Mission Statement BDT Online is committed to the past, present and future. We will provide accurate and relevant local content, creating a foundation to build a better quality of life ~:~ Have Fun Make Money Do good work Chris Kanemura, Honolulu Advertiser-Honolulu, Hawaii Zella Evans, Post Register-Idaho Falls, Idaho TABLE OF CONTENTS Executive Summary ............................................................................... 2-4 Staffing Strategy..................................................................................... 5-9 Redesign Strategy.................................................................................... 10-13 Content Strategy ..................................................................................... 14-22 Banner Advertising Strategy ................................................................. 23-29 Obituary Strategy ................................................................................... 30-32 Classified Strategy ............................................................................... 33-39 Auto Vertical Strategy ............................................................................ 40-41 Real Estate Vertical Strategy ................................................................. 42-43 Circulation Strategy................................................................................ 44-50 Registration Strategy .............................................................................. 51-56 Health Vertical Strategy ......................................................................... 57-60 Economic Development Strategy ........................................................... 61-64 Paid Content Strategy............................................................................. 65-74 Archive Strategy...................................................................................... 75-77 Implementation Strategy ........................................................................ 78-82 Vendor Recommendations ........................................................................83 Acknowledgements ....................................................................................84 Budget ...................................................................................................... 85-94 -1- Executive Summary Introduction The evolution of the Internet has forever changed the landscape of business in the world, newspapers are no exception. Resisting change will only prolong the inevitable and increase the difficulty of gaining a foothold in the market. The Bluefield Daily Telegraph, a community newspaper founded in 1893, recognizes the need to adapt and change to ensure success. This plan outlines changes that can be made within the core competencies of the newspaper that can help them thrive. New breeds of competition are emerging from industries that were once not considered newspaper competitors. Even as the dominant news organization in the BluefieldPrinceton, West Virginia area, the Bluefield Daily Telegraph is aware of the threats to their business. Change also brings new opportunities. Online strategies bring the potential of new revenue, enhanced content, improved customer service, interactivity and increased reach/readership. The Bluefield Daily Telegraph’s web site, bdtonline.com, boasts an average of 200,000 visitors per month, a healthy supplement to their 20,500 circulation. This plan provides strategies to help them secure their core business and attain new revenue and maximize the potential of the web site. The apple core used in our logo represents the focus on the most essential portions of BDT’s online strategies. The Bluefield Daily Telegraph will focus on the competencies they are best at: Newspaper reporting, advertising sales and community involvement. Like an apple core, our business plan contains the seeds in which the roots of a successful web strategy will emerge establishing a strong foundation for the site to grow upon. Business Concept The focus of this plan is to identify fundamental strategies that will create a solid foundation for both revenue and readership. These strategies are deemed ‘core’ either by newspaper industry standards or by the strength of the opportunity in Bluefield’s market. Offered are different paths (options) the web site can take as it evolves. Registration and paid-access models are examples of those paths. For our purposes core strategies include topics regarding content, classified, advertising, design, circulation, customer service and staffing. Local market opportunities that can be leveraged include an economic development plan, a health vertical and advertising solutions to develop new classified opportunities in both print and online. Current Situation The Bluefield Daily Telegraph is the dominant leader in the area for news today. Bdtonline.com provides local news, top national news, editorials, obituaries and more. Readers are engaged online with the feed back area. Various staff push content to the site, which is updated once daily. The web presence is managed by the executive management team. Strengthening classified is critical in both print and online. Banner advertising appears on most pages and generates modest revenue. Top Ads, a component of the classifieds are on the web site currently, but are often left unpopulated. -2- Factors to Success Execution of the strategies recommended in the plan will determine the success of the web site. Using the implementation calendar as a guide, the BDT management team can gauge progress. Every effort to provide the data necessary for the decision making process has been made. Only the BDT can determine which strategies most closely align with the newspaper’s core competencies and in which strategic direction to proceed. The timeline for each strategy is meant to serve as a guide to meet goals, each strategy can be implemented at any time. Year 1 The first step of the plan recommends the Bluefield Daily Telegraph hire an online manager to oversee the web site operation. Redesigning the site will be the first priority of the online manager. Design, technology and interactivity will be integrated to maximize the potential and effectiveness of the web site. The new design will allow bdtonline.com to take advantage of new banner ad standards that will improve effectiveness of ad campaigns and increase revenue. Obituary information will be enhanced using application service provider, Legacy.com, providing new upsell opportunities. Obituary rates will be raised to reflect increased value and to cover expenses. By the end of the second quarter, the Bluefield Daily Telegraph will begin to reclaim the classifieds market by leveraging the strength of its brand and the combined power of print and online. Increasing assumptive sale prices will better reflect the value of the classified product and add revenue. Classified ad placement will be available online 24/7/365. Top Ads will be implemented site-wide to attract passive readers and extend advertiser exposure. The power of the Internet will be used to integrate the web site with the circulation department. Print subscribers can manage their accounts any time of day, pay their bills online and utilize subscriber services. This online service is to be heavily marketed. Year 2 At the beginning of year two, the Bluefield Daily Telegraph will determine whether to require readers to register or whether to implement a paid access model. This decision will be made by management after answering questions and determining whether or not various revenue goals can be met. The questions, benchmarks, pros and cons are outlined in the plan. Implementing a registration model will allow readers to personalize content, while the Bluefield Daily Telegraph will be able to collect demographic and behavioral data that will be used for target marketing and advertising. The revenue plan and budget for this business plan does not include the implementation of a paid access model. Revenue attributed to verticals or open areas of the site will not be affected to the same degree as banner advertising opportunities. -3- With revenue projections on target, a sales position can be supported. A production position will be added to assist with the online operations. Real estate and automotive classified will be separated from the general classifieds and placed into their own verticals. The strategy for both these verticals will utilize applications that are customized to enhance industry specific classified categories, creating new advertising and reverse publishing opportunities. A tourism and economic development strategy will be utilized in the second half of year two. This strategy addresses the role that the BDT can play in an effort to revitalize the local economy. The BDT will work cooperatively with the Chamber of Commerce and Economic Development Council to market the area as a destination. The content will take the form of a tab in print and will run online in a tourism vertical with an emphasis on history. A health vertical will be implemented in the second quarter. A medical directory will be included in both print and online. The Bluefield area has three hospitals and a strong medical community. This strategy offers advertising solutions like advertorials as well as traditional directory listings. Near the end of year two, an archive system can be implemented allowing for the purchase of news articles dating back to 2000. Financial Situation and Needs The budget recognizes a net profit of $59,159 in the first year, increasing by 341 percent in the second year with an aggressive rollout of new auto and health strategies and a 14 percent increase in year three. Projections on both expenses and revenue for year three were based on no additional strategy implementations. Expenses total $73,460 in the first year, rise to $136,897 in year two and grow slightly in year three to $140,465 We realize our plan is aggressive and the implementation plan is tight. We also realize markets change. We have presented a plan that offers options and ideas. It is our hope that this plan sparks discussion and debate among the BDT management. Hopefully we can inspire an idea or course of action that might serve them well. We extend our gratitude for this opportunity and wish the Bluefield Daily Telegraph much success. -4- Staffing Strategy Synopsis: An online manager will be hired to advocate and oversee the online division. Reporting directly to the publisher, the ideal candidate will have management skills and a strong understanding of the Internet and online strategy. Though not required, web development/programming experience is beneficial, but can be acquired on the job as part of the learning curve. A person that has newspaper industry experience would also be a plus. This position is important to the overall success of the online department in implementing new strategies. The online manager will work directly with all executive management to implement successful online strategies. This position will pay between $26,000 and $30,000 per year. The online manager will have a monthly bonus tied to making budget goals. An online sales position will be added early in year two. This position will be a commission based sales position. Budgets were set for an aggressive 10% sales commission. A production position will be added 2nd quarter of the second year to help with the implementation of aggressive sales strategies. Job Description Online Manager General Summary Oversee and manage all online products and services and their budget. Responsible for the strategic and tactical oversight of online ad sales. Coordinate electronic sales efforts for both print and digital editions. Responsible for design and maintenance of online products. Assist the circulation director in their marketing. Direct changing and updating of site content. Help to coordinate online customer service and classified sales training. Essential Duties and Responsibilities Prepare and manage budget for all online products Train staff as necessary to support all online products Work as a content editor for links as well as vertical content. Work proactively with the newsroom, communicating the value of content packages and breaking news Assist in gathering data for special sections or directories Work with the ad director to coordinate sales efforts of online products, including bulk sales of the online edition. Design and implement permission email marketing campaigns sold by the advertising representatives Develop contests opportunities to drive registration Utilize traditional circulation sales methods to reach potential new digital subscribers Assist the circulation director with all aspects of marketing online products and take the lead role in all electronic marketing efforts for both print and online subscriptions. Coordination with the circulation director on marketing projects utilizing or pertaining to online services. -5- Use various circulation reports to track retention rates and implement programs to help retain online subscribers Assist the circulation director in ensuring compliance with ABC rules for counting online circulation. Help conduct routine checks of accounts for ABC compliance. Monitor state and federal laws pertaining to email marketing and permission marketing Work with the circulation office manager to conduct frequent customer service training about online products. Continue to update and improve customer service options contained within the online products Serve as a liaison to other departments and assist them in their efforts to integrate their products into the online products Track statistics and provide monthly reports Develop and implement new sales models and strategies Attend senior management meetings Qualifications Must have a college degree or equivalent management experience. Strong computer skills and in-depth understanding of the Internet and related software and programming languages is desired. Knowledge and skills competencies (can do) Knows how to set up, manage and monitor a successful online operation Knows how to manage projects from start to finish Knows how to create, communicate and implement short term and long term plans Has a basic understanding of the newspaper industry Has a basic understanding of the Internet industry and of Internet technologies Knows how to create, develop and implement marketing strategies Knows how to gather and communicate statistics Behavioral Competencies (will do) Creates solutions, not problems Willingly participates in a team environment and is engaged. Makes and keeps commitments Demonstrates a high degree of accountability for actions, commitments, timeliness, deliverables, choices and interactions. Demonstrates consistent and reliable follow-through and is dependable Proactively deals with issues, challenges, obstacles and opportunities Works with and through others to achieve results Seeks out other perspectives and input Exercises good judgment -6- Cultural Fit Is flexible, adaptable and responsible Has a passion for possibilities and what can be Deals effectively with and is energized by constant change Is results orientated Is customer focused Has a bias toward action and a healthy impatience for moving things forward Is a self starter Has a passion for achievement and performance excellence Has a passion for teamwork and building strong relationships Job Description Online Sales Manager General Summary Responsible for sales of all online products offered at BDTOnline as well as the vertical strategy solutions, meeting short and long-term revenue objectives. An effective online sales manager will do what newspapers do best; put advertisers and buyers together. A key responsibility is putting the mechanisms in place to bring the voice of the ad customer back to production teams and translating customer needs into actionable and feasible solutions. Represents advertising customers during the creation, design and development of online products. Works closely with print advertising managers to implement print-to-web and print/online advertising solutions and programs. Experience in sales is required; knowledge of new media and online sales would be an asset. The ideal candidate would have a firm understanding of the Internet. This position will be based on a generous 10% commission on sales with a guaranteed draw for the first two months. This position would report to the online manager with strong support from the advertising director. The ideal candidate would also possess the following skills: Essential Duties and Responsibilities Responsible for online sales of banner inventory and sales of vertical products like advertorials. Consistently meet sales goals. Communicating effectively with the production staff and the advertising customer to establish successful advertising solutions. Maintain current on the changes in online advertising sales strategies. Maintain a creative attitude toward advertising solutions. Experience Five years experience selling advertising products and services and meeting sales goals. Demonstrated success working in collaborative, cross-functional team environments. Knowledge and Skills Competencies (Can Do) Knows how to sell advertising products and services. Knows how to create, develop and launch advertising campaigns. -7- Knows how to effectively use sales collateral and presentations to educate advertisers and close deals. Knows how to generate new business and find new sources of revenue. Has an understanding of ad production and post-sale functions. Knows how to manage projects from start-to-finish. Has a fundamental understanding of the Internet industry and of Internet technologies. Behavioral Competencies (Will Do) Creates solutions, not problems. Willingly participates in a team environment and is engaged. Makes and keeps commitments. Demonstrates high degree of accountability for actions, commitments, timeliness, deliverables, choices and interactions. Demonstrates consistent and reliable follow-through and is dependable. Works with and through others to achieve results. Seeks out input and other perspectives. Acknowledges and addresses problems in an up-front and non-judgmental manner. Keeps relevant people informed and insures that there are no surprises. Exercises good judgment. Maintains a balance between focusing on results and building relationships that work. Cultural Fit Has a passion for possibilities and what can be. Deals effectively with and is energized by constant change. Is results-oriented. Is persistent in overcoming obstacles. Is customer-focused. Is a self-starter. Has a high-degree of emotional intelligence. Has a high-degree of self-confidence. Has a passion for achievement and performance excellence. Job Description Online Producer General Summary Maintains content and provides ongoing design of the website, promos and ad banners. Plans and reviews site architecture for new web site products and features. Troubleshoots, tests and oversees the launch of new products. Monitors site traffic and helps scale site capacity to meet traffic demands and optimize performance. Improves the company's efficiency and designs the look and feel for the site. Coordinates among departments to identify challenges, recommend and implement solutions. Reports directly to the online manager. -8- Qualifications: Requires a bachelor's degree or its equivalent and 2 years of experience in the field or in a related area. Excellent communication and interpersonal skills Excellent writing and editing skills Newspaper industry and/or journalism experience preferred Strong problem solving skills High level of creativity Self-starter that can take the initiative Has in-depth understanding of Internet concepts, technologies and strategy. Knowledge of XML, D/HTML, JavaScript, and other general web programming languages Proficient with design programs like PhotoShop, Quark, and Illustrator Proficient with Internet development tools like Dreamweaver, Flash, and Fireworks Video editing experience a plus Basic graphic design skills Must be a team player, self-starting. Strong typography; detail oriented. Strives to continually build knowledge and skill level Performs all duties with professional and courteous communication -9- Redesign Strategy Synopsis: To maximize the potential and the effectiveness of the web site, the Bluefield Daily Telegraph will carry out a redesign or site modification. A consultant who can help implement design and navigation should be considered given the ambitious sales strategy. A privacy policy and terms of use will be written, consistent site navigation will be implemented. Policies for advertisers will be established using IAB standards. The BDT will also implement policies for gambling sites, dating sites and other sites that may be questionable to link to. The consultant will work with and educate the online manager. This has been budgeted in year one. A site is generally broken down into three key pages: homepage, index pages, and story level pages. General areas of redesign considerations are the primary pages and the elements within. The elements considered for redesign include: navigation, style, usability and advertising. Applying the following suggestions will help improve reader experience and advertising results. Audience Target Goal According to the statistics from bdtonline.com the number of visitors per day is averaging 7000; each visitor views approximately 5 pages and stays for an average of 7 minutes. By implementing a redesign, adding (and marketing) additional user features a realistic goal would be 10,000 visitors each day with the goal of extending the length of the stay by 4 minutes. With increased local marketing an additional 3000 visitors should be available in the market. Redesign Consultant A redesign consultant should cost between $7,000 and $10,000. 