CEO Forum Revenue Diversification

August 2014

John Cruickshank Publisher, Toronto Star

President, Star Media Group jcruickshank@thestar.ca

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Revenue diversification starts with who we are

Mission

Mission

Content

Audiences

Platforms

Revenue

Lead progressive conversations with Canadians

Deliver quality news and information

Maintain a strong Ontario base, while rapidly growing our National presence

Develop a wide-ranging portfolio of strong brands that are number one or two in their respective categories

Offer marketers unsurpassed access to desirable audience segments

Ensures the Star can continue to observe and protect the Atkinson Principles

Relevance & Impact

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Young: Age <45,

No Kids <18 at Home

Families:

Kids <18 at Home

Mature: Age 45+,

No Kids <18 at Home

Age 18-29,

HHI$100K+

(220,000)

Age 30-44,

HHI$100K+

(214,000)

Kids <6, HHI$100K+

(341,000) Age 45-64,

HHI$100K+

(437,000)

Age 65+,

HHI$100K+

(100,000)

Kids 6-11, HHI$100K+

(269,000)

Kids 12-17, HHI$100K+

(293,000)

Age 18-29,

HHI$50K-$99K

(243,000)

Age 30-44,

HHI$50K-$99K

(98,000)

Kids <6, HHI$50-$99K

(316,000) Age 45-64,

HHI$50K-$99K

(363,000)

Age 65+,

HHI$50K-$99K

(131,000)

Kids 6-11, HHI$50-99K

(352,000)

Kids 12-17,HHI$50-99K

(341,000)

Age 18-29,

HHI<$50K

(196,000)

Age 30-44,

HHI<$50K

(83,000)

Kids <6, HHI<$50K

(164,000) Age 45-64,

HHI<$50K

(350,000)

Age 65+,

HHI<$50K

(421,000)

Kids 6-11, HHI<$50K

(176,000)

Kids 12-17, HHI<$50K

(152,000)

We segmented our audience into 21 segments based on a hybrid of life-stage clusters and demographics

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Y1

Y3

Y5

Y2

Y4

Y6

F1

F4

F7

F2

F5

F8

F3

F6

F9

M1

M3

M5

M2

M4

M6

5

20

35

8 20 32

Media Usage Index

Co

nsu

mer

Sp

end

ing

Ind

ex

Source: PMB – Fall 2013 - Toronto CMA

Y = Young; F = Families; M = Mature

11 key segments emerged from our market segmentation rankings based on the propensity to consume media and spend money

KEY TARGET ZONE

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A simple process was developed for stimulating, collecting and evaluating new product ideas and cost improvements

Employees are posed with questions, topics and challenges

Individuals submit their ideas for others to comment and vote on

Ideas move on to the idea screening process

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The idea screening process is also simple and allows employees to receive feedback and evaluation in a timely manner

Idea Screener

Idea Evaluation

Business Plan

The “gut check”

The “go deeper” phase

The “we recommend it” phase

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There are bad ideas…

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and good ideas…

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• Created an interactive newspaper experience that brought digital content to the pages of the paper using AR

• Sponsorship was sold to Nissan that included a multi-platform promotional campaign

• This truly interactive print edition allowed readers to interact with the Star content and advertising

Sponsorships around large editorial initiatives

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Unique advertising opportunities that allow marketers to stand out

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Opt-in consumer products generate both consumer and advertiser revenue

Starweek TV Listings Delivered on Saturdays Opt-in for 75 cents/issue ($39/yr)

Games and Puzzles Delivered on Saturdays Opt-in for $1.49/issue ($77/yr)

NYT Supplement Delivered on Sundays Opt-in for $1/issue ($52/yr)

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Event specific newspapers around large, unique, local events supported by advertisers and strategically distributed

Toronto Star Auto Show Daily tiff. daily

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• Deliver “coalition” (multi-sponsor) packs of product samples to university and college students during frosh week

• Currently exploring other themed sponsor packs to distribute

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Product sampling that leverages existing relationships and infrastructure

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Create and sell content to advertisers

Created content for a multiplatform program to help The Royal Canadian Mint reposition its image and products for a new generation of customers by creating buzz around their new Superman coin series.

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• A pay-to-enter photography competition

• Readers submit amateur photographs in the various sponsored categories to win great prizes and be featured in the newspaper

• Easy online entry supported by proven expertise from Picturk

• Consumers get a gamefied and engaging experience

• Opportunity to sell sponsorships

Photo contest that generates both consumer and sponsorship revenue

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• Delivering customized advertising messages and exclusive offers directly to consumer inboxes

• Offering a highly engaged, ever evolving list of active and interested consumers (A18+)

Email marketing

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• Subscription-based electronic newsletter distributed each weekday morning and evening

• Focused on the nuts and bolts of the Ontario government: bills, policies, programs and committee meetings, as well as the key players in the civil service, MPPs, lobbyists, stakeholders and interest groups

• Responsive design for our mobile audience

• Full-time team of reporters based at Queen’s Park –separate from Toronto Star newsroom

A niche, highly exclusive email newsletter that provides relevant, actionable content you can’t easily get anywhere else

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Tablet opportunity being explored

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