Publishing Expo 2008 Presentation

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Fernando Samaniego's Presentation at Publishing Expo 2008 in Moscow: Vocento Online - From Player To Market Leader. Fernando Samaniego is an International New Media Consultant.

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  • OPENING First I would like to thank Publishing Expo for having invited me to address this audience. I will concentrate on explaining how to build a national leading position in internet starting from a week local network of local portals. I will use the Vocento group experience to illustrate it. Vocento is a1 billion euro Media Company from Spain and I managed all new media operations from 2004 until end of 2007.
  • Publishing Expo 2008 Presentation

    1. 1. Vocento Online: From Player To Market Leader Moscow, July 03 Publishing Expo 2008 [email_address] fernandosamaniego.com International New Media Consulting S.L.
    2. 2. Spain and Russia <ul><li>504.645 km² </li></ul><ul><li>45M </li></ul><ul><li>US$ 1.438.959 M </li></ul><ul><li>U$D 32.066 </li></ul><ul><li>21M </li></ul>SPAIN <ul><li>17.075.400 km 2 </li></ul><ul><li>142M </li></ul><ul><li>US$ 1.289.582 M </li></ul><ul><li>U$D 9.075 </li></ul><ul><li>29M </li></ul>RUSSIA Surface Population Gross domestic product Per capita income Internet users ‘07
    3. 3. Situation in 2000 2000 <ul><li>Leader in regional press </li></ul><ul><li>10 dailies </li></ul><ul><li>500.000 copies per day </li></ul><ul><li>2,2 million readers </li></ul>Local TV Radio Free Press Internet
    4. 4. Threats To Local Press Readership declines Classifieds going online Smaller advertisers?
    5. 5. Adaptation Of Commercial Organization <ul><li>Early difficulties in commercializing new support: </li></ul>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
    6. 6. <ul><li>Newspapers, flourished in the XIX, boomed in the XX In the XXI they will play significantly different roles and will be smaller businesses. </li></ul>Papers performance follows the general PRODUCT CURVE Newspaper as Consumer Product Sales Volume Time Development Introduction Growth Maturity Decline
    7. 7. Audience Evolution… <ul><li>Readers did not have an only reason for dropping papers </li></ul><ul><li>When leaving newspapers they didn’t find a single substitute </li></ul>Newspaper reader leaves for <ul><li>Therefore: </li></ul><ul><ul><li>Papers will have to fight abandon with more than one single weapon . No silver bullet, but series of answers. </li></ul></ul>Solution A Solution B Solution C … etc Solution D
    8. 8. Audience Solutions AUDIENCE EVOLUTION AUDIENCE SOLUTION <ul><li>CORE: maintain, increase if possible </li></ul><ul><li>MAINTAIN MASS MEDIA POSITION: </li></ul><ul><ul><li>More relevant to community </li></ul></ul><ul><ul><li>More relevant to advertisers </li></ul></ul>PROBLEMS OPPORTUNITIES … etc Newspaper consumer leaves for Solution A <ul><li>Project A </li></ul>Solut. D <ul><li>Project D </li></ul>Existing consumer New Consumer <ul><li>Project B </li></ul>Solut. B <ul><li>Project C </li></ul>Solut. C
    9. 9. Competitive landscape in 2004: Big National Portals Large horizontal portals (generalist) OUR COMPETITORS One classifieds leader All large/strong projects were NATIONAL
    10. 10. 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 <ul><li>+user oriented: JOBS </li></ul><ul><li>+statistics, infos: HOUSING </li></ul><ul><li>full car site:cont./used/new </li></ul>From LOCAL projects to NATIONAL brands
    11. 11. 2004 : Strategic Vision FUNCTION CPM QUALITY AUDIENCE Traffic Generators Directioning of Segmented Traffic Directioning towards Transaction <ul><li>Horizontal Portals: </li></ul><ul><li>News </li></ul><ul><li>Videos </li></ul><ul><li>Vertical Portals: </li></ul><ul><li>Thematic Sites </li></ul><ul><li>Virtual Communities </li></ul>Specialized Sites Classifieds E-COMMERCE - +
    12. 12. 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
    13. 13. First Dailies Online <ul><li>Up to 2004 : </li></ul><ul><ul><li>Offline culture was dominant </li></ul></ul><ul><ul><li>Little content update </li></ul></ul><ul><ul><li>Text dominated sites, little visuals </li></ul></ul><ul><li>BEFORE: </li></ul>
    14. 14. New Local Portals... <ul><li>Portals should be leaders in their markets... </li></ul><ul><li>Centered on all things local </li></ul><ul><li>More interactive </li></ul><ul><li>More multimedia </li></ul><ul><li>Profitable!! </li></ul>