4 months have been allocated for the process. This was budgeted in year one. As part of the research, we spoke with Andrew Devigal who has worked on several newspaper web sites. We recommend a consultant that has online newspaper experience and who is current with the industry. Navigation The navigation on the top and left hand side of the pages is effectively laid out. According to recent findings in Poynter’s Eyetrack III study, top navigation performs the best compared to the left and right hand side. Consider folding the left hand navigation into the top navigation as a second level submenu under the primary top navigation, basically creating two decks. Having only a top navigation will increase real estate for content. DHTML dropdown menus can also be considered, but must be tested in multiple browsers and platforms for usability and proper display issues. The order or priority of sections on the top navigation will be changed, “classifieds” should be right after “editorials” and “reader comments” should be last. A simple site search box should be located near the top or left hand navigation of the page. According to usability expert, Jacob Neilson, “Search is the - 10 - user's lifeline for mastering complex websites.” Search results should include advance search options to help readers refine their searches. The footer area of all pages also requires links to the “terms of service” and the privacy policy to protect both the company and reader. A link to subscribe will also be in the footer in the form of a rolled up BDT newspaper. Advertising The use of banner ads throughout the site is acceptable, but many of the ad creatives are very distracting, especially the animated ones. It is possible to have the ad only animate for a few seconds and then stop. When it comes to readership, the quality of the ad creative does make a difference. As sales consultant Mike Blinder of the Blinder Group puts it, “sell the impression, not the click-through,” which means that the ad itself should be doing the selling. A move to use new larger size ad standards is also recommended. In January 2004, the Interactive Advertising Bureau (IAB) released a new standard for banner ad sized in order to “reduce the number of ad sizes for the purposes of reducing the costs and inefficiencies associated with the planning, buying and creating online media.” The new “universal” banner ads come in four sizes: 728x80 (leader board), 300x250 (in story), 160x600 (sky scraper), and180x150 (tile). Top Ads and Top Jobs should be used or removed from the pages. It reflects unfavorably for the site to advertise an empty area. When Top Ads are populated, they should be placed throughout the site for maximum exposure to readers who may be interested in a new job, but may not be actively seeking one. Homepage The current homepage makes a good effort at creating a sense of place using the flag/masthead. The size of the masthead will be reduced to minimize use of real estate above the fold. The background image is difficult to recognize by people not familiar with the area. The banner ad for Four Seasons Country is a more effective image. Against a plain colored background, the branding would stand out stronger. With a reduction of the size of the masthead by a fourth or a third, an option is to fill the open area with the weather “magnet.” The use of area labels is good, but the current labels are distracting to the reader and compete with the headlines. Instead, use neutral colors that are not distracting and stick with one font style for the labels. Use colors like red or orange for major breaking news or impact messaging situations. The labels need not include the word “headlines” for the section areas, readers know how to identify headline links; the top story does not need a label, just emphasize the headline by making it larger. Local weather can just be weather; people already assume it is local (of course this does not apply if weather is used in the masthead area). Labels are a navigational tool and need to be linked to the appropriate page/section. The top headlines need to be increased by several points for emphasis, while other headlines should also be taken up a size to make it easier to read. The blurbs (synopses) need to be shortened to one sentence or paragraph and should be written to entice the reader to click on the story. Minimizing the - 11 - space between the headline and blurb by using a break versus a paragraph will help tie the headline to its blurb, clean up the look and maximize real estate. The “full story” link should also be in the blurb paragraph, on the same line after the period. Font size on blurbs should be increased slightly for ease of reading. Implementing an option that allows the changing of font sizes is another great feature. Remembering that images are content, a photo on the homepage will give color and depth to the page. The main image should be about 210x230 pixels; small pictures that accompany the other stories can run 100x70 pixels. According to the Poynter Eyetrack study, “larger photo size increases the percentage of users seeing photos and the time they spend looking at them.” Poynter also observed that faces in photos draw the most attention, the more faces there are, the more viewers are attracted. Index pages Many of the same principles used for the homepage apply to the index or section front pages. Use of labels and adding photos, font size and organization are key. Stand-alone photos of community activities can be used to help create the sense of place; people just love to see themselves. Again, Top Ads should be placed on the index pages. Story level page The story pages have some great tools; print, email and comment features are reader friendly. Bylines should be linked to email addresses or profiles to make it easy for readers to communicate with writers. As you are aware already, reader comments should be displayed on the story it corresponds to. TownNews should be encouraged strongly to fix this. Given the value of photos to tell a story, large photos should be posted whenever possible. Continue to use the large in-story IAB (Interactive Advertising Bureau) ads, which according Knight-Ridder Director of Sales, David Knight, are very effective. Software solutions In an effort to more easily move data from the newsroom, we recommend implementing a software program that automates the extraction of data from QuarkExpress®, used by the newsroom and includes an archive feature to manage the content of the print edition over to the online edition. This software product from XTI is called xtQ Extractor, allows for extraction of the data by the copy desk into a TXT or XML format. XML is an industry standard language. This will allow for pictures to be saved and optimized as well. The fee for this software is $11,495 with an ongoing yearly licensing fee of $1300. The legacy data that exists electronically back to January 2000 can be converted by XTI, allowing for a searchable archive online for an extra fee. This should all be implemented at the beginning of year 2. We amortized the software expenses for the purposes of this plan for 10 months. - 12 - The full solution includes an online model, a Digital edition and an archive solution. XTI offers an additional product called xtWebEdition that also uses Quark and an XML format along with the PDF version of the printed edition to build a digital edition of the newspaper. The fee for this software is $23,490 we recommend looking at the ROI on this solution in year 3. This could be offered as an additional paid content model. - 13 - Content strategy Synopsis: Internet use is gradually becoming integrated into everyday American life. According to research conducted by the Pew Internet & American Life Project, though still in the minority, Internet usage is increasingly becoming an everyday ritual for many. The research by Pew has also found that getting news is the activity users who habitually use the Internet is engaging in most often. Local and breaking news are core elements to a successful news website. The MORI Research Power User study states, “The strength of its audience development, loyalty, reach and frequency depend on the content. More than anything else, this means breaking news and weather.” In-depth local news coverage is one of the online newspaper site’s key advantages over dotcom competitors who are trying to expand their national dominance in attempts to enter the local marketplace. By consistently updating the news and content, bdtonline.com can increase frequency of visits and substantiate itself as the dominant local news and information source online. When it comes to local news, Bluefield Daily Telegraph’s dominant position in its local market already provides an advantage over the competitors. Providing an improved breaking news process can help with creating frequency of visits on the site. Along with providing good news content, there must be utility, function and features that will engage the reader. A World Association of Newspapers study wrote, “The difference between Old Media and New Media is that Old Media represented a combination of content and form, while New Media is a combination of content and functionality.” As the web site matures, addition of interactive tools will be necessary help readers make decisions, search and organize information. Features like searchable events calendars and movie show times are a few examples of ‘utility-related content.’ The Mori Research Power User 2004 said it in this way, “The power of News, the promise of utility.” MORI Research additionally found in its day part studies that these features were used most often later in the day as readers began to plan their after-work activities. Day parting is another strategy that can increase frequency of visits and accommodate site user’s online reading habits. Though requiring more resources, day parting can target reader’s interests as they change throughout the day, also increasing reach and frequency. Bluefield’s commitment to its community and its expertise in local information needs to be reflected online through the provision of historical, public, recreational, health, medical and other resources. Increase in news frequency and an expansion of its online content will further help establish bdtonline.com as the primary source of up-to-date information in the community and increase advertising and revenue opportunities. Providing history, public information, event calendars and other ‘utility-related content’ are just a few places to start in Bluefield’s commitment to its community’s past, present and future. - 14 - Market Opportunity Breaking news/Frequent updates Breaking news is critical in increasing frequency of visits to the site. MORI Research also states that, “sites studied that were aggressive about posting breaking news to the site were much more likely to have higher frequency and interest levels on all news categories.” Breaking news is a necessary service to the readers and a part of the commitment to the community as the primary news and information provider. 92 percent of newspaper web site readers go online for breaking news according to Mori research, indicating that it’s a core area of the site. Breaking news will be marketed as a way to drive users to the web site. Other content Emerging market opportunities include tourism, education and health care. Expanding information that applies to these areas can also help to increase the reach and frequency of readers. This information is important in the mission to revitalize Bluefield and its communities. As the dominant news organization with a wealth of information, the Daily Telegraph can create awareness of the opportunities and activities that Bluefield possesses. Though local information is the focus, a realization must be made that the website extends the reach of the Daily Telegraph globally. History Established in 1893, the Bluefield Daily Telegraph has recorded over 110 years of history in Bluefield and its communities. A section chronicling the history of the area would be a resource to students, educators, tourist and the general public. The historical background can provide the sense of place and pride, and create additional personality to the site itself. A regular column by a Bluefield history buff (Bill Archer) would be ideal for a history section to keep it fresh. Tourism may be a way to help the local economy grow and is a market opportunity for the Bluefield Daily Telegraph to be a part of making Bluefield an attractive travel destination. Public information-Celebrations Information that helps the public with making decisions in their lives is important to have on the site. This could encompass standardized testing scores of schools, parks and recreations info, government info, community forums, community events, non-profits, and more. Some of this content exists for use or for linking to government web sites, much of it is in the new “for the record” piece published by the BDT. The online manager will work as a content editor with suggestions for links as well as making decisions on content that is posted from any source but the printed edition. Though not a revenue or traffic generator, links to other online resources like government and education sites can also be a service to readers. Providing movie show times, a popular feature that many newspaper web sites have, is a feature readers would return often to read. Another important - 15 - component is ‘citizen’s media’; content added by local citizens is of real value. An area will be built for posting of local ‘celebrations’. Users will be able to add a photo and a few tag lines. This important, ‘hyper-local citizen’s media’ area will add valuable local content to the web site. This area, free to subscribers, will be built by TownNews for a fee of $75.00 per hour, we estimate 2 hours of work. If a paid model is implemented a fee will be assigned to this component for nonsubscribers, adding value to the paid model. - 16 - - 17 - - 18 - - 19 - Event and community calendars Providing searchable event information online is a great benefit to readers. According to MORI Research, a third of small market newspaper web site readers use online event calendars. Allowing the community to publish their own events can help populate the event database, make managing the listing easier, and creates reverse publishing opportunities. Schools, churches and non-profit agencies will be contributing valuable community content. The calendar will be fully searchable by category. Events will be filtered for content and accuracy. An existing application provided by Bluefield’s current vendor, TownNews, will be implemented and then marketed as a community calendar solution. The set up fee is $150 with a $20 monthly maintenance fee. Day parting Although bdtonline.com may not have the resources to implement a day part program, it is still a good idea to look into the opportunities that day parting could provide for the site. Traditionally, day parting is a method used by radio and TV networks to time segment an entire day for broadcast programming and advertising sales. The concept of online day parting is similar in that it follows the changes in priorities of online users throughout the day in which targeted content and advertising can be delivered. According to MORI Research, though the traffic “prime time” for newspaper web sites is between 8 a.m. and 11 a.m, general online usage is heavy during the night. News, weather, and finance information are several areas that peak during the mid-morning hours, while leisurely topics like movie info, games, travel, and events calendars peak during the evenings (6 to 10 p.m.). Personal shopping, job search and personals are also online activities that are done at night. Frequency of content changes throughout the day to target reader’s interests will potentially increase frequency of visits and boost readership during the evening hours. This can also help create additional advertising inventory and opportunities. Competitive Analysis Though not currently significant, Bluefield’s market contains several TV and radio stations, which compete with them in providing local news. An emerging threat is that of the national untraditional competition like Google, Yahoo and Topix. These sites are trying to break into the local news market by providing localized web searches and news aggregation in attempts to lure readers to use the sites as primary means of getting all their information, both local and global. The BDT is the current dominant news organization. By working with their convergent partner, WVVA they are proactively combining the assets of both organizations to protect their market. This relationship could be expanded to better serve the web site. The online manager should carefully look at the potential of this option. Agreements that would allow for shared content and marketing could benefit both the newspaper and television station. - 20 - “Go to Market” strategy The goal of the content strategy is to get the audience to return more frequently. Updating the site more often will enhance readership, create more advertising inventory and add other revenue possibilities. Adding interactive and utilityrelated content can help increase stickiness and frequency. Moving or adding elements to the site will eliminate content from looking stagnant. The first step in this strategy is to concentrate on updating the site with breaking news and updates throughout the day. The online manager will work directly with the newsroom in a proactive role. By communicating the effectiveness of breaking news to both online traffic and single copy sales, the online manager can educate the newsroom to the value of breaking news. When done with frequency, readers will create a habit of returning to the site throughout the day. An