Brian Matthews Thesis Proposal

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Proposal for Thesis 1

Running Head: Proposal for Thesis

Proposal for Thesis:

Internet Marketing Model for Broadcast Stations

Brian Matthews

Full Sail University




Abstract

In a poor economy, with the auto industry in crisis,

extreme revenue strain is forcing local broadcast stations

to turn to digital media revenues in order to make up lost

profits. Unfortunately traditional media sales habits and

an old-media mindset has made digital media revenue

unpredictable in most markets. This paper is a proposal for

a thesis aimed at designing a model for digital media

revenue utilizing the strengths of local network

affiliates.




Table of Contents

Abstract.......................................................................................................................................2

1.Introduction..........................................................................................................................4

1.1StatementofProblem ...............................................................................................................4

1.2ResearchQuestion .....................................................................................................................6

1.3Limitations&Delimitations ...................................................................................................6

Limitations .........................................................................................................................................................6

Deliminations ....................................................................................................................................................7

2.ReviewofLiterature ..........................................................................................................8

2.1Addressingtheproblem. .........................................................................................................8

2.2UnderstandingtheSolution....................................................................................................9

StrengthsofTV.................................................................................................................................................9

Transitioning.....................................................................................................................................................9

ANewModel...................................................................................................................................................11

NewDesignApproach ................................................................................................................................13

3.PresentationofResearchMethods ............................................................................ 14

TheoreticalApproach ...................................................................................................................14

Materials ...........................................................................................................................................14

Methodology ....................................................................................................................................14

Interviews........................................................................................................................................................14

ModelProposal..............................................................................................................................................15

TestModel .......................................................................................................................................................15

AppendixA.............................................................................................................................. 16

Questionnaire .................................................................................................................................. 16

References .............................................................................................................................. 17




Proposal for Thesis:

Internet Marketing for Broadcast Stations

1. Introduction

1.1 Statement of Problem

With a struggling economy and the auto industry in

shambles, television stations are struggling to replace

significant losses in advertising revenue. As they attempt

to fill the income void through online marketing

initiatives, transitioning from selling television

advertising to digital media sales is proving to be a

significant challenge for many television account

executives (Warner, 2009).

On a corporate level, Vice Presidents, managers, and

CEO’s are bombarded with the latest trends and fads of

Internet marketing, many succumbing to the rhetoric of

entrepreneurial web start-ups claiming to be able to

provide much greater services than their infrastructure is

actually capable of handling. When the stations sign up,

the rollout phase is often rough at best, and revenue

killing at worst.

Occasionally, corporate leaders read or hear about new

Internet marketing trends but fail to understand the




appropriate application in their various markets, becoming

vulnerable to authoritative sounding salesmen from

companies claiming to specialize in that area. They buy

into the new trend and initiate corporate-wide mandates and

contracts which hamstring local affiliates whose markets

differ in size, demographics, economic construct, and level

of Internet savvy.

Local search is a prime example of this. With a

plethora of articles talking about the importance of local

search, companies like Planet Discover claim that their

“search technology offering provides [their] clients with

the ability to become the preferred source for everything

local” (Planet Discover, N.D.). When Schurz, Inc. mandated

that all of it’s broadcast stations implement local search

through Planet Discover they had varied results, with some

markets gaining successful profits, while others failed to

even launch a successful search tool on their sites. What

worked in one market failed miserably in another and by

dictating implementation across all of them the project was

destined for failure.

With television station account executives (AE’s)

struggling to transition into the world of Internet sales

and local affiliates struggling to create a synergy between

their broadcast and online identity, there is a desperate




need for a revenue model that works across markets and

successfully navigates the various fads and mandates while

satisfying the ever increasing revenue demands.

1.2 Research Question

What Internet marketing model will transcend the

traditional media mindset of local network affiliates and

provide an adequate revenue generating platform?

I hypothesize that a model incorporating proven

Internet marketing principles, and a community centric,

user focused design approach will increase the

opportunities for digital media revenue which provides

identifiable return on investment (ROI).

1.3 Limitations & Delimitations

Limitations

Access I will not have access to statistics and

operating procedures from all stations within

the markets I will be conducting the study. This

will require allowances for exterior causes in

the successes and failures of digital media

ventures.

In the Augusta market, for example, WAGT, an NBC




affiliate, launched a campaign to sell a health

vertical with accompanying television schedule

for $1000.00 per month. Through a three and a

half month campaign, their sales force managed

to sell only one package. A competing station,

CBS affiliate WRDW, launched a similar health

vertical, sent out a mail blast with invitations

to a presentation and landed 6 packages priced

at $2500.00 per month. Without having access to

both WAGT and WRDW’s data, process, and point of

view, I would be unable to accurately qualify

why the same initiative worked for WRDW and not

for WAGT. Furthermore, in this study I may not

even be made aware of a competing station’s

success or failure in endeavors similar to my

study’s participants.

