demographic

 B2B data has always been more sophisticated than B2C, it is based on
actual demographics per user (1st Party)
 Because of the historic lack of B2C data, agencies and advertisers think
that the current levels of data are sophisticated
 We think they are basic, because they are based on assumed intent and
historical behaviour, NOT on the user demographics with intent and
behaviour overlaid




Intent and behaviour data, the flaw!

Johnny

Tim

George

 All three like Sport (particularly Cycling, Cricket and Rugby)
 Enjoy air travel, staying in hotels and eating out
 Love technology and automobiles, especially supercars such as Ferrari’s




B2B value is in the articulation of our first party data
 But it is hard to detail our
audiences using behavioural
terminology.
 Third party data is “intent” driven
and generic and not of specific
relevance to our (b2b) advertising
clients

Incisive 1st Party demographics

 but it can be overlayed with
existing audience segments to
add a degree of targeting
 e.g.Computing registered users +
visitors to Autotrader + those who
have viewed car ads = qualified
high net worth carbuyers







Intent and behaviour data – the solution!

Johnny


Tim

George





Johnny

Tim

George

Intender






Johnny

Intender


Tim

George

Behavioural Intender





Johnny

Tim

George

Intender

Qualified Buyer

Behavioural Intender





Examples of Data overlays


Incisive 1st Party demographics





Collecting first party data to enrich the exchange with quick questions





Re-targeting: Agencies and networks don’t have audiences!
 All they can do is target and buy on
behaviour and intent
 They cannot retarget as they do not
have a first party, unique, loyal
audience, therefore lacking quality
 As a result they want volume to
minimise risk, and maximise
discount, because there is innate
waste in this approach
 Publishers can counter this by
overlaying 1st party demographic
data, with behaviour and intent
 This massively improves targeting,
reduces volume and increases value




Publishers do - Example Campaign – Risk.net
 On Risk.net
 75,000 impressions ROS geo targeting
US only = $140CPM = $10,500

On Risk.net

 Retargeted (or Audience extension)
 120,000 impressions via Google ad
networks targeting individuals that
Incisive Media has dropped a cookie on
when they have visited Risk.net and
seen the CME ad = $80CPM = $9,600

Retargeted

 Total rate = $20,100, Total impressions =
195,000





Incisive private exchange – creating value through exclusivity

 The opportunities for publishers are :

Building value through exclusivity and clarity on audiences for the
trading desks

Access to budgets dedicated to automated trading and a new range of
clients

Increases the value of first party data and increase the efficiency of all
digital advertising

Act as a buyer of our own inventory to value and tune house
campaigns

With a 400% increase (a 7 figure sum) in traded revenue in 2013





Turning “Whitespace” into AdSpace Most pages are undermonetised
 Typical “Incisive” page
length over 5500 pixels
deep
 Typical “whitespace”
between end of column and
footer of page over 1,500
pixels – often over 3,000
pixels
 Average last position of ad
within left hand column
2,275 pixels





All ads can be premium with viewability

 Additional Ads Delivered entirely
on user “scroll”
 Typically over 50% of additional
ads served for over 20 second
(well over the 50%, 1 second
viewability metric)
 Generate around 12% additional
inventory on sites employed.
 Click performance over 500%
higher than standard below the
fold placements.
 Demo Page:
http://www.v3.co.uk/blog/it-sneak-blog



So what have we learned?



The data of who, what, when, and
why is what will be used to create
custom audience



It is now not about size, but the quality! Large
circulations are less valuable than custom
audiences, and command the highest prices


Operating as a buyer of our own
audience is giving us real insight into
the quality, uniqueness and value of
our data!



The desktop is
the distraction!
Not mobile



…oh , and that CPM is a fatally flawed metric, ‘a Crap
Publishing Metric’, that rewards scale, devalues quality and
does not reward specialists who spend time, money and
expertise building high value audiences



THANK YOU
john.barnes@incisivemedia.com
Twitter.com/johnmnbarnes
Linkedin.com/in/johnmnbarnes



How to build sustainable revenue from digital media 2014 john barnes

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