area at the top of the homepage is a good location to add breaking news stories, creating a visible change to the site. Breaking news stories are often the highest read stories on web sites. The second area to work on in implementing this strategy is to expand content that can take advantage of market opportunities in Bluefield. Attracting tourism and interest in the area can be accomplished by providing good content. Creating areas of expertise like a history section is easy to implement since much of the content is already produced and a wealth of knowledge already exists in the newsroom. The easiest way of creating sections is through packaging or repurposing of existing content, simply reorganizing content into related and chronological parts. Much of this content will be evergreen. The same principles apply to public information and to producing a good health and medical section. These strategies can be implemented by the online manager as part of the overall core strategy. Implementing an events calendar can be accomplished by data input through newsroom clerks and allowing the public to post their own events. Events posted by the public will be checked for accuracy and language. The current vendor, TownNews has an events calendar application. Reverse publishing opportunities are possible with the online events postings. Events posted online can be exported for use either as a calendar list in the paper or in various tabs. This will give the BDT a place for all events to be posted. Some events which do not normally appear in print will still appear in the online edition. A day part strategy is a great idea for any newspaper web site including bdtonline.com, but it does require some resources daily to implement. This isn’t to say that implementation of part of this strategy would not be too difficult to do. A few items concerning entertainment, events and other leisurely topics can be moved up on the site during the evening, adding content relevant to the evening reader. Another way to get readers to return during the evenings is to promote the next day’s top stories or features in an “In Tomorrow’s Paper” section, which can also help with single copy sales. - 21 - Each of these new features will be marketed by clearly explaining the benefit to the reader. In Mori Research’s Power Users Plus Report, September 2004 the need for marketing the benefits of online features is made clear. Rusty Coats outlined how newspapers are poor marketers to their own customers. In order to increase frequency of use and reach, the marketing must give readers a good reason to go to the web site. According to the research done at Mori, that reason is not ‘more’ but for ‘benefits’ that will make their lives easier. Promoting the site’s timesaving features and convenience is the most effective way of marketing. Product overview Utilizing the current infrastructure with TownNews and the effort of the online manager the BDT will be able to implement most of the content strategies in year one. The products can be built simply in HTML or through the use of an existing application database provided by TownNews. Sales strategy Exactly like increased circulation, increase in frequency of use and reach will increase the value of the site to advertisers. New revenue opportunities will emerge as new areas of content are created. Establishing the bdtonline.com site as a destination can attract activity vendors, restaurants, hotel and other travel advertisers. As registration is implemented, even more opportunities become available through targeting advertising. Specific sales strategies are outlined separately. If the site goes with a paid model (detailed in the paid strategy section of this plan) revenues will be generated by the subscriptions. - 22 - Banner Advertising Strategy Synopsis: The Interactive Advertising Bureau released new standard sizes in January of 2004 in order to “reduce the number of ad sizes for the purposes of reducing the coast and inefficiencies associated with the planning, buying and creating online media.” The standard sizes will be implemented after the redesign strategy is complete. The new “universal” banner ads come in four sizes: 728x80 (leader board), 300x250 (in story), 160x600 (sky scraper), and 180x150 (tile). A specific inventory of banner space will be laid out. Every effort will be made to sell the inventory while maintaining the flexibility to adapt for new sales opportunities. The online manager will explore national banner sales and companies that deal in unsold ROS (run of site) inventory. The advertising staff will sell the banner inventory as part of their available advertising solutions. The Bluefield Daily Telegraph advertising staff will be empowered with all of the online advertising solutions; banner ads, sponsorship of breaking news, sponsorship of daily headlines, email permission marketing and vertical advertising opportunities. Armed with innovative, new advertising solutions and traffic statistics the advertising staff is poised to strengthen their presence in the market. Market Opportunity Current online banner advertising for the Bluefield Daily Telegraph is healthy. The BDT has effectively priced the banners. The value of the banners and the traffic statistics have been effectively communicated to the advertiser. There is an opportunity for additional banner sales with the changes in sizes. The current banner advertising list contains many car dealers and real estate companies. The online manager will assist the advertising director and sales staff in sales by empowering them with information. An example would be using information from a study done by MORI Research, which found that 58 percent of online newspaper consumers frequently bank online. This will empower the advertising sales staff to approach and market banners to banks and additional advertisers. There will be additional banner opportunities in the vertical products as well. Competitive Analysis The Bluefield Daily Telegraph has positioned itself as the informed agency of choice. The television stations have the opportunity to compete in the market, but they do not get nearly the traffic as the bdtonline.com site. When you combine the site traffic with informative, impressive statistics and the expertise of the advertising sales staff the competition pales in comparison. The BDT simply needs to own this opportunity. - 23 - “Go to Market” Strategy The advertising staff will be given a list of banner inventory to sell. This list will be given to them all at the same time, ideally in a sales meeting that the online manager attends to present the sales opportunities, share data and answer questions. The same commission will be paid for banner sales as for ROP advertising. Ideally, the advertising director will include banner sales in the goals and expectations for each sales representative. Banners will be sold with a full year commitment whenever possible. Statistics will be watched by the online manager and ad campaigns that are ineffective will be modified whenever possible. Banner advertising will be bundled with ROP whenever possible. Product Overview The new “universal” banner ads come in four sizes and will be broken down by page whenever possible. 728x80 (leader board) Located horizontally across the top of the page, this full page size banner is long and narrow. This banner will be sold for a premium on the entrance page and at the top of each section. 300x250 (in story) Located as an ad in the middle of the story, this banner will be sold to sit within the pages of sections. An ad of this type would be sold to sit within stories by content; sports, local, obituaries, national news, etc. 160x600 (sky scraper) Located vertically along the side of the section front or at story level, this banner will be sold on each primary section, in the story level or within special sections and verticals. This banner is the largest of the sizes and should command a premium price. Skyscrapers are used to replace 4 tiles 180x150 (tile) Located as squares along the side of main page or section this banner is the smallest and competes with other tiles for attention on the page. The price point will allow smaller advertisers to experiment with banner advertising. Online advertising is big business and it is effective. The Internet Advertising Bureau’s annual Advertising Revenue Report totaled 2003 online advertising revenues at nearly $7.3 billion. Revenues saw a 20.9 percent increase ($1.3 billion) over the previous year (2002). It is the ability to strengthen brand that is making online advertising so effective. Forrester research found that online ads alone could boost brand awareness by 6 percent, while integrating online and offline ads can increase brand awareness by 14 percent. An experiment done by the Atlas Institute found that the “branding effect” from banner ads resulted in a 10 percent boost in overall sales. Had the advertiser not run the ad campaign, they would not have recognized the sales. The study also found that 80 percent of the sales were not made from immediate click-thrus, but received eventually from - 24 - conversions on the advertisers’ web sites. Mike Blinder, media sales consultant and founder of The Blinder Group had recognized early on that the effectiveness of an online ad was in its impression and not necessarily the promise of a clickthru. Blinder’s sales strategy largely focuses on impression based selling and by selling advertisers an advertising “solution” versus selling them the media or technology. Sales Strategy Sales will be implemented by the advertising staff with a traditional contract. Rates will vary by type of banner and location. Whenever possible the ads should be sold on a year long contract. It is conceivable that most of the banner ad sales will be completed within two week of when the inventory sheet is distributed The advertising staff is responsible for following up with the advertiser with statistics that will be provided by the online manager. In order to ensure effectiveness for the advertiser as well as freshness to the pages, advertising should reflect changes each month. For budgeting purposes, calculations were made on selling 30 percent of the available inventory for all components with the exception of tiles, which we estimated sales at 60%. Estimated Revenue BDTONLINE.COM All fees are monthly 728x80 (leader board) Total potential revenue $7500 Budgeted amount $ 2250 Entrance page $1000 Bottom of page $500 Top story $500 Local news $500 Classified $750 Classified, auto $500 Classified, real estate $500 Sports $500 Editorials $500 Obits $750 Nation/business $500 Health $500 Financial $500 - 25 - 300x250 (in story) Total potential revenue $1750 Budgeted amount $525 Top story $300 Local news $300 Sports $300 Editorials $300 Nation/business $300 Health $300 Financial $300 160x600 (sky scraper) Total potential revenue $7950 Budgeted amount $2385 Entrance page $800 Top story $600 Local news $600 Classified $600 Sports $600 Editorials $600 Obits $600 Nation/business $600 Health $600 Financial $600 180x150 (tiles) 4-6 available Total potential revenue $2300 Budgeted amount $1380 Entrance page $250 Top story $150 Local news $150 Sports $150 Editorials $150 Obits $250 Nation/business $150 Health $150 Financial $150 Classified $250 Classified, auto $250 Classified, real estate $250 - 26 - REAL ESTATE VERTICAL 728x80 (leader board) Total potential revenue $700 Entrance page $500 Bottom of page $200 300x250 (in story) Total potential revenue $300 Front page $300 160x600 (sky scraper) Total potential revenue $300 Entrance page $300 180x150 (tiles) 4-6 available Total potential revenue $400 Entrance page $100 AUTO VERTICAL 728x80 (leader board) Total potential revenue $700 Entrance page $500 Bottom of page $200 300x250 (in story) Total potential revenue $300 Front page $300 160x600 (sky scraper) Total potential revenue $300 Entrance page $300 180x150 (tiles) 4-6 available Total potential revenue $400 Entrance page $100 HEALTH VERTICAL 728x80 (leader board) Total potential revenue $700 Entrance page $500 Bottom of page $200 300x250 (in story) Total potential revenue $300 Front page $300 160x600 (sky scraper) - 27 - Total potential revenue $300 Entrance page $300 180x150 (tiles) 4-6 available Total potential revenue $400 Entrance page $100 TOURISM VERTICAL 728x80 (leader board) Total potential revenue $700 Entrance page $500 Bottom of page $200 300x250 (in story) Total potential revenue $300 Front page $300 160x600 (sky scraper) Total potential revenue $300 Entrance page $300 180x150 (tiles) 4-6 available Total potential revenue $400 Entrance page $100 - 28 - - 29 - Obituary Strategy Synopsis: The obituaries are one of the most highly read areas in both print and online. Compared to large market/urban newspapers, online obituaries are a higher priority for the small market/community newspaper reader. According to MORI Research 31 percent of small market newspaper web site users read the obituaries online. The Bluefield Daily Telegraph web site traffic stats for the last 6 months (Feb. – Aug. 2004) indicate that the obituaries are the second most read area of the web site after the homepage. On average, page views for the obituaries index page, not including the daily obits themselves, receives almost half of the traffic of the homepage. The popularity of the obituaries online is an opportunity to provide additional services that can benefit readers and also increase revenue. An obituary application that can provide these additional services with little maintenance and administration is required. We have determined Legacy.com as having a robust low maintenance and low cost application that can provide enhanced customer services and help increase revenue. Market Opportunity The Bluefield Daily Telegraph dominates the market in obituary information. Readers are used to reading the obituaries in the newspaper and now read them both in print and online because of their value. The BDT already charges a low rate for obituaries to run online. With the implementation of the Legacy.com strategy the BDT will provide additional online services to relatives and friends. The cost increase is easily justified because of added value features like name searches, guest books, and links to florists and funeral homes. For the reader, advance search capabilities will make it easer to find obituaries, guest books will allow posting of condolences and links will be provided for florists for added convenience. Competitive Analysis Although there are no major competitors of obituaries in the local marketplace, the BDT still needs to proactively offer services that will enhance the reader’s experience. Web sites that aggregate newspaper obituary information do exist in the national market, but they do not have footholds in most local markets. These sites also require the newspaper obituaries be sent in order to populate their site. The Bluefield Daily Telegraph will continue to be the primary online presence for readers looking for obituaries. Feature rich product solutions like Legacy.com will help the BDT solidify their online strategy. “Go to Market” strategy Recognizing the value of obituary information, the Bluefield Daily Telegraph currently posts the obituary, death and funeral notices online. This strategy maximizes the revenue potential and enhances the user experience. The BDT will utilize a third-party application service provider, Legacy.com, to serve the - 30 - obituary information. Legacy.com will work with BDT to implement and integrate all aspects of the system. Setting up the application would require a data feed that includes the obituary information that will be imported into the Legacy.com system. The current rates charged by the BDT will be adjusted to reflect the value of this new product as well as cover costs of implementation. All the co-branded elements of the site will be set-up and be linked from bdtonline.com, replacing the current obituary links. Product Overview Legacy.com is a co-branded application solution that hosts and displays obituaries and services for The Bluefield Daily Telegraph. The BDT online can control all the surrounding element of the page; header, footer, left and right rails along with advertising and branding. Services and support which includes maintenance, site development, adding features and reporting, are all handled by Legacy.com staff. There are no start-up fees, monthly hosting charges or maintenance fees. Obituaries can be enhanced to include guest books, funeral home information, and links to florists and charities. Guest books are screened by Legacy.com for appropriateness. The BDT will send a feed with the obituary information to Legacy.com. The current fee structure set by the BDT for obits will change. Legacy.com receives $3.50 per notice with minimum of 150 notices sold or there will be a $525 flat fee. Page views for obituaries will increase due to additional content from guest books and other features and because individual obituaries will be displayed on their own page. The maximum out of pocket for the BDT will be $525 per month Sales Strategy An increase in pricing will be implemented to reflect the value of having the obituaries online and to cover the cost of the Legacy.com application. Currently, obituaries are sold for $60; $5 is allocated to online. Online pricing for notices will be increased by $7.50 for a total of $12.50 per online notice ($72.50 total print and online). On average the BDT sells 5 obituaries per day. This realizes revenue of $16,200 150 notices (5 notices x 30 days) x $9.00 ($12.50 - $3.50 Legacy cost) = $1350 per month x 12 months in revenue. This will result in increased monthly revenue of $600. The Legacy.com application will allow The Bluefield Daily Telegraph to control the advertising space on their co-branded site. The sales staff can pursue sponsorship and/or advertising from advertisers like florists and funeral homes. - 31 - - 32 - Classified Strategy Verticals: Jobs, Autos, Real Estate, Top Ads Synopsis: In the genesis of new media, traditional classifieds are seeing a revolution. Consumers are migrating online to new digital realms. Being creatures of habit, many consumers will use what they are familiar with. By making changes to digitize and strengthen the classifieds, the BDT will dominate the classifieds market, recognizing significant increases in revenue and readership. A proactive approach of integrating the technology, collaboration of staff, understanding the marketplace and how it relates to the online strategy are integral steps to achieving success. The classified verticals of jobs, autos and real estate are an integral part of the core advertising products in both print and online. The Readership Institute study reminds us that readers of newspaper products see classifieds as content, with the same value as traditional reporting. The combined power of online and print is easily underestimated and undervalued. Media sales consultant Mike Blinder, of the Blinder Group states, “Online has no value because it is perceived to have no value.” The online classifieds capability is the key difference between the Bluefield Daily Telegraph and their competitors. This asset must be leveraged immediately to take advantage of the market share. Banner advertising needs to push online readers to the classified section as well. An increase of 75 cents in the assumptive sale price of each classified ad will be implemented to reflect the monetary value of online classifieds. The classified representatives will have a clear understanding of the amount of traffic and interest is shown in the online classifieds. The classified representatives will be able to clearly articulate the reach that is realized by the print/online combination buy into a particular vertical. Monthly statistics of traffic will be provided to the classified manager by the online manager as part of an ongoing cooperative sales plan. The BDT will enable the web site to be able to accept online classified advertising. This will be accomplished through an e-commerce solution eliminating the need for billing. Allowing customers to place ads online 24/7/365 will help increase sales and decrease costs. Additional savings are realized in reduced errors and fewer customer service hours. The BDT will implement an aggressive marketing strategy with online and print campaigns that encourage online classified purchases. The most important component of a successful online classifieds component is a well designed user interface and e-commerce solution. Content related to each vertical category provided by TownNews for no additional cost will be leveraged to enable readers to make buying decisions and increase the value of the site. When adopting this classified strategy, the Bluefield Daily Telegraph will aggressively leverage its strengths and opportunities in the classified arena. Barriers of entry for new competitors will be established, - 33 - competitors will be challenged to maintain their marketplace and the BDT will substantiate itself as the leader in the marketplace. Market Opportunity When combining the power of the print and online products to deliver readers, the potential for classifieds growth and revenue is considerable. MORI research estimates around 41 percent of the people in small newspaper markets have used classified ads on a newspaper website. MORI Research has also found that 56 percent of people in smaller newspaper markets are very interested and 26 percent are somewhat interested in having a print classified appear online. Analysis of Bluefield’s page views stats show the classified verticals are the fourth most used area online. Bluefield’s local market consists of approximately 60,000 people, delivering an estimated 28,000 potential classified ad readers. The bdtonline.com site is currently averaging 171, 000 monthly visits (Jan.