09 October 2007
Why location is the problem with local search, and the Yahoo!/newspaper deal
In my 242 Google Alerts over the weekend, I came across two gems from blogs which address completely different issues; but as they're so good, I'm going to include them in the same post.
The first is from Matt McGee on SmallBusinessSEM where he responds to another post about the importance of SEO for local search (sometimes it all rather seems like navel-gazing). Whilst Matt doesn't disagree with the premise of the original post, he argues that the real problem with local search (for search engines) is location. As soon as you start adding a location variable to a search enquiry (e.g. Birmingham TVs), you complicate the enquiry to a much greater degree than if you simply added an extra element (e.g. flat-screen TVs). This because the relative importance of the location versus the item can be different for each user, and also because it depends on a number of value judgements made by the search engines on the definition of location. This is not to say that the big search engines will not eventually crack this puzzle; it just means that there's a real opportunity for other players to address these location issues. Read the full post.
The second is an excellent analysis of the plight of newspapers and their attempts to respond to the onslaught of the internet, particularly with regards to the Yahoo! partnership. Terry Heaton of The Digital Journalist identifies the key issue as the newspapers' refusal to abandon their old business model and simply tinker with minor aspects - the Newspaper Next project is described as "right brain solutions through left brain processes". Terry quotes a recent piece of research which highlights daily newspapers as the primary victims as their news-gathering and immediacy USP has been completely eroded by the internet, but also fingers local media which will get lost in the online big-brand name war.
Analysing the Yahoo! deal, Terry believes that whilst the newspapers have gained some advantages from the relationship, Yahoo! has gained considerably more, being the controller of the network rather than one of the 'nodes'. But even then, Terry concludes that whilst Yahoo! is all about bringing people to the network, Google is much more about bringing itself to the network which will ultimately prove more successful. Terry's full post is here.
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03 October 2007
Some useful tips from a local search start-up
I came across an article from Max Jennings, the founder of Welovelocal.com, a local search start-up based in the UK.
Welovelocal.com is actually more of a cross between a social networking site and a local search site, and is limited to London at the moment but is planning to roll out nationwide very soon.
Max gives seven "lessons" that he's learned from the start-up and roll-out process, and some of these, particularly the last one about people expecting you to be as good as Google, are tough but true. Definitely worth a look and asking yourself if you take account of all seven.
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26 September 2007
US newspapers companies' online activities
US newspaper companies are dead in the water right? Facing with plummeting print circulations, falling stock prices, and rapidly shrinking ad revenues particularly in the key classified categories of autos and property (as the credit-crunch tightens), it's accepted wisdom that these companies are in a lot of trouble.
But if you dig a bit deeper into the latest reported revenues, it's clear that the one bright spot is their online activities which are growing fast, albeit from a small base, and that often these activities comprise a good deal more than just an online version of the newspaper.
I read an interesting and informative post from Sramana Mitra on this topic this morning. He picked Gannett, one of the largest US newspaper companies and analysed their online investments, joint ventures and products, and the list was both long and wide-ranging, including not just their interest in CareerBuilder, but also in Classified Ventures (along with Belo Corporation, The McClatchy Company, Tribune Company and The Washington Post Company) which has as its objective "to collectively capitalize on the revenue growth in the online classified advertising categories of automotive, apartments, and real estate."
In the key verticals, this is where Gannett is present: So whilst the print operations may be struggling, Gannett has clearly not had its corporate head in the sand about the impact of online on its business and the poitential revenues it represents. They operate some leading brands online, and if they hit upon a winning formula in one particular area, their resources and national presence will enable them to replicate local sites quickly and easily.
But just to prove that online is a very different game, this week the New York Times announced that it would be discontinuing the subscription model that it had implemented for TimesSelect. According to the NYTCo, this was not because the figures for subscribers and the revenue generated was disappointing in any way, but the light had dawned, and they now believe that they can attract more traffic and sell more advertising through a free-access model. Central to this decision was the realisation that search engines accounted for a hefty chunk of traffic and they should ignore this at their peril.
Changing times for newspapers indeed.
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14 August 2007
Is 2007 the year of mobile?
Lots of mobile news around at the moment, starting with the announcement from AdMob, the world’s largest mobile advertising marketplace. They have just announced that the firm has served over five billion targeted ads since the launch of the site in December of 2006.
The fast expansion is attributed to the growing number of mobile web sites, advertisers and the natural increase of mobile internet users.
CEO Omar Hamoui reinforced this in a statement made in a press release, “AdMob’s growth is a testament to the growth of the mobile internet and proof that advertising business models are viable in mobile. Mobile is a unique environment with new challenges and we are proud to work with our publishers and advertisers to unlock the enormous opportunity in mobile marketing.”
AdMob serves targeted banners and text ads for mobile sites using contextual and demographic information that fits into the mobile specific parameters. The top Markets (by ads served) as reported by AdMob are the U.S. (45% of impressions), South Africa, United Kingdom, India, Germany, Australia and Israel.
And MySpace is picking up momentum in Canada with a new mobile portal. It is launching its service in an initially-exclusive deal with Rogers Wireless, the country’s biggest mobile carrier in terms of subscribers. release
But unlike some other social networking sites that offer mobile services for free, Rogers and MySpace will charge a C$5 (EUR 3.45) monthly fee to access the service, although users who sign up before October 31 will get six months of usage free. Additionally the portal will only work on certain handsets. Users of the service will find many of the same features that MySpace’s mobile portals have in other countries, including the ability to post comments or blog entries, search for friends, and read and respond to MySpace email, as well as edit their profiles.
MySpace launched two Canadian portals, one in French and the other in English, in May of this year, and currently has around 4.1 million users in the country, according to Marketnews (MySpace has around 115 million registered users worldwide, according to comScore Media Metrics). It does not provide stats on mobile-only usage but Travis Katz, SVP and GM of MySpace International, claims there has been “incredible uptake worldwide for MySpace Mobile initiatives.”
And finally from traditional media, more moves from traditional media into mobile: Gannett is launching over 100 mobile Internet sites to beef up its presence in the growing local information market. The sites - covering 84 daily newspapers, 19 local broadcast Web sites and USA Today - will feature news, sports, weather and other local information, and will be free to access (provided users have unlimited mobile Internet surfing plans in their contracts). The content will be produced by Gannet’s Information Centers, hubs that generate content used across different Gannet media outlets (from print and television to Internet and mobile).
The company release does not mention 4Info, but Matt Jones, Gannett’s director of mobile strategy and operations, tells us that it will be used in the new local site services. Gannett has had a growing relationship with the SMS-based mobile search company—in June announcing a US$10 (EUR 7.36) million investment and an intention to use 4Info’s mobile search and interactive advertising services for its national flagship title USA Today.
Jones says the local mobile initiative will not be crossing over with the online advertising venture Gannett has been working on with Tribune, which has its own local mobile sites. He says Third Screen Media will be one of the companies serving ads onto the local sites, but he did not confirm whether Google will be involved. Gannett was an early partner of the search giant’s business selling print newspaper inventory to Google advertisers; Google of course has high hopes of taking its advertising services mobile (not to mention getting deeper into local services to help further its advertising reach).
