Digital classified players - general marketplaces, real estate portals, platforms for new and used cars as well as job boards - have been in existence since more than 15 years. Are they at risk for being disrupted as newspapers and other industries were? And where does the risk originate from? The presentation was given at a workshop at the ICMA conference in Madrid in October 2015.

1. 1 | ICMA - Disruptors| Katja Riefler © 2015
DISRUPTION…

2. Classifieds – Disrupted or
Disruptor?
Katja Riefler
Principal / Managing Director
Advanced Interactive Media Group LLC
katjar@aimgroup.com
tel. +49 89 621 460-44
m: +49 178 695 76 71
© 2015 AIM Group LLC
Friday, 23 October 2015, Madrid

3. Let’s revisit some
mantras of the industry…
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4. “Newspaper classifieds
are DEAD”
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5. “You’re SAFE
once you’re at least
FIVE TIMES BIGGER
than your closest competitor”
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6. ”A popular
classified site is a
MONEY MAKING MACHINE”
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7. What do these statements
have in common?
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THEY ARE
NOT TRUE!
(or only partly)
And now I'll prove it...

8. But first…
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9. About us ...
Consultants and publishers of
9 | ICMA - Disruptors| Katja Riefler © 2015

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Founded 1998 - Global network
42 consultants / analysts
Many clients you know
Peter M.
Zollman,
founding
principal
Katja
Riefler
managing
director

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Some clients…

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We’re
‘consultants
who publish’…

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‘Newspaper
classifieds
are dead’

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16. Why aren’t there more of them?
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17. NEXT Phase
Publishers most often fail to realize growth
established
business
disruptive
modell
It grows…
A small digital
something
starts outside
Replacement
hurts! Action!
First pain!
It continues to
grow…
DigitalClone
put their business at risk!
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Explore -
Ignore!
The clone
doesn’t grow…
Publishers

18. Little boys beat giants by disruption
7%
4%
12%
8%
18% 22%
% of tons
SteelQuality
19801975 1985 1990
25–30%
55%
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Source: Clayton M. Christensen 2011

19. Disruptive Innovations: A driver of leadership
failure and source of growth opportunities
Performance
Time
Incumbents nearly
always win
Entrants nearly
always win
19 | ICMA - Disruptors| Katja Riefler © 2015
Source: Clayton M. Christensen 2011

20. The “Innovators Dilemma”
today hits the digital pioneers
from 15 years ago…
Outdated, hard to change technology
Inflexible structures
Untimely business models
(that earn so much money…)
Defensive culture (fear of
loosing existing income sources)
Convinced of the superb quality
of their own approach
(focus on existing customer groups)
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21. Innovation ≠ Invention
Innovation
=
Combination of
existing
knowledge in a
new way that
resonates with
customers
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Disruption =
product or service
that is 10 times
cheaper and
10 times
more effectiv
than the predecessor
Innovation ≠ Disruption

23. 23 | ICMA - Disruptors| Katja Riefler © 2015
Starting and succeeding
today is much harder

24. The business of classifieds:
 Automotive ads and listings
 Real estate ads and listings
 Recruitment ads and listings
 “Stuff” ads…
... but also ...
 Social / professional networking
 Directories / service guides
 ... maybe even e-commerce!
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25. The business of classifieds:
 Mobility
 Housing and accommodation
 Work and career
 Lifestyle …
AND – big question:
 Is there a future for something
that was used to be called
advertising?
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Your new
competitive
environment

27. It‘s a world…
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Quelle: www.kpcb.com/internet-trends (2015)

28. It‘s a world…
Mobile
DataSocial
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29. Where are the Innovators that
might become Disruptors?
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30. Mobile Only
Marketplaces?
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31. Super-Aggregators?
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32. Client Service Maniacs?
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Source: Silvio Frison, Presentation at ICMA Berlin Conference, May 2015

33. Gadget exploiters?
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34. Data-Scientists?
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35. Data aggregators?
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36. Community organizers?
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37. Robin Hood?
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38. Convenience suppliers?
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39. Gamificators?
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40. Culture shift?
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41. FINALLY, WHAT CAN YOU DO?
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42. Must do for classified publishers today
Think beyond YOUR borders
Find out who‘s problem you
are solving
Gain critical mass
Chose whom to work with
42 | ICMA - Disruptors| Katja Riefler © 2015
Task: Connect all nine dots with only 4 lines
without crossing any dot twice

43. 43 | ICMA - Disruptors| Katja Riefler © 2015
You can do
ANYTHING
You can’t do
EVERYTHING
You have to do
SOMETHING

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45. Now let‘s discuss!
Katja Riefler
Principal / Managing Director
Advanced Interactive Media Group LLC
katjar@aimgroup.com
tel. +49 89 621 460-44
m: +49 178 695 76 71
© 2015 AIM Group LLC
Friday, 23 October 2015, Madrid