-Aug. 2004), indicating healthy online readership. Leveraging this advantage will create opportunities for additional advertising revenues in both online and print. A report by Classifieds Intelligence, LLC, listed several key advantages of using an online ad placing system over a standard call center: Parsing an online ad and delivering it to multiple sites and front-end systems is easier and faster than trying to extract it from a newspaper front-end. Users can be offered the full-range of up-sell elements and, in a WYSWYG what-you-see-is-what-you-get environment, can see what those elements look like. Seeing is not only believing, but experience shows it translates into substantially more revenue. Different features can be offered for the different media. More text or multiple pictures for online ads, or for niche publications. "Virtual tours" or even video clips for the online classifieds. Borders for in-column ads. Extended job descriptions for online employment applications. There are far fewer make-goods. The cost of taking an ad online is significantly lower than going through the classified representative. Online classified ad placement is becoming standard and reverse publishing into traditional print products has become part of mainstream strategies. Enabling online ad placement creates several key advantages for newspaper classifieds operations. Giving advertisers control over placing their ads will decrease costs, errors, make goods, collection issues and customer service hours. Revenue increases at the same time. According to the Newspaper Association of America, “ads placed online tend to run longer than ads placed by customers over the phone in the same category.” Some newspapers are seeing an average of over 50% longer ads placed online. Another advantage is that ads can be placed online 24 hours a day, 7 days a week. MORI Research indicates that primetime Internet usage for most classified verticals happen between 6 to 10 p.m., after the normal close of business. - 34 - Web service applications are being considered to allow data to become platform independent, allowing diverse (and reverse) publishing capabilities. There is a movement underway in the advertising industry to standardize ad data using XML (AdsML). The Bluefield Daily Telegraph may not be ready to take the plunge of investing in new technologies, yet by implementing this strategy they will leverage their strengths and opportunities to protect and enrich their marketplace. CNHI, Bluefield’s parent corporation will need to look at new web-based systems for their properties, ones that can take online ad placements with web-centric upsell options and have the capability to publish on multiple platforms. Competitive Analysis Existing competition in Bluefield’s market include classified publications: Thrifty Journal, Thrifty Nickel, and a garage-based classified tabloid which have been eroding a substantial portion of the classified marketplace. The current competing operations provide free classifieds and are subsidized by advertising. The competition has no web site currently. Customer’s low perception of value seems to have exacerbated the decrease of classified sales at Bluefield. Other potential competitors entering their classified market include traditional advertisers like auto dealers who are beginning to create their own online applications to promote and sell their inventory, reducing their spending in newspapers. Cable companies are using interactive television to tap into areas like recruitment. TV and radio stations are establishing their own web presence with competing classified verticals. Online only players, both big and small are beginning to chip into the classified market. The national online players like Google, Craigslist, Monster, and HotJobs are strategically moving their products to target local communities, a market where online newspapers have traditionally been dominant. The BDT must be proactive in reestablishing the classified marketplace. The strength of its brand identity, integrity, community cohesiveness, knowledgeable staff, and the combined online and century old print presence are values that will need to be leveraged to strengthen the classified business. Immediacy is critical in creating barriers to entry in the online arena for both national players and local competition. Every effort will be made to add classified ads to the print edition, and by default, the online edition to reclaim the classified market. - 35 - “Go to Market” strategy Bluefield’s current classifieds solution is adequate enough in the short term to execute its mission to reclaim leadership in the market. Bluefield will first need to increase its rate structure. An online ad rate increase of 75 cents is recommended. Ads will continue to be sold as an assumptive sell better reflecting the value customers are receiving. Annual revenue estimate is approximately $14,400 (600 estimated ads per month X $2.00 per ad X 12 months) for an increase in yearly revenue of $5400. The classifieds will be marketed by proudly stating the reach and distribution of the combination buy. This will enable the BDT to regain confidence of advertisers and consumers in the classified market. Readers will be reminded of Bluefield Daily Telegraph’s historic past, its integrity as an information provider and its service to the community for over 111 years, a claim no competitor can make. Online promotions and newspaper ads will convey the value of advertising with the Bluefield Daily Telegraph and bdtonline.com. By using the “power of the newspaper,” and customer success stories these ads will drive people to the classifieds. An aggressive marketing campaign encouraging the use of the online classified options will be implemented. The web site URL will be promoted in all marketing materials including location banners and during sponsored events. Top Ads will be sold by classified and implemented online in the categories of homes, autos and employment. Increased effort in selling online classifieds will result in increased revenue. The online manager will work directly with the classified manager and/or the advertising director to explain the value and benefits of advertising in both print and online. Informational trainings will be conducted monthly with the classified representatives. A sales effort to reclaim the real estate and auto sales classifieds will be implemented in 2006 that will include print and online components. TownNews will provide support in dealing with local realtors and the MLS (Multiple Listing Service). The Bluefield Daily Telegraph will leverage their relationship with the auto dealers to provide an online and print strategy. Product Overview The application currently provided by TownNews adequately produces basic online classifieds. As mentioned previously, a corporate investment is recommended for a solution that can enhance the online ad placement and reverse publishing process. TownNews currently has a real estate vertical application that can be implemented. They will come to the market to meet with the local MLS (Multiple Listing Service) to get them on the site. TownNews also has an automotive vertical application that will allow dealers to post their used and new - 36 - cars online. These vertical applications are searchable and are an improvement of functionality for both reader and advertiser. - 37 - Sales Strategy The current classified staff will be the driver for both print and online sales. Working with the online manager a monthly training session will ensure the classified representatives have the information they need to effectively sell the components. The BDT will continue the assumptive sell with a rate increase of 75 cents per ad, reflecting the value of the classified ad. Top Ads placed on the homepage for 7 days will be up-sold for $10-$20 per ad. This will be implemented immediately. Top Ads can run in any or all sections of the site for increased value, rates may be adjusted as traffic and demand increase. Online ad placement capabilities will be important in increasing sales. Online ad placement is currently available via a secured web form. Although this strategy is a good start for Bluefield, we recommended that CNHI, Bluefield’s corporate parent, look into investing in a solution that will integrate web and print technologies preferably within the next year for all their properties as mentioned previously. E-commerce strategy The current online sales solution for classifieds is poorly executed. The classified manager states that the classified ads are submitted through a ‘secure’ page, spawning an email that is sent with the credit card number. Credit card information sent via email is likely to be harvested by illegal means and used fraudulently. The potential risk cannot be overstated, this should be fixed immediately. This potentially puts the reputation of the Bluefield Daily Telegraph at risk. Securing the e-commerce transactions is imperative. If TownNews or CNHI cannot offer immediate secure online transactions another vendor solution must be found. We recommend EZNet Tools which offers a full turn-key ecommerce solution that has been proven. This would allow the BDT to concentrate on their core competencies and ensure that the Secure Socket Layer of security is in place. TownNews has a solution that will enable the site for the sale of online classifieds through a secure area called Town Ad Owl that will be out of beta testing soon. - 38 - - 39 - Top Ads The Bluefield Daily Telegraph currently runs Top Ads, but not to its full potential. Top Ads utilizes the combined strategy of both display advertising and classified advertising. Display advertising targets the passive reader, while classified advertising fulfills the needs of the active seeker. Top Ads can reach a larger audience by putting advertisers in front of readers who may benefit from the advertisement, but may not be actively seeking it. Top Ads can be sold across different categories. The modules to be implemented and populated immediately will be Top Ads, Top Jobs, Top Cars and Top Homes. The online manager will track statistics and work with the classified manager to provide monthly reports for informing the classified representatives. The online manager will ensure that each of these categories are populated daily with random ads if necessary. Top Ads will be sold for a fee of $10 per day, per ad for a liner ad and $20 per day if it includes a photo or logo. Over 13,000 people visit the home page daily and will see these ads. Estimated Revenue Top Ads ($10 X 300 per year / 12 months) $250 Monthly revenue Top Jobs ($20 X 300 per year / 12 months) $500 Monthly revenue Top Cars ($20 X 300 per year / 12 months) $500 Monthly revenue Top Homes ($20 X 300 per year / 12 months) $500 Monthly revenue Total monthly revenue $1750 Estimated Expenses Top Ads is included in the monthly fee that is paid to TownNews. Classified representatives will receive their standard commission on the total sold. - 40 - Auto Vertical Strategy Print/Online Combination The auto industry is doing quite well in Bluefield and its surrounding counties. The roadsides of Bluefield’s main thoroughfares between counties contained dozens of billboards and noticeably many auto dealerships. According to sales reports, auto dealerships are amongst the top spenders at the Bluefield Daily Telegraph, yet online auto inventory is not represented well in the automobile classifieds at bdtonline.com. There is potential for additional revenue from the dealerships. The auto strategy includes adding content resources for car buyers and empowering the dealers with a bulk classified buy. Giving the auto advertisers a rate based on a bulk classifieds buy and empowering them to post the information will increase revenue and populate the inventory. TownNews has an automotive classifieds application that will allow dealers to post their new and used vehicles. The best solution will include a print and online partnership. Management tools will enable the BDT and auto dealers to easily control and update the system. This strategy will enable the auto dealers to grow their business by integrating the advertising with local automotive data. This online solution creates an aggregate list of the total car market, adding strength to the auto vertical. The BDT will add content resources for car buyers to help them make buying decisions like Kelly Blue Book linked from the site. A fully searchable database will be implemented for ease of use for buyers. The automotive industry in Bluefield relies heavily on the expertise of the BDT for advertising solutions. By addressing this need for the auto dealers the BDT is substantiating itself as the leader in the marketplace. The Bluefield Daily Telegraph will provide innovative, creative and effective advertising solutions that will bring new revenue to them and the advertiser. The auto vertical strategy includes a way for dealers to update their inventory online. This inventory information serves to populate the database of cars, along with the other auto dealerships in the Bluefield area. Cars will be searchable by make, model or price point. Each dealer will have an advertisement that includes their logo, name and number. An email responder will send questions or comments to the dealer and a map to the dealership will be posted. An overall email to dealers, telling them what kind of car the customer is looking for can be a strong lead generator. Much like the Geico® insurance model, an email goes to the dealers, they respond back to the customer. In an effort to increase both revenue and reach, the BDT will offer a print/online combination buy to their auto dealer advertising clients. The ads will be placed both in the printed and online edition. Photos of the cars and detailed descriptions will be available online, the print ads will include basic information; make, model, miles and cost under the heading of the dealership. The dealers will either post these photos or get the photos from their own inventory control database. The online manager will be charged with pursuing this option with local solutions or outsourcing to a vendor. The liner ads will be printed in the traditional classified format once a week. The day these ads run will be a traditionally slow - 41 - single copy sales day, hopefully driving single copy sales. TownNews will write an interface from their system to work with the Ad Manager Pro classified system for entry of liner ads from the database. Estimated programming time to build an interface with the current classified system is 10 hours. Estimated Revenue This innovative way of advertising will be sold with a yearly contract for access to the online advertising solution. The fee will be $300 per month for each dealer. The liner ads will be posted for a fee of $2.00 per ad in a weekly classified section. While bold, this reduced fee will enable the BDT to populate both the online edition as well as begin the process of taking back the classified market. Sales of Auto Solution to dealers $18,000 (5 dealers X $300 per month X 12 months Liners will be 3 lines (1/2 inch each) X 20 inches X 9 columns for a total ad count of 360 ads X 2 pages equals 720 ads $ 1440 per week (720 auto ads more per week X $2.00) $7260 per month (averaged through the year) By implementing this strategy the BDT will realize additional revenue of $7260 per month. Additional revenue will be realized through banner advertising of $1400 monthly. The location and scarcity of banner advertising inside this vertical will ensure sold out inventory. There will be some switch of revenue that takes place. Private party real estate and auto ads will continue to run in the classified section as before. The amount of advertising currently running in the BDT classifieds is not enough to abandon this strategy. This strategy is an effort to assertively take back the classified market from the Thrifty Journal, Thrifty Nickel and garage based business. Estimated Costs $1000 investment for set up $300 monthly recurring charge for vendor support Printing (estimate for two full pages of liner ads) of $110 per week Expenses for printing belong in advertising but we booked them for the purposes of this plan Software Interface development @$75 per hour ($750) - 42 - Real Estate Vertical Strategy Print/Online Combination Based on ad impressions and click-thru rates on the ads, interest in real estate is clear. The second largest category in the classified section is real estate and rentals according to web statistics outlining traffic, Jan. to Aug. 2004. Nearly 200 homes for sale in the Bluefield area could be found on the Board of Realtors web site. The Board of Realtors reports the average home value is 60 percent lower than the national average. There are opportunities for real estate sales in the area. Negotiation with the local Board of Realtors to get the MLS (Multiple Listing Service) information would populate the database and provide increased exposure. Revenue opportunities for the BDT would include up-sells like photos of homes, agent profiles, featured homes, and of course, reverse publishing opportunities. A partnership with the realtors would lead to additional classified ads with the same model used as the auto vertical. The current classified in-line real estate revenue is $8,750.00 per month. Realtors are advertising in other mediums. A glossy print monthly magazine put together by Mercer and Tazwell Counties Brokers/Owners contains 55 pages of pure advertising by realtors, brokers and mortgage companies. By implementing a print/online real estate vertical strategy the BDT can assertively take back lost real estate advertising with a product that is innovate, creative and effective for the advertiser. As with the auto vertical special programming will need to be written so that