Vocento Online: From Player To Market Leader Moscow, July 03 Publishing Expo 2008 [email_address] fernandosamaniego.com International New Media Consulting S.L.

Spain and Russia 504.645 km² 45M US$ 1.438.959 M U$D 32.066 21M SPAIN 17.075.400 km 2 142M US$ 1.289.582 M U$D 9.075 29M RUSSIA Surface Population Gross domestic product Per capita income Internet users ‘07

504.645 km²

45M

US$ 1.438.959 M

U$D 32.066

21M

17.075.400 km 2

142M

US$ 1.289.582 M

U$D 9.075

29M

Situation in 2000 2000 Leader in regional press 10 dailies 500.000 copies per day 2,2 million readers Local TV Radio Free Press Internet

Leader in regional press

10 dailies

500.000 copies per day

2,2 million readers

Threats To Local Press Readership declines Classifieds going online Smaller advertisers?

Adaptation Of Commercial Organization Early difficulties in commercializing new support: POSITIVE : Vocento had access to new advertisers Reps were not getting expected results Creation of regional commercial offices (CMs) Recycling of reps New reps hired

Early difficulties in commercializing new support:

Newspapers, flourished in the XIX, boomed in the XX In the XXI they will play significantly different roles and will be smaller businesses. Papers performance follows the general PRODUCT CURVE Newspaper as Consumer Product Sales Volume Time Development Introduction Growth Maturity Decline

Newspapers, flourished in the XIX, boomed in the XX In the XXI they will play significantly different roles and will be smaller businesses.

Audience Evolution… Readers did not have an only reason for dropping papers When leaving newspapers they didn’t find a single substitute Newspaper reader leaves for Therefore: Papers will have to fight abandon with more than one single weapon . No silver bullet, but series of answers. Solution A Solution B Solution C … etc Solution D

Readers did not have an only reason for dropping papers

When leaving newspapers they didn’t find a single substitute

Therefore:

Papers will have to fight abandon with more than one single weapon . No silver bullet, but series of answers.

Audience Solutions AUDIENCE EVOLUTION AUDIENCE SOLUTION CORE: maintain, increase if possible MAINTAIN MASS MEDIA POSITION: More relevant to community More relevant to advertisers PROBLEMS OPPORTUNITIES … etc Newspaper consumer leaves for Solution A Project A Solut. D Project D Existing consumer New Consumer Project B Solut. B Project C Solut. C

CORE: maintain, increase if possible

MAINTAIN MASS MEDIA POSITION:

More relevant to community

More relevant to advertisers

Project A

Project D

Project B

Project C

Competitive landscape in 2004: Big National Portals Large horizontal portals (generalist) OUR COMPETITORS One classifieds leader All large/strong projects were NATIONAL

All large/strong projects were NATIONAL Competitive landscape in 2004 (cont.): Big National Portals Large Horizontal Portals (generalist) OUR COMPETITORS OUR STRATEGY Clear Classifieds Leader Local Portals Network Vertical Portals +user oriented: JOBS +statistics, infos: HOUSING full car site:cont./used/new From LOCAL projects to NATIONAL brands

+user oriented: JOBS

+statistics, infos: HOUSING

full car site:cont./used/new

2004 : Strategic Vision FUNCTION CPM QUALITY AUDIENCE Traffic Generators Directioning of Segmented Traffic Directioning towards Transaction Horizontal Portals: News Videos Vertical Portals: Thematic Sites Virtual Communities Specialized Sites Classifieds E-COMMERCE - +

Horizontal Portals:

News

Videos

Vertical Portals:

Thematic Sites

Virtual Communities

Breaking News (loc. nat. internat.), TV Site(s), Vertical Contents, Soft + Hard Data Projects Technological Platforms Required Search E-commerce Mobile AdServer Editorial (CMS) Social Networks TV Platform B2C and C2C video Agenda Events, leisure

First Dailies Online Up to 2004 : Offline culture was dominant Little content update Text dominated sites, little visuals BEFORE:

Up to 2004 :

Offline culture was dominant

Little content update

Text dominated sites, little visuals

BEFORE:

New Local Portals... Portals should be leaders in their markets... Centered on all things local More interactive More multimedia Profitable!!

Portals should be leaders in their markets...

Centered on all things local

More interactive

More multimedia

Profitable!!

