Insider Chatter by Donna Bogatin

Mike Orren began the New Year at his Pegasus News blog by proudly declaring “we aren’t hyperlocal” and laying claim to a “panlocal” moniker instead. 

Orren even posted a New Year’s resolution for Pegasus, the online “local news and information service” he founded and leads: “In theory, panlocal should be a big business. We’ll be doing our damnedest to prove that in practice in the New Year.”

Orren did prove panlocal’s “big business” potential this year, to Fisher Communications; One week ago, the Seattle-based, NASDAQ traded, tradtional media company–owner/operator of 19 television stations and eight radio stations in the Pacific Northwest–announced it acquired Pegasus to “expand its online local news strategy.”

Why is Fisher embarking on a new online media trajectory? Why did Fisher choose Dallas-based Pegasus to help fuel its new local news focus?

I spoke today with Rob Dunlop, SVP Emerging Media, Fisher Communications, to find out.

Dunlop leads the Fisher Interactive Network, of which Pegasus News is currently the key component.

Collen Brown, Fisher CEO, announced the company’s online AND local intentions to shareholders earlier in the year:

Launching new Internet businesses, repositioning and realigning our company for success and growth in the new media world. As consumers and advertisers shift their behavior in this digitally driven enviornment, it is expected that we become more innovative, responsive and competively daring, to better serve our customers’ needs and drive our future as a local media company.

Dunlop told me that the panlocal focus of Pegasus supports Fisher’s goal of reaching the local consumer that typically wants a view of “the marketplace as a whole” and not simply information on “my neighborhood only.”

The hyperlocal, user-focused approach employed by Backfence is too narrow to drive sustainable community involvement and of limited appeal to local advertisers, Dunlop indicated.

The broader interest of the Pegasus local media model is multi-faceted, Dunlop told me:

1) User Generated Content friendly, but not just User Generated Content,

2) Aggregation of news from Professional Content Partners,

3) Original editorial contributions, wth a point of view,

4) “The Daily You” customization of content presentation for readers…

What is the Pegasus News “secret sauce” then? The pooling and personalized filtering of a myriad of local, national and world information data sources that speak to the affinities of individual users within a broader, more universal context, Dunlop indicated.

Does Fisher have a “secret sauce” to monetize the Pegasus local news strategy? I asked Dunlop just that. After all, in announcing the sale of his company to Fisher, Orren acknowledged Pegasus “ran out of cash” months ago.

Dunlop told me Fisher envisages a three-prong business model for the monetization of Pegasus:

1) Targeted, local merchant advertising leveraging the local media sales know-how and clientele of Fisher’s TV and radio stations,

2) Traditional database marketing leveraging Pegasus’ relationships with its registered users,

3) Licensing of the new Fisher-Pegasus panlocal Internet media model to offer prosepctive partners “speed to market” entry into the online local news business.

Orren welcomed Fisher by saying Pegasus looks forward to “reaching more cities, towns and neighborhoods over the coming year.”

Will Fisher’s home base of Seattle be the first Pegasus roll-out city? Not necesarily, Dunlop told me. For now, Dunlop plans on being a “commuter” to Pegasus’ home base, Dallas. What’s more, Fisher CEO Brown is a former Dallas resident.

Do all the Fisher Communications connections with Dallas mean a new Texas television or radio property is in the works for the heretofore Pacific Nortrhwest focused Fisher? I asked Dunlop if the Fisher geographical diversification via online local media would lead to future geographical expansion in its traditional media operations.

While not getting state specific, Dunlop concurred that geographic expansion via radio and/or tv properties would not be inconsistent with the Fisher 2006 Strategic Plan targeting a diversification of its “geographic and network portfolio.”

Dunlop did confirm to me that but one week out of the acquisition gate, Fisher is already fielding expressions of interest in the Pegasus local media model from prospective partners; In other words, the licensing component of the Fisher-Pegasus business model appears to be bearing prospective fruits.