the data from TownNews will flow into the Ad Manager Pro system. The time estimated to do this is 10 hours at $75 per hour. The necessary factors for a successful real estate vertical are in place in the Bluefield market, enabling the BDT to take advantage of the advertising dollars that are being spent. Implementing the TownNews Home Seller Real Estate Vertical solution will enable the BDT to meet the needs of their real estate advertisers. By breaking down the barriers of entry to online solutions, the BDT positions itself to be the advertising partner of choice. TownNews’ real estate vertical application offers searchable and up-sellable features that benefit both consumers and realtors. Much like their SWAT Team, TownNews will come into the market and meet with the local MLS provider to ensure success. Estimated Revenue This real estate vertical strategy will be sold with a yearly contract for access to the online advertising solution. The fee will be $30 per month for each realtor. The realtor then has access to update their portion of the web site and offer information that wouldn’t be available by traditional means. The liner ads will be posted for a fee of $2.00 per ad in a weekly classified section. While bold, this reduced fee will enable the BDT to populate both the online edition as well as begin the process of taking back the classified market. The real estate double - 43 - truck will run on opposite days of the auto double truck advertising for increased single copy sales. Sales of Home Sellers to realtors $7,200 (20 realtors X $30 per month X 12 months) Liners will be 6 lines, with a photo when available (1 inch each) X 20 inches X 9 columns for a total ad count of 180 ads X 2 pages equals 360 ads $ 720 per week (360 realtor ads more per week X $2.00) $2880 per month By implementing this strategy the BDT will realize additional revenue of $3480 per month. Again, the issue of switch in revenue can be addressed given the low number of classified ads in the current print edition. Estimated Expenses $1500 investment for set up $395 monthly recurring charge for vendor support in year one Printing (estimate for two full pages of liner ads) of $110 per week Expenses for printing belong in advertising but we booked them for the purposes of this plan Software Interface development @$75 per hour ($750) Employment Strategy Employment classifieds rank within the Top 10 most viewed areas on the website according to BDT web stats, indicating that people are trying to find work in the area or may desire relocation to Bluefield. MORI research found that 38 percent of small market web site users are interested in online job listings or in posting a resume. Online features like resume posting and detailed job descriptions are an asset to readers according to a Belden study. The Daily Telegraph or its corporate parent CNHI should consider partnering with a recruitment company that can provide a robust application for employers and job seekers. Recruitment companies like CareerBuilder, CareerSite, and Matchworks can offer interactive services, added inventory, resume posting and other features that small newspaper markets would not be able to provide alone. Detailed job ads combined with rich information about Bluefield on the web site will attract professionals in fields like medicine and education to work in Bluefield. The employment classifieds needs to allow job seekers to communicate with recruiters, providing a means to send or post resumes. Email addresses should be encouraged by the classified representatives and hyperlinked so they are active. “Top Jobs” is an effective upsell opportunity that can spark the interest of readers not actively seeking employment by placing the ads on high traffic locations like the homepage. The online manager will work closely with the classified manager to develop new employment strategies and partnerships as opportunities exist. - 44 - Circulation strategy Synopsis: A successful strategy requires web-enabling the circulation department. This model will directly integrate online business practices into the day-to-day operation of circulation. The first priority will be constructing a model that allows for payment of subscriptions, including signing up for auto pay and interaction with subscribers. An online marketing campaign for subscribing will be implemented on the site in the form of various banner ads or a DHTML mouse-over box. Adding a paragraph encouraging readers to subscribe at the bottom of the story template is an option that is easy to change from time to time. The subscription component needs to be implemented immediately. Simultaneously, a full ROP marketing campaign will also be implemented, including rack cards and POP marketing. The web site will be utilized as an extension of the customer service department, providing another option for traditional subscribers to log complaints, stop their paper, tip their carrier and pay their subscriptions. This will lead to fewer circulation customer service calls and allow the reader to communicate with the newspaper at their convenience, utilizing the power of the Internet to do business with the Bluefield Daily Telegraph. Readers who communicate via email prefer to be responded to in that manner. Covered separately, an analysis of the overall circulation strategy will determine if the paper’s content should be posted online for a fee. Market Opportunity By adding basic web-enabled tools you empower your subscribers to contact you online 24/7/365. Subscribers will be enabled to pay for a subscription online, stop their paper, and do vacation stops as well as donate papers to the NIE program. This will save money by lessening customer service manpower. The ability to log complaints online saves time and lessens the frustration of the subscriber. The market for these cost saving tools include the entire population that has access to the Internet. Site visitors who are local will be encouraged to subscribe online for print delivery. Auto renew can be exploited as an option with all the forms necessary for implementation posted online. Access to comparable data has been difficult to obtain, the following information is from the Post Register, a 25,000 circulation daily. There are an average of 20 subscribers a week who sign up for vacation stop/starts and 5-10 subscribers a week who log a missed delivery. The average monthly subscription sign up or renewal amount is $1400 monthly. Competitive Analysis By harnessing the power of the Internet, the Bluefield Daily Telegraph has the opportunity to have a virtual circulation customer service representative on board 24/7/365. Brand positioning can be accomplished with a successful ad campaign explaining the benefits of using the online features. The BDT will position itself as the local information provider using the latest technology to facilitate customer service. - 45 - “Go to Market” strategy The Bluefield Daily Telegraph will build an online component in the first year, using the TownNews forms that allow for complaints, starts, stops, vacation stops, and donations to the NIE (Newspapers in Education Program) as well as paying for subscriptions online. Marketing of the new alternative way of reaching the circulation department will include rack cards, bill stuffers, ROP advertising and a thank you email to each person who leaves an email address. This email is a perfect way to encourage signing up for Breaking News, daily headlines, events headlines, signing up for marketing email and especially signing up for auto renew. Circulation will receive and process the orders and complaints using the Internet. The need for this component is critical; therefore the Bluefield Daily Telegraph will implement the solutions immediately using Town News, the current provider of software solutions. TownNews will create a limited number of online forms for no additional cost; additional forms will be $75 per hour. We estimate the need for 2 additional forms. It will be necessary to e-commerce enable the web site to facilitate paying for subscriptions online and making donations to the NIE program or tipping your carrier. TownNews can assist the business office in doing this in year one. This has been budgeted for October but may be implemented earlier. Recommendations are for the following: Pay for a subscription online Tip a carrier FAQ page on circulation issues A form for delivery concerns with simple to use radio buttons A form for vacation services along with a way to donate their paper to the NIE program A way to make a donation to the NIE program The entire site should be built using a standardized “template” that includes a logo at the top of each page and contact information at the bottom of each page, including the phone number for customer service. Navigational links should be on the left. Marketing should be done by utilizing the URL in all ads, with a unified ‘theme’, an example of a campaign that includes ads using standard clip art follows. The theme for this example is “It’s all about you”. Subscribers can communicate when they want, in a way that is easy and convenient for them. It is recommended that a corporate solution be explored as part of a year two solution. Standardizing the web sites corporate wide and using an in-house team that drives the decisions for all of the CNHI newspapers will enable all the newspapers to deliver the same high quality solutions to their subscribers. There are vendors available to serve as developmental resources. When the switch is made to utilize corporate resources all of the interactive and support solutions should be recreated. Vendor recommendations are covered separately. - 46 - Product Overview Immediate implementation will provide for increased understanding of circulation issues as well as increased revenue. This strategy is critical and should be fully accomplished in a 4-6 week time frame by the new online manager, working directly with the circulation director. Sales Strategy An entire marketing campaign should be implemented once the circulation solutions are executed. Theme based online banner ads should appear across the web site with ROP ads of the same theme. Rack cards and POP advertising should all include the benefits of using the online components. All advertising and marketing should include the URL of the paper. The URL will be placed in the masthead, on envelopes and on all the newspaper business cards. Working directly with the online manager, the circulation director will be responsible for the ongoing marketing of the bdtonline.com subscriber services area. - 47 - - 48 - - 49 - - 50 - - 51 - Registration Strategy Synopsis: Requiring readers to register for full access to the web site will give online newspaper operations insight to reader demographics beyond web logs, new targeted advertising opportunities, and the ability to track reader habits. Registration benefits to the reader include: personalized email choices, automated entries of forms and access to the full archive. If implemented, the registration strategy involves using email addresses collected through an opt-in system for marketing and advertising opportunities via email. Registration surveys can ask for and/or require a variety of information. This information is then used to target a particular audience. Advertising can also be included as a skyscraper or leader board banner or text note inside of daily news briefs or breaking news announcements. If implemented, the registration of users will be implemented within the first year. The Bluefield Daily Telegraph will execute a marketing and sales plan for newsletters, breaking news, daily headlines and special offers. The key to a successful registration program is meeting the needs of the users after they have given you their information and ensuring that the data is clean. The BDT will implement the opt-in programs as the names are harvested. The list(s) will be used for marketing both the online and print edition. Ad campaigns and marketing opportunities will be evaluated against the disruption of the email. Instructions for unsubscribing will be posted at the bottom of each email. Each email will include a way of passing the information along to another party with an opt-in option. There will be clear statements as part of the privacy policy that the email list will remain proprietary to the newspaper and not released to anyone. The online manager will continue to reference state and national laws that pertain to email marketing. The BDT will also clearly identify themselves as the sender of the email. Email addresses need to be hidden from potential pirates. The data gathered will be maintained and positioned to provide valuable statistics to the online manager. The Bluefield Daily Telegraph’s privacy policy and terms of service must be stated clearly and embedded as part of the footer of the web site. Market Opportunity Newspapers are requiring registration as either a way to gather demographic information or as a predecessor to a paid model. Registration leads to permission marketing if the data and relationships to the registrant are managed properly. It is imperative that the names and data be used for permission marketing as it is gathered, not left to sit for long periods of time. It is also important to recognize that a drop in traffic of 30% usually occurs by walling off the site and requiring registration. The site will be locked down at story level, the main page and section fronts along with other areas like classified will remain ‘open’. The BDT Online is currently averaging 6000 users per day. Most sites realize a return of traffic after a few months. - 52 - Seth Godin, Vice President of Direct Marketing for Yahoo! says that permission marketing is like dating. When you ask someone to give you personal information about themselves, like a valid email address, it is like asking for a first date. Each time you send them information via email, whether it is daily headlines, breaking news or an advertising campaign you are expanding your relationship with that reader—asking for another date. At some point you are going to ask them to take the biggest step of all and make a purchase. If you deliver consistently valuable information or offers to them, they will continue to “date” you, if you deliver useless information or content they consider disruptive you will get ‘dumped.” By delivering the daily news which people view as an informative, useful interruption the BDT is strategically positioned to have the best relationship with the registrant. Online users do not like registration; it is clearly an invasion for most. The form that the BDTOnline edition will use will ask for five pieces of information; valid email addresses, zip code, their subscriber status, year of birth and which items they want to receive via email. It will be clearly stated what the information will be used for and what the registrant receives in exchange for the data. We recommend only four pieces of information because in this market that will be enough to justify and sell an email marketing campaign. Larger markets would, of course, want to ask for more information in an effort to drill down to a more specific demographic. The target market for email addresses will include all visitors to BDT Online. By asking for registration in exchange for access to the content and interactive features on the web site you are also preparing the user for the potential next step to a paid online site. Advertiser opportunities include all traditional advertisers within the market. Email marketing offers six solid benefits; stamps are free, frequency is free and printing is free, the speed of testing is one hundred times faster, response rates are higher than direct mail and you can drive people to a web site for more information. Innovative opportunities are present for the advertising staff to sell permission marketing campaigns. Some examples: an email sent out at 4:00 p.m. targeted with a coupon or special for dinner, grocery specials that are good for only a few hours, special offers or amazing deals that need a copy of the email to be validated. The list should include at least 1000 names for a successful campaign. Pricing of ad campaigns will be based on CPM. In some markets, CPM rates range from $90 CPM up to $200 CPM. Competitive Analysis A successful registration model would aid in establishing BDTOnline as the area’s technology driver with new and innovative ways of communicating with customers. The BDT is uniquely positioned as a century old business with high integrity, one that the public trusts enough to give their email address to. There is no one else in the market that could as effectively establish and execute a successful permission marketing campaign. In order to facilitate a successful model, it is vital that use of the information gathered is identified early on, successful use of the data is crucial to the decision on whether to implement a - 53 - registration strategy. Gathering the names for breaking news, newsletters and daily headlines can be done as a separate project if the sales opportunities for permission marketing are not present, sponsorship could be sold for those components alone. The advertising staff will be charged with selling permission marketing campaigns in cooperation with the online manager. The permission marketing strategy offers the benefit of being able to offer innovative, clever and creative sales campaigns. The strategy also has its limitations, by requiring registration and walling off the site, you are going to lower the traffic and page views of the entire site. You also risk offending the very readers that have been cultivated slowly through the past year. “Go to Market” strategy The product name to be used in internal and external marketing will be BDT Alert. The Bluefield Daily Telegraph will exploit the home town feel and friendliness that is predominant in the area to interact with the registrant. All of the marketing, updates and sales pieces will incorporate a casual atmosphere in the email. Advertising announcements will include a broad spectrum of opportunities from “Rent one video, get two free at Bluefield Video” to “Save $2000 off invoice of a new car”. The proprietary nature of the list will be strictly enforced. Strategy implementation plan Town News can immediately implement a registration model if the decision to do so is made. At a cost of $125 set up and $75 per month, the databases can include opt in choices for breaking news, daily headlines, events calendar and specials. According to Mori, 92% of newspaper web site users identify breaking news as a feature they would use. Breaking news should be activated immediately. The newsroom should send breaking news as often as possible. Mori identifies breaking news by two types of stories. Type I stories: Enterprise Investigative Exclusives Features/Living Opinion columns Profiles Capital-J Journalism Series Type II stories: Breaking News o Crime - 54 - o o o o Traffic Weather Listings Already reported elsewhere Time Based Stories o Press Conference o Meetings o Sports Games Email containing daily headlines is the second priority and used as a way of pushing people to the online edition and driving single copy sales. The obituary information should be included in the daily headlines. If implemented as part of a paid strategy, the daily headlines emailer will add value to the online subscription. The events calendar can be an effective way to post everything happening in a small community without printing it all in the traditional paper. Each of these components has sponsorship opportunities. - 55 - - 56 - Product Overview There are four separate products that will be available to sell; breaking news leader board ads, daily headline leader board ads, event leader board ads and permission email marketing campaigns. The