The mobile announcement comes at time of declining revenues in Gannett’s core newspaper print business and broadcasting business. In July, the publisher reported Q2 revenue fell to US$1.93 (EUR 1.42) billion from US$2 (EUR 1.47) billion last year, although profits rose to US$365.7 (EUR 269.4) million, from US$310.5 (EUR 228.8) million, an 18% increase from the same period a year ago.
Gannett has not yet said whether it intends to launch a similar mobile service with its Newsquest titles, the second-largest regional newspaper group in the UK. But, let's not get ahead of ourselves... Hewlett-Packard's worldwide media director, Scott Berg, controls a budget of US$ 829 (EUR 611) million and is a big fan of nontraditional media. HP, for example, is devoting 70% of its back-to-school budget to online and viral messaging.
Yet Mr. Berg is frustrated by the limitations of mobile-web advertising; marketers who push out ads rather than allowing users to opt in; and strategies that overlook the most important consumer need in mobile marketing: search.
"We've had experience with advertising on the deck of some phone carriers -- just didn't work out for us," Mr. Berg said. HP also tested off-deck ads on the mobile web and came to the conclusion that search, at least for the time being, is the way to tackle the new media.
"I would much rather spend the money on the search terms than the advertising because I can track it, I can understand it, I can tweak it based on consumer needs," he said.
The key, he believes, is for marketers to realize people are using their phones for information - and smart advertisers will market around that rather than simply pump out a steady stream of ads.
He said HP's latest mobile strategy, which is set to roll out next year, will be based on the thinking that the mobile phone is a utility for consumers.
"I have a number of concerns about the push technology. One of the big ones is there's going to be a huge backlash by consumers if we start to push text messages or voicemail messages, and that's going to lead immediately - immediately - to legislation against this type of activity," he warned. "Right now you have the do-not-call list. That could possibly get more stringent, in my opinion, if marketers tend to go overboard in push technology in mobile phones."
Instead, Mr. Berg said he is defining a strategy that will tie in with HP distributors, resellers and others so the mobile phone will prove useful to consumers at the point of purchase. Many of those efforts will be related to search, a much different process on the mobile phone than on the PC.
"When you're walking around, you're looking for a place to go, a place to go shop. Perhaps you're trying to check a price within a store and checking to see if there's another better price online," he said. "How can we utilize the natural use of mobilephone technology in the way that search is applied to it in an everyday benefit back to the consumer?"
But Mr. Berg said not all HP mobile-marketing efforts will be limited to search. He said the company's Yahoo March Madness HP Courtside '07 promotion, which provided scores and information during last spring's men's college basketball tournament, drew more than 890,000 unique visitors.
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09 August 2007
Poor Q2 results for the Sun-Times Media Group
Sun-Times Media Group, Inc. today reported an operating loss of US$80.6 (EUR 58.5) million for the second quarter ended June 30, 2007, versus an operating loss of US$13.7 (EUR 9.9) million for the second quarter of 2006. The 2007 second quarter figures take into account the settlement reached with the Canada Revenue Agency regarding tax issues largely related to the disposition of certain Canadian operations in 2000.
Total operating revenues in the second quarter of 2007 were US$94.3 (EUR 68.5) million, versus US$107.4 (EUR 78) million in the year-ago period. Advertising revenues declined 12% to US$73.2 (EUR 53.2) million from US$83.6 (EUR 60.7) million in 2006. Classified advertising fell 18%, while retail and national advertising were lower by 9% and 19%, respectively. These declines were partially offset by a 58% increase in Internet advertising revenue.
Sales and marketing costs rose 12%, primarily related to additional marketing and re-branding efforts as well as enhancements designed to strengthen the link between print content and Internet content on www.suntimes.com.
“We have been clear all along that 2007 would be a tough year. Like all newspapers we continue to face a very uncertain advertising environment. Yet the turnaround plan we announced in May is beginning to show some results,” said Cyrus F. Freidheim, Jr., Chief Executive Officer. “We have a number of initiatives in the pipeline to transform the company. We remain confident that these plans will find their way to the bottom line despite the weak industry.
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08 August 2007
The difference between Yellow Pages and search engines
A fascinating article by Kevin Ryan of the ClickZ Network published on SearchEngineWatch this morning. He argues that the web (and thus search engines) are dominant in researching a purchase but when the user has made the decision to buy, his next port of call is the Yellow Pages in order to find a store to complete the purchase. The added irony is that the Yellow Pages site probably receives 50-90% of its traffic from the search engine itself, its biggest "competitor"
Where it gets really interesting though is when you consider how differently the two information sources expect the user to behave. The search engine is inherently flexible, the user can tailor his request and the search engine keeps 'trying' to give him what he wants. Whereas the Yellow Pages operates by a strict taxonomy which requires a distinct degree of understanding in order for it to yield up the desired results.
So why not twin user-generated content with an old-fashioned listings structure? YellowBot.com does just that as it offers users the ability to 'tag' items to create 'tag clouds' of relevant classifications. This is just the latest manifestation of the importance of the social networking sites and the effect that this phenomenon is having on all of our businesses, particularly when it comes to the "long tail".
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GMG and Apax to bid for Emap?
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The publisher of the UK’s The Guardian newspaper is in talks with private equity firm Apax Partners about launching a joint GBP2 (EUR 2.9) billion bid for Emap, reports The Daily Telegraph. Talks between Apax and Guardian Media Group are at an early stage and no formal agreement has been struck to bid together. Apax and GMG already have a close relationship. Earlier this year the private equity firm paid GBP650 (EUR 956) million for a 49% stake in ICMA member Trader Media Group, the arm of GMG that includes the classified advertising magazine Auto Trader.
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06 August 2007
Yelp the new Facebook?
Yelp seems to be taking a leaf out of Facebook's book with the launch of an API (application programming interface) which will allow third-parties to access most of its content to display on other sites.
The API allows a number of input requests. Applications can retrieve business review and rating information for a particular geographic region/location, display reviews and pictures for a business or businesses, pull up business information based on a phone number, etc. There are no commercial boundaries on the API for up to 10,000 requests per day - above that and you have to work out a deal with them.
Yelp's received over US$ 16 (EUR 11.6) million in two rounds of funding and had garnered a good deal of positive press attention in the past few months. It seems to arouse a passion in its users that many directory services lack, and shows a refreshing willingness to allow users to re-purpose the content (and thus add value to the service).
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02 August 2007
GMG might go shopping...
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Profit generated by Guardian Media Group will allow the company to pursue "acquisition opportunities" in the year ahead, according to the annual report.
Latest figures show profit before tax from continuing operations for the company as a whole increased to GBP97.7 (EUR 145) million from GBP66.4 (EUR 98) million in 2006, profit after tax and exceptional items was up to GBP64.2 (EUR 95.3) million from GBP45.9 (EUR 68.1) million, while profit before exceptional items was down from GBP116.4 (EUR 173) million to GBP105.2 (EUR 56.2) million.
The company singled out the issue of digital disruption to its revenue base, but explained that its part paid-for, part free strategy for the Manchester Evening News had stemmed long-term circulation decline.
Classified revenues came under pressure during the year, declining by 11% year-on-year. This was driven by recruitment, which fell by 16.3%, and motors, which was down 20.2%. Display revenue out-performed the market, increasing by 1.4%, while digital revenue showed strong growth of 18.3% year-on-year.
Carolyn McCall, chief executive of Guardian Media Group, said: "Over the past year we have made significant changes to all our businesses in order to meet the new demands of our markets. The stability of GMG's financial performance is testament to the success of our approach.