ALSO: Backfence.com and Google: Money Can’t Buy Local Love and Local Matters: Backfence Farewell NO Real Back Story

CONTACT DONNA BOGATIN

The Google Print Ads guys are a tenacious lot! Never mind that “newspapers’ ad sales show accelerating drop,” Google to the rescue.

Don’t stop the presses though, Google has been trying to piggyback on “dead tree” media for years: First magazines, then newspapers. Despite Google’s determination to spread the Googley gospel to the offline world, however, success has not been forthcoming.

Google today proudly announces that any and every AdWords customer can avail themsleves of “newspaper advertising made easy,” thanks to Google assuming the role of broker in the resale of non-premium newspaper ad inventory. Last month, Google made the same offer re non-premium radio spots.

Google has made no meaningful traction in either of the offline media though. Why would it?

Google touts that its years long efforts to diversify into print and radio advertising are finally nearing market turning points. They are not, however, despite the willingness of high-powered old media partners to offer up not so glowing testimonials on Google’s behalf.

Google has floundered in all its offline diversification efforts to date: Radio, print, TV…because its new media online value proposition is NOT transferrable to offline old media. Advertising is shifting online from off, for just that reason.

Despite the great Google mystique and the power of the Google brand, even the mighty Google can not simply stamp a ”revolutionary” label on an old school ad product like radio advertising and hope to make it new again in the eyes of advertisers.

In a Q & A with USA Today in May, Schmidt himself was unable to show how the magic that is AdWords will be matched by Google on the radio:

Q: The beauty of the online advertising model is that advertisers know whether or not an ad has been effective. They only have to pay if someone clicks on the ad. How can you bring relevancy to radio?

A: Advertisers can target the listener by driving them to a toll-free number or website address, and that should produce an uptick in the product demands.

Where is the touted accountabiltiy? What about pay only for performance? How about reaching buyers that are actively looking for the product?

NO, NO, NO. Google Audio Ads are NOT Google AdWords! Ditto Google Print Ads.

The Google AdWords targeting and performance assurance; concise, accurate and new media effective:

• Advertise to people searching on Google and our advertising network
• Reach people actively looking for information about your products and services online
• Easily control costs - pay only when people click on your ad

The Google Radio & Newspaper advertising targeting and performance assurances? NONE.

“Differentiate between sales driven by your radio campaign and sales driven by your existing keyword campaigns,” Google suggests. HOW? Via very old media, old world “soft” tracking style:

• Track visits to your website: Use a vanity URL as part of your call-to-action (such as www.yoursite.com/uniqueword). Make sure you don’t publicize the address anywhere else — this way, you can be certain the traffic you receive to the site is from people who heard your ad on the radio.
• Track the number of calls to a toll-free or vanity number: Make sure you don’t publicize the phone number anywhere else — this way, you can be certain the calls you receive are from people who heard your ad on the radio. Many vendors who can provide this service.
• Track visits or foot traffic to your store: Monitor changes in traffic levels . Informal or formal surveys of shoppers can help determine if their visit was influenced by your radio ad campaign.
• Track conversions using a unique offer or coupon code: Implement a unique offer code for users to enter when visiting your site, and offer a small incentive in return. Coupons and special offers can motivate customers to notice your ad, and purchase your services or products.

Who needs Google on the radio or in print if it does NOT replicate the ease of Google AdWords and AdSense reliability and trackability that has fueled Google’s $172 billion market cap.

Google may garner a small amount of existing AdWords customers that want to try out radio or newspapers, but Google is NOT on track to become the master of radio or print advertising.

Google remains very much a one-trick (rich) pony. SEE Google: Newspaper Ads More Trustworthy Than AdWords

ALSO: Google Facebook Hookup: Social Graph Privacy Minefield

CONTACT DONNA BOGATIN

Who says Internet radio is in a shambles? NOT Jennifer Lane, an Internet radio veteran and president of Katz Net Radio Sales.

