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A Publisher’s Internet Strategy
Bert Wiggers
Director New Media
Sanoma Magazines International
INTERNATIONAL
Division of SanomaWSOY
SanomaWSOY
SanomaWSOY
Education and Books
Net sales M€ 309
EBIT M€ 48
Personnel 2,455
Sanoma
Net sales M€ 457
EBIT M€ 63
Personnel 2,672
Sanoma
Magazines
Net sales M€ 1,219
EBIT M€ 132
Personnel 5,584
Net sales M€ 2,742
EBIT M€ 293
Personnel 18,434 *
SWelcom
Net sales M€ 132
EBIT M€ 13
Personnel 437
Rautakirja
Net sales M€ 684
EBIT M€ 51
Personnel 7,214
* Personnel under employment contract, average.
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Sanoma Magazines, some facts
•
•
> 50 million people read our magazines monthly
Sales > € 1,2 billion (2006)
•
4th European consumers magazines publisher
•
Market leader in Finland, Belgium, Hungary, the Netherlands, Bulgaria,
Russia, Czech Republic
•
Operate in 13 countries with 6 editions of National Geographic; 8
editions of Story; 10 editions of Cosmopolitan (including Kazakhstan)
•
We sold 442,632,000 copies in 2005
•
Serious online positions and ambitions
•
Online sales now 8%, growing double digits
•
The Russian Cosmopolitan is the biggest edition outside of the US.
•
5,500 people on the payroll
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Our leading magazines titles
NL
FIN
221.439
BEL
265,650
337,880
233,045
512,160
HUN
RUS
320,500
356,500
240,000
295,000
980,000
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Go East, Young Man, Go East!
2001
CROATIA
2004
2004
BULGARIA
SERBIA
RUSSIA
2005
2005
2006
THE
UKRAINE
SLOVENIA
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Slovakia
Sanoma Magazines’
chosen markets
trade magazines only
Sanoma Mag. Slovakia
GDP growth 8.4%
Czech Republic
Finland
leading market position
# 1 market position
Sanoma Magazines Finland
GDP growth 4.3%
Sanoma Magazines Praha
GDP growth 7.2%
Russia
# 1 market position
IMH Group
GDP growth 8.2%
Hungary
# 1 market position
Sanoma Budapest Kiadói
Hearst Sanoma Press Pub.
GDP growth 4.7%
The Netherlands
# 1 market position
Sanoma Uitgevers
Sanoma Magazines Int.
GDP growth 4.5%
Ukraine
# 4 market position
GDP growth 9.1%
Belgium
Romania
# 1 market position
# 4 market position
Sanoma Magazines Belgium
GDP growth 2.9%
Croatia
Sanoma Hearst Romania
GDP growth 8.2%
# 2 market position
Slovenia
Serbia
#2 market position
Bulgaria
#2 market position
# 1 market position
Adria Media Zagreb
GDP growth 7.1%
Adria Media Ljubljana
GDP growth 6.2%
Adria Media Serbia
GDP growth 7.8%
Sanoma Bliasak Bulgaria
GDP growth 7.8%
Sources: EIU
GDP growth is Nominal GDP growth, purchasing power parity 2007 (FC) compared to 2006
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Preferred license partner
The best known global
brands:
Cosmopolitan - Playboy - Elle
FHM - Maxim - Disney - Auto
Bild
National Geographic
Czech Rep. Hungary Romania Croatia
Russia Bulgaria
Elle Serbia and Elle Bulgaria
The Russian edition of Cosmopolitan
is the biggest outside of the US; we
also publish Cosmo in The
Netherlands, Finland, Hungary and
Romania
Finland
The Netherlands
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Czech Republic
Ukraine
Belgium
Transferring Concepts - own
titles
Croatia
Hungary
The Netherlands
Serbia
Romania
Bulgaria
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Where are we, on internet?
• Market leader (as ‘internet publisher’) in the Netherlands (ilse
media) and Hungary (Sanoma Budapest)
• Strong position in Finland
• All 13 SMI countries have POP sites (=marketing)
• Some ‘real sites’ in some countries
• A lot of ambition to realize a number 1 position in more countries
– Acquisitions in the pipeline
– More internet staff to be hired
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West grows, East booms
growth internet advertising
80
western europe
c &e europe
70
60
percentage per year
50
40
30
20
10
Source: PWC internet outlook 2007-2011
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
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3 types of sites, businesswise
• Point of Presence (POP)
• brand extension
• Subscriptions, more info for readers, etc etc
• Not making a lot of money
• Sites with a business model
• Run as business units, making profit
• Some community sites (dedicated)
• Sites without a business model
• Fun sites
• Communication sites
• A lot of community sites
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Strategy: simple approach
A lot of ways to analyze internet sites
•
•
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•
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Horizontal vs vertical
Click away vs destiny sites
Editorial vs user generated content
Content vs services
Web 1.0 vs 2.0
Social networks vs editorial broadcasting
...
The right way: follow the money
•
•
•
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Forget magazine-driven visions
Don’t think of existing business focuses within your company
Follow the user’s clicktrails (and wallets)
Banners&buttons are important, but clicks generate most of the
revenues
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Internet value chain
impression
€0,015
€0,03
clickthru
€1,50
€0,12
lead
€1,15
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€300
sale
€20,00
€3000
14
And in Western Europe...
• Saturated magazine markets
• Magazines are competing in time of the
consumer with TV, newspapers, radio,
internet, mobile phones, events...
• Every other medium is a replacement in time
• A different approach is needed...
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Rules of the games
Magazines
brands
Internet Sites
users
audience
traffic
target groups
target interests
reports per month
stats per hour
distribution is key
one click away
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questions
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