"We intend to invest the proceeds in developing our existing businesses and to pursue acquisitions where we have the opportunity to be majority owners of operating companies."
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27 July 2007
A short entry today
This is a very short post as there's no real value that I can add to Michael Boland's excellent post on Search Engine Watch regarding verticalization in classifieds - read and enjoy!
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26 July 2007
Another revenue stream for the print product?
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I've just come across another example of how printed products can leverage their distribution capabilities and client relationships to generate more revenue. In the US market, Charter Communications and Yellow Book USA have just announced a co-marketing and distribution agreement for Charter Telephone and Yellow Book product and service offerings.
Charter and Yellow Book will co-market products and services through a variety of sales and marketing channels, including each company’s advertising products and sales forces. The agreement also provides for the creation and distribution of co-branded Yellow Book directories in Charter’s markets.
This may seem a long way removed from classified media as seen from your markets but remember the quote from Professor Theodore Levitt of the Harvard Business School, that Peter Rees, the keynote speaker at the ICMA Lisbon conference used to illustrate the concept of marketing myopia: ‘ Industries decline because management define their business too narrowly’
Can you argue that might not apply to you?
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25 July 2007
Is this the future for commercial classifieds?
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Greg Sterling, one of the industry's most respected analysts posted an entry yesterday regarding the linking of online research with offline purchases. He observed that Krillion, a shopping engine that directs people to local stores, has launched its second category, televisions, and his conclusion was that this was just one more step in the natural development of consumer behaviour across the on/offline worlds.
While the Internet continues to rapidly expand its influence over consumer purchase behaviour, the overwhelming majority of transactions are made in local stores. Two of the most historically bullish proponents of e-commerce, JupiterResearch and Forrester Research, have now both predicted that Internet-influenced offline shopping will be a trillion-dollar category within the next five years. Stripping away the hyperbole, what this simply means is that most consumers will use the Internet to conduct product research before buying offline.
Krillion, launched in February 2007, is one of several companies seeking to bridge the online-offline gap. The CEO Joel Toledano has an interesting spin on what his site is doing: solving the "last mile problem" for manufacturers and retailers. In other words, Krillion seeks to show where, in the local area, someone can purchase a specific home appliance (and now TVs). There's no e-commerce option. Indeed, Toledano is running a kind of SEO operation for advertisers and Krillion is apparently ranking well in search results, which is the site's primary focus. Krillion is buying minimal SEM traffic.
Other similar sites include ShopLocal, NearbyNow, StepUp (now part of Intuit), Yokel, CNET, Google Product Search (formerly Froogle), BrandHabit, AskTheLocal (UK) and Data provider Channel Intelligence.
At some point in the next several years product inventory information will come online - and by extension into mobile (see, for example, GPShopper) - in a meaningful way. The availability of that information will only reinforce existing consumer behaviour and make the Internet an even more invaluable resource for local (offline) shopping.
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24 July 2007
Have you been Yelped?
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Chances are high that you've never heard of Yelp, so you probably have no idea what it says about you (and how your advertisers and users are using it). This is a mistake. Whilst Yelp is US-based (for now), Yelp is growing and it's growing fast, drawing more than 1.8 million users each month.
Yelp was launched back in 2004 by ex-PayPal employees Jeremy Stoppelman and Russel Simmons as a site that brought together San Francisco residents to help identify and review the most popular hangouts. The site has since grown to encompass nearly every major city across the United States as "Yelpers" work to find and review every business in town with a US postal address.
It works in much the way that Amazon.com reviews or Yahoo Local reviews work. The main difference seems to be the fervour and devotion with which members use the site.
Check out this little snippet from Fortune:
"I'm making a ton of money from Yelp, and it's freaking me out." Woe is Christopher Hall, the 34-year-old owner of Splitends, a hair salon in Orange County, California. Its chic décor is more architectural firm than beauty parlour. He has appeared on a reality show, in the LA Times, and on TV news segments. He's photogenic and has a quick wit. He serves beer to customers. So business, unsurprisingly, was decent as soon as he opened the place last December. Until March 6. That's when things got crazy.
Now he's literally in pain from all the coiffing. "I've been doing hair for 16 years, and I'm busier than I've ever been," he says. "Saturday I came in at 6:30 a.m., left at 8 p.m., and did 22 people. I woke up Sunday and my hands were all swollen. I had to put them in an ice bucket."
What happened March 6? That was the day Anita Lau wrote about Splitends at Yelp.com, an online platform for user reviews of everything from dive bars to funeral parlours. Lau has posted 2,036 reviews and 1,340 photos, has collected 790 compliments on her work from fellow Yelpers, and along the way has amassed the power to put bodies into barbershop chairs. She gave Splitends the maximum five stars, praising Hall and saying, "I absolutely love my haircut."
The review started a logroll of new clients for the stylist and a couple dozen subsequent five-star critiques. "I've taken out ten ads in OC Weekly this year and have gotten maybe one call," says Hall. "I get anywhere from five to 15 calls a day from Yelpers. They come in and then write reviews. Then other people see the reviews, think it must be great, and call. It's its own little biosphere. It feeds itself."
Earlier this month, popular social networking site Facebook announced a partnership with Yelp's new "Hangouts application. The new feature will allow Facebook users to tie into Yelp's extensive database of location reviews to post a list of where the user will be heading on any particular evening. While the application has only garnered a few thousand users so far, it's bound to drive even more traffic to the already flourishing Yelp.
So how do you find out what's being "Yelped" about a business?
You can start by heading to Yelp and running a search for the business. If it has a yellow page listing, then chances are high that it will show up even if there aren't any user reviews yet.
Yelp pops up not only any listings that fit the search criteria, but also a map of the area with the business flagged and a rating and review snippet. Click on the business name and Yelp will take you to more detailed user generated content about the business.
Apart from traditional reviews, Yelp allows users or businesses to upload photos, to set a price range, share information about parking, payment types, business hours and so on.
Yelp also offers up branded widgets for your web site that point visitors to Yelp reviews. In areas like San Francisco and New York where Yelp is becoming a popular spot to research businesses, these tags could lend quite a bit of credibility to a new business with strong Yelp ratings.
Yelp also offers paid sponsor packages that will allow you to update your listing with even more data or to promote your reviews in Yelp search results.
With Yelp partnering with sites like Facebook and ranking well for local search keywords in Google, chances are high that the site will continue to draw new users and will have an even bigger chance of impacting your bottom line one way or another.
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19 July 2007
Speculation that Loot is for sale
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Classified advertising newspaper Loot is on the block after its owner, the Daily Mail and General Trust (DMGT), revealed it has received approaches for the national title.
The approaches, according to DMGT, follow the group's recent sale of B&S, Loot's Irish sister title, for €20 million to Naldin, a company connected to the Boundary Group. DMGT added that it may still decide to keep and redevelop Loot.
DMGT snapped up Loot and B&S from Scoot.com for £45 (€66.7 at today's exchange rates) million in 2001. Launched in 1985 as the UK's first free-ads paper, Loot publishes 10 regional editions every week across the UK, including Manchester, Liverpool and London.
The title reported revenues of £16.8 (€24.9) million and operating profits, before amortization, impairment and exceptional costs, of £1 (€1.5) million in the year to September 2006.