leader board ad will appear above the newspaper content, but below the BDTOnline logo. Breaking News will be identified and generated from the newsroom. These banner ads offer a great branding opportunity but no guarantee of frequency can be made on these ads, they need to be sold to an advertiser without timely content. Permission email marketing campaigns will be sold by the advertising representatives, written and designed by the online manager. These campaigns should utilize a common thread for familiarity. Using a hometown style, they should be written as a way of giving your readers a bargain or special. Town News can launch these campaigns year one, year two they should be managed and maintained by the corporate solution. Sales Strategy Sponsorship of the breaking news leader board ad will be sold by the advertising representatives for $75 per 1000. Sponsorship of the daily headlines will be sold $25 per 1000. Sponsorship of events calendar weekly update will be sold for $25 per 1000. Sponsorship will be sold on a yearly basis for a reduced fee, banner ads will be built by the production department. Implementation of specials sales will be sold by CPM. The rate should be set at $50 CPM per ad campaign. Marketing efforts which will include house ads should be implemented to drive registration. The online manager will be tasked with developing contest opportunities to drive registration. Sales will commence when the database includes 1000 names. Potential sponsorship revenue is estimated as follows: 50 breaking news per year -- 50 x $50 = $2500 Daily headlines sponsorship-5 days a week—260 x $25 = $6500 Events calendar weekly update—52 x $25 = $1300 Special Sales or specials –25 X $50 = $1250 - 57 - Health Vertical Strategy Print and Online Combination Solution Synopsis: A Medical/Health portion of the Bluefield Daily Telegraph Online site will be produced and marketed as a vertical site online and as a traditional print tab for distribution. A medical guide run online and in print tab format will contain content along with traditional advertising. The online version will include a medical directory and other advertising. The information for the medical directory will be produced by the newsroom as a special section; the online manager will assist in gathering the data for local medical professionals. The medical professionals will be asked to purchase space for a biography and/or practice description. Distribution will be as an insert to the traditional print subscription and in the 3 local hospitals. A full-page, full-color ad placed in the tab will be used as a marketing tool that will push readers to the web site. Advertising will be sold by the ad reps into the tab with an additional presumptive buy online component. The medical guide directory will be supplemented with information provided by TownNews. This online destination is expected to be a popular part of the website and should serve as a popular advertiser location. This content module will be implemented based on the success of the tourism/recreation site as well as the market opportunities that exist in year three. Market Opportunity The Readership Institute found that 87 percent of newspaper readers want more health news. The Bluefield Daily Telegraph is positioned to serve the community and generate new revenue with at special section medical guide. Bluefield has three hospitals and many doctors in the local area. Bluefield serves as the medical community for a large geographical area. A medical/health vertical will serve the local community and provide valuable advertising opportunities for local health professionals. The BDT Online Health vertical will include a directory as well as content provided by TownNews. In story banner advertising opportunities exist as well as biographical information components. A relationship with the three local hospitals will be mutually beneficial and should not be difficult to achieve. Market size would be approximately the 100,000 combined populations of Mercer and Tazwell Counties. This destination site should be coded carefully for ideal search engine optimization. Visitors will come from around the area as well as outside the market. Users will feel that they are interacting with a resource, not with advertising. 20 percent of all online newspaper readers are interested in receiving free health information updates via email. Mori research shows 46 percent of all online newspaper and 40 percent of small market online readers use health information services. - 58 - Competitive Analysis The main competitor to this information would be the yellow page. By fully maximizing the assets of the Bluefield Daily Telegraph a partnership can be formed that will prove to be successful for all parties. The overall strengths of the newspaper will all be used to produce this product. It will be done more effectively and for less cost than possible by any competitor. There is clearly an opportunity for the Bluefield Daily Telegraph to cooperatively benefit with a relationship with area medical professionals and the three hospitals. The BDT will also benefit the community by providing a robust medical/health directory. “Go to Market” strategy This medical/health directory vertical will be produced as a combination print and online solution. Printed as a booklet, advertisers will have an opportunity to advertise in a piece that will be widely distributed through traditional channels and kept by local readers as a reference guide. As an online destination site, the health vertical will provide a community health resource. It will help to build a relationship with the health care community as well as serve the medical guide advertiser in a non-traditional way. Using the data from previous medical guides as a blueprint, the online manager will help procure the information necessary to complete a medical directory of local professionals online. Strategy implementation plan Content will be gathered for the print medical guide in the traditional method of a special section. The directory of information that already exists will serve as a call sheet for advertising to contact the medical community. An article about the health vertical online should be placed in the printed medical guide, along with a full color ad pushing readers to the online directory. Sales will be accomplished by the traditional ROP advertising staff with an online presumptive buy of a bio/write up with the directory listing for $250, this fee would be added to the price of the special section ad or instead of a special section ad. An electronic form can be placed online for the medical professionals to fill out (and proof) as well as an area to upload pictures, cutting down on production time. Doctors and other medical professionals can write advertorial content as part of a special advertising buy and marketed as an ‘ask an expert’ feature. The sales effort will be for a two week time period. After proving the success of this advertising opportunity, this will prove to be an area that advertisers will want to be able to buy into, looking forward to it year to year. This content module can be built using the current Town News technology and health content module. The business directory will be built using the same vendor for a fee of $250 to set up and a monthly fee of $50. - 59 - Product Overview The Bluefield Daily Telegraph will produce a booklet format publication done in the style of a special section, with full color front and back and available color inside. A complimentary web site vertical will be built with skyscraper banner advertising as well as a directory of medical professionals. Distribution locations could be an up sell opportunity as part of a sales package. The publication would also be included as a welcome item to new starts that move into the area along with a 2 week subscription for the purpose of increasing traditional circulation. This is a year three project, with an emphasis to move up the project if at all possible so the revenue can be realized earlier. The time frame for launch should include a time table for content gathering, a sales window, production time and immediate and ongoing distribution. Content gathering 4-6 weeks Directory information gathering 2 weeks Sales-advertising and online tile ads- 4 weeks Production time 1 week Distribution time 1 week and ongoing Sales Strategy A recommended URL is www.bdtonline.com/medicalguide or medicalguide.bdtonline.com unless the Bluefield Daily Telegraph or CHNI owns a more appropriate URL. Sales strategy will require a 4 week window once a year for sales by the traditional ROP salespeople. This unique combination online/offline product will be sold the same as a special section with the addition of an online bio/description area. The biographical information will be input using a form online that feeds into the Town News directory program. Offered as a presumptive buy for $100.00 the bio will stay online in the Health/Medical area for a year. This area could also be sold as an advertorial. If advertorials are posted they should be clearly identified as such. Each physician or medical professional will be listed by name and phone number for free. Banner ads that promote the medical area of the site will be produced and posted on the newspaper web site. The medical guide will allow health professionals to reach everyone in the circulation area of the BDT. This informational piece is traditionally kept by household as a reference guide. The online component will provide national health information, updated regularly along with local health information. A health dictionary with specific topic pages and a self-published calendar of medical events will be in the area as well. The online directory will offer health professionals a way of reaching potential clients outside of the immediate circulation area. - 60 - Estimated Revenue Using the existing sales force and the same strategy used for other special sections the Bluefield Daily Telegraph will sell traditional print ads with a presumptive sale of a directory listing ad for a fee of $100. The estimated revenue for this combined advertising component is $10,000. There are between 200-300 medical professionals in the Bluefield area, sales to 1/3 of the market is a realistic expectation for this online and print solution. The Bluefield Daily telegraph will realize a gross profit of $10k in new revenue. This does not factor in production or newsroom expenses, or traditional commission on sales. Estimated Expenses The estimated cost for printing 30,000 copies of the medical guide in a booklet form is $3600. This represents the cost for 24 color pages, 50 pound e-brite paper. Expenses for printing belong in advertising but we booked them for the purposes of this plan. - 61 - Economic Development Print and Online Combination Solution Synopsis: A Tourism/Recreation portion of the Bluefield Daily Telegraph Online site will be produced and marketed as a vertical site online and as a traditional print tab for distribution. The content, run in a tab format, will be assembled with the cooperation with the Chamber of Commerce (COC) and the Economic Development Council (EDC). The “history” content discussed in the content strategy will be utilized in this vertical as well. This will serve as the predominant online solution in the fight for revitalizing the local economy with tourism. Distribution will be as an insert to the traditional print subscription and through traditional COC and EDC channels; additional distribution channels may exist through traditional circulation venues. A full page, full color ad placed in the tab will be used as a marketing tool that will push readers to the web site. Advertising will be sold by the ad reps into the tab with an additional presumptive buy online component. The tourism/recreation content will remain ‘evergreen’, on the site indefinitely. Utilizing the newspapers microfiche, electronic data, institutional knowledge and staff expertise this vertical area will be supplemented with weekly content containing historical information. Added as robust content and utilized in the traditional print edition, this content will utilize a reader feedback component for questions and comments. This online destination is expected to be a popular part of the website and should serve as an effective advertising location. This content module will serve as a test for additional content opportunities and can be further expanded in year two. Market Opportunity By centralizing the tourism and recreational information along with a niche history component, a resource rich destination site can be built. This portion of the site will not only contain evergreen content but also attract new visitors. A relationship between the Bluefield Daily Telegraph and the local (COC) and the (EDC) must be developed. This relationship will be a mutually beneficial one and should not be difficult to achieve. Market size is indeterminate, given the potential for tourism traffic, but local use and interactivity will add to the value of the site. This destination site should be coded carefully for ideal search engine optimization. Visitors will come from around the area as well as outside the market. By using the tab as an information piece for the COC and EDC a market will be reached that has already established itself as interested in follow up information. The information will also work well as a rich resource for teachers and students interested in the rich history of the Bluefield area and should be utilized as part of the Newspapers In Education program. Users will feel that they are interacting with a resource, not with advertising. . - 62 - Competitive Analysis The main competitor to this information would be the COC and EDC sites. By fully maximizing the assets of the Bluefield Daily Telegraph a partnership can be formed that will prove to be successful for all parties through a winning partnership. The COC currently has good information and is the only site that shows on Google and like search engines using tourism search terms. The COC and EDC could continue to maintain their sites while linking to the BDT content. This would result in increased traffic for the BDT site as well as ready made content for the COC and EDC. The content on the COC site could be reproduced by the staff of the Bluefield Daily Telegraph. Because of the ability to run ROP advertising at cost and the convergent relationship with the TV Station, the BDT will be superior to other area sites for tourism. The overall strengths of the newspaper will all be used to produce this product. It will be done more effectively and for less cost than possible by any competitor. There is clearly an opportunity for the Bluefield Daily Telegraph to cooperatively benefit in a partnership with the EDC and COC. The BDT will also benefit the community by providing a robust tourism site. “Go to Market” strategy This tourism content vertical will be produced as a combination print and online solution. As a tab, advertisers will have an opportunity to advertise in a piece that will be widely distributed through traditional circulation distribution channels and by reputable organizations like the COC and EDC. Advertorial content can be produced by advertisers wanting to be “experts” in particular areas or by businesses expressing their historical involvement in the community. The advertorial will expand the amount of content and can command a premium from the advertiser. As an online destination site the groundwork has been laid for evergreen content with valuable reader feedback and interactivity. This tab will serve as the information piece for the COC and the EDC. The tab will be distributed at local hotels, the COC office and used to fill requests for information received at the COC and EDC. An information request link can be utilized online with requests going to the COC or EDC. Additional distribution points will be determined by the circulation director, leveraging established relationships with distribution channels. BDT will produce these tabs and distribute them in exchange for the anticipated cooperation with content from the COC and EDC and potential advertising leads. The online manager will also help procure content information that exists in digital form from state and federal government agencies. Strategy implementation plan A relationship with the COC and EDC needs to be established at the publisher level. The online manager will help to identify and gather content. The BDT clearly brings the most recognized, most trusted brand to the table as well as the largest market penetration. By working together, the Bluefield Daily Telegraph, the COC and the EDC can begin a destination site that will help lead the - 63 - community in a revitalization effort. The importance of the content to this strategy will be clearly verbalized to the newsroom. Information will be gathered from local, state, regional and federal sources and produced into a 16 page tab format publication. Sales will be accomplished by the traditional ROP advertising staff with an online presumptive buy of $250 added to the price of the ROP ad. The sales effort will be for a four-week time period. After proving the success of this advertising opportunity, this will prove to be an area that advertisers will want to be able to buy into, looking forward to it year to year. This content vertical can be built using the current TownNews travel content module. The cost is included in the current monthly fee. Product Overview The Bluefield Daily Telegraph will produce a 16 page tab format publication in the style of a special section, with full color front and back and available color inside. A complimentary web site vertical will be built with banner advertising. The web content will be ‘evergreen’, remaining year after year along with information about local businesses that specialize in recreation, tourism or local entertainment. Features will include an area to-do list, restaurant reviews, hotel information and local bed and breakfast reviews. The tab will be distributed through the COC and EDC with additional distribution done through retailer sites like hotels. Distribution locations could be an up sell opportunity as part of a sales package. The publication would also be included as a welcome item to new starts that move into the area along with a 2 week subscription for the purpose of increasing traditional circulation. Content can be harvested from previous newspaper editions with tourism information or travel sections of the newspaper. Additional valuable content will come from users who will be encouraged to post local pictures and responses to the question “What is there to do in West Virginia?” The newspaper’s photojournalists can use their pictures to make wallpaper shots for screensavers with the newspaper or website logo clearly displayed. While ‘evergreen’, the content will be proofed and updated on a routine basis. Utilizing the expertise of Bill Archer, other staff and reader input a history component will be built. Ongoing content will be produced for the ‘history corner’ in a weekly column. This will be partnered with the traditional, 100 years ago today or 50 years ago piece that would utilize the paper’s history and legacy data. This is a year two project, to be moved up if time allows. Launch should be made in conjunction with the COC and EDC schedule. The time frame for launch should include a time table for content gathering, a sales window, production time and immediate and ongoing distribution. Content gathering 4-6 weeks Ongoing content with the history piece Sales-2 weeks for tab and online tile ads Production time 1 week Distribution time 1 week and ongoing - 64 - Sales Strategy A recommended URL is www.bdtonline.com/wv unless the Bluefield Daily Telegraph or CHNI owns a more appropriate URL. Sales