Yuko Tanaka Digital Media2.0

Successful B2B Magazine Media Nikkei BP’s Perspective Yuko Tanaka International Relations & International Ad Sales Nikkei Business Publications, Inc.

How big is the Internet in Japan? Population: 126 million* Internet users: 85 million** Penetration: Approx. 67% * Ministry of Internal Affairs and Communications (August 2006) ** Ministry of Internal Affairs and Communications (end of 2005)

Online ad spend in Japan (Source: Dentsu) 129.3% 363.0 2006 154.8% 280.8 2005 153.3% 181.4 2004 140.0% 118.3 2003 115.0% 84.5 2002 124.6% 73.5 2001 244.8% 59.0 2000 211.4% 24.1 1999 190.0% 11.4 1998 375.0% 6.0 1997 　 1.6 1996 (%) Billion yen Year

See the rapid growth.. 0 5,000 10,000 15,000 20,000 25,000 1986 87 88 89 90 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 05 ＳＰ TV Newspaper Magazine Radio Internet (Source: Dentsu) (Unit: ten million yen)

In the earlier days of the Internet… Yes, we had industry portal sites but they weren’t really functioning as powerful traffic drivers to our magazine sites Yes, each magazine had a website but it was more like an “add-on” to print rather than something with independent content and value The problem was that there was no coordination in the efforts being made in the company. The left hand didn’t know what the right hand was doing! Hence, the birth of the Online Business Development Center!

Renewals to existing portals and introduction of new portals/websites that maximize the leverage of our print magazine brands

Pageviews (unit: ten thousand) Unique browsers (unit: ten thousand) Figures from SiteCensus Pageviews Unique Browsers PV/UB growth at Nikkei BP

Inherit the DNA of Nikkei Business in print and go beyond
2. Provide compelling original content
3. Exploit the benefits of an online medium
NBonline: Concept <Nikkei Business> <NBonline>

■ Promotion overview Period May 1 through 31, 2006 (one month) Objective Achieve Audi brand penetration among Nikkei Business readers and gather a questionnaire respondent list (target: 400; obtained: 388) Magazine exposure ・ Nikkei Business May 8, 2006, 　 inside front cover spread ad ・ Nikkei Business May 22, 2006, single page ad facing News & Trends column Web exposure ・ NBonline tie-up site during entire month of May 2006 ・ nikkeibp.jp text ad and email ad ・ Medical Online banner ad and email ad ・ Nikkei Design Express email ad Cross media: Audi × Nikkei Business × NBonline

User registration system As of October 2006, most of the content on NBonline requires registration of basic information (name, email, etc.), contact information (home or office address, phone/fax numbers, etc.) and attribute information (company name, title/position, annual income, area of interest, etc.). Number of registered users 163,036 　　　　　　　　　　　　　　　　　　　 (As of Dec 20, 2006)

★ “ Target Who?” Corporate executives and business leaders involved in corporate decision-makings
★ “ Offer What?” Insightful trend forecast and contents serving as guidelines for business and management
Nikkei Business and NBonline

★ “ How?”
Speed （ Quick reporting around the clock ）
C ontinuity （ Continuous follow-up of major events)
Review (In-depth analysis from unique perspectives)
Coverage （ Articles written by a dedicated editorial teams
Expertise （ Coordination of Nikkei BP’s wisdom ）
Real time （ Full use of audio/video ）
We made full use of the advantages of a web media to break through the limits of print Features particular to NBonline

About Nikkei BP’s online businesses * Monthly page views: 　 86,928,236 (as of 2006 end) * Domestic ranking by Alexa: 31 st place (1. Yahoo!, 2. Google, 3. Mixi…24. Nikkei NET…30. IT Media, 31. nikkeibp.co.jp , 32. Asahi…35. Yomiuri-Online…) * Nikkei BP’s key websites and their page views nikkei BPnet: 21,233,691 NB Online: 11,947,487 ITpro: 13,592,966 Tech-On!: 7,921,996 Nikkei Medical ONLINE: 2,014,896

About Nikkei BP’s online businesses * Online revenues (ad + content sales) [ 2006] Approx. 5 billion JPY (or 42 million USD) 35% increase year-on-year * Revenue milestones 2007: 6 billion JPY (or 50 million USD) 2008: 7.5 billion JPY (or 63 million USD) 2009: 9 billion JPY (or 75 million USD) *Exchange rate of USD@119JPY * Goal: Generate 20% of the company’s annual turnover and account for 40% of the profit

Nikkei BP’s Online Business Policy 1 　 * Don’t compete with portal sites * Don’t compete with news sites * Greater emphasis on “business” than “private” * Greater emphasis on “analysis” than “news”

Nikkei BP’s Online Business Policy 2 * Highly targeted websites: Just like our print magazines sold through annual subscription, we make sure we know who our users are * Registration system: Access is free except for premium contents but advance registration is required * Cross media selling together with print magazines

As a B2B publisher, Nikkei BP advocates the “Page Value” concept. In B2B advertising where reach to to targeted audience is of essence, who is coming to the website matters more than how many. Pageview model Page value model

Search engines Portal sites News sites of newspaper companies nikkeiBP net ＜ Tech ＞＜ Biz ＞＜ Life ＞ B2C B2B Page Value Low High View, CPC- oriented UB, Profile- oriented Open to public Members only General public General Business people Business professionals A portal site for business professionals, based on members-only, specialized websites. It also serves as a portal site for Nikkei Business Publications. NBonline PC online ITpro Tech-on! Nikkei Medical ONLINE KEN-Platz ARENA NVC SECOND STAGE ecomom

For more information, please contact: Yuko Tanaka International Advertising Sales Nikkei Business Publications, Inc. Email: yktanaka@nikkeibp.co.jp

Yuko Tanaka Digital Media2.0

by Sergey Galyonkin on May 12, 2008

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