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18 July 2007
New revenue streams from print distribution
As publishers everywhere
scrabble for business models and revenue-generators for their online
businesses, maybe they're missing a trick to drive more revenues from
their existing print businesses.
A recent case in point, the
Mail on Sunday, a popular national title in the UK, negotiated a deal
to distribute Prince's new album free of charge with the newspaper. In
this example the paper paid a substantial fee to the artist for this
privilege, but the resulting uptick in circulation was more than 33%
(2.8 million copies) so the benefit in copy revenue and increased
advertising sales would certainly have outweighed the cost.
Setting
aside the issues of whether music should be 'given away' in this manner
and the consequences for other players in the value chain such as music
companies and retailers, the Mail on Sunday's action illustrates a
function of newspaper publishing that has maybe been ignored - the
potential of leveraging the established distribution channel to sell
other products that would fit in a plastic wrap-around.
Newspaper
companies in continental Europe are generating on average 20% of their
revenues from such deals, whereas in the US and the UK, give-aways or
covermounts have very much been viewed as a tool for increasing
circulation and thus selling more advertising than as a revenue stream
in their own right.
Two
good examples of publishing houses doing this are Italy’s RCS and
Gruppo Editoriale L’Expresso. RCS publishes many titles including the
leading Corriere della Sera and in Spain the dominant El Mundo. Gruppo
Editoriale L’Expresso publishes such titles as the Rome daily la
Republicca and L’espresso magazine.
A couple of
years back when Milan’s famed La Scala Opera House reopened after a
giant three-year facelift, Corriere della Sera produced six opera DVDs,
a new one available each week which could be bought optionally as an
add-on to the newspaper. In opera-mad Italy you just know a scheme like
that works if the cost to the consumer is seen as a bargain, and RCS
makes hundreds of millions of Euros annually doing such things right.
Other
schemes have included producing a series of poetry books, each one an
option at additional price for the usually slow Monday edition. Figures
showed that about one-third of its customers spent the extra money for
that poetry. The company also produced a 14-volume History of Italy
that close to 50% of its customers bought each week in addition to the
newspaper.
The newspaper’s culture department wrote reviews about the add-ons,
which might be stepping across the fine editorial line in the US
although not so in the UK - just take a look at the long bio
promotional piece the Daily Mail – sister to Mail on Sunday – gave to
Prince the day before the CD distribution.
Most of the
Italian promotions are books, based on the simple philosophy that since
people buy newspapers to read, then perhaps they might buy something
else to read, too.
Just how
big can all of this be? Back in 2003 Gruppo Editoriale L’Expresso, said
it sold in such promotional add-ons to their regular publications some
34 million books, 2 million DVDs, and 1.6 million CDs, resulting in a
net profit increase of 47%. Since then things have declined -- in 2006
newspaper circulation was down 1.6%, due to a reduction in the sales of
the add-on items to 22 million from 26 million in 2005. But while it’s
not as big a business as it once was, the group is still making in the
hundreds of millions from the add-on business.
Obviously
these schemes are easier to handle with newsstand sales than they are
with home delivery, but that is not unsolvable. Print subscribers, for
instance, can be told ahead of time the add-ons available and they can
be ordered and paid via the Internet.
And there
are other systems worth looking at. The new affiliation program started
by the Washington Post compels close watching. As publisher Donald
Graham said recently, he doesn’t know if the discounts offered to
readers are sufficient but at least the readers and advertisers are
signing up for the program at rates higher than the business plan, and
time will tell.
Another
example - in Geneva, Switzerland, take out a home subscription to the
Tribune de Genève and you become a Tribune club member. The club offers
discounts on travel, cheap movie tickets and the like with savings that
are heavily promoted within the newspaper, and the club is a money
spinner. When you’re fighting two free newspapers, plus two paid-fors
in a fairly small town you need something to give you the edge.
The main
point being made here is that newspapers have various ways to deliver
additional product to their consumers and it can be on the newspaper’s
own behalf or for third parties. Publishers need to start thinking what
else they can deliver with their newspaper, at an additional charge,
that they can offer as extra value. If it’s CDs and DVDs and the like
then perhaps local advertisers selling those products won’t be happy,
but it’s time publishers had their money people work out the economics
of what is best for the newspaper.
These are
changing times – the idea here is not to figure out an avenue for a
newspaper to give something away – which is the British tradition – but
rather come up with systems to sell something extra and earn addition
revenues, big-time.
Start
thinking, for instance, the youth market. The Prince giveaway showed
the kids were willing to pay for a newspaper to get the free add-on.
What if the newspaper charged a couple of pounds/dollars/euros – might
it not have worked just as well? It still would have been a great
bargain. Or what if each day the newspaper prints a coupon hidden on a
different page or section that can be used as discount for buying a
video, game or somewhat in a local store by handing over the full page
with the coupon at the cash registrar, etc. It may not get the kids
reading very much but at least it gets the newspaper in their hands and
they are turning the pages, and that’s a start.
There’s an old saying – keep the best and leave the rest – and so it is
with these thoughts, but the underlining principle in all of this is
very solid – newspapers need to think outside of the box and come up
with new ideas on how to improve their bottom lines.
Waiting for
the digital revenues to flow through in a timely manner isn’t going to
do it soon enough, relying just on editorial content is resulting in
continually declining revenues, so newspapers need something more -
some radical marketing thinking.
Adapted from an article in Followthemedia.
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Check out Trader.com
Trader Classified Media has closed its corporate website at the domain www.trader.com.
Visitors seeking information about the now defunct classified group are advised to apply to the French Stock Exchange, and the page itself redirects to Autotrader.ca, the flagship site of Canada's Trader Corporation which has acquired the domain.
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17 July 2007
Hyper-local
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We all keep talking about how the advantage that traditional classified media has over the new media upstarts is its connection with the local community, and we hold onto this as some sort of protective shield from the Google of this world.
What about actually doing something to leverage this advantage? The Washington Post, one of the few 'national' newspapers in the US, has gone completely to the other end of the spectrum and launched a site devoted entirely to in-depth coverage of news and events in Loudoun County, Virginia, a suburb of Washington, DC.
LoudounExtra.com will feature news, videos, blogs and user-generated content about the community. Rob Curley is the vice president of product development for Washington Post.Newsweek Interactive and says that plans are already in the works to launch a site for Fairfax, Virginia within the next few months.
A team of five reporters will file stories daily to the LoudounExtra.com site in addition to working for the print publication of the Washington Post. Some of the other “hyperlocal” features on the site include a database of local restaurants, information about all the churches and other places of worship in the county as well as schools. Each high school football player will have a page dedicated to them.
Can this approach to local coverage work? Curley said he believes it will since local has often been an underserved market, particularly among large metropolitan newspapers. Many top-notch blogs have popped up across the country that focus on particular communities.
And clearly, the Washington Post is not alone in its enthusiasm for local coverage. Yahoo! has actually done a pretty impressive job of bulking up its local presence online. Arguably, this is one of the few areas where it has outdone Google.
Another Internet company called Marchex is making a huge bet on local advertising. It owns more than 100,000 Web domain names for specific zip codes as well as generic domain names like newyorkdoctors.com and lasvegasvacations.com. Barry Diller’s IAC also has a big presence in local through its Citysearch business. Then there’s sites like online classified service craigslist.org and review site Yelp. They are intensely local.
