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A Publisher’s Internet Strategy. Bert Wiggers Director New Media Sanoma Magazines International. Division of SanomaWSOY. Net sales M€ 2,742 EBIT M€ 293 Personnel 18,434 *. SanomaWSOY. SanomaWSOY Education and Books. Sanoma Magazines. Sanoma. Rautakirja. SWelcom. Net sales M€ 309
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A Publisher’s Internet Strategy Bert Wiggers Director New Media Sanoma Magazines International
Division of SanomaWSOY Net sales M€ 2,742 EBIT M€ 293 Personnel 18,434 * SanomaWSOY SanomaWSOYEducation and Books SanomaMagazines Sanoma Rautakirja SWelcom Net sales M€ 309 EBIT M€ 48 Personnel 2,455 Net sales M€ 457 EBIT M€ 63 Personnel 2,672 • Net sales M€ 1,219 • EBIT M€ 132 • Personnel 5,584 Net sales M€ 132 EBIT M€ 13 Personnel 437 Net sales M€ 684 EBIT M€ 51 Personnel 7,214 * Personnel under employment contract, average.
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
Our leading magazines titles 221.439 FIN NL BEL 265,650 337,880 233,045 512,160 HUN RUS 320,500 356,500 240,000 295,000 980,000
CROATIA BULGARIA SERBIA RUSSIA THEUKRAINE SLOVENIA Go East, Young Man, Go East! 2001 2004 2004 2005 2005 2006
Czech Republic leading market position Sanoma Magazines PrahaGDP growth 7.2% Slovakia trade magazines only Sanoma Magazines’ chosen markets Sanoma Mag. SlovakiaGDP growth 8.4% Russia # 1 market position Finland # 1 market position IMH GroupGDP growth 8.2% Sanoma Magazines Finland GDP growth 4.3% Hungary # 1 market position The Netherlands # 1 market position Sanoma Budapest Kiadói Hearst Sanoma Press Pub.GDP growth 4.7% Sanoma Uitgevers Sanoma Magazines Int.GDP growth 4.5% Ukraine# 4 market position GDP growth 9.1% Belgium # 1 market position Romania # 4 market position Sanoma Magazines Belgium GDP growth 2.9% Sanoma Hearst Romania GDP growth 8.2% Croatia # 2 market position Slovenia#2 market position Serbia #2 market position Bulgaria # 1 market position Adria Media Zagreb GDP growth 7.1% Adria Media SerbiaGDP growth 7.8% Adria Media LjubljanaGDP growth 6.2% Sanoma Bliasak BulgariaGDP growth 7.8% Sources: EIUGDP growth is Nominal GDP growth, purchasing power parity 2007 (FC) compared to 2006
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
Croatia Transferring Concepts - own titles Belgium Ukraine Czech Republic Serbia Romania The Netherlands Hungary Bulgaria
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
West grows, East booms Source: PWC internet outlook 2007-2011
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
Strategy: simple approach A lot of ways to analyze internet sites • 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 • 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
Internet value chain impression €0,03 content & services €0,015 clickthru €1,50 content & services €0,12 lead €300 content & services €1,15 sale €3000 €20,00
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...