Deliminations

Time and

Resources

In order to conclusively prove a model for

integrating Internet marketing techniques into

network affiliate digital media efforts, I would

need to test it in multiple markets, varying in

market size, demographic make up, and economic

conditions. For the purpose of this study,

however, I will simply formulate the model and

conduct a targeted market test.




2. Review of Literature

2.1 Addressing the problem

Before we can begin formulating a new broadcast

affiliate model for online revenue, we must understand the

origin of the problems we are trying to address. One of the

main reasons for the current state of television revenue is

the collapse of the American auto industry and the large

annual marketing budget that accompanied it (Grover, 2009).

With such a high percentages of local television revenue

derived from this industry, the loss of income has driven

the television industry to seek alternative revenue streams

to replace those losses (Schechner & Dana, 2009).

This transition has created a dissonance for many

local sales teams who have spent decades going about the

process of selling television in a traditional, comfortable

manner. The changes this shift require are difficult and

sometimes counter-intuitive (Lafayette & Krukowski, 2009)

an resistance to it is one of the primary reasons digital

media revenue is so slow to take off in many local

affiliates and must be addressed if television stations are

to survive (Warner, 2009).




2.2 Understanding the Solution

Strengths of TV

Television is not going away! There has been a

tendency for fear mongers to threaten local stations with

the imminent demise of local television as we know it in

order to get managers and talent to engage with online

elements. In reality, there is far too much strength in

television as a platform for it to go away (Sharp, Beal, &

Collins, 2009). In fact, during the hard economic times,

networks themselves, while still maintaining the strength

of their online platforms, are focusing significant

resources and research on the strength of broadcast

television (Hampp & Learmonth, 2009).

Instead of focusing on the unstable industry future

television stations must begin developing the integration

of their on-air and online visions, goals, and revenue

streams. Marketers are trying to integrate digital and

traditional media, and television stations must step up and

assist in the process, developing of a system of metrics to

show the combined return on investment (eMarketer, 2009).

Transitioning

Developing this new approach to digital media revenue

will not be easy. Long held traditions and methods of




codifying the marketplace are hard to shake. Throughout the

process, we must judiciously decide the path based solely

on what works and what doesn’t work. This may seem like an

obvious principle, however human nature, a lack of Internet

knowledge, and corporate pressures have an amazing ability

to short-circuit normally reasonable business practices.

Research shows that there is no growth in the revenue

from banner ads or rich media ads, the two main digital

media revenue generators for broadcast stations, and that

sponsorship revenue, one of the latest pushes, has fallen

slightly and remains one of the smallest revenue generators

at only 2% of 2008 full year revenues (IAB, 2008). We also

see that mobile technology is increasing in penetration

worldwide and smart-phone technology is becoming a standard

(MorganStanley, 2008). We also see that search and

performance based Internet advertising products are on a

steady increase (MorganStanley, 2008).

The lessons we can take away from these trends is that

our new model must be innovative and cross the various

platforms available to network affiliates (Chiagouris,

2006). In a time when the media landscape is shifting and,

and in some cases, changing entirely, television stations

stand to take the lead in a move to cross-platform,

outside-the-box revenue generation.




A New Model

Television stations need to break the mold of long-

held traditions when it comes to marking and advertising.

Truly integrating Internet and search marketing techniques

into traditional marketing products like television has the

potential to provide narrower targeting opportunities and

more expedient results (Tancer, 2008).

Another aspect to the new is the need to de-centralize

the purpose of television station websites. With little

exception, network affiliate websites are news driven with

the occasional inclusion of community events and local

search directories. Since the spectrum of competition in

this area spreads across newspapers, radio, and other

mediums, there are a large number of competitors pushing

the same relative content on their sites and vying for the

finite pot of local business revenue. The solution to this

problem is to follow the advice of Marty Neumeier (2006)

and “zag” into a new digital media mindset.

Affiliate’s web sites need to be less destination and

more aggregation and networking of information and

resources. Network affiliation and a long tradition of

journalistic integrity uniquely position local television

stations as a trusted source and networker for links,




blogs, coupons, marketplaces, directories, ads, videos, and

endless other elements that riddle the online landscape

(Jarvis, 2009).

With this paradigm shift, local television stations

can move beyond the restrictions of demographics and

geography and begin expanding their online authority,

community presence, and revenue. To begin, they must

identify, court, and win the support of key influencers

within the online community (Rand, 2004). This will require

breaking off the love affair with agencies and business

owners. It means sidling up to social networking superstars

and popular bloggers (Marketing Matters, 2008). These are

the truly successful entities on the web and they will

bring with them the resources necessary to begin generating

Internet revenue.

