ThriveHive’s Top Bets - Local Media Association · Sept. 2012 Social media agency Feb. 2013 Media...
Transcript of ThriveHive’s Top Bets - Local Media Association · Sept. 2012 Social media agency Feb. 2013 Media...
Peter Cannone
ThriveHive’s Top Bets
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Today, the SMB Market Remains Fragmented
This is us
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We are Proud to be a Significant Player in the Digital SMB Space, But Where Do We
Go From Here?
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New Digital Trends Will Fuel Product Line Expansion & Revenue Growth
Video is exploding and we will develop it into a major revenue producing line.
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We are Just Scratching the Surface With What is Possible With Technology
We will be investing heavily in technology to revolutionize our digital marketing capabilities.
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Imagine If…
We had a “Boost My Business” button for very small businesses that automatically placed auto-generated ads across a mix of Google, Owned and Operated sites, and Facebook.
BOOST MY BUSINESS
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Websites were created instantly from the information in print ads
combined with data pulled automatically from third party data sources and other social presence
on the web.
Imagine If…
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Our ad creative and targeting were automatically A/B tested and optimized
using machine learning.
Imagine If…
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Businesses could have seamless publishing to their blog, email, and social media channels via voice command on their phone.
Imagine If…
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We had the ability to predict before any campaign starts exactly what the results will be with plus or minus 5% accuracy.
Imagine If…
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We had a single hub that kept the online presence of a business up to date
on their website, their online directory listings (like Yelp and Facebook), and the
newspaper directories.
Imagine If…
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Imagine If…
We could run email campaigns that send a unique, tailored, email message to each person on a contact list at the precise time that is optimized for each individual recipient.
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Out With the Old
● Using technology we look to end the “one size fits all” approach to the customer experience
● We strive to deliver the best offer/ad/approach, not just any offer/ad/approach
● We want our customers to feel like we understand them ● We want to improve the customer experience end to end
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● Mass customized advertising and communications will make consumers feel as though they are being treated as individuals
● Technology is enabling an entire next generation of advertising and marketing that is just beginning now
In With the New
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THANK YOU!
Set up your free consultation today. Thank You!
Digital marketing services:Our bets for 2018/beyondJay Small, President [email protected]
8 years: How our digital goals have evolved2010-2012: Invest in agency products, grow gross revenue
2013-2014: Invest in sales force, grow net operating revenue 2015-2017: Level off investment, grow operating profit
2018-?:
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Invest in owned/operated, grow operating profit, make sum of digital +TV greater than parts
Our table stakes• Starting from legacy media brands, strong local presence • Good media sales forces, outside-sales mindsets • More focus on growing revenue than cutting costs • Competent technology platforms, at least par with competitors
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Bets that did not pay off• Sourcing to outside firms for clients’ website/mobile development
… aaaaaaaand, stations’ DIY efforts to stick-build, manage for clients
• Continuity in sales training with outside consultants • Fine-grain targeting of owned/operated inventory • SMS marketing • Sourcing ‘brochure’ native apps for clients
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Bets still on table, no clear payoff yet
• Email, all deployments • Digital-only AEs, focused on non-legacy business • Sourcing to our own technology firm for clients’website/mobile, app development, SEO • Low-margin digital media buying • Paid search, paid social ads • Locally sold native ads on owned/operated
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Bets that paid off
• Contests and related promotions we run for clients • Mid-margin digital media buying
• Display and video reach extension, w/targeting and retargeting
• Digital sales specialists aimed at legacy clients, sales teams • Refusal to run network native ads
• Outbrain, Taboola et al • Integrating performance data/metricsfor clients, sales teams
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Bets yet to be made
• Content marketing (help clients fill the space/time we sell) • SMB-scale web/mobile development, SEO
• Offer finite service layer atop major out-of-the-box suppliers
• Beyond data/reports, true analysts, marketing consultants • Better tiering, combinations of adand marketing services
• Digital and TV • Pseudo-AOR/retainer relationshipswith key clients
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‘Why didn’t you say anything about…’
• AI? AR? VR? Need to understand game before we bet • Fast followers at best
• Over-The-Top? Shifting from one-app-per-outlet to bundles • Starting to feel like broadcasters’ deals with cable, satellite
• Agency branding? Any approach can work • But all require brand-building investment
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THE OLDEST COMPANY IN TEXAS KNOWS TEXANS.
