LSS'09 Panel Local Content Monetisation

Local Social Summit 2009

Local Content & Monetisation The View from Europe

Ben Barney [email protected]

#lss09

mailto:[email protected]

Google’s dominance

• Google has 70% market share in US

• In most European countries this rises to over 90%

• Google is a threat from a content perspective eg. News aggregation, 10 (7) pack of local businesses

• Publishers response is to resell AdWords or build their own competing pay per click platforms

*The Sunday Times, Hitwise

Social – Big Opportunity

Skype Facebook LinkedIn Twitter Yelp Qype

0

50

100

150

200

250

300

350

400

450

500481

300

5047

2510*

Total Active Users (m)

*Estimate – based on 0.8% Qype share in UK, and qype.co.uk received 80k uniques per month

Tapping into Usage

Source: http://www.informationisbeautiful.net/

• 75% of Tweets come from 5% of people

Tapping into Usage

Source: http://www.informationisbeautiful.net/

• Only 8% of Tweets are deemed “Good” and RT – worthy.

Tapping into usage

• Local social activity still focused on major conurbations

• No critical mass outside of these areas to create a useful service

Source: Qype Blog 12/10/09

Tapping into Usage

• Local social activity still focused on limited number of verticals

• No critical mass outside of these areas to create a useful service

Source: Yelp Metrics as of June 2009

Effectiveness

10% conversion rate from visits originating from

Facebook Ads (StoreQuest Self Storage)

Average campaigns result in CTR of 8 - 12%. Facebook Ads resulted in a 25% CTR.

(All Nippon Airways)

Over 12 months we generated nearly $40,000 in revenue directly from a

$600 advertising investment on Facebook.

(CM Photographics)

Akesios PlatformThe Akesios Platform – Making

Implementing New Products Easy for Publishers

Summarizing the Opportunity

• Google loves Social!– Factors to improve organic ranking for a local merchant

• Citations from major data providers eg. Yelp & Twitter etc• Ratings & Reviews; Google and 3rd Party• Video & Photos

• Enabling local merchants for social advertising– Opportunities for publishers to sell more 3rd party products to

tap into sites who are engaging with the local audience in innovative ways

• Publisher and social network content partnerships– Utilise their sales forces to increase content for each merchant.

Panelists

• Roland Bryan, Associated Northcliffe Digital• Simon Greenman, European Directories• Joachim Helfer, Müller Medien• James Thornett, BBC Local

Local Summit2 November 2009

Roland Bryan

Managing Director, Localpeople

Tel: 020 7 752 8466

Email: [email protected]

T: www.twitter.com/rolyb77


What is Localpeople?

Local, issue-based community sites

Users as the primary content creators

Targeted advertising products for local SMEs

Localpeople aims to address a consumer demand for local content in small communities …

Q: What Type of Area are you most interested in receiving local news and information about?

Q: How many people do you think of as living in this local community?

Q: Is there a single website that you feel provides you with all the local news & information you require?

Over 100,00050,000 and 100,000

30,000 and 50,00020,000 and 30,000

5,000 and 20,000Less than 5,000

My region 14%My county 9%

My city 18%

My town/suburb 36%

My village 10%

My ward/parish 9%

My street 5%

10%20,000 and 30,000

7%30,000 and 50,000

9%50,000 and 100,000

7%Over 100,000

5,000 and 20,000 33%

Less than 5,000 34%

Yes

No

Consumer appetite for local online propositions …

… allowing local people to debate / discuss issues that matter locally

Poorly served by news media today

… and a small business need for cost effective, targeted advertising space

2.6m small business advertisers in the UK

Average spend of £2k per year – giving a market opportunity of £5.2bn

Only 7% of spend currently online -- want to be online but do not know where or how

Most of these businesses want local advertising opportunities with low wastage

Few happy with range of local marketing opportunities available today

Localpeople wants to address this opportunity: online, low cost, response focused, low wastage

So how do SMEs currently spend their marketing budgets?

55

24

15

6

100

Total MediaSpend

Classifieds Non-SMEspend

Non-LocalSpend

Local SMESpend

Marketing Spend Mix in a Typical 20k Town100 = Total Spend in Town

Split of Local Spend, by Media Channel%

40%

24%

17%

10%

6%

3%YP / IYP

Press

Local Events / Sponsorships

Direct Mail

Online

Other

What do we need to do to increase local spend online?

Brand Awareness

Competitive Differentiation

Search / Find

Volume Drivers

Local Advertiser Objectives? Importance?Media

Supply?

Low

Med

High

High

High

Low

High

Low

Str

ateg

icTa

ctic

al

Examples

Print

Door-drop

Local sponsorship

Print

Door-drop

YP / IYP

Google

2.0 Directories

Mobile??

Contact Details

Roland Bryan

Managing Director, Localpeople

Tel: 020 7 752 8466

Email: [email protected]

T: www.twitter.com/rolyb77


Moving into New Business Models

Simon Greenman, MD Online

European Directories

+44 208 987 8137

s.greenman @ europeandirectories . com

Introduction

Simon Greenman – MD Online, European Directories

European Directories: 2008 €800M local search and lead generation company

Operations in eight countries – Finland, Sweden, Denmark, Netherlands, Austria, Czech, Slovakia and Poland

Have over 700,000 SMB customers serviced by over 2,500 sales representatives

Majority owned by Macquarie.

