WHERE’S THE VALUE NOW?Richard D. Titus CEO, ANDMarch 2010

&AND

1. Introduction

Philosophy

• Past experience, future focus

• Powerful brands

• Sustained Investment

• International Presence

• Digital Future

&AND

Slovakia #1 Jobs board

Slovakia #2 Motors site

Hungary #1 Motors site

Hungary #4 Jobs board

Hungary #2/3 Property site

Croatia #1 Jobs board

Croatia #2 Motors site

Croatia #1/2 Property site

Serbia #1 Jobs board

Serbia #1/2 Motors site

Bosnia & Herz #1 Jobs board

GROWING INTERNATIONAL PRESENCE &AND

AND: DMGT’S PUREPLAY DIGITAL DIVISION

Our mission:

“To deliver valuable information and services which provide utility and delight to our users and value to our customers.”

Our brands:

Scale

Growth

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SIX IPHONE APPS WITH OVER 300,000 DOWNLOADS SINCE LAUNCH &AND

CONTENT – THE OLD SCARCITY

2. Content

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PRODUCTION, DISTRIBUTION, RETAIL &AND

THE INTERNET

A vast collaborative copying machine!

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&AND&ANDDYSFUNCTIONALLY ABUNDANT?

10”

3”1”

THE OLD PARADIGM – 1”, 3”, 10” &AND

&ANDTHE NEW EXPERIENCE PARADIGM

FixedMobile

Characteristics:

Personal (rarely shared)Smaller/component

Incrementalcustomized

Intermittent connectivitySocial (w/other

devices)pull/push

Characteristics:

SharedBig

ImmersiveAlways

connectedFurniturepush/pull

&ANDDEVICE DIASPORA

FixedMobile

&ANDMULTI-PLATFORM TODAY AND TOMORROW

&ANDTHE CLOUD

Hardware/OS commoditize

1’ 3’ 10’

&ANDOPEN STANDARDS – LOW COST/EASY ACCESS

Hardware/OS commoditize

1’ 3’ 10’

XML Widgets ATOM

RSS SOAP AJAX

XHTML

&ANDIF TECHNOLOGY STANDARDS ARE OPEN AND UBIQUITOUS, WHERE IS THE VALUE ?

•Data about behavior (commerce, comments, community, consumption)

•The ability to connect, mash up and mix-up this data to create new, rich, bespoke and highly relevant experiences

•Across different platforms, networks and services.

•Knowledge about and for the benefit of ALL of our customers

The information about an asset, call it metadata, user data, or just DATA is more valuable that the digital copy of the relevant Asset (the “CONTENT”.)

3. Data

&ANDDATA IS THE ASSET

Interactions:Purchased holidayUploaded CVEntered competition

Sites visited:

Details registered with:

&ANDDIGITAL DATA

All your data lives in a cloud

&ANDSO WHAT ARE WE DOING ABOUT THIS?

&AND

ALL YOUR DATA LIVES IN A CLOUD

SINGLE CUSTOMER VIEW

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4. So…where’s the value now?

&ANDWHAT’S REALLY SCARCE?

Passive active line is becoming blurry

Multi-purpose devices blur the lines between different media

On-demand vs live barriers disappear for most content

Time shifting vs place shifting

&ANDCONSUMPTIVE BEHAVIOURS MUTATE DIGITAL MEDIA

Source: The Nielsen Company, 2009

&ANDCONSUMPTIVE BEHAVIOURS MUTATE SOCIAL MEDIA

COUNTRY UNIQUE AUDIENCE (000S) TIME PER PERSON (HH:MM:SS)

UNITED STATES 142,052 6:09:13

JAPAN 46,558 2:50:13

BRAZIL 31,345 4:33:10

UNITED KINGDOM 29,129 6:07:53

GERMANY 28,057 4:11:45

FRANCE 26,786 4:04:39

SPAIN 19,456 5:30:55

ITALY 18,256 6:00:07

AUSTRALIA 9,895 6:52:28

SWITZERLAND 2,451 3:54:34

&ANDJOBSITE ON TWITTER

BUT STILL COMES DOWN TO THREE WAYS OF MAKING MONEY… &AND

CHALLENGES FOR PAID CONTENT &AND

HISTORY REPEATS ITSELF

“News is what somebody somewhere wants to suppress; all the rest is advertising.”

- Lord Northcliffe

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ROUTES TO MONETISATION

Relative Market Size by Revenue Type

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Two sided market of consumers and advertisers

Both critical to success – though relationship is not linear

&ANDCHALLENGES FOR ONLINE ADVERTISING #1– THE PREMIUM / REMNANT CLIFF

&ANDTHE NETWORK

PREMIUMNICHE

PREMIUM CONTEXTUAL TAIL AFFILIATE

EXAMPLE SITE

Comscore 250 Comscore 500 Top websites per vertical

Remnant inventory across all sites

Network of sites engaged with relevant retailer

EXAMPLE UNIT

Above the fold banner on mail online front

Banner on what car? Front page

“Sponsored links” about consumer loans/below the fold small ads within mail online article about consumer loans

Small ads on blogs

Link to retailer

on personal review blog

TYPICAL CUSTOMERS

Big brands(Vodafone)

Niche brands & retail(Pampers)

Online retail(Amazon)

Ad-enables websites

Small players

Internet retailers

TARGETING METHOD

Content and behavioural

Content and some behavioural

Content Some content Targeted by publisher

TYPICAL PRICING

MECHANISM

CPM CPM

CPC

CPC

CPA

CPC

CPM

CPS (80%)

CPA (19%)

&ANDCHALLENGES FOR ONLINE ADVERTISING #2– SCALE

&ANDCHALLENGES FOR ONLINE ADVERTISING #3– COOKIE INTEGRITY

&ANDCHALLENGES FOR ONLINE ADVERTISING #4– BEHAVIOURAL TARGETING

&AND&AND&AND

SOLUTIONS – OPEN TECHNOLOGY STANDARDS

ISA adBrand

ISA ad Call to action

ISA ad Reminder to complete applicationISA ad

Reinforce brand

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SOLUTIONS – THE CONSUMER JOURNEY

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CHALLENGES FOR ONLINE ADVERTISING #5– MEASUREMENT: WHAT DEFINES SUCCESS?

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5. Where are we finding value?

INSERT SCREEN GRAB OF LOCAL ADVERTISER ON LOCALPEOPLE

&ANDUNIQUE CONTENT THAT CREATES UNIQUE INVENTORY

THROUGH APPLYING VISITOR INSIGHTS GATHERED ACROSS ALL OF OUR SITES &AND

2,571k

Changed job

13,214k1,463k

Foreign holiday

1,048k

2,666k

615k

405k

Moved in last year

THROUGH SCALE WE CAN SERVE OUR ADVERTISERS NEEDS MORE COMPLETELY &AND

• Total reach of 40% of UK population through in house brands

• Leading sites in national news, local news, social media, jobs, property, motors

• Leverage relationships to deliver scale on a network sale

• Ability to behavioural target between sites- track and target hard to reach consumers

• Deliver reach inaccessible to other classified sites

&ANDNOT JUST IN THE CONTENT BUT IN THE FILTER

&AND

As Content and Distribution commoditize, we need to find new sources of scarcity and defensible advantage.

We also need to listen to our customers, give them what they want, expect and need and delight them as we do this.

6. Summary

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Thank you Richard D. Titus

twitter – @richardtitus