I heard her make the case yesterday in New York City for why online radio is poised to exploit the “exploding digital media world” despite the current uncertainties regarding imending changes in royalty payment requirements for the use of music over the Internet.

Participating in a NYMIEG panel on the “Future of Radio,’ Lane underscored Katz’ belief that the estimated 70 million strong monthly Internet radio audience offers unique advertising opportunities for marketers:

Millions of Americans listen to Internet radio every day. Because they are listening at their computers, they can instantly react to an advertising message and get more information or make a purchase online.

Katz Net Radio Sales Commercial Internet Radio Network represents the largest network of independent Internet radio stations available to advertisers today (1000 plus, both braodcast and Internet-only stations); Stations offered stream over 15 million hours of listening per month to about 5 million unique listeners. The Katz Net Radio Sales network is built on a digital platform that designed for a high degree of accountability: Inegrated audience tracking, order placement, reporting and invoicing.

Katz Net Radio Sales sells advertising across its digital network of Internet station affiliates and says it provides “exact audience data measurement and impression measurement for every campaign.” Lane indicated CPMs in the $4-$9 range.

Joel Smernoff, President of Paltalk, also is bullish on Intertnet radio. Paltalk claims to be “the world’s largest live video chat community,” boasting 4 million plus members.

Prior to Paltalk, Smernoff helped create one of AOL’s first brand extensions, AOL for Small Business. At Paltlalk, Smernoff is evangelizing for Internet radio to embrace “social casting” via two-way in-chat room dialogues.

More than 12% of American adults are estimated to listen to Internet radio. Joel Smernoff of Paltalk and Jennifer Lane of Latz Net radio Sales are but two of the industry’s innovators seeking to further develop radio online.

ALSO: Bid4Spots CEO on eBay Radio Ad Sales Deal PLUS: Why Google MUST Buy Facebook: Universal Search Envy

CONTACT DONNA BOGATIN

Radio industry veteran Dave Newmark is not shy in detailing the inroads the company he founded and leads, Bid4Spots, is making in disrupting the long standing way of doing radio business, radio advertising business. And why should he be?

After all, Google touts a good radio advertising diversification game, but hasn’t even officially launched a radio advertising product! Bid4Spots, on the other hand, is dedicated to the business of radio advertising and has a track record, to boot.

Bid4Spots took another (big) step today in its quest to “build marketplaces for radio advertising that work”:

eBay has selected Bid4Spots to power the eBay Media Marketplace for Radio

How did Bid4Spots garner the high profile deal? I spoke with Newmark today to get his direct take.

I have chatted with Newmark before about Bid4Spots, he is passionate about the problem he is out to solve and believes his company has a concrete, winning formula for all constituencies in the radio advertising buying and selling marketplace.

Newmark created Bid4Spots to help end both advertiser and radio station “frustation with the process of buying and selling last-minute radio time.” Bid4Spots has been hosting weekly online auctions of radio airtime for more than two years.

Why did eBay choose Bid4Spots? Newmark told me his company’s breadth of prime radio advertising inventory availability is unmatched. Bid4Spots is opening up radio advertising inventory to eBay from “over 2300 stations in all 300 top-ranked Arbitron DMAs.”

eBay, on the other hand, is to open up advertisers to Bid4Spots, hopefully. Bid4Spots can quantify and qualify the radio advertising inventory availability it contributes to eBay’s Media Marketplace. eBay, however, is known for its vast numbers of buyers and sellers of goods, not for a base of ready to go advertisers.

eBay itself indirectly acknowledges that its asset base of ”advertisers” is unproven, saying it has “reach and scale among POTENTIAL advertisers.”

Newmark confirmed to me that the eBay-Bid4Spots deal is structured as a “standard revenue sharing commercial agreement.”

Regardless if eBay is able to deliver advertisers, or not, Bid4Spots has further strengthened its position in the battle to “revolutionize” radio ad sales. The Bid4Spots marketplace model and radio station advertising inventory assets were both validated today, big time, by a big player, eBay.

CONTACT DONNA BOGATIN