2001 2001 The Year of the SMEThe Year of the SME

George JewellGeorge Jewell

General ManagerGeneral Manager

toronto.comtoronto.com

Observations re the SME market Observations re the SME market todaytoday

toronto.com experience to date toronto.com experience to date What opportunities there may be What opportunities there may be

for you here in the room.for you here in the room.

SME FACTSSME FACTS

Small <50 employeesSmall <50 employees Medium < 499 employeesMedium < 499 employees 97 % Cdn businesses < 50 employees97 % Cdn businesses < 50 employees 78 % Cdn businesses < 5 employees78 % Cdn businesses < 5 employees Business < 50 employees account for Business < 50 employees account for

over 36 % of employment in Canadaover 36 % of employment in Canada

52 % of all off-line advertising is local52 % of all off-line advertising is local

14 % of online advertising is local14 % of online advertising is local

Source: Canadian Federation of Independent Business

81418

55

1117

28

65

1621

39

77

1723

46

82

1928

49

88

0

2040

6080

100

0 to 4 5 to 19 20 to 49 50 to 99 100 to499

Types of Internet Usage Among SMEs

Sell onlineBuy onlineOwn web siteUse e-mail

Business Size (Employees)

65.1

125.1

0

50

100

150

1999 2000

Canadian Online Ad Spending ($M)

Source: IAB Survey of Publishers

toronto.com - toronto.com - backgroundbackground

Joint Venture between Torstar, Joint Venture between Torstar, Sympatico-Lycos & City SearchSympatico-Lycos & City Search

# 2 in CitySearch’s network of 65 # 2 in CitySearch’s network of 65 + cities, trailing only New York City+ cities, trailing only New York City

9,000,000 monthly pages views 9,000,000 monthly pages views 359,000 unique visitors359,000 unique visitors 1000 + website customers1000 + website customers

toronto.com - toronto.com - Consumer usageConsumer usage

80 % had looked for specific info re 80 % had looked for specific info re buying & selling a productbuying & selling a product

61 % dealt with a they saw on 61 % dealt with a they saw on toronto.comtoronto.com– 67 % of these people had never dealt 67 % of these people had never dealt

with that business before with that business before

toronto.com- toronto.com- Customer Customer EvolutionEvolution

Year 1- Sept 97 Year 1- Sept 97 – ExperimentationExperimentation– Little or no plan around site re objectivesLittle or no plan around site re objectives– Price based not a business based decisionPrice based not a business based decision

Entering Year 4Entering Year 4– Media value> web developmentMedia value> web development– 2,000,000 plus monthly page views at 2,000,000 plus monthly page views at

customers sitecustomers site

BARRIERS TO ENTRY OF BARRIERS TO ENTRY OF SMESME

TimeTime ExpertiseExpertise Integration into operationsIntegration into operations Perceived Consumer DemandPerceived Consumer Demand CostsCosts

ROIROI

Key DriversKey Drivers

Increasing Simplicity of TransactionIncreasing Simplicity of Transaction Application development targeted Application development targeted

low end of marketlow end of market Creation of marketplaces suited for Creation of marketplaces suited for

SME successSME success Last mile provisioningLast mile provisioning

– EmporiEmpori– Who is next, Beckers?Who is next, Beckers?

Key DriversKey Drivers

Market PressureMarket Pressure– SuppliersSuppliers– ConsumersConsumers– CompetitorsCompetitors– Internal GrowthInternal Growth