LSS'09 Panel Local Content Monetisation


Published on

Local Content & Monetisation – A View from Europe
The local media landscape in Europe is unique in many ways and in particular is different to the US market. However, Google still dominates on the search side (both in terms of advertising and traffic volumes) in many European markets and is particularly strong in the UK. Yet Google is also a great source of traffic and revenue for many local publishers. In this panel we examine what makes local media different in Europe. We will explore how media owners are attracting users and growing traffic. Will look at innovative partnerships and business models. In addition we will discuss what strategies are working for attracting local advertising revenue and look at where growth is coming from 2010 and beyond.
Moderator: Ben Barney, Akesios

* Simon Greenman, MD – Online, European Directories
* James Thornett, Development Manager Location Services, Mapping, BBC Local
* Joachim Helfer, Müller Medien
* Roland Bryan, Associated Northcliffe Digital

Published in: Business, Technology
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Transparency on prices becomes more important (auction principles)Opinions of other users become more important for making selectionsReviews, ratings and other consumer feedback is important
  • LSS'09 Panel Local Content Monetisation

    1. 1. Local Social Summit 2009<br />Local Content & Monetisation<br />The View from Europe<br />Ben Barney <br /><br />#lss09 <br />
    2. 2. Google’s dominance<br />Google has 70% market share in US<br />In most European countries this rises to over 90%<br /><ul><li>Google is a threat from a content perspective eg. News aggregation, 10 (7) pack of local businesses
    3. 3. Publishers response is to resell AdWords or build their own competing pay per click platforms</li></ul>*The Sunday Times, Hitwise<br />
    4. 4. Social – Big Opportunity<br />*Estimate – based on 0.8% Qype share in UK, and received 80k uniques per month<br />
    5. 5. Tapping into Usage<br /><ul><li>75% of Tweets come from 5% of people</li></ul>Source:<br />
    6. 6. Tapping into Usage <br /><ul><li>Only 8% of Tweets are deemed “Good” and RT – worthy.</li></ul>Source:<br />
    7. 7. Tapping into usage<br />Local social activity still focused on major conurbations<br />No critical mass outside of these areas to create a useful service<br />Source: Qype Blog 12/10/09<br />
    8. 8. Tapping into Usage<br /><ul><li>Local social activity still focused on limited number of verticals
    9. 9. No critical mass outside of these areas to create a useful service</li></ul>Source: Yelp Metrics as of June 2009<br />
    10. 10. Effectiveness<br />10% conversion rate from visits originating from Facebook Ads (StoreQuest Self Storage)<br />Over 12 months we generated nearly $40,000 in revenue directly from a $600 advertising investment on Facebook. (CM Photographics)<br />Average campaigns result in CTR of 8 - 12%. Facebook Ads resulted in a 25% CTR. (All Nippon Airways)<br />
    11. 11. Akesios Platform<br />The Akesios Platform – Making Implementing New Products Easy for Publishers<br />
    12. 12. Summarizing the Opportunity<br />Google loves Social!<br />Factors to improve organic ranking for a local merchant <br />Citations from major data providers eg. Yelp & Twitter etc<br />Ratings & Reviews; Google and 3rd Party<br />Video & Photos<br />Enabling local merchants for social advertising<br />Opportunities for publishers to sell more 3rd party products to tap into sites who are engaging with the local audience in innovative ways<br />Publisher and social network content partnerships<br />Utilise their sales forces to increase content for each merchant. <br />
    13. 13. Panelists<br />Roland Bryan, Associated Northcliffe Digital<br />Simon Greenman, European Directories<br />Joachim Helfer, MüllerMedien<br />James Thornett, BBC Local<br />
    14. 14. Local Summit2 November 2009<br />Roland Bryan<br />Managing Director, Localpeople<br />Tel: 020 7 752 8466<br />Email:<br />T:<br />
    15. 15. s<br />What is Localpeople?<br /><ul><li>Local, issue-based community sites
    16. 16. Users as the primary content creators
    17. 17. Targeted advertising products for local SMEs</li></li></ul><li>s<br />Localpeopleaims to address a consumer demand for local content in small communities …<br />Q: What Type of Area are you most interested in receiving local news and information about?<br />My street<br />5%<br />My ward/parish<br />9%<br />My village<br />10%<br />My town/suburb<br />36%<br />My city<br />18%<br /><ul><li>Consumer appetite for local online propositions …
    18. 18. … allowing local people to debate / discuss issues that matter locally
