clark gilbert, ceo deseret digital media - understanding the digital economy

Always Pioneering

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Our Mission

Trusted voices of light and knowledge reaching hundreds of millions of

people worldwide Align Actions Pursue

Excellence Champion

Virtues Improve Lives Work Together Invest

Personally

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“In the early 1980s AT&T asked McKinsey to estimate how many cellular phones would be in use in the world at the turn of the century. The consultancy … concluded that the total market would be about 900,000. At the time this persuaded AT&T to pull out of the market.”

— The Economist, 1999

“The ‘telephone’ has too many short-comings to be seriously considered as a means of communication. The device is inherently of no value to us.”

— Western Union internal memo, 1876

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Sustaining versus Disruptive InnovationP

rod

uct

Perf

orm

an

ce

Time

Performance that customers

can utilize or absorb

New performance trajectory

Disruptive Innovation

Pace of

Technological

Progress

Sustaining Innovation

Breakthrough

Incremental

Source: The Innovator’s Dilemma

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A Transformational Shift in Media Spending

Source: Borrell and Associations

EstablishedBusinessEstablishedBusiness

DisruptiveBusinessDisruptiveBusiness

Net NewGrowthNet NewGrowth

Starts Outside Established Business

Starts Outside Established Business

DisplacementDisplacement

"Overall, the newspaper industry's involvement with the Internet has been one where it had a lot to lose and it's been trying not to lose it, as opposed to starting from scratch and having a lot to win."

--President of Online Newspaper Division

Finding New Market Growth

Two Transformations

Reposition the Core

Launch Disruptive Growth Business

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The Deseret NewsA Trusted Voice Since 1850

“We propose publishing a weekly sheet as far as our local circumstances will permit” Deseret News Prospectus, Willard Richards, 1850

Distinct Editorial Voice

Six Areas of Focus•The Family•Excellence in Education•Faith in the Community•Financial Responsibility•Care for the Poor•Values in the Media

Report Out: The Family

Report Out: Faith

Report Out: Media

Distinct Editorial Voice

Paul Edwards, Opinion Editor•PhD / JD Berkely•Former Provost of SVU•Director of Mercatus Center in Washington D.C.•Former BYU Political Science Faculty

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Deseret News National Sunday Edition

2011-12 Forecasted Growth: Fastest Growing

U.S. NP

Loca

l

Stat

e-wid

e

Natio

nal

- 20,000 40,000 60,000 80,000

100,000 120,000 140,000 160,000 180,000

Deseret News Innovation Strategy

What is our distinctive voice?

What innovations will we need to grow?

The Vision of the Deseret News

The Deseret News will be the nation’s largest news publication focused on faith and family

oriented audiences

By 2015, the Deseret News will be a Top 25 Newspaper Publication and a Top 10

Newspaper Website

• This will require we reach 300,000 circulation

• 8-10 Million Uniques and 100 Million Page Views

Growth in DDM Network: Deseretnews.com

December 2009

June 20110

1

2

3

4

Unique Users (106%)

December 2009

June 20110

10

20

30

40

Page Views (67% Growth)

1.5M

3.1M

21M

35M

Monthly Web Visitors

Deseret News Referrer Report

SEO and Referral Lift

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New Content Model: Family Media

Product Strategy

Data

aggregation

UGC

Deseret Connect

Evergreen

Social

Ties to Mission

Monetizable

Market

“This is brilliant. Fantastic implementation. This is exactly the sort of thing newspapers need to do in order to survive: Create innovative editorial constructs that take advantage of the web, instead of trying to replicate their print version online. I can certainly see your coverage expanding beyond Utah -- I'd find it far more useful as a repository of opinion, for instance, than what Rotten Tomatoes is doing.”    

Aris Christofides, CEO of critics.com and kids-in-mind.com

Research on New Media Innovation

Separate Physical Location

Separate P&L Separate Direct Sales Separate Content,

Product, and Technology Teams

Separate Talent Pool

Benchmarking Local Media Online Market Share

Souce: Borrell and Associates

Characteristics of High Market Share Sites

Digital Team Leadership

Chris Lee, VP of DigitalDeseret News

•Web Analytics•Design Resources•UI and Content Merchandising•Search Engine Optimization•Social Media Outreach•Digital Innovation Culture

New Media Talent at Deseret Digital

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DDM Revenue Growth Leads the Nation

Jan 2010

Feb 2010

March 2010

Apr 2010

May 2010

June 2010

July 2010

Aug 2010

Sept 2010

Oct 2010

Nov 2010

Dec 2010

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

0%

20%

40%

60%

80%

100%

120%

140%

Reven

ue

On the Frontier