New Local Portal Examples of local interactivity: Blogs Forums Local TV content Surveys Citizen journalism: Information Videos Photos Photo expose

Examples of local interactivity:

Blogs

Forums

Local TV content

Surveys

Citizen journalism:

Information

Videos

Photos

Photo expose

LOCAL NEWS JOBS CARS HOUSES WEATHER RESTAURANTS COMMUNITY GUIDES YELLOW PAGES EVENTS POLITICS GOSSIP CAR TRAFFIC…….. SELF MANAGED ONLINE COMMUNITIES USERS’: COMMENTS THOUGHTS OPINIONS PHOTOS VIDEOS…

USERS’:

COMMENTS

THOUGHTS

OPINIONS

PHOTOS

VIDEOS…

Thematic Portals Dailies’ content is linked to thematic portals

Dailies’ content is linked to thematic portals

Real Case in Spain Power Ratio : establishes a relationship between a media audience and its income. For non leaders the ability to translate audience into money is low TOP TEN players: In Spain get 84% of advertising revenue Leader in Finance: 0,3€ per monthly UU Eighth player: 0,05€ per monthly UU Thematic Portals: Power Ratio

Real Case in Spain

Power Ratio : establishes a relationship between a media audience and its income. For non leaders the ability to translate audience into money is low

Leader in Finance: 0,3€ per monthly UU

Eighth player: 0,05€ per monthly UU

Classifieds Succeeding in classifieds in spite of late entry CLASSIFIEDS Specialized Traffic Segmented Ads Transactions Acquisition of companies with strong potential: NOW SECOND IN MARKET FIGHTING FOR 2nd PLACE QUICK INCREASE TRAFFIC & INCOME

Succeeding in classifieds in spite of late entry

Acquisition of companies with strong potential:

NOW SECOND IN MARKET

FIGHTING FOR 2nd PLACE

QUICK INCREASE TRAFFIC & INCOME

Increasing Profitability of Offline Classifieds + DAILY GENERALIST CLASSIFIEDS PORTAL THE GENERALIST PORTAL HELPS PAPERS AND VERTICAL CLASSIFIEDS SITES (CARS, EMPLOYMENT, HOUSING)

Unique Users Growth, Nov. 04 - Dec. 07 342% Fuente Nielsen / NetRatings Netview Enlargement of sampling 152% EL MUNDO PRISA MARKET VOCENTO 461% 749% VOCENTO

Revenues & Ebitda REVENUES (MM €) EBITDA (MM €) Source: Deloitte

National Advertising Ad server managed by Internet team SME: separate sales teams National Advertising AGENCE Direct Sales team Sales marketing done for each sale

Ad server managed by Internet team

SME: separate sales teams

Direct Sales team

Sales marketing done for each sale

Creation of a High Performance Team Clear Mission , clear deadlines Leader with previous experience and freedom to create team Multidisciplinary team sharing vision Able to design strategy and implement A certain margin of freedom for the team to develop own code How was Vocento able to grow so much on the internet?

Clear Mission , clear deadlines

Leader with previous experience and freedom to create team

Multidisciplinary team sharing vision Able to design strategy and implement

A certain margin of freedom for the team to develop own code

High Performance Team Highly professional members Belief in the importance of mission “ Autonomy ” of team and individuals Optimistic about results Shared destiny and glory Example in cinema:

Highly professional members

Belief in the importance of mission

“ Autonomy ” of team and individuals

Optimistic about results

Shared destiny and glory

Things Vocento did Well Ackowledgment that Vocento wasn’t keeping up Acceptance of creation of high performance team Allocate resources for acquisition of classifieds companies Modification of some commercial, technological and organizational aspects in spite of cultural changes implied Things Well Done

Ackowledgment that Vocento wasn’t keeping up

Acceptance of creation of high performance team

Allocate resources for acquisition of classifieds companies

Modification of some commercial, technological and organizational aspects in spite of cultural changes implied

Things We Would Do Differently Give autonomy to the technical organisation in internet quicker Improve internal communication Etc... Allow internet projects to organize commercially as competitors from start Things Learned

Give autonomy to the technical organisation in internet quicker

Improve internal communication

Etc...

Allow internet projects to organize commercially as competitors from start

Except for marketing, many cross media synergies are an illusion. Start-ups should not bother with them unless they consider them convenient. On Synergie s

Dream team: Luis Andreu, Management Juan Luis Moreno, Marketing Miguel A. D. Ferreira/David Moreno, Thematic sites Francisco Rubira, Classifieds Roberto de Celis, Local Portals Carlos Ezquerro, Technology

Dream team:

Luis Andreu, Management

Juan Luis Moreno, Marketing

Miguel A. D. Ferreira/David Moreno, Thematic sites

Francisco Rubira, Classifieds

Roberto de Celis, Local Portals

Carlos Ezquerro, Technology

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