Curley said the goal of the Loudon site and any future local sites that Washington Post develops is to make sure that it is serving its readers’ best interests and of course provide local businesses a spot to advertise.
“This is clearly built for small restaurant owners and not Toyota or United Airlines,” Curley said.
So it seems that the only thing left that needs to be done to really make “hyperlocal” sites a huge destination for readers and advertisers is to effectively tie marketing to the story.
And surely, that's something that we are really best placed to do.
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16 July 2007
Gumtree embraces Web 2.0
Online classified advertising site Gumtree, owned by eBay, is embracing Web 2.0 technology including interactive maps and YouTube video clips embedded into ads.
The site, which allows users to post classified ads selling anything from tickets to accommodation, receives more than 100,000 new ads every week and three million visitors to the web site each month.
But it wants to increase user interaction to drive an increase in visitors to the site and boost sales, says Gumtree head of technology Phil Chambers.
‘We are already growing quickly and recently broke into the top 20 most popular web sites in the UK,’ he said.
The site recently introduced integrated maps that allow users to find exactly where advertised properties are located. It is currently planning to roll the feature out to eight global sites, including Australia, New Zealand and Hong Kong.
The firm has also introduced video content, allowing users posting ads to embed YouTube clips about advertised items.
Gumtree also automatically updates category searches using visitor-generated search data to highlight the most popular searched items so customers can view recent trends.
‘We are also thinking of adding user profiles and allowing comments and user generated comment on ads,’ said Chambers.
‘We are not trying to replicate Facebook, but Web 2.0 technology is becoming more popular and we want to take advantage and encourage visitors to talk to each other.’
Web 2.0 is becoming increasingly popular, says Datamonitor analyst Alex Kwiatkowski, but the business case has yet to be made.
‘Everyone is talking about Web 2.0 and how it will revolutionise the internet, but it is a leap of faith and we must wait and see what benefits it can deliver to businesses,’ he said.
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13 July 2007
Voice recognition anyone?
Some interesting thoughts on a recent post by Mike Borland on the Kelsey Group blog on the role that voice recognition is starting to playing helping monetise video ads and also automate directory assistance (DA).
Given that video isn't inherently searchable as text is, and that systems of tagging or indexing closed caption transcripts are too manual and labour-intensive, voice recognition could be the key to placing video ads in relevant contexts.
At the same time, TV broadcasters are muscling in on the classifieds market, and if they leverage the same technology to contextualise their ads, we could see even more convergence.
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Gone but not forgotten...
So finally Trader Classified Media, at one time one of the biggest dedicated classified media groups in the world, has sold off the last part of its business and is preparing to exit the sector for the last time.
With the sale announced in late June of the final 55% of their Taiwanese Car News operation to the minority shareholders, a chapter closes on the heyday of the print classified businesses that the company dominated for so long.
TCM now holds approximately US$ 25 (EUR 18) million in cash and will incur various costs and liabilities, including the winding up of its Dutch office, of approximately US$16 (EUR 11.5) million.
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10 July 2007
Freeads.co.uk is UK's fastest growing classified site
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According to the latest figures from Hitwise, traffic to Freeads.co.uk increased by 160% in the first half of 2007, outgrowing the overall classified market by more than 14 times.
Ex-lastminute.com marketing chief Duncan Horton took over as chief executive of the business in February, with marketing and commercial director Stuart Parish, lastminute.com's former head of retail marketing, following the acquisition of a majority stake in the business by the founder of Holiday Autos, Clive Jacobs.
Since March, the number of unique ads on the site has risen from 45,000 per day to peaks of 70,000. Horton hopes to achieve 100,000 ads per day by the end of the summer.
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04 July 2007
Packing parked domains with directory listings
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An interesting twist on one of the most irritating practices on the web... here's a play for one of the most undertapped online advertising budgets, local businesses.
The issue: "Domain parking" has long been a dirty phrase in the web-marketing industry. Companies buy up either commonly misspelled or generic domains, fill them with cost-per-click text ads from Google or Yahoo and hope consumers end up there ready to click on the ads. While it's a brilliantly high-margin business, it can be incredibly frustrating for consumers.
The new twist: Marchex, a Seattle company that holds a variety of online assets, including 200,000 domains, is trying fill more than half of them with directory-style content that consumers might find useful. It's hard to build out sites at that scale, so the company is tapping a content-aggregation technology it acquired for US$13 (EUR 9.5) million in March 2006 called Open List. All together, the sites attracted about 31 million unique visitors in March.
Open List searches the web for content related to particular topics, categories and geographies, aggregating reviews from such sites as Insider Pages and Citysearch and maps and driving directions from Yahoo!. It also encourages people to find what they're seeking through refinement; a visit to NewYorkDoctors.com lets users sort by neighbourhood, speciality, hours or user rating.
Most of the sites are heavily commercialized with text ads. Ideally, this launch, which was billed as "providing more than 1 billion pages of local content," is a play for one of the most undertapped online advertising budgets, local businesses, although a few odd matches occurred, including an ad for Denver Urgent Care showing up on the New York Doctors site.
Former Intermix CEO Richard Rosenblatt, is trying to fill domain parked sites with user-generated content and a new Los Angeles company called LeaseThis.com has launched a marketplace by which marketers or media companies can lease popular domains.
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And Oodle opens in Canada...
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Oodle officially launched Oodle Canada today. The Canadian site, which is all in English, covers 38 regions and 6,000 cities, and has about a million listings.
According to Oodle CEO Craig Donato, "It will probably double or triple in the next couple of months; things tend to take off quickly." Donato says the site current pulls listings from about 500 sources on both sides of the border and has not yet added feed partners from within Canada.
Listings in Canadian border towns show American listings with US dollars and distances in miles, while Canadian listings are shown in Canadian dollars and kilometres.
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Kijiji US
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Yesterday, eBay quietly launched its free-classifieds site Kijiji site in the US. Kijiji, which eBay introduced in overseas markets in March 2005, at last count had 503 international sites. By introducing the site into the US, eBay is taking dead aim at Craiglist - even though it owns a piece of the San Francisco-based free site.
eBay also appears to have disabled and de-populated its eBay Classifieds, which was always considered "entry-level" for its marketplace and was never a comfortable fit.
Kijiji is not yet built out, with no ads in most locations. The structure, however, is definitely Craigslist in style - simple and clean, text-driven, with categories for cars and vehicles, jobs, housing, pets, services, stuff for sale, free stuff, wanted, and events. Unlike Craigslist though, Kijiji.com also has a button for "live chat," which appears to be moderated chat rooms. The icon for "Chat with people" is a megaphone at the moment, not a phone, but it's likely that Kijiji will soon build in some synergy with its eBay sibling Skype.
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27 June 2007
Gumtree enters UK top 20
Classifieds ad website, Gumtree, entered the Hitwise top 20 Shopping & Classifieds websites during May, based on share of UK visits. Share of UK Internet visits to Gumtree increased 69% year-on-year in May, 35% in the past six months and 9% in the past month.

Gumtree dominates the Shopping & Classifieds - Classifieds category, capturing 18.4% of UK category visits. It has ranked as the #1 Classifieds website since September 2005, when it overtook AdTrader.
The website receives its traffic from search, email, social networks and retail websites.