One of the major challenges facing most account

executives (AE’s) peddling Internet ad campaigns to local

businesses, is the fact that few involved have a clue what

they’re talking about. Most AE’s don’t really understand

Internet marketing concepts and even fewer local businesses

know what to do with the websites they’ve been bullied into

creating. Affiliate stations must invest in broad Internet

marketing skill training and begin offering that assistance

to local businesses. Since more revenue is gained through




search marketing than through banner ads, stations should

sell search engine optimization (SEO) services to clients

(Newton, 2007). They should assist clients in designing

Eisenberg’s (2006) persuasion architecture in their online

marketing efforts, help them design and optimize their web

platforms (Sweeney, MacLellan, & Dorey, 2006) and guide the

integration of all their digital strategies (Wertime &

Fenwick, 2008) both on and off-line.

New Design Approach

It should be noted, of course, that it will be nearly

impossible for local network affiliates to integrate all

the various specialties needed to provide these services,

and they shouldn’t need to. Utilizing Google’s principles

of being a network for everything (Jarvis, 2009), stations

can use their expertisem, and authority in the marketplace,

to amass these resources and services and present them in

an optimized, community-centric web presence, bringing

marketplace and consumers together and facilitating the

process, each step of the way (Eisenberg & Quarto-

vonTivadar, 2008).




3. Presentation of Research Methods

Theoretical Approach

This will be a qualitative study using grounded

theory, case study and literature review.

Materials

Research

I will use literature review inductively in

order to compare and contrast current models

and the new model.

Interviews

I will conduct exploratory interviews with theVice President of Sales for Schurz, Inc., the

digital media sales managers for 5 Schurz

television stations, advertising agency

representatives, business owners, and account

executives for WAGT, Inc.

Methodology

Interviews

Interviews will be conducted primarily over the phone

as many of my subjects are out of market. I will record the

conversations when possible with the permission of the

subject and take written notes. When conversations are

recorded, I will transcribe the entire conversation.




Model Proposal

I will conclude the study with the design of a model

for affiliate television station Internet revenue

generation. This will include elements of design, potential

clients, products and services, branding and community

issues, and interactive policies and procedures.

Test Model

Utilizing principles of the proposed model, I will

launch a marketplace vertical on WAGT, Inc.’s site

NBCAugusta.com and monitor the revenue statistics compared

to a banner ad campaign running under the same conditions.

While this test will in no way be conclusive, it will be

conducive to a discussion about the implementation success

or failures of the principles themselves.




Appendix A

Questionnaire

Date: _____________________ Place: ________________

Interviewee: ______________________ Title: ________________

Questions:

1. How many average monthly unique visitors and pageviews does your site have? Are there verticals?

2. How do you sell your Internet inventory?

3. What is the average CPM you charge?

4. What are the three most successful Digital Mediarevenue generators?

5. If you could, how would you change the way you selldigital media?




References

Grover, R. (2009, June 2). GM Bankruptcy Slams TV Networks.

Business Week Online, Retrieved June 26, 2009, from

Business Source Premier database.

Eisenberg, B., & Quarto-vonTivadar, J. (2008). Always be

testing: The complete guide to Google Website

Optimizer. Indianapolis: Wiley Publishing, Inc.

Jarvis, J. (2009). What would Google do? New York:

HarperCollins.

Wertime, K., & Fenwick, I. (2008). DigiMarketing: The

essential guide to new media & digital marketing.

Singapore: John Wile & Sons (Asia) Pte. Ltd.

Sweeney, S., MacLellan, A., & Dorey, E. (2006). 3G

marketing on the internet. Gulf Breeze, FL: Maximum

Press.

Eisenberg, B., & Eisenberg, J. (2006). Waiting for your cat

to bark? Nashville, TN: Thomas Nelson, Inc.

Neumeier, M. (2006). The brand gap: How to bridge the

distance between business strategy and design.

Berkeley, CA: New Riders.

Tancer, B. (2008). Click: Unexpected insights for business

and life. New York: Hyperion.

Schechner, S., & Dana, R. (2009, February 10). Local TV

stations face a fuzzy future. The Wall Street Journal.




Retrieved June 26, 2009, from http://online.wsj.com/

article/SB123422910357065971.html

Lafayette, J., & Krukowski, A. (2009, March). Stations in

the balance: Debt-ridden and independent outlets run

most risk. TVWeek. Retrieved June 26, 2009, from http

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Warner, C. (2009, June 27). The elephant in the TV room.

Message posted to http://www.huffingtonpost.com/charle

s-warner/the-elephant-in-the-tv-ro_b_166252.html

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nternet+marketing#

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optimization. American Marketing Association.

Retrieved June 26, 2009, from http://www.marketingpowe

r.com/ResourceLibrary/Pages/Best%20Practices/best_prac

tices_SEO.aspx?sq=television+internet+marketing#

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Brian Matthews Thesis Proposal