strategy will require a 2 week window once a year for sales by the traditional ROP salespeople. This unique combination online/offline product will be sold the same as a special section with the addition of an online skyscraper banner ad. The banner will be sold as a TOMA or branding opportunity, not based upon a number of impressions. Offered as a presumptive buy for an additional $250.00 the skyscraper ad will stay online in the Tourism/Recreation area for a year. The advertiser must purchase the online component in order to appear in the tab. Banner ads that promote the tourism area of the site will be produced and posted on the newspaper web site. Sales opportunities can be generated by known advertisers as well as by doing searches for information online. This could be a fun, competitive sales opportunity. Sales incentives should be put together in a creative way for this unique sales experience. Testimonials and click through rates should be utilized for the sales piece the following year. Estimated Revenue Using the existing sales force as well as the online sales person and the same strategy used for other special sections the Bluefield Daily Telegraph will sell 60 traditional print ads at traditional special section rates with a presumptive sale of a tile ad for a fee of $250. Larger online ads or premiere online real estate can be sold at a higher rate. The estimated revenue for combined advertising component is $15,000. The Bluefield Daily telegraph will realize a gross profit of $11,000. Estimated Cost The estimated cost for printing 60,000 copies of the recreation/tourism tab is approximately $4,000. This does not factor in production or newsroom expenses, or traditional commission on sales. Expenses for printing belong in advertising but we booked them for the purposes of this plan. - 65 - Paid Online Content Overall Circulation Strategy Synopsis: After a year of building audience and establishing an online presence with bdtonline.com, an option for the web site is to go to a paid access model. There are obvious pros and cons to a paid model; this is an opportunity for the BDT to explore those fully. In order to explore the possibility of a paid site, the Bluefield Daily Telegraph needs to look at the long term strategy of their overall operation. Online strategy must be a cohesive, integrated part of the newspaper's overall long-term plan, not necessarily a way to make money in the short term. The decisions that drive online strategy must be based on the market, goals and long term strategy of the newspaper. There are pros and cons to any long term strategy. Here are some questions that need to be addressed: Does this strategy align with the mission statement of the newspaper? Is the BDT a news and information provider or just a newspaper? There was a time when the citizens of our country had to decide if they wanted trains or they wanted transportation. If we had only focused on rail transportation, where would we be today? Going to a paid model will directly impact the circulation strategy. Is the circulation strategy the priority for the overall newspaper operation? What amount of growth are you looking to realize? Do you currently “own” the news market? What is each subscriber worth in advertising revenue? (Current revenue divided by total number of subscribers) How much online advertising revenue are you going to be giving up? Is there a long term gain to be realized by reaching out of area subscribers? Is the potential subscriber pool large enough to sustain an acceptable level of growth? Are there potentially other ways to monetize the site that need to be explored? People will be angered by having to pay for online content, is the BDT prepared to deal with the consequences? Does the BDT have the support of internal and external decision makers in realizing this agenda? If you have “assumed” sales in classifieds or obits, can you sustain those prices with a drop in website usage? How much traffic reduction can you afford? Will you allow print subscribers to access the site for free? Will you put classified verticals behind a pay wall? If, after answering these questions and taking a hard look at the answers the BDT chooses to move forward with a paid content model, we offer the following recommendations: - 66 - Paid Scenario: The BDT will allow access to the site by subscription only, access will be granted by a required username and password. The online edition will be free for 7 day print subscribers. Non-subscribers to print will need to pay in order to access all of the features and content on the web site. Access will be gained by a username (current email address) and a password that can be set by the user. A mechanism will be in place for the user to change their email address and password through a web based user interface. By using the current email address and emailing the password, you are guaranteed a valid address. Email billing can then be facilitated for both the current online subscribers as well as print subscribers who use the online edition. Circulation staff will gather email addresses for all subscribers, even if they don’t use their free online subscription so that billing can be done via email as well as through traditional channels. A full marketing campaign will be launched in conjunction to going live with the paid access site. The NIE program can help promote the benefits of the web site to educators who use newspapers as teaching tools in the classroom. An online password will be provided to teachers who use the newspaper in their classrooms as a teaching tool, charged to the NIE program. Additional personalization components will add value to the online edition. These will include; breaking news, daily stories sent by email, access to post comments and celebrations as well as a personalized email sent with the current daily news. Our research shows paid sites realize an increase in circulation of between 0.6% to 7%, the average was 2%. With an increase in circulation of 2%, the BDT would add 410 subscribers. If the 2% goal of online circulation is met for a year, the BDT would realize an increase in circulation subscription revenue of $5000 at the $4.00 rate. Those subscribers translate indirectly into $70,000 of advertising revenue, when the rate you can charge as a result of the paid circulation is taken into account. As the online circulation grows, the cost associated with increased circulation does not grow at the same rate, growing your online paid subscribers will result in increased revenues. Market Opportunity There are several newspapers in the U.S. who have implemented a paid content business model. Many Canadian newspaper web sites operate under this model. The Audit Bureau of Circulation has ruled that newspapers can charge for online content as a separate edition if a particular criterion is met. The following is from the Audit Bureau of Circulation web site, updated November, 2003. - 67 - Statistics from other newspapers Daily and some weekly paid models include: Pendleton, Oregon (eastoregonian.com) [9.57%] Moline, Illinois (qconline.com) [7%] Paducah, Kentucky (paducahsun.com) [7%] not ABC compliant Astoria, OR (dailyastorian.info) [6.3%] Marinette, Wisconsin (eagleherald.com) [4.4%] Enterprise, Oregon (wallowacountychieftain.info)[4.39%] weekly John Day, Oregon (bluemountaineagle.info( [4.19%] weekly Grosse Pointe, Texas (grossepointenews.com) [3.5%] not ABC compliant Cedar Rapids, Iowa (gazetteonline.com) [1%-3.25%] online not ABC compliant Chanute, Kansas (chanute.com) [2.9%] online not ABC compliant Long Beach, Washington (chinookobserver.info) [2.85%] weekly Idaho Falls, Idaho (postregister.com) [2.5%] Moscow, Idaho (dnews.com) [2 %] not ABC compliant Fort Walton Beach, Florida (nwfdailynews.com) [2.5%] Panama City, Florida (pcnh.com) [2.5%] Columbus, Ohio (dispatch.com) [2%] Albuquerque, New Mexico (abqjournal.com) [1.5%] not ABC compliant Madisonville, Kentucky (the-messenger.com) [1.5%] not ABC compliant Mesa, Arizona (eastvalleytribune.com) [1.4%] Lewiston, Idaho (lmtribune.com) [1.1%] not ABC compliant Rochester, Minneapolis (postbulletin.com) [1%] New Bedford, Massachusetts (southcoasttoday.com) [1%] Keene, New Hampshire (keenesentinel.com) [1%] Wenatchee, Washington (wenworld.com) [1%] San Angelo, Texas (SanAngeloStandardTimes.com) [1%] Salem, Oregon (capitalpress.info)[.94] ag weekly Nashua, New Hampshire (nashuatelegraph.com) [ .0016% ] - 68 - www.accessabc.com/members1/n_electronic.htm Qualifying Electronic Editions as Paid Circulation (Updated Nov. 2003) Product Identification It is the option of the publisher to determine if a newspaper's electronic product is to be identified as an “edition” of the newspaper with the intent to claim copies sold as “paid” circulation. An electronic edition is defined as a newspaper delivered electronically that is consistent in content with the print version of the same newspaper. For a no-cost review of your electronic edition , to insure compliance with the consistency requirement, please forward a copy of your print edition PLUS access to your electronic edition to , Director, Publisher Relations, at ABC. If the electronic product is an “edition” of the newspaper and sales of this edition are to be claimed as paid circulation, then all qualification rules for newspapers shall apply including -. A qualifying amount of at least 25% of the basic home delivery or single copy price must be collected. Delivery of the edition can be fulfilled by one of two distribution methods, “push” or “pull”. An example of the “push’ method would allow subscribers to be notified via an e-mail, detailing the current issue is now available for downloading. An example of the “pull” method would allow subscribers access to the electronic edition by logging into a secured website. With the “push” method of delivery, “bounce backs” or undeliverable editions must be accounted for and removed from paid circulation. Copies identified as delivery issue “Bounce backs” may be included in qualified circulation for a limited time frame provided the delivery problem associated with the bounce back is rectified, or the subscriber is purged from the subscriber file in accord with the following scale: 1. Daily - 10 issues (days of service) 2. Weekly - 4 issues (days of service) Qualification for Electronic “Editions”: Qualifying prices for an electronic edition shall be based on the print product's basic prices for the same term, frequency, and ABC defined zone. If a solicitation is for the sale of only one subscription of a newspaper (electronic or print), then a qualifying price must be paid for the one subscription (25% of basic print home delivery price). If a solicitation is for the sale of both a print and an electronic edition of a newspaper and only the print subscription is intended for inclusion in paid circulation, then a qualifying price must be paid for the single print subscription (25% of basic print home delivery price). If a solicitation is for the sale of both a print and an electronic edition of a newspaper and both the print and electronic subscriptions are intended for inclusion in paid circulation, then a qualifying price must be paid for as a multiple subscription sale. In the U.S., Bureau rule , shall govern the sale. The rule states that if a consumer purchases two subscriptions of the same newspaper (albeit one print and one electronic or two electronic), the publication must collect a minimum of the full basic price for one subscription and not less than 25 percent for the second. Provided this minimum is met, both copies shall be considered sold at 50 percent or more of basic prices. - 69 - In Canada, Bureau rule shall govern the sale. Rule C 10.1 requires a minimum of 1 cent per publication be collected. o If the publication collects a minimum of 100 percent of the basic price for one subscription, plus 25 percent for the other subscription, then the circulation associated with both subscriptions will be reported as “Sold at half of basic price or more." o If the publication collects less than 125 percent, then the circulation for both subscriptions will be reported as “Sold at less than half of basic price.” Electronic Edition third party sales user licenses may be purchased by business organizations and libraries. Each license may count as one subscription. Colleges and universities may purchase licenses to allow registered college students access to the electronic edition. Each license may count as one 'circulation' unit. Reporting of Electronic “Editions”: Circulation averages for electronic editions must be reported as a separate line item in Paragraphs 1B and 2 in Bureau reports for U.S. newspapers and in Paragraphs 1 and 2 for Canadian newspapers. Circulation distribution for electronic editions must be reported as a column in Paragraph 3 of the Audit Report. Paragraph 1 would state a line item titled “Home Delivery & Mail - Electronic Editions” or "Single Copy sales - Electronic Editions" (whichever applies) in each appropriate transaction and price category. The line item would disclose the circulation averages associated with this type of circulation. Paragraph 2 would state a line item titled “Home Delivery & Mail - Electronic Editions” or "Single Copy sales - Electronic Editions" (whichever applies) in each appropriate ABC zone category and would disclose the circulation averages associated with this type of circulation. Paragraph 3 would have a separate column titled “Electronic Editions” and would disclose the distribution quantity under the appropriate counties, towns, and/or ZIP Codes. The electronic edition should be placed in the appropriate geographic area utilizing the identified billing address of the recipient. ABC Rule C2.4 Separate Editions has been updated to include language relative to electronic editions. Should you have any questions regarding the qualification of your electronic edition please call your Publisher Relations Manager at 847-605-0909. - 70 - The Bluefield Daily Telegraph owns the news market and has the added content opportunities with their convergence partner, WVVA, Channel 6. The newspaper content will be behind a password, the classified verticals and tourism vertical will remain in a free area allowing for growth in those areas. The market size is, of course, wider than the immediate circulation area because of people who want to remain in touch with their local hometown paper after moving away. Our research shows that most markets have a split of subscribers who are in the area and who live outside the delivery area for the paper, the split usually runs 60/40. Based on the success of other markets a challenging, yet achievable goal of 2% will be set. Mail subscriptions should be encouraged to change to the online model and a ‘sunbird’ strategy should be set. As email addresses are gathered, billing can be accomplished through email, encouraging users to pay online with a credit card and opt-in for auto renewal. Competitive Analysis Online strategy must be a cohesive, integrated part of the newspaper's overall long-term plan, not necessarily a way to make money in the short term. The BDT is the dominant player for news content in the Mercer county area, this helps ensure the viability of a paid online newspaper website. By charging for access you are protecting the franchise in three primary ways; circulation, advertising and newsroom. The Bluefield Daily Telegraph serves a market of approximately 63,000 in Mercer County and approximately 45,000 in Tazewell County. The current circulation is 20,500. The ability to reach an unseen audience would place them in an advantageous position. Newspapers who have implemented this business strategy have experienced a stop in circulation slide; people no longer go to the website for free instead of subscribing to the print or online edition. Advertising CPM is lost with each subscriber who opts out of the print edition for the free online edition, by charging for your online edition you are protecting advertising as well as circulation. By putting a value on your local content you are also protecting your newsroom with the assertion that the content that they produce has an inherent value, especially local content. The fact that you can sell advertising around the content is also a way of placing value on their work. The BDT will be saying that what they do; deliver and produce high quality local news is valuable. Competitive strengths include the rural location of Bluefield; a paid online edition will enable delivery to areas that are cost prohibitive to deliver print editions. The BDT effectively owns the daily news market with a 52.7% market share. The convergent relationship with Channel 6 positions the BDT to compete with the TV news channels; TV web sites offer the biggest threat to the bdtonline.com site. A paid site will allow TV sites to ramp up and take traffic. Advertising representatives will not be responsible for selling online banner ads except for verticals as part of special section opportunities. - 71 - Impact of paid model KEY ISSUES CONS By asking readers to pay for online information the BDT will be demanding that readers pay for something they are used to getting for free. It is a bold initiative for a newspaper to take. All users who are used to the free online edition will balk at having to pay. You will get angry email. The risks of losing branding opportunities and readership are real. Advertising revenue will drop; the BDT will realize a loss, if not complete disappearance of online advertising revenues. A paid model demands a different way of thinking about online advertising. As part of the ABC compliancy, traditional ROP advertising will be required to appear in the online edition. This may cause additional work in the production process. Additional banner ads can still be used as a TOMA program, but realistic expectations for the advertiser must be set out. Advertising, other than in house marketing, is less effective given the reduced traffic. Advertisers will not realize the type of results they are used to with a free model. Most newspapers are currently actively seeking readers in the elusive 18-34 year old age range. Mori research shows that users who are 18-34 are less likely to visit a paid newspaper site than users who are older. Readers in this age range are more likely to visit Yahoo! and Google for their news. Considerations must be made to the value of that demographic versus the addition of subscribers. Online traffic will drop, potentially stunting the growth of new products and online initiatives which rely on heavy traffic for success. The BDT may miss out on development opportunities while protecting the core product too strongly. Emerging technologies potentially bring new opportunities. Revenue lost from advertising will potentially be recouped by increasing the ABC Audited Circulation base. Traditional classified verticals will not be affected by the loss of traffic as they will continue to be online for free access. PROS The most effective way that the BDT can meet its goal of helping to revitalize and serve the community they call home is to be a profitable, successful business. By charging for access to the online model, the BDT is protecting one of their most valuable assets, the newspaper content. Immediate increase in ABC compliant circulation Increase in print subscriptions lost to free online Added value for current 7 day subscribers Increase in circulation revenue Increase in advertising revenue Solution to difficult to reach subscriber areas Solution to mail subscription and snowbird subscriptions No dead trees; not affected by increased newsprint costs Aggressive, long term online strategy - 72 - Measurable goals and objectives In order to facilitate a paid online model and meet the requirements the following objectives need to be met: 100% of all content