    19. 19. Poorly served by news media today</li></ul>My county<br />9%<br />My region<br />14%<br />Q: How many people do you think of as living in this local community?<br />34%<br />Less than 5,000<br />5,000 and 20,000<br />33%<br />20,000 and 30,000<br />10%<br />7%<br />30,000 and 50,000<br />9%<br />50,000 and 100,000<br />Over 100,000<br />7%<br />Q: Is there a single website that you feel provides you with all the local news & information you require?<br />Less than 5,000<br />5,000 and 20,000<br />No<br />20,000 and 30,000<br />Yes<br />30,000 and 50,000<br />50,000 and 100,000<br />Over 100,000<br />
    20. 20. s<br />… and a small business need for cost effective, targeted advertising space<br /><ul><li>2.6m small business advertisers in the UK
    21. 21. Average spend of £2k per year – giving a market opportunity of £5.2bn
    22. 22. Only 7% of spend currently online -- want to be online but do not know where or how
    23. 23. Most of these businesses want local advertising opportunities with low wastage
    24. 24. Few happy with range of local marketing opportunities available today
    25. 25. Localpeople wants to address this opportunity: online, low cost, response focused, low wastage</li></li></ul><li>s<br />So how do SMEs currently spend their marketing budgets?<br />Marketing Spend Mix in a Typical 20k Town100 = Total Spend in Town<br />Split of Local Spend, by Media Channel%<br />
    26. 26. s<br />What do we need to do to increase local spend online?<br />MediaSupply?<br />Local Advertiser Objectives?<br />Importance?<br />Examples<br /><ul><li>Print
    27. 27. Door-drop
    28. 28. Local sponsorship
    29. 29. Brand Awareness
    30. 30. Competitive Differentiation
    31. 31. Search / Find
    32. 32. Volume Drivers</li></ul>Low<br />High<br />Strategic<br />Low<br />Med<br /><ul><li>Print
    33. 33. Door-drop</li></ul>High<br />High<br /><ul><li>YP / IYP
    34. 34. Google
    35. 35. 2.0 Directories
    36. 36. Mobile??</li></ul>Tactical<br />High<br />Low<br />
    37. 37. s<br />Contact Details<br />Roland Bryan<br />Managing Director, Localpeople<br />Tel: 020 7 752 8466<br />Email:<br />T:<br />
    38. 38. Moving into New Business Models<br />Simon Greenman, MD Online<br />European Directories<br />+44 208 987 8137<br />s.greenman @ europeandirectories . com<br />
    39. 39. Introduction<br />Simon Greenman – MD Online, European Directories<br />European Directories:<br />2008 €800M local search and lead generation company<br />Operations in eight countries – Finland, Sweden, Denmark, Netherlands, Austria, Czech, Slovakia and Poland<br />Have over 700,000 SMB customers serviced by over 2,500 sales representatives<br />Majority owned by Macquarie.<br />20<br />Commercial in Confidence<br />
    40. 40. Changing Search Behaviour Consumers<br />Internet and mobile usage are growing (location based)<br />Google is main entry to the web<br />Physical products: looking for a company Vs. looking for a product or service<br />Services: looking for a solution Vs. looking for a company <br />Search via verticals and social networks<br />Content needs to be rich, complete, and comparative<br />Strategy: generate local commercial search usage from multiple products and in multiple media to sell leads to our advertising customers:<br />yellow pages, white pages, verticals, IYP, search, SEM, social local… are the products and<br />print, online, mobile, satnav… are the media – not the business.<br />
    41. 41. Skype – European Directories Strategic Partnership<br />Announced October 6th partnership with Skype<br />Objective is to help turn online search for businesses into calls to businesses<br />The new offering for Skype users:<br />Skype has 480 million users globally<br />Those users can now call from Skype directly to participating European Directories advertisers<br />Using existing Skype Phone Number Recognition (PNR), Skype can recognise specific advertiser numbers on any web page and turn them into free business click-to-call buttons<br />Users do not need to have “Skype Out” credit to call<br />For advertisers:<br />Get access to a huge Skype user base, without changing their telephone numbers<br />Have an opportunity to differentiate themselves from their competitors to generate greater call volumes.<br />22<br />Commercial in Confidence<br />
    42. 42. Skype – European Directories Strategic Partnership<br />23<br />Commercial in Confidence<br />
    43. 43. New Products - - RFP/RFQ Vertical<br />24<br />Commercial in Confidence<br />request via email / sms<br />project<br />accept Y/N<br />handymen bidding process<br /><ul><li>Market place for handymen - Projects ‘in and around the house’
    44. 44. Number one in Netherlands
