FINAL MINUTES Newspaper Target Marketing Coalition Dallas, TX Conference February 17-19, 2010 Member Newspaper Representatives Attending 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. Duff Heyl Amy Glennon Ted Langford Molly Padilla Leslie Kennedy Jim Alvey Susan Duchin Harry Jackson Kurt Vantosky Jim Mann John Wulfert Jason Dove Russ Esposito Dan Phelan Jane Comfort Rod McLain Chuck Hourvitz Paul Pelland Camille Stinton Katherine English Chris Frey Joseph Jahns Jeff Young Silvia Schencker Shelly Neilson Jonathan Kramer Isabella Mest Sindy Speelman Gary Shaffer Keith Gilpin Douglas Grossman Pat Rogell Howard Griffin Stephen Bernard Michael Clarke Davis Taylor Sara Lovell Kevin Hancock Ron Ulrich Arizona Republic Atlanta Journal-Constitution Atlanta Journal-Constitution Atlanta Journal-Constitution Austin American-Statesman Baltimore Sun Baltimore Sun Baltimore Sun Birmingham News Chicago Tribune Chicago Tribune Dallas Morning News Dallas Morning News Dallas Morning News Florida Times-Union (Jacksonville) Ft. Worth Star-Telegram Globe Direct (Boston Globe) Globe Direct (Boston Globe) Hartford Courant Houston Chronicle Houston Chronicle Los Angeles Times Los Angeles Times Miami Herald Minneapolis Star-Tribune New Jersey Star-Ledger New Jersey Star-Ledger New York Daily News Oklahoma City Oklahoman Orange County Register Palm Beach Post Palm Beach Post Philadelphia Inquirer Sacramento Bee San Jose Mercury News Seattle Times Virginian-Pilot (Pilot Direct) Washington Post Washington Post Non-Member Newspapers Attending 40. 41. 42. 43. 44. 45. 46. Lisa Szal Jim Baldini Chris Grow Doug David Bruce Barna Dean DeLuca Rita Jurczyk Bucks County Courier-Times Milwaukee Journal Sentinel Milwaukee Journal Sentinel Orlando Sentinel Pittsburgh Tribune-Review Pittsburgh Tribune-Review San Diego Union-Tribune A. Wednesday, February 17 - Afternoon sessions open to registered newspaper reps only. i. 10-11am Board of Director’s Meeting ii. General Session Dallas Hyatt Regency Landmark-D conference room iii. Noon-1pm Lunch: sponsored by American Circulation Innovations (ACI) iv. 12:45pm Early Bird Drawing #1 Winners: 1. Isabella Mest - Ben Bradley autographed “A Good Life” 2. Rod McLain - shirt 3. Rita Jurczyk - $50 GC Cheesecake Factory 4. Kevin Hancock - $100 GC Target v. 1-1:30pm NTMC Welcome: President’s remarks, Anti-trust statement, Attendee introductions Largest attendance of any prior conference with 46 newspaper reps from 30 newspapers. Anti-trust statements handed out; copy follows at end of minutes New provisional member newspapers introduced: Florida Times-Union (Jacksonville): Jane Comfort New York Daily News: Sindy Speelman Palm Beach Post: Pat Rogell and Doug Grossman Non-member newspapers introduced Milwaukee Journal-Sentinel: Jim Baldini and Chris Grow Orlando Sentinel: Doug David Pittsburgh Tribune-Review: Bruce Barna and Dean DeLuca San Diego Union-Tribune: Rita Jurczyk vi. 1:15-1:45pm NAA Preprint Summit Update: Preprint Optimization, National Ad jacket, Sunday Select and Digital inserts; Mort Goldstrom, NAA VP Advertising Talked about the kinds of questions we’re all getting: “Is the newspaper industry still going to be here?” Video showed the Newspaper Industry in 2010 and how things have changed in the last 12 months. Put readership in perspective, 114 million adults read on Sunday vs. 105 million adults watched the Super Bowl. Newspapers need to be platform agnostic – deliver news in whatever form the news reader desires. Newspaper websites are 22 out of the top 25 sites – shows how important “local” is. 61% of fresh stories came from newspapers. Newspapers need to streamline operations: Self serve products Reformatting content More efficient internal systems (billing, ordering) Scalable function (Sunday Select) Audience problem not a use problem: 101 million read newspaper on an average day 70 million watched the World Series 59 million watch a Reality Show More people read a newspaper than own a pet Newspapers must do a better job of telling our story vii. 1:45-2:15pm State of the Newspaper Industry: Collective effort by MNI, Gannett, Tribune etc.; future of the industry, co-selling industry initiatives and evolution to new platforms; Steve Bernard, McClatchy VP Advertising Need for speed – reassure newspapers’ bright future! Goal with Major Retailers: Less points of contact Extend access across industry Strategic relationships Scalable ideas Look at all markets as customer does Four major media companies made presentations to top advertisers as a group: Senior level discussion No sales pitch 2-way dialog Key Themes: Embrace change Develop new products Multi media – multi channel platforms “Extended reach products” Advertiser Decision Support Tools: Preprint Optimization Portfolio Reporting Preprint Projections RAM Panel Online Metrics Collaborative need on Advertising side: Digital Insert Platform Creative Distribution – sub zip Email markets – common database viii. 2:30-3:00pm Alternate Delivery: Different newspapers, different models, and advertiser acceptance; Keith Gilpin, Orange County Register Keith reviewed the results of the survey he sent out prior to the conference. Key newspaper strategies: Miami – Feels AD needs to be porch or door, get complaints in yard and driveway. Orlando – labeled bags with “see grocery discounts inside” and logos of advertisers – complaints subsided. Milwaukee – Surprised by the savings. Needed to match delivery standards of paper. Driveway still gets complaints. Did a small test of putting box on mailbox stand and inserting into the box – no complaints. Baltimore went to every advertiser and spoke face to face about postage. Understood need for value in package, developed GPS technology, returned with circulation folks to verify delivery. Fort Worth uses community papers combined with AD to get inserts into homes. ix. 3-3:30pm Cross Media Sales: The strategy and value of integrating various ad channels in developing successful ad delivery programs for accounts; John Wulfert, Chicago Tribune Direct: John walked us through the main segments needed for the effective development of cross media sales success: Key Partners, Key Activities, Key Resources, Value Propositions, Customer Relationships, Channels, Customer Segments, Cost Structure and Revenue Streams and the value of each in relationship to the end results. John presented his most recent success, a $25,000 Green Your Home Sweepstakes with WGN Radio and Tribune Direct: Radio components were :60 live read, :30 promotional spots, WGNRadio.com and 25,000 postcards with PURL. Web page was iwishiwin.com with a register on-line. x. 3:30-4:30pm New Ideas Segment: Present your best new Newspaper Insert, TMC or Direct Marketing revenue-growth or expense-saving idea to the group; $250 first prize; $100 second prize; $50 third prize, moderated by Gary Shaffer, The Oklahoman, and John Wulfert, Chicago Tribune Direct Virginia Pilot: Monthly Newsletter to reps and managers about direct mail, such as terms used and successes Chicago Tribune: Pod Cast Library Dallas: Offer 8 different size door hangers (delivered by AD company) San Diego: Saturday Micro Zone Spadea wrap targeting smaller advertisers Philadelphia: Engagement research showing products that are successful in engaging the audience Seattle: Neighborhood Blogs partnering with Neighborhood Values – subscriber distribution + TMC partnering with the neighborhood blog Minneapolis: Gatefolds on comics Ft. Worth: Mid-week wrap to hold subscriber inserts instead of a pre-run section Bay Area Newspapers: 4-page tab format wrap – pay per lead NY Star Ledger: Mobile phone, online and print combo with key word sale, business listing online and print ad Calkins Media: Collaboration with Department Store to utilize an idle press and converted preprint to weprint AJC: Lifestyle program targeting small to mid-size home improvement category businesses with a p and d program targeting 20M HH Globe Direct: Continuation of Motor Vehicle registration program by selling ad single sheets into envelope. Houston: New Business sales team, 1-hunter and 1-manager going after 90 inactive accounts xi. 4:30-4:45pm Postal discussion: Rates, Saturday Delivery, and Flats Sequencing System – Postponed due to schedule constraints; to be addressed in next newsletter xii. 4:45-5pm Dinner sponsor remarks: Jerry Ballenger, American Newspaper Solutions xiii. 6-7pm Reception: Nick & Sam’s, sponsored by Preferred Marketing Solutions xiv. 7-10pm Dinner: Nick & Sam’s, sponsored by American Newspaper