Publishing Expo 2008 Presentation

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

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

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

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

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

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

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

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 - +

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:

New Local Portals...
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

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…

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

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

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

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?

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:

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

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

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

fs@fernandosamaniego.com

Publishing Expo 2008 Presentation

by Fernando Samaniego on Sep 26, 2008

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