Patrick Fuller, Group Director, Haymarket Consumer Media
Making money from digital
Association of Indian Magazines Congress February 2014
Agenda
Introduction to Haymarket
How our business is changing
Case study one: What Car?
Case study two: PistonHeads
Lessons learned
Who are Haymarket
One of the largest privately owned media companies in UK
Employ 2000 people in seven countries
Across 9 divisions
We have 75 brands delivered across 10 platforms
Delivering 320 product lines
Turnover circa £200 million
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Our global footprint
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Haymarket in India
Launched 2000 in a joint venture with Hormazd Sorabjee Based in Mumbai and Delhi 200 staff Seven brands
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Our brands in India
Association of Indian Magazines Congress February 2014
Print Web Mobile Awards Events
Autocar, our market leader
Association of Indian Magazines Congress February 2014
How our business is changing
Volume Value
2007 1,254,252,231 £1,920,459,496
2012 810,863,058 £1,413,590,937
Change -35% -26%
The challenge in the UK
Association of Indian Magazines Congress February 2014
2007 Print accounted for 78% of total revenues Digital accounted for 9%
2013 Digital is now 35% of total revenues We are forecasting 18% growth in 2014 56% of ad revenue is online We now have six times as many consumers as in our print heyday
Our revenue splits in consumer
Association of Indian Magazines Congress February 2014
Print is not dead, but we must focus on areas of growth
We must build digital products that deliver for audiences and clients This demands deep understanding of their needs Fact based planning and decision making Execution to the standards that our values demand
Transition from print to digital
Association of Indian Magazines Congress February 2014
We aim to be as expert, creative and dynamic in digital as we are in print.
‘Digital first’ – websites and mobile
We are investing in Live – in a world of social and digital media, consumers and business people value ‘experiences ‘
We see Data opportunities: paid leads, insight, retargeting
Core values transferred
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We prioritised our markets
We focused our investment where digital, live and data product development could meet the needs of our audiences and clients internationally
We then focused on the territories that offer most growth potential
Asia and India, where we are well placed, are at the heart of global growth
Markets and territories
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Stick to our core strengths
Be confident that digital is our friend
Do not sell at a discount
Focus on educating staff… and clients
But how can businesses like ours compete?
Association of Indian Magazines Congress February 2014
Association of Indian Magazines Congress February 2014
Research will help us to win the argument
Source: AOP and Comscore ‘Value of Trust’ report 2012
Question: which content do you trust?
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How that affects behaviour
Association of Indian Magazines Congress February 2014
Association of Indian Magazines Congress February 2014Source: comScore Marketing Solutions
How that affects behaviour
Association of Indian Magazines Congress February 2014
Association of Indian Magazines Congress February 2014Source: comScore Marketing Solutions
How this affects behaviour
Association of Indian Magazines Congress February 2014
In Haymarket Consumer Media, we now have
five online brands that generate more than 1000 lakh rupees of ad revenue a year.
But remember, 86% of our population is
online compared with only 18% in India
Progress so far
Association of Indian Magazines Congress February 2014
Association of Indian Magazines Congress February 2014
Case study: What Car?
The UK’s biggest new car research brand
Magazine Website Apps Mobile Haymarket’s most
successful product
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The power of quality content
On average What Car? reviews are read 39 times a minute. In 2013 our nine-point road tests and reader reviews were read
25 million times
We’ve worked hard to get here…
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‘Vertical’ search: be like Google
Five years ago we introduced enterprise search on to whatcar.com, which changed the way users experienced the website
We had three specific goals:
1 To publish a unique review of more than 5000 new cars
2 Make it easier for our users to find important content
3 Create additional high value advertising opportunities
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Development roadmap
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Learning every day
Five years on, we are still at the early stages of unlocking digital
We have new specialist skills
We experiment
We have invested in ad operations
We demonstrate ROI at all times
We have even visited a car factory to learn about manufacturing
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The challenge is still there
In the 1990s, one print customer earned us the equivalent of
500 rupees
Online, that figure is less than
50 rupees
At the same time, our audience has gone up by more than
x10
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New revenue streams
We now turn over more than 6000 lakh rupees, more than print and at higher margin
We have diversified into many new revenue streams – 20 and counting
They include:
Display advertising, specials and sponsorship Lead gen Finance, insurance, services Classified Video Programmatic trading
Our yields are up to six times that of the competition
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Case study: PistonHeads
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Launched in 1998
“An online magazine for PetrolHeads”
Cars for sale & forum
Acquired by Haymarket in 2007
2014
Hitwise: 3rd Biggest UK Motoring Site
A short history
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The challenges for Haymarket
Integrate without upsetting both ecosystems
Monetise, but discreetly and appropriately
Live in and with the community
But, above all
Learn how to be truly digital
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PistonHeads 2014 – key facts
300,000 posts pcm
Community
80,000 cars for sale
Classifieds
5m unique users
Traffic
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Affiliate and other
Remnant
Classified
Display
Revenue growth – now 5000 lakh rupees
Offline
- Annual dinner “Black Tie and Pie”
- Sunday Services events- Trackday programme- Driving Holidays
How to monetise a community
Online
- Used cars for sale- Car buyer services: insurance,
finance, history check- Skimlinks: revenue from post- Network and Google inventory- PistonHeads merchandise- Private Cars for sale
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Secret of PistonHeads’ success
Simplicity of consumer and client offering
Everything has a user benefit
Diverse revenue streams that feed off size of audience
Scaleable market to support growth
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So how will this apply to India?
Association of Indian Magazines Congress February 2014
Like you, we have done the hard bit
In the week of Auto Expo, Autocar India online:
Generated 7.5 million page views
Hit an average of seven pages and over six minutes per user
Saw more than 200,000 users accessing via smartphone
Achieved 1.7 million minutes of video content
Association of Indian Magazines Congress February 2014
The rest will follow
Most Indian car companies are currently spending less than 10% of their marketing budget in digital
This will double over the next 18 months
They and other clients will want quality online products to carry their marketing activity
...and that’s where magazine brands are strong
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Finally, some suggestions
① Define your strengths and focus relentlessly on them
② See through the noise – keep it simple
③ Restructure and see how flexible your staff can be
④ Employ specialists in analytics and SEO
⑤ Maintain high yields
⑥ Remain committed to quality
⑦ Buy a start-up... and use a smartphone