In May, 38% of UK visits to the website came from Search Engines (84% of which was from Google), 11% from web-based Email Services, 11% from Shopping and Classifieds and 7% from Net Communities and Chat.
Position for January 2007: #218 Position for May 2007: #167
Positions jumped: 51
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19 June 2007
New CEO at Yahoo!
Seeing as no fewer than four newsletters/alerts landed in my inbox this morning with this news, I didn't want to be left out. Terry Semel, the long-time and recently embattled CEO of Yahoo! has stepped aside in favour of Jerry Yang, Yahoo!'s co-founder. Semel will take the tile of non-executive chairman and continue to act in an advisory capacity.
A beneficiary of this change is Susan Decker, the former CFO and recently-promoted EVP and head of Yahoo!'s Advertiser and Publisher Group, who becomes President of Yahoo!
Yahoo! has been widely criticsed for focusing too much on content, not grasping the importance of search and the revenue opportunities of paid-search advertising, and for missing out (often to Google) in a string of acquisitions. Its new advertising platform, Panama, has been slow to produce results although internally it is reported to be doing very well.
The BBC has a nice potted history and analysis here.
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15 June 2007
It's all happening in Germany...
My latest edition of the invaluable CI Report just landed in my inbox and I see that there's plenty of other German activity in the classified marketspace.
- Scout24 has launched a free online classified marketplace called
Local24. The new portal
started at the end of May with 1.5
million classified listings from
cooperation partners in its database.
Scout24 hopes to gain a
foothold in the German free-ad
market dominated by eBay’s Kijiji and ISA’s Markt.de (both speakers at the ICMA Munich conference last year)
- Axel Springer AG's online real estate business
Immonet.de is to acquire Wohnfinder AG’s real
estate portal Wohnfinder.de to strengthen its position
in eastern Germany. Financials weren’t disclosed.
- Joinvision expands to Germany
Joinvision, a young niche job board for the IT
industry just opened a site in Germany. Founded in
Austria in June 2006, Joinvision also is active in
Slovakia.
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14 June 2007
Zweite Hand sold...
I haven't blogged for some time but I have lots of good stuff to post over the next few days. The first is a mail that I received advising that Holtzbrinck, one of the minority shareholders of Zweite Hand, the Berlin-based founder member of FAPIA/ICMA, has exercised its option to purchase the remainder of the company's operations which include Zweite Hand and several other publications.. Holtzbrinck has also allegedly entered into a long-term lease on the Zweite Hand building.
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07 June 2007
The long tail...
Recent analysis of the growth in online ad spending by Taylor Nelson Sofres has shown that as the
online ad expenditure of blue-chip companies switches from a steady
increase to a gradual decline, the slack has been more than offset by
the entry of smaller and medium-sized companies dipping their toes in
the online advertising pond for the first time. And they've been pretty
enthusiastic too, so much so that their rates of increased advertising
spend have obscured the cutting back happening at the top end of the
scale. It's only now, as economic conditions take a bit of a downturn
that the smaller players are in turn trimming their exuberance that
the overall flattening of growth is becoming obvious.
The good news? The customer base is growing, not only in new media but other channels as well and companies like SpotRunner, a business specialising in making affordable TV and video spots for SME's, are taking advantage of this new thirst for all things marketing.
But the bad news is that the number of brands advertised is falling, even allowing for seasonal variations, and there is increasing support for the theory that the savings made from more cost-effective media spending are simply being passed onto the bottom line for many advertisers
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25 May 2007
Online video - the way forward?
A new report by The Kelsey Group
argues that online video's popularity with consumers is driving the development of cost-effective video advertising options for local and small business advertisers.
The report, titled "Online Video: A New Local Advertising Paradigm," says that the Internet allows small businesses that have not been able to afford TV spots to take advantage of the power of video for the first time. Kelsey points to production companies such as Spot Runner and TurnHere that produce and distribute video ads at price points significantly lower than those of traditional advertising.
The report reasons that local businesses - interested in leads, foot traffic or phone calls - may be better able to comprehend the value of video compared with more "abstract" forms of performance-based marketing like pay-per-click.
The report also cites the "vanity factor" that has already driven revenues for internet Yellow Pages publishers, who it says also have the greatest opportunity in local online video ads. With Yellow Pages publishers' existing sales assets and small business relationships added to "high-margin, low ad elasticity vertical categories, such as professional services...the potential becomes clear."
"Small-business video advertising can combine the traditional strengths of pull-based directional marketing, the Internet's targeting capabilities, and the emotional and dramatic power of television," Kelsey added. "Given the demographics of broadband users, the online audience reached by these ads would also be well-educated, affluent and more likely to engage in pull-based content retrieval."
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Local.com enters mobile local search
Local.com, which has already had some features customized for mobile access, is now entering the competitive field of "MoLo" with its own Local Mobile search product.
In conjunction with Trilibis Mobile, Local Mobile supports keypad search by business name, category or location, gives access to business profile pages, accesses driving directions, sorts results by relevance, distance or name, accommodates click-to-call, and can deliver search results by SMS. The company plans to accept advertising on its mobile search but has not yet specified how and where it might appear.
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24 May 2007
Yahoo! signs up another print partner
GateHouse Media Inc. announced it is joining the local media consortium using Yahoo HotJobs to provide recruitment advertising services to its many dailies and weeklies.
With the addition of GateHouse, the consortium gains about 87 mostly small- and medium-sized dailies. GateHouse is also bringing the first weeklies into the consortium. The chain publishes about 1160 weeklies.
GateHouse, principally owned by the private equity group Fortress Investment Group, has recently put an emphasis on increasing the web presence of its community papers.
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23 May 2007
Is the shine going off social networking sites? Yahoo! doesn't think so...
Yahoo! is reportedly working on a US$1bn (EUR 745m) takeover of Bebo, the social networking website that is challenging News Corporation's MySpace.
Bebo was founded by British-born Michael Birch and his American wife Xochi in 2005, and is backed by private equity firm Benchmark Capital. Birch has previously said he would prefer to float Bebo than sell it.
In the UK, Bebo has overtaken MySpace to become the most popular social networking site, but globally it has around 25m users compared to MySpace's 100m.
News Corp paid US$580 (EUR 431) million for MySpace in 2005, but the price of internet assets has since rocketed.
Bebo is believed to have turned down offers from BT and Viacom last year, while last year Yahoo! was in negotiations to acquire another social networking site, Facebook; however, this deal never materialised. Industry commentators have since concluded that Facebook may have misjudged the market in refusing the offer, as it is unlikely to be repeated as the revenue potential of the social networking sites fails to match their dizzy user numbers.
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More traditional newspaper partnerships for Monster
Monster has signed a deal to share job listings with 80 more newspapers owned by Community Newspaper Holdings.
As part of the agreement, Monster will help the papers, many without a substantial Web presence, develop online job-search services.
This represents a new variation on the online classifieds partnership model - a major online player effectively creates new inventory for itself by partnering with small community media still transitioning to the web.
Community Newspaper Holdings owns 93 newspapers in the south, midwest and eastern USA. The papers tend to be smaller publications serving rural areas, which have generally lagged behind in creating a robust web presence.
The 80 new web sites to be created in partnership with Monster will all carry both the Monster brand and the brand of the local paper. It's unclear whether Monster will assist in any other online content development around the classifieds.