Solutions B. Thursday, February 18 - All sessions open to all registered conference participants i. General Session Dallas Hyatt Regency Landmark-D conference room ii. 8-9am Continental Breakfast, sponsored by Tactician Media iii. 8:45am Early Bird Drawing #2 - Winners: 1. John Wulfert - $50 Best Buy 2. Jim Hart - $50 Gap 3. Amy Glennon - Shirt 4. Sindy Speelman - Towels/Balls 5. Ron Ulrich - Pad and Sanitizer 6. Kennedy Higdon - Polo shirt 7. Duff Heyl - Umbrella and Bobble head 8. Harry Jackson - Ben Bradley autographed “A Good Life” 9. Susan Duchin - $100 Home Depot iv. 9-9:15am Dan Phelan, Dallas Morning News, welcome NTMC v. 9:15-10am Terry McAskill, Media Pros USA, Comp USA Agency Presentation Bought the Circuit City database, 44 million. Expanding into certain markets that they have not talked with before – Ft. Worth. Markup as thin as 8% - 16% max Best Buy somewhere north of 20-25%. Has newspaper in blood – very pro newspaper. Viewpoint that for Comp USA the best vehicle is newspaper and circulars. Newspapers have the best delivery system and the most efficient. They have tried various combinations of ROP and circulars as well as other medium. When stopped newspaper, sales dropped. Like TMC. Like Sunday Select. vi. 10:15-11am Bill Ardiff, Tires Plus Drive customers to stores. Increase brand awareness. Customer – middle of the bell curve: 25-54 Middle income Mid level education 2.5 kids + dog 2009 recession good for Tires Plus, Up 8-10% over previous year Media Mix Mass Mail – Val-Pak, Red Plum TV Radio Database CRM Yellow Pages Sports Marketing Newspaper Internet 15% 6% 9% 8% 1% 5% 15% 30% January 2010 319,000 unique visitors Traffic Source: Paid Google Search 35%; SEO Google 20+% 3,000 appointments set on line in January 2010, less than 5% not show Tested text messaging to receive discount, 1-3% low response vii. 11-11:45am Gary Huddleston, Kroger: 2470 supermarkets 31 states 200 different names 773 convenience stores 393 jewelry stores 850 super market fuel centers 209 stores Texas/LA 2 manufacturing plants What does Kroger need from newspapers: Lower price Reward best customers for loyalty – promotional rewards i. 11:45am Lunch Sponsor Remarks: Ken Higdon, CIPS Marketing Group ii. 1-1:45pm Emerging trends in the newspaper industry, Mark Hawley, Tactician Media Electronic order integration, SMC programs, newspaper networks, alternative delivery and more: SMC should be a focus, Weekend programs (Sunday Select) Opt-in/Opt-out Targeting Zips, sub zips, carrier routes and households Sunday Select programs growing from 10,000 to 300,000 HHs (Houston) – growing to provide critical mass for advertisers. Increase advertiser acceptance – affordable alternative to saturation: Customer driven Day specific Highly targeted Reach best shoppers and products “Verified” distribution iii. 1:45-2:30pm Geomentum Presentation: Providing clients with hyper-local marketing services, addressing marketplace demand; Dave Walker, CEO Hyper-local – one to some. Plan based on: Data at lowest level (variety data) Generates insights (outcomes for business) Align insights with ROI by customers By location By Media iv. 2:30-3:30pm Sponsor Exchange Business card drawing for $100 gift card held at end of session. v. 3:30-3:45pm New Idea Awards: Third place $50: Katherine English, Houston - Hunter team targeting publication printing Second place $100: Jason Dove, Dallas - QSR Door hangers First place $250: John Wulfert, Chicago - Podcast training segments vi. 4:15-4:45pm The Chaos Scenario, Moderated by Davis Taylor, Seattle Times An open discussion of our contemporary culture, its relationship with media technology and how to find meaning among the fractals of chaos spinning all around us. Everyone present received a copy of the popular book. vii. 4:45pm Dinner Sponsor Remarks: Scott Levy, doodad viii. 6-7pm Reception: Catered by Wolfgang Puck, atop Reunion Tower, sponsored by ADS Direct Media ix. 7:30-10pm Dinner: at Sambuca, sponsored by doodad C. Friday, February 19 - Early Morning session open to registered newspaper reps and advertising panel speakers only i. General Session Dallas Hyatt Regency Landmark-D conference room ii. 8-9am Continental Breakfast sponsored by Tactician Media iii. 8:45am Early Bird Drawing #3; various