    15. 15. New Local Portal <ul><li>Examples of local interactivity: </li></ul><ul><ul><li>Blogs </li></ul></ul><ul><ul><li>Forums </li></ul></ul><ul><ul><li>Local TV content </li></ul></ul><ul><ul><li>Surveys </li></ul></ul><ul><ul><li>Citizen journalism: </li></ul></ul><ul><ul><ul><li>Information </li></ul></ul></ul><ul><ul><ul><li>Videos </li></ul></ul></ul><ul><ul><ul><li>Photos </li></ul></ul></ul><ul><ul><li>Photo expose </li></ul></ul>
    16. 16. LOCAL NEWS JOBS CARS HOUSES WEATHER RESTAURANTS COMMUNITY GUIDES YELLOW PAGES EVENTS POLITICS GOSSIP CAR TRAFFIC…….. SELF MANAGED ONLINE COMMUNITIES <ul><li>USERS’: </li></ul><ul><ul><li>COMMENTS </li></ul></ul><ul><ul><li>THOUGHTS </li></ul></ul><ul><ul><li>OPINIONS </li></ul></ul><ul><ul><li>PHOTOS </li></ul></ul><ul><ul><li>VIDEOS… </li></ul></ul>
    17. 17. Thematic Portals <ul><li>Dailies’ content is linked to thematic portals </li></ul>
    18. 18. <ul><li>Real Case in Spain </li></ul><ul><li>Power Ratio : establishes a relationship between a media audience and its income. For non leaders the ability to translate audience into money is low </li></ul>TOP TEN players: In Spain get 84% of advertising revenue <ul><li>Leader in Finance: 0,3€ per monthly UU </li></ul><ul><li>Eighth player: 0,05€ per monthly UU </li></ul>Thematic Portals: Power Ratio
    19. 19. Classifieds <ul><li>Succeeding in classifieds in spite of late entry </li></ul>CLASSIFIEDS Specialized Traffic Segmented Ads Transactions <ul><li>Acquisition of companies with strong potential: </li></ul><ul><ul><li>NOW SECOND IN MARKET </li></ul></ul><ul><ul><li>FIGHTING FOR 2nd PLACE </li></ul></ul><ul><ul><li>QUICK INCREASE TRAFFIC & INCOME </li></ul></ul>
    20. 20. Increasing Profitability of Offline Classifieds + DAILY GENERALIST CLASSIFIEDS PORTAL THE GENERALIST PORTAL HELPS PAPERS AND VERTICAL CLASSIFIEDS SITES (CARS, EMPLOYMENT, HOUSING)
    21. 21. Unique Users Growth, Nov. 04 - Dec. 07 342% Fuente Nielsen / NetRatings Netview Enlargement of sampling 152% EL MUNDO PRISA MARKET VOCENTO 461% 749% VOCENTO
    22. 22. Revenues & Ebitda REVENUES (MM €) EBITDA (MM €) Source: Deloitte
    23. 23. National Advertising <ul><li>Ad server managed by Internet team </li></ul><ul><li>SME: separate sales teams </li></ul>National Advertising AGENCE <ul><li>Direct Sales team </li></ul><ul><li>Sales marketing done for each sale </li></ul>
    24. 24. Creation of a High Performance Team <ul><li>Clear Mission , clear deadlines </li></ul><ul><li>Leader with previous experience and freedom to create team </li></ul><ul><li>Multidisciplinary team sharing vision Able to design strategy and implement </li></ul><ul><li>A certain margin of freedom for the team to develop own code </li></ul>How was Vocento able to grow so much on the internet?
    25. 25. High Performance Team <ul><li>Highly professional members </li></ul><ul><li>Belief in the importance of mission </li></ul><ul><li>“ Autonomy ” of team and individuals </li></ul><ul><li>Optimistic about results </li></ul><ul><li>Shared destiny and glory </li></ul>Example in cinema:
    26. 26. Things Vocento did Well <ul><li>Ackowledgment that Vocento wasn’t keeping up </li></ul><ul><li>Acceptance of creation of high performance team </li></ul><ul><li>Allocate resources for acquisition of classifieds companies </li></ul><ul><li>Modification of some commercial, technological and organizational aspects in spite of cultural changes implied </li></ul>Things Well Done
    27. 27. Things We Would Do Differently <ul><li>Give autonomy to the technical organisation in internet quicker </li></ul><ul><li>Improve internal communication </li></ul><ul><li>Etc... </li></ul><ul><li>Allow internet projects to organize commercially as competitors from start </li></ul>Things Learned
    28. 28. 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
    29. 29. <ul><li>Dream team: </li></ul><ul><ul><li>Luis Andreu, Management </li></ul></ul><ul><ul><li>Juan Luis Moreno, Marketing </li></ul></ul><ul><ul><li>Miguel A. D. Ferreira/David Moreno, Thematic sites </li></ul></ul><ul><ul><li>Francisco Rubira, Classifieds </li></ul></ul><ul><ul><li>Roberto de Celis, Local Portals  </li></ul></ul><ul><ul><li>Carlos Ezquerro, Technology </li></ul></ul>
    30. 30. fs@fernandosamaniego.com

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