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