additional winners iv. 9-10am Concurrent Advertiser Round Tables Round Table #1: CompUSA - Terry McAskill, Media Pros USA Round Table #2: Tires Plus - Bill Ardiff Round Table #3: Kroger - Gary Huddleston Round Table #4: Michael’s, Aaron Brothers, Bravo Health - Matt Runge, ACG v. 10:15-10:45am Board Elections Two rounds of voting by secret ballot. First round for President and Vice-president; second round for two At-large posts. One vote each round per attending member newspaper. Results announced in Final Business at end of conference. vi. 10:45-11am Preprint Optimization Update: presented by Joseph Jahns, Los Angeles Times Progress report on the PPO initiative that applies database analytics to provide the most effective mix of geography & product to reach the advertisers’ best customers & prospects. vii. 11-11:30am Opt-in, Opt-out: A panel discussion of various forms, models of “Sunday Select” – Jason Dove, Kevin Hancock, Duff Heyl, moderated by Philip Brown Phoenix - Gannett “Yes” Started with 25-54 Females HHI $50K+ 40,000 in 3 zones /13,000 each 2010 +25,000 HH = 65,000 Use own np carriers Same rates as Sunday, counts toward DVA Goal 60% penetration Now 40-60% Start up costs $7,000 Challenge getting local advertisers Washington Post – Use Gannett content – change name “Savings Now” Currently 61,000 all opt-in No redundancy with TMC – merge purge Price same as mail Problem with regional/local Looking at expanding o March 72,000 o April 92,000 Add where advertisers will buy Product asked for No overweight fees Cost of acquisition $9.00/HH Dallas – Opt –out, growing toward opt-in Targeting 4-county DMA Ave age 47 65% female $92,000 HHI 77% Briefings Subscribers/former HD subscribers 100% HD free ABC audited 12-15 pieces per week No difference in rate structure Alt delivery pulled back in-house, not want two carrier forces on street Opt-out info is on poly bag viii. 11:30 – 11:45am Final Business Vote on Provisional Members – three provisional members approved for full membership by unanimous consent: Florida Times-Union New York Daily News Palm Beach Post Vote on New Members – four qualifying non-members approved for membership by unanimous consent, pending membership payments: Milwaukee Journal Sentinel Orlando Sentinel Pittsburgh Tribune-Review San Diego Union-Tribune Board Election Results: President: Jane Comfort, Florida Times-Union Vice-president: Keith Gilpin, Orange County Register At-large: Susan Duchin, Baltimore Sun At-large: Katherine English, Houston Chronicle Vacated Board Secretary position to be filled by Board of Directors. Next meeting 2011, date and city TBD. Conference adjourned. Anti-Trust Statement While our meetings tend to be casual and creative, there is one area where we need to display self-control and caution, and that is with antitrust concerns. Federal law prohibits combinations, conspiracies, and agreements that restrain trade or competition in commerce. Trade associations are by their very nature a “combination”, since they consist of a group of competitors joined together for a common business purpose. Accordingly, associations must refrain from actions having anti-competitive potential. It is important to remember that there are many topics that you, as an individual, can discuss within your company that would not be appropriate to discuss here, together as a group. Examples of forbidden topics include: Specific current or future prices or rates charged by a particular company. However, it is permissible to discuss the average prices previously charged by a group of four or more companies. The price averages should be based on data that is more than three months old. Endorsements of particular companies or products to the exclusion of others. Discussions of this group should not encourage the boycotting or refusal to deal with certain companies or products or services. However, it is permissible to discuss your experiences with particular vendors or with other companies. Allocation of markets, territories or customers. Any action or understanding that limits competition or causes disadvantage to third parties. Everyone in these meetings needs to help insure that we observe and comply with these anti-trust guidelines. Thank you in advance for your help and cooperation!