The new Monster deal comes as online classified networks battle to aggregate the largest number of listings with the greatest geographic reach. Monster's deals to date include partnerships with The New York Times Company and The Philadelphia Inquirer. In November 2006, Yahoo HotJobs made deals with MediaNews, Hearst, Scripps, Cox, Lee, Belo and the Journal Register.
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18 May 2007
Everyone's talking turkey...
No sooner than ICMA decides to hold its Spring 2008 meeting in Istanbul, than eBay announces it has acquired a minority stake in
GittiGidiyor.com, a leading Turkish online marketplace. This brings eBay’s market total to 37.
GittiGidiyor (“going, going, gone” in Turkish) has
been operating since 2001 and has more than 1 million
registered users. It is headquartered in Istanbul.
Approximately 25% of the Turkish population
is online – about 17 million people.
We look forward to meeting the GittiGidiyor folks next year.
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16 May 2007
More bad news for newspaper classifieds
Real estate listings in the US, one of the key classified verticals for newspapers, has suffered a further decline as the US economy slows and the consequences of too-easy credit start to be felt with a wave of repossessions by lenders.
Existing home sales continued their downward trajectory in the first quarter of 2007, with a 6.6% decline in the annualized rate compared to the same period last year.
On the basis of first-quarter results, the National Association of Realtors is forecasting total sales of 6.4 million. Following an 8.4% month-to-month drop in the annualized rate between February and March - the steepest in 18 years - the year-to-year results are continued bad news for newspaper classifieds, as real estate joins autos and job recruitment categories in negative-growth.
A few regions are faring better than average. The Northeast saw a 1.6% uptick in existing home sales, on an annualized rate. However by the same measure, existing home sales plummeted 11.9% in the West, 7.3% in the South, and 6.1% in the Midwest. In recent years, existing home sales in the West and the South have been the key drivers of the national market.
The first-quarter data suggests newspapers are entering a new phase of revenue declines, as the last area of positive growth in classifieds goes negative, too. Overall in 2006, real-estate classified revenue rose 11.13% compared to 2005 - but the softness of the real-estate market was already evident in the last quarter of 2006, when revenues fell 2.26% on a year-over-year basis.
The trend accelerated rapidly in the first quarter of 2007, as big newspaper publishers reported sharp drops in all three classified categories. NYTCO's total classified revenues fell about 10% in the first quarter, Tribune's fell 14%, and McClatchy fell 12%.
With an eye to the housing market, McClatchy CEO Gary Pruitt predicted: "As we look to the second quarter, we expect continued declines in real-estate advertising, particularly in the California and Florida newspapers."
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15 May 2007
Tribune suffers further fall in classified revenues
Tribune Company's publishing ad revenues - the bulk of its business - were down 10.3% in April compared to the same month last year, tumbling US$25 (EUR 18) million to US$217 (EUR 160) million.
Coming a month after Chicago billionaire Sam Zell agreed to purchase the company, the weak results are a reminder that the real-estate mogul has his work cut out for him. They're also an ominous symptom of the deteriorating health of the newspaper industry as a whole, after alarming downturns in the first quarter of the year.
Total publishing revenues at Tribune, including circulation revenues, were down 8.6% to US$279 (EUR 206) million. Ad revenues in particular suffered from a 6.8% drop in retail advertising, and an 8.2% drop in national advertising, including continuing weakness in the auto category. Worst of all, however, was a 14.9% drop in classified revenues - traditionally a mainstay of the newspaper business. This included a 20% drop in real-estate classifieds, a 13% drop in help wanted, and a 12% drop in automotive.
April also saw the extension of another ominous continuing trend - a slowdown in the percentage rate of growth at the company's online revenues. While its interactive revenues still increased a healthy 20% over April of 2006, that's a drop from the 27% average rate of growth in second-quarter 2006. If May and June match April's US$21 (EUR 15.5) million for a second-quarter total of US$63 (EUR 46) million, that would constitute just 10.5% growth over last year's US$57 (EUR 42) million.
Monthly results from other big newspaper owners aren't yet available, but first-quarter results suggest the slowdown is not confined to Tribune. Its competitors will probably post similar April results in the near future.
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More classifieds from the social networking sites
Facebook and Friendster, two leading social networking sites, announced last week that they would add free classified ad-listings to their highly trafficked sites. Facebook's new service, dubbed Marketplace, poses a potential threat to a number of companies - from Craigslist and newspapers to Monster.com and CareerBuilder.com. Also on last week, Friendster announced that it had added classifieds through a partnership with Olx.com.
Marketplace will allow Facebook's some 22 million active users to create classified listings in four categories: housing, jobs, for sale, and "other." Users will be able to limit the exposure of their classifieds to individual networks such as immediate friends and co-workers.
Facebook has chosen classified search engine Oodle, which already has the ability to categorize classifieds by such categories as specific colleges, to power the new service.
Analysts saw the move as a clear win for Facebook, and some expressed confusion as to why it took the startup so long.
"The expansion of classifieds has been going on since at least 2003, so I don't know why Facebook is so late to the game," said John Zappe, an analyst with consultancy Classified Intelligence.
MySpace has offered a classified ads service almost since its inception - but according to Zappe, the MySpace community is not nearly as well-suited to classified transactions as Facebook's.
"This plays to Facebook's strength as a tight community where people already have a shared commonality, whether they went to the same school or work at the same company," Zappe said.
Facebook users can also include listings on their profile pages, and send them to friends as "news feeds."
Launched in 2004, Facebook is now the sixth-most-visited U.S. Web site, according to comScore. The site is expected to generate US$125 (EUR 92) million in revenue this year, according to new estimates by eMarketer.
By contrast, MySpace, still the most popular social network by far, is estimated to generate US$525 (EUR 388) million. Combined, MySpace and Facebook will account for 72% of U.S. social network ad spending in 2007 and an ever greater 75% in 2008, according to eMarketer.
Friendster, which boasts 40 million members and says it is the world's 18th-largest Web property, has divided its listings into such categories as jobs, for sale, services, vehicles, real estate, personals, community, classes and resumes.
On Friday, Friendster had already added a "classified" link at the top of its pages.
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Free distribution paper launches jobs site
Thelondonpaper, News International's free afternoon paper that is battling it out with Associated for the soul of the London commuter, has launched a jobs website covering around 20 industries to serve London and the South East.
Thelondonpaper.com/jobs allows users to create their own profiles, track the status of their applications, receive job alerts and upload their CV.
The site currently has over 3,500 jobs on offer from sectors including accountancy, banking and finance, education, secretarial, retail, IT/telecoms, legal, sales and marketing and media.
Recruiters are able to post vacancies, screen applications and manage their responses, logging in through a tailored part of the site, which gives recruiters control over the online recruitment process.
In the latest Audit Bureau of Circulation figures released last week for the month of April, News International-owned thelondonpaper dropped by 2.14% month-on-month to 491,387 copies, but it remains ahead of its Associated Newspaper rival London Lite, which edged forward 0.1% for the month to 400,212.
The ABC said it was satisfied with April's circulation figures for the freesheets, but added that in future it will work more closely with publishers, carry out regular spot checks and consider a public complaints line following last month's allegations of copies being dumped.