20Commercial in Confidence

Changing Search Behaviour Consumers

Internet and mobile usage are growing (location based)

Google is main entry to the web

Physical products: looking for a company Vs. looking for a product or service

Services: looking for a solution Vs. looking for a company

Search via verticals and social networks

Content needs to be rich, complete, and comparative

Strategy: generate local commercial search usage from multiple products and in multiple media to sell leads to our advertising customers:

yellow pages, white pages, verticals, IYP, search, SEM, social local… are the products and

print, online, mobile, satnav… are the media – not the business.

Skype – European Directories Strategic Partnership

Announced October 6th partnership with Skype

Objective is to help turn online search for businesses into calls to businesses

The new offering for Skype users: Skype has 480 million users globally

Those users can now call from Skype directly to participating European Directories advertisers

Using existing Skype Phone Number Recognition (PNR), Skype can recognise specific advertiser numbers on any web page and turn them into free business click-to-call buttons

Users do not need to have “Skype Out” credit to call

For advertisers: Get access to a huge Skype user base, without changing their telephone numbers

Have an opportunity to differentiate themselves from their competitors to generate greater call volumes.


Skype – European Directories Strategic Partnership


New Products - Werkspot.nl - RFP/RFQ Vertical


• Market place for handymen - Projects ‘in and around the house’

• Number one in Netherlands

• App 4000 subscribers pay monthly fee

• Free for consumers

• 30,000 consumer projects in 2008

• Revenue growth - over 100% in 2009

• 25% EBITDA margin already in growth stage

• Plan to roll out into other markets

project request via email / sms

handymen bidding processaccept Y/N

http://www.werkspot.nl/


New Social Local Products – Tupalo.com


• Social local directory sites with large numbers of user ratings and reviews of businesses

• Launched in Austria and Netherlands with over 200,000 monthly unique visitors

• Will rollout out to other operating countries in Q4

• Made a small investment in Tupalo.com to bring more innovation into the European Directories “family.”

Summary


Our business is Local Commercial Search and Lead Generation – not print or online

Consumer usage behaviour is changing – mobile, search, verticals, social local, content…

European Directories will offer new products on new media to stay relevant to the consumer

Our salesforces and customer relationships are our key competitive advantage. We can monetise both:

Our core products and usage

New products and even 3rd party usage and…

Superior execution of strategy and operations creates the opportunity for future revenue and profit growth.


27Local Social Summit – Museum of Contemporary Arts, London, November 3rd

Local Content & Monetisation – A View from a directory publisher

Joachim Helfer – Business Development Online – Müller Medien

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The local aspect in the growing search business is getting more and more important

This market is dominated by performance-based business models

Global players such as Google, Yahoo and Microsoft rule the market

In the local area they are a threat to media companies, newspaper and directory publishersas well as TV and radio stations

Through a pure integration of 3rd party ad feeds we loose the

direct customer connection

Therefore the directory publishers decided to invest in the future:

Own entity

Own local search engine

Own search technology and index

Own PPC-based ad-platform

Own network of local websites

Own new performance-based products and teams

Strategic decision of the directory publishers in Germany

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The three pillars of success

SA

LES

TEC

H

NETW

OR

KS

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Local sales people with regular customer contact

Integration into traditional sales cycles, infrastructure

Backup by special sales force

Product Concepts

Click packages like flat fee models

Budget based campaigns as the next level

Online Presence with Profile pages

Combined with online directory offerings

Tracking & Reporting

Training the sales force to

Think online, Live online, Work and sell online

Customer Retention with online marketing seminars

Success Factor Sales

31

Success Factor: Networks Nucleus is high quality local search index + map

Combined content and monetization distribution

Online directories, local search, classifieds, etc.

Sub-networks of local publishers

Additional network of profile pages

Network reach currently 40 MM searches

Customer Base approx. 6,000+

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Success Factor Technology Controlling of own auction-based ad platforms

License of Fast AdMomentum/ Microsoft

Development of specific widgets

Blending of ad feeds

Configuration wizard

Geo-coding for mobile navigation

Market place for exchange

Status as „Beta customer“

Co-Founder of local search group

Exchange and support of new developments

Official X10partnership for AdMomentum in the

D-A-CH region

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Examples of our social marketing platforms

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TrustYou.com

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123people

36

Dealhamster.com

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Billiger.de

38Local Social Summit – Museum of Contemporary Arts, London, November 3rd

Thank you for your attention! mailto: [email protected]

Future Media & Technology BBC MMIX

James ThornettExecutive Product Manager, Local & Location ServicesBBC Future Media & Technology


Engaging local audiences


“Please enter your postcode”

2010 Predictions

• Roland Bryan, Associated Northcliffe Digital• Simon Greenman, European Directories• Joachim Helfer, Müller Medien• James Thornett, BBC Local

Thank You

LSS'09 Panel Local Content Monetisation

Business

Transcript of LSS'09 Panel Local Content Monetisation