BELO + Company Bring Your Customer Into Focus + Deliver Measurable ROI
1. Focus on the “M” in SMB
2. Two companies: One service, one reseller
3. One-stop “money manager” approach
Six years into marketing services...Three bets for 2018 and
beyond
HOW WE GOT HERE: Built, bought, and partnered
Sept. 2012
Social media agency
Feb. 2013
Media analytics and performance marketing
company
Jan. 2014
Food and wine festival
Apr. 2014
May 2014
Jun. 2014
Jan. 2015
Search agency, marketing automation software,
print broker
Events and experiential marketing division
Beer and musicevents across Texas (Sold 2017)
Programmatic audience extension division Spatial
analytics (investment)
2017
CUSTOMER FUNNELHOW WE GOT HERE: Reselling to SMBs, 2012-2015
➢ Reselling third-party products & services w/ AVO of $1,500
➢ Low margin w/ COGS to vendor, Google, etc
➢ Relatively high sales cost ➢ 85% annual churn ➢ Lack of control put core revenue
at risk ➢ Didn’t make money*
CUSTOMER FUNNELHOW WE GOT HERE: Filling out the funnel, circa 2016
FUNNEL MEETS SILO
FUNNEL MEETS SILO
OUR NEW WORLD
Internal brand serving both B+C & BMG. “Switzerland,” trying to drive revenue without regard to silo.
● Product dev & packaging
● Research ● Training (w/ HR) ● B2B Marketing ● BI / Analytics ● Sales
Infrastructure ● Ad Design & Ops ● M&A Support ● Presale Support
Delivering the biggest and most targeted audiences in North Texas.
Strategic, ROI-driven marketing services for clients regardless of location. Sold directly and via resellers, including (and especially) BMG.
➢ Sells all “traditional” products
➢ Sells B+C services & products in DFW area
➢ Sells B+C services and products anywhere
➢ Services all B+C accounts ➢ Only sells Native for BMG
(legacy) ➢ Taking on O&O digital ad
fulfillment (2018)
➢ Creates salable packages for BMG
➢ Coordinated B2B marketing for both ○ Prospect generation
➢ Presales “caddies” ➢ Synthesized analytics and data
lake ➢ Sales & product training ➢ Tier 1 pitches ➢ Research ➢ “Plumbing” to serve both ➢ Switzerland
○ “Splitting the baby since 2017”
Best ROI for
client
Most EBITDA for AHC
Whatever else
2018 BETS
#1FOCUS ON MID-
MARKETTargeting companies of $10 million -
$750 million in revenue; at least $1 million marketing spend
Enough margin to deliver value-add strategy and focus on bottom-line ROI
Lower churn
More opportunity to differentiate
Still send low $$ campaigns to former partner
Small businesses
WHY NOT?Low margins, high COGSIf we wanted to work for Google, we’d apply
Learned from our core business — 80/20 problem looks more like 92/8 Selling tactics & tools vs resultsLOTS of competition
High churn Unsophisticated marketers without time to invest
Orren’s law: The hassle of working with a client is inversely proportional to the size of the bill Corollary: You can’t control what you don’t control
Can a small spend really drive results? Or does it just take business from remedial to grade-level and then plateau?
Google: 52% of client churn is avoidable
(Means that 48% is NOT)
#2TWO BRANDS
B+C as direct seller & service;BMG as channel reseller for DFW
Component brands of B+C showed vertical expertise, but meant silos; redundancies;
confusion; lack of full synergy
Reorganized around “one hand to high five; one throat to choke”
Leverage BMG relationships / scale of salesforce for specific packages;
programmatic & email
Frees B+C to fish upstream and to work with additional media company channel resellers
You know, if you’d invest more in creative instead of search…
I can’t convert the junk you’re sending from social media
Your keywords are weak… You know, I bet we could do that better in our shop.
The programmatic ads would work better if your creative didn’t suck...
I just want freakin’
conversions at a
reasonable cost
WE’VE ALL BEEN IN THIS MEETING...
40% of marketers note “too many agencies to
manage” as a top-three challenge
#3ONE-STOP SHOP“Money Manager” strategy allows
nimble pivots & true ROI-driven tactics
Optimize to the result, not the silo and let insights drive strategy
Initial plan is a budget, not a set-in-stone tactical laundry list
Aligns our interests with clients
Relationships reduce churn
Requires transparency and patience on both sides
Less scalable
Can put skin in game
EARLY TAKE ON BETS
B+C Growth, 2015-2017(Aggregated entities)
OVERALL B+C ➢ 94% revenue growth 2015-2017 ➢ 61% operating income growth (always positive) ➢ 28% of AHC advertising / marketing revenue; 17% of
total ➢ Making up 97% of traditional advertising and circulation
revenue decline
SINCE 2017 CONSOLIDATION ➢ Revenue up 15% through Q2; services revenue up 50% ➢ Average order +40% ➢ Average recurring order +58% ➢ BMG channel drives 26% of revenue; ~60% of growth
○ Is 8% of BMG’s revenue target ➢ Getting active in M&A
○ Filling service gaps; growing customer portfolios; cutting out middlemen
Mike Orren [email protected]
Preso link: http://bit.ly/BeloLMA17
Parting thought:It is possible to serve any market well - Small, medium or large.
But it is almost impossible to serve more than one well.
Pick the one that most closely matches your core business (or where your core business is going).