online, including ROP ads, comics and photos Secure, e-commerce enabled web site ** Desired but not required** Breaking news component Daily headlines component Celebrations component “Go to Market” strategy The online edition will be a fully searchable, complete copy of the print edition. As content is added, it should be archived with full access to subscribers made possible. With the addition of email, personalized content and interactive features, the online edition will serve as a viable alternative to the print edition. The online product will need to have a total marketing plan in place in conjunction with launch. The publisher, as well as the entire staff should be prepared to answer emails regarding this strategy. A canned response should be available if needed. The benefits of the online product should be clearly outlined in ads and posted in a letter from the publisher on the site. The circulation staff will need to be trained to answer questions. An information page will need to be posted, along with a letter from the publisher. The online edition should be marketed heavily in the area, as an alternative to the print edition. By fully utilizing the talk back postings and adding the ability for people to add their own photos and celebrations, valuable local content to the web site is added with no additional cost. Timing of the paid content strategy should be adjusted to most benefit from the publication of ABC Audit Fas-Fax information. Breaking news will be available for free to everyone, via email with a push to read more online or in the print edition. The monthly fee will be $4.00 a month, allowing for the 25% ABC rule. Subscribers will be able to choose from a 1 month, 3 months, 6 months and full year subscription. The online manager will be responsible for the implementation of the site and its features. Customer service of the online accounts will be handled by the circulation department. Working cooperatively with the online manager, the circulation department will drive the marketing of the online product. The user name will be an email address. This will enable the BDT to use a valid email address as a means of billing for the print edition. - 73 - In order to facilitate online sales for circulation and classified ads the BDT will need to have a merchant account that can transact real time sales. Town News has a solution that offers a $250 sign up fee and a fee of $60 monthly for up to 1000 transactions. Merchant accounts vary in price by bank; the business office should help make this decision. Town News will build the forms necessary to facilitate the online sales for a fee of $75 per hour. Product Overview BDT Online will be a paid access site with free access to classifieds on the day they are printed. The online paper will be positioned as an alternative to the print edition and as a solution for mail subscribers, snowbirds and people from out of town who want to keep in contact with their home town newspaper. One week of classifieds will be available for access to subscribers. Access to verticals will remain free. Evergreen content, like the tourism area will remain open. Additional products, like wallpaper or search archives will go behind the password. Access to the current edition will require a password. The online edition should be updated shortly after the newspaper is on the press. Breaking news, email of specified sections, addition of subscriber celebrations and a talk back feature will be built as personalization tools. All ROP ads will appear online. Ideally the ads would be searchable and linked to the advertiser’s web page. The ads can appear in PDF form to meet the qualifications of ABC. TownNews has a solution for this that would allow for search ability, that is utilized with a per ad fee. Additional content like comics, games and syndicated content can be posted online without retribution if the content is subscription based. Access will be given to 7 day print subscribers at no charge. Sales Strategy The sales and marketing strategy will be implemented by the circulation director. It is important that the bdtonline.com URL appear on every piece of marketing possible including the masthead of the newspaper and in each house ad. Examples include business cards, sponsorship logos and letterhead. Online subscriptions will be sold for $4.00 per month. This fee will ensure that the subscriptions will be ABC Compliant. Seven day subscribers to the Bluefield Daily Telegraph will receive free online access. Ads should appear daily in the newspaper, point-ofpurchase displays should be produced, rack cards and billing inserts should also be used. A theme campaign should be written with the 18-34 year old market in mind. Sales for the online edition will be facilitated primarily through the web site. The circulation staff should be familiar with the online edition and trained to start new online subscriptions. The Newspapers in Education program will also offer the online edition to teachers, with the fee coming from the NIE program. A secure commerce area will be set up, acquiring a merchant account in year one and a corporate solution year two. This web site area will offer the 1, 3, 6 and 12 month options, with a clearly written explanation of the auto-renew option along with the necessary forms allowing for opting in. The marketing pieces will all - 74 - clearly identify the URL bdtonline.com and explain all of the options available to online subscribers only; access to post feedback, archive access, access to post celebrations, classifieds will be archived for one week, personalized updates and email options, early online access availability, ease of use and use at work should be promoted. - 75 - Archive Strategy Synopsis: The Bluefield Daily Telegraph will build an electronic archive in an effort to monetize its legacy data. The electronic archive will include all the news content published in the print edition. The current online archive contains content dating back to January, 2000. This archive can serve as a revenue stream for previous issues or as a value added proposition for the online edition. If the BDT chooses not to offer a paid online edition the electronic archive will be offered for a per article fee. If the BDT chooses to offer a paid online edition, the archives will be positioned as a value added proposition. This should be implemented early in year two, either in conjunction with the paid model or as a separate business strategy. TownNews can help implement the paid archive strategy immediately using a shared revenue model. This solution can be done at no financial risk to the BDT, our recommendation is to utilize the search area built by TownNews and collect the revenue through the e-commerce solution. This will require some additional programming. The most dynamic archive will exist in a format that can be used across different platforms. Using XML technology and a database solution will ultimately be the best solution. TownNews can facilitate conversion of text to an XML version. If CNHI decides to maintain this information as part of a corporate strategy in year two or even later the XML database will facilitate an easier changeover and the ability to share data between properties. It is our recommendation that this is done by corporate as soon as possible and that all of the CNHI properties statewide post their archives in one central location. Market Opportunity The Bluefield Daily Telegraph currently posts all of their electronic archives online for free. Archives represent an opportunity for new revenue. Obituaries and legal notices are among the most accessed newspaper electronic archives. We have recommended that the BDT obtain a merchant account of their own for online transactions. Using this account along with additional specialized application development the BDT can implement a paid access model. Searches can be implemented for free with a fee of $1.95 for each article that is downloaded. The overall audience for this particular product is untested. This strategy will position the BDT as the information leader with an established value for the electronic archives. Competitive Analysis The BDT will be establishing a value to its legacy data by charging for access to the archives. At a fee of $1.95 per article the projected revenue is estimated at $50-$100 per month. If the BDT chooses to move to a paid content model, the archive feature would be available for free, driving additional circulation and - 76 - value to the online product. The electronic legacy data that was produced and is owned by the BDT is of inherent value to the community as well as researchers. A negative effect of posting the data behind a password is that the amount of traffic to the site will be minimized and search engines will be unable to ‘crawl’ through the data. Some libraries are offering access to their database offerings to anyone with a library card. (Editor and Publisher, May 29, 2002) When you combine the strength of all of the CNHI legacy data into one database you strengthen all of the products implemented under this strategy. “Go to Market” strategy The Bluefield Daily Telegraph will partner with TownNews for implementation of the archive strategy early in year two. TownNews will provide a search interface for the site, all of the fees will be processed with the merchant account set up at the BDT. The online department will retain the revenue and expenses related to this strategy. This will be implemented at the end of year one or early in year two. Legacy data from CNHI that is combined will give additional opportunities for sales within each search. The fee for each article will be $1.95 with a price break for additional articles, 5 articles for $8.00. This feature will be marketed online and through customer service at the newspaper. TownNews can implement the archive search and access. The archive exists on a server housed at TownNews and will need an interface built for search and pay capabilities. The fee for this component would be approximately $200. A corporate solution would tie all of the papers together. TownNews can convert the data to XML when necessary for a fee of $100 per hour, a programmer at the corporate level would be able to convert the data for less. Once the content from each property exists in a standardized XML format, searches can be made of the collective data. Each individual property will receive the revenue from the legacy data they have posted. Product Overview Seven days of online content will be out from behind the password with a free model, with the rest of the content protected for sale. With a paid online model, none of the traditional newspaper content will be available for free, with the exception of consideration for current obituaries. The archives will be featured prominently on banner ads on the entrance to the web site and the archive page will be coded in a search engine friendly manner. TownNews will serve as an immediate vendor and strategic partner with this strategy falling under the corporate umbrella as soon as possible. In order to move forward with this strategy the site will need to be e-commerce enabled and a decision will need to be made on whether or not to implement a paid model. The following issues will need to be solved by the online manager as the strategy for the BDT online paid archive version moves forward: - 77 - • • • • • • Establish a pricing strategy E-commerce enable the web site Decide where the revenue/expenses will fall Build a user search interface for the TownNews server Build marketing tools Implement the strategy and marketing tools Marketing Strategy The BDT Online archive will be positioned as a research tool. Marketing objectives will include reaching users interested in genealogy or history research. A banner for the archive should be placed in the history section of the online edition that will be posted in the tourism/recreation area. ROP ads should be produced and placed in the print edition as a compliment to the history question and answer area. The projected audience for this strategy is relatively small; the more important step the BDT is doing is protecting and adding value to the legacy data. Sales Strategy Tile ads and banners will drive customers to the search archive. Promotional filler ads for the archives will also appear in the print edition. Questions and customer concerns will be handled by the customer service representatives in circulation or by the online manager. Projected revenue for this strategy is low, estimated number of articles sold per year is 150-200. Revenue generated would be approximately $500-$600 per year. If the online strategy is converting the site to a paid model, the archives would be a service of their paid subscription. - 78 - Implementation Strategy Synopsis: This is a basic outline of the recommended timeline. Each strategy must be accessed, prioritized and implemented based on the Bluefield Daily Telegraph’s overall strategy. Each strategy has been assigned an aggressive time frame which can be adjusted and includes components for successful implementation. Staffing Strategy 4 week timeline Post ad Interview Hire Training YEAR ONE Redesign Strategy YEAR ONE 8 week timeline Possible interruption for implementation of Content Strategy Content evaluation Decide on whether or not to implement xtQ extractor software Punch list of requirements for improvements written Posting of feedback on story, not in separate area Improve Search capabilities Add photos Implement Celebrations Community Calendar In Tomorrow’s paper Punch list of requirements for content components written History Corner ‘For the Record’ Breaking news Implement Content Components Marketing plan developed Breaking news Improved search Public information Community calendar In tomorrow’s paper Content changes Celebrations Photos Advertising areas evaluated Punch list of requirements for advertising written Ad sizes Ad locations Ad inventory - 79 - Advertising areas implemented Advertising areas sold Marketing plan implemented Top Ads Strategy YEAR ONE 2 weeks to implement-ongoing sales Punch list of requirements for implementation written Implement Online Solution Top Jobs Top Cars Top Homes Top Ads Classified training Production process reviewed Sales Banner Ad Sales 4 week time frame-ongoing Review pricing Evaluate inventory Sales YEAR ONE Obituary Strategy 2 week timeline Contact Legacy.com Implementation schedule Marketing plan developed Raise fees Marketing plan implemented YEAR ONE Classified Strategy YEAR ONE 4-6 week timeline Establish merchant account Establish SSL Increase ad cost Training for classified staff Punch list for requirements for implementation written Program the ‘post your ad online’ component Marketing plan developed Place ad online Top ADS program Implement marketing plan - 80 - Circulation Strategy YEAR ONE 6 week timeline Establish merchant account Establish SSL—required for multiple strategies Punch list of requirements for implementation written Build forms Training for circulation staff Marketing plan developed Starts/stops pay bills online vacation stops donate to NIE program Implement marketing plan Registration Strategy LATE YEAR ONE 4 week timeline Punch list of requirements for implementation written Build form Conduct contest for entries for names Sell advertising Implement sales strategy Real Estate Vertical Strategy YEAR TWO 4-6 week timeline Punch list of requirements for implementation written TownNews software solution for reverse publishing solution Implement online solution TownNews component Contact the MLS TownNews in to work with realtors Sales Marketing plan Implement print solution Implement marketing plan Auto Vertical Strategy YEAR TWO 4-6 week timeline Punch list of requirements for implementation written TownNews software solution for reverse publishing solution Implement online solution TownNews component Contact the auto dealers Sales Marketing plan Implement print solution Implement marketing plan Tourism/Economic Development Strategy YEAR TWO - 81 - 4-6 week timeline Partner with COC and EDC Content development Implement TownNews tourism content Gather content Advertorials Sell ads Build the print piece Build the online component Marketing plan developed Add history piece and talk back features Production and distribution of printed piece Implement marketing plan Health Vertical Strategy YEAR TWO 4 week timeline Content development Implement TownNews health content Gather content to populate directory Advertorials Sell advertorials and directory listings Marketing plan developed Build the print piece Build the online component Production and distribution of printed piece Implement marketing plan Paid Online Strategy EARLY YEAR TWO 8-12 week timeline Make decision on implementation Decision on implementation of xtQ extractor software Punch list of plan for implementation written Meet ABC compliancy requirements Senior management support Write letter to readers to post online Post announcement online Marketing plan developed Train circulation customer service Train front desk customer service Implement marketing plan Archive Strategy Rack cards Billboards ROP POP Bill stuffers LATE YEAR TWO - 82 - 4 week timeline Convert legacy data Implement TownNews search interface or build search interface E-commerce enable site Sales - 83 - Vendor Recommendations CareerBuilder Ph.: 866-438-1485 CareerSite Ph.: 888-314-5873 E-mail: cs-sales@careersite.com Legacy.com Contact: Kimberly Vander Velde - Director of Newspaper Affiliates Ph.: (847) 570-4379 E-mail: kimv@legacy.com TownNews Contact: Diane Amato - East Region Accounts Executive Ph.: 866-419-6890 E-mail: DAmato@TownNews.com Whitlock Portals Bill McInnis - Director of Sales Ph.: 804-355-7112 E-mail: bill.mcinnis@whitlockportals.com XTI (eXperience Technology Inc.) Contact: James Mackintosh - VP Business Development Ph.: 416-925-3164 E-mail: james@exti.com EZ Net Tools Contact: Kip Nield, Sales Manager Ph: 208-356-8361 E-mail: sales@eznettools.com Devigal Design Contact: Andrew Devigal Web Consultant www.divigal.com Ph: 510-410-7172 E-mail: andrew@devigal.com - 84 - Acknowledgements We would like to acknowledge the following people and/or organization for providing us with the research, information and assistance we needed to complete this business plan. Special thanks goes to the Newspaper Association of America, especially MiChelle Duke and Jackie Richardson for coordinating the logistics in the NAA New Media Fellowship Program. Thanks also to the Bluefield Daily Telegraph staff for this opportunity to provide them this plan. We’d also like to thank our mentor Kelly Dyer for her support and assistance. (In alphabetical order) AdsML Diane Amato, East Region Accounts Executive - TownNews Atlas Institute Audit Bureau of Circulation (ABC) Mike Blinder, President - The Blinder Group Bluefield Chamber of Commerce The Bluefield Daily Telegraph Bluefield Economic Development Council Rusty Coats, Director of New Media – MORI Research Community Newspaper Holdings, Inc. (CNHI) Andrew Devigal, Devigal Design MiChelle Duke – NAA Kelly Dyer, General Manager – NewsOK.com Howard I. Finberg, Poynter Institute Forrester Research Seth Godin, Vice President of Direct Marketing – Yahoo! Beth Harrell Interactive Advertising Bureau (IAB) Brian Kirlik, Vice President – Nando Media David Knight, Sales Director – Knight Ridder Digital James Mackintosh, VP Business Development - XTI (eXperience Technology Inc.) Bill McInnis, Director of Sales – Whitlock Portals Mercer County Board of Realtors MORI Research Jacob Neilson Newspaper Association of America Pew Internet & American Life Project Poynter Institute The Readership Institute Jackie Richardson – NAA Stacy Simonet, Circulation Director – Post Register Kimberly Vander Velde, Director of Newspaper Affiliates – Legacy.com World Association of Newspapers - 85 -