    45. 45. App 4000 subscribers pay monthly fee
    46. 46. Free for consumers
    47. 47. 30,000 consumer projects in 2008
    48. 48. Revenue growth - over 100% in 2009
    49. 49. 25% EBITDA margin already in growth stage
    50. 50. Plan to roll out into other markets</li></li></ul><li>New Social Local Products –<br />25<br />Commercial in Confidence<br /><ul><li>Social local directory sites with large numbers of user ratings and reviews of businesses
    51. 51. Launched in Austria and Netherlands with over 200,000 monthly unique visitors
    52. 52. Will rollout out to other operating countries in Q4
    53. 53. Made a small investment in to bring more innovation into the European Directories “family.”</li></li></ul><li>Summary <br />26<br />Commercial in Confidence<br />Our business is Local Commercial Search and Lead Generation – not print or online<br />Consumer usage behaviour is changing – mobile, search, verticals, social local, content…<br />European Directories will offer new products on new media to stay relevant to the consumer<br />Our salesforces and customer relationships are our key competitive advantage. We can monetise both:<br />Our core products and usage <br />New products and even 3rd party usage and…<br />Superior execution of strategy and operations creates the opportunity for future revenue and profit growth.<br />
    54. 54. 27<br />Local Social Summit – Museum of Contemporary Arts, London, November 3rd<br />Local Content & Monetisation – A View from a directory publisher<br />Joachim Helfer – Business Development Online – Müller Medien<br />
    55. 55. 28<br />Strategic decision of the directory publishers in Germany<br />The local aspect in the growing search business is getting more and more important<br />This market is dominated by performance-based business models<br />Global players such as Google, Yahoo and Microsoft rule the market<br />In the local area they are a threat to media companies, newspaper and directory publishersas well as TV and radio stations<br />Through a pure integration of 3rd party ad feeds we loose the <br /> direct customer connection<br />Therefore the directory publishers decided to invest in the future:<br />Own entity<br />Own local search engine<br />Own search technology and index<br />Own PPC-based ad-platform<br />Own network of local websites<br />Own new performance-based products and teams<br />
    56. 56. 29<br />The three pillars of success<br />SALES<br />TECH<br />NETWORKS<br />
    57. 57. 30<br />Local sales people with regular customer contact<br />Integration into traditional sales cycles, infrastructure<br />Backup by special sales force<br />Product Concepts<br />Click packages like flat fee models<br />Budget based campaigns as the next level<br />Online Presence with Profile pages <br />Combined with online directory offerings<br />Tracking & Reporting<br />Training the sales force to<br />Think online, Live online, Work and sell online<br />Customer Retention with online marketing seminars<br />Success Factor Sales<br />
    58. 58. 31<br />Success Factor: Networks <br />Nucleus is high quality local search index + map<br />Combined content and monetization distribution<br />Online directories, local search, classifieds, etc. <br />Sub-networks of local publishers<br />Additional network of profile pages<br />Network reach currently 40 MM searches<br />Customer Base approx. 6,000+<br />
    59. 59. 32<br />Success Factor Technology<br />Controlling of own auction-based ad platforms<br />License of Fast AdMomentum/ Microsoft<br />Development of specific widgets <br />Blending of ad feeds<br />Configuration wizard<br />Geo-coding for mobile navigation<br />Market place for exchange<br />Status as „Beta customer“ <br />Co-Founder of local search group<br />Exchange and support of new developments<br />Official X10partnership for AdMomentum in the D-A-CH region<br />
    60. 60. 33<br />Examples of our social marketing platforms<br />
    61. 61. 34<br /><br />
    62. 62. 35<br />123people<br />
    63. 63. 36<br /><br />
    64. 64. 37<br /><br />
    65. 65. 38<br />Thank you for your attention! mailto:<br />Local Social Summit – Museum of Contemporary Arts, London, November 3rd<br />
    66. 66. James Thornett<br />Executive Product Manager, Local & Location Services<br />BBC Future Media & Technology<br />
    67. 67.
    68. 68.
    69. 69.
    70. 70. Engaging local audiences<br />
    71. 71. “Please enter your postcode”<br />
    72. 72. Q&A<br />
    73. 73. 2010 Predictions<br />Roland Bryan, Associated Northcliffe Digital<br />Simon Greenman, European Directories<br />Joachim Helfer, MüllerMedien<br />James Thornett, BBC Local<br />
    74. 74. Thank You<br />