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14 May 2007
Everyone's becoming Google
Express Newspapers has become the latest publisher to launch their own version of AdWords on a selection of their sites. A partnership with search technology company, Adprecision, will enable the sale of contextual and search advertising directly to advertisers, first trialled on a travel search engine and then rolled out across www.express.co.uk, www.dailystar.co.uk, www.ok.co.uk and www.dailysnack.co.uk.
Adprecision's technology allows the websites to create their own vertical market pay-per-click search engines, giving them control of the publisher and advertiser relationship, ad formats, ad rankings and ad rates.
It also enables each advertiser to submit regular automated product feeds of their inventory directly into the ad library to be searched.
Adprecision has also signed up IPC Media for its TVTimes holiday destination website, entitled myholidayideas.com.
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10 May 2007
Offline to online car sales
Dutch SellSigns helps consumers sell used cars by combining customized for sale signs and online profiles.
How does it work? The seller creates a profile containing the car's details, plus his/her own contact information. The website then produces two small banners that sellers can place on their own websites or blogs, as well as a PDF. The PDF can be printed and taped on a car window, and shows the car's price, mileage and year. This offline ad directs potential buyers to sellsign.nl to find more detailed information and contact the seller, using the car's license plate to locate it on the website.
Other applications could be to include a short URL that goes directly to the car's page, or an SMS option that would let potential buyers text message a car's ID to a phone number, receiving full details by return message. That said, it's a useful combination of offline and online DIY advertising, and an alternative to sellers posting their phone numbers on hand-made for sale signs.
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Northcliffe partners with Jobsite.co.uk
Northcliffe Media has agreed a deal with recruitment website Jobsite.co.uk, to feature job ads across the publisher's network of 36 local newspaper websites.
The deal will mean that job ads will be jointly hosted on Jobsite.co.uk and Northcliffe Media's This Is network - including This Is Bristol, This Is Derbyshire and This Is Aberdeen.
Northcliffe Media said this would bring a localised focus to its recruitment ad business; increasing the chances of recruiters finding the right candidate, as well as offering a more targeted and relevant audience for job seekers.
Jobsite.co.uk recently completed a three-month trial hosting job ads on the This Is network of regional news websites, which Northcliffe Media said created a 20,000-strong uplift in applications in February.
Keith Potts, managing director of Jobsite.co.uk, said: "The vast majority of us still tend to live, socialise, buy homes and raise our families within a 20 mile radius of where we are born, and 90% of job seeking happens within a 15 mile radius of our home.
"At the same time, 41% of us now use the internet to find a job. Through this important new partnership Jobsite can provide its recruiters with an increased pool of relevant local talent and our job hunters with a significant increase in the number of relevant local jobs."
Northcliffe Media will promote the rollout through an extensive ad campaign from May 9.
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09 May 2007
Search is crucial for newspaper websites
Despite the undoubted strength of many newspaper brands, online they're just like everyone else.
Nearly a quarter of the traffic newspaper Web sites are getting comes through search engines, according to a new Hitwise report. That news seems to justify the increased use of search engine marketing and optimization.
Data released last week from a custom Nielsen//NetRatings study for the Newspaper Association of America (NAA) touted strong first-quarter traffic numbers, with a record 59.5 million unique visitors in March.
"Whether it's making the titles of their articles more search engine-friendly, or purchasing news-related keywords, newspaper Web sites are getting smarter at driving traffic through search," said LeeAnn Prescott, director of research at Hitwise.
News aggregators such as Google News and portals like MSN were also significant sources of traffic.
Still, this increased traffic hasn't yet translated into more advertiser revenue, a factor that remains a challenge to many newspaper Web sites.
"While online ad revenue has been growing, our share of that revenue is not in synch with our reach into the audience," said Randy Bennett, vice president of audience and new business development for the NAA.
According to Bennett, building awareness of that reach and making it easier for advertisers to buy bundles of local and national ads are key steps toward securing more ad revenue. And while deals like the recent Yahoo/McClatchy partnership represent an attempt to do just that, newspaper Web sites face an even larger obstruction to the ad revenue stream - user fragmentation.
Info from the Hitwise report revealed that news consumption is beginning to fragment, with the share of visits to the top 10 News and Media Web sites (which include newspapers like The New York Times) declining by almost 4%.
From sports Web sites to entertainment blogs, "there are literally hundreds of thousands of non-traditional sites that people are using to find their news," said Prescott.
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The quickest way to get bought...
... is clearly to join ICMA! Wegener Dagbladen has been a member of ICMA for all of three days and today it was announced that UK-based Mecom has reached agreement to acquire the company.
Mecom has bought 23.7% of Wegener's depositary receipts from the Telegraaf group, and is moving to secure the rest of the group at a total cost of EUR 805.7m. Mecom has been on a bit of spending spree in recent months, shelling out well over GBP 1 (EUR 1.5) billion on Norwegian group Orkla Media and Berliner Verlag in Germany.
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Windows Live acquires a new mobile channel
Microsoft has acquired European mobile agency ScreenTonic, in a move to build its mobile ad-serving strategy.
The deal follows the creation of the new director of mobile role at Microsoft’s Online Services Group. Microsoft lured Hugh Griffiths from O2, where he was developing the company’s approach and leading European trials for search and advertising.
Griffiths said of the deal: "Mobile is an important part of Microsoft's strategy and will play a significant part in the consumer’s digital lifestyle. At this stage, it is too early to discuss the specific development of the strategy, however, I will be working to bring the vision of Windows Live services on mobile to fruition and we will be making announcements in the future."
Microsoft is looking to enhance its multi-platform service for advertisers. Its Digital Advertising Solutions arm already works with the Mobile Marketing Association and the Interactive Advertising Bureau to offer ads across platforms including Xbox and mobile phones.
ScreenTonic launched in 2001. It has delivered mobile campaigns for Coca Cola, Reebok , Cadbury’s, Jaguar, Peugeot and Xbox, and recently passed the one billion mark in the number of page impressions sold for mobile phones.
ScreenTonic declined to comment on the deal, and neither side would disclose financial details.
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08 May 2007
More online acquisitions in the UK
Trinity Mirror, one of the UK's larger regional newspaper groups, has continued its acquisition programme with the purchase of two recruitment sites for the niche verticals of finance and legal.
TotallyLegal.com and TotallyFinancial.com were bought for a total of GBP 11.8 million (EUR 17.3 million) and will join the group's growing portfolio of online recruitment businesses which already include sites such as Secsinthecity.com, GAAPweb, hotonline and its Fish4jobs joint venture. Trinity Mirror also owns scotcareers, workthing.com, job-midlands.co.uk and publicjobs.co.uk among 80 other local job sites.
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01 May 2007
Hurriyet only secures 67.3% of Trader Media East
Despite a price of US$ 10 (EUR 7.38) per share, Hurriyet did not succeed in persuading all the TME shareholders to accept its offer. Despite having the right to pull out of the deal completely, Hurriyet decided to go ahead with a majority stake.
The TME assets conclude 23 brands, 256 different titles and 13
Web sites. The print publications reach five million readers a week,
the Web sites about 4.6 million weekly visitors. TME operates in
eight countries including Russia, Poland, Hungary, Croatia,
Ukraine, Kazakhstan, Belarus and Lithuania with around 4,900
employees. The group reached a consolidated revenue of US$ 197.9
(EUR 146) million and an EBITDA of US$ 64.9 (EUR 48) million as of 2005 year-end.
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