AGENDA

• Lookback – 2007– Traffic Analysis

• Forward – 2008– Problems– Solutions

• Conclusion• Q&A

BROAD-BASED OVERVIEW

• Increased % of Ad budget moving to online – analyst projecting up to 10%

• Brand owners are more aware of online marketing and including them into media mix

• Online marketing is accountable – giving marketers more insights into ROI

• Consumer adoption of Internet is on the rise – more people online

BROAD-BASED OVERVIEW - UNSEEN

• ROI– Time to ROI can be very loooooong

• Monetizing opportunity– Can only monetize when website is ‘real’– Different from print

• Killer App/Content– A successful website has at least 1 killer app/content– To identify that app/content is not straight forward– Requires a lot of local observation.

BROAD-BASED OVERVIEW - MYTHS

• Low ‘barrier’ of entry– Few hundred thousand websites compared to a few

hundred magazines– Only a few iconic websites can attract big $

• Very low cost of operation– Server, Ad serving, Email, Bandwidth– More functional groups – developers, traffic

• Short Turnaround– Workflows in online is more complex than print

LOOKBACK - 2007

• Revenue – S$2.53M (S$2.04M)• Profit – S$1.21M (S$0.79M)• > 95% from WWW/SG• Breakdown by category (approx)

Video Camcorders – 6% Networking – 4%

Printers – 7% Components – 6%

Mobile Phones – 17% SG SLS Retailers / Distros – 9%

Notebooks / Desktops – 15% Others – 24%

Software – 5%

TRAFFIC ANALYSIS

• www.hardwarezone.com

• Jan – Dec (Y2Y)Absolute UVs grew by 1.95%Absolute UVs grew by 1.95%

TRAFFIC ANALYSIS

• www.hardwarezone.com

• Observations– FL @ 3.91% (very low compared to reviews, perhaps not a

good idea to split)

Reviews 47.69% News 10.46%

First Looks 3.91% Others 37.94%

TRAFFIC ANALYSIS

• www.hardwarezone.com.sg

• Jan – Dec (Y2Y) Absolute UVs grew by 39.8%Absolute UVs grew by 39.8%

TRAFFIC ANALYSIS

• www.hardwarezone.com.sg

• Observations– FL @ 0.56% (very low compared to reviews)– Reviews + FL is very much lower compared to WWW (due

to legacy that SG visitors are still going to WWW instead of SG)

Reviews 1.44% (9.1%) Price Guide 4.72% (29.8%)

First Looks 0.09% (0.56%) MarketPlace 8.72% (55.1%)

News 0.94% (5.3%)

Others 14.09% Forums 70%

TRAFFIC ANALYSIS

• www.hardwarezone.com.my

• Feb – Dec (Y2Y)Absolute UVs grew by 28.5%Absolute UVs grew by 28.5%

TRAFFIC ANALYSIS

• www.hardwarezone.com.my

• Observations– PG is dominant (higher relevancy?)– Blog @ 2.89% (content in blog is not what community

wants?)– First Looks @ 1.37% (Where do community go for CE

content?)

Reviews 14.59% Price Guide 51.50%

First Looks 1.37% Blog 2.89%

News 7.09% Others 22.56%

TRAFFIC ANALYSIS

• www.hardwarezone.com.ph

• Sep – Dec (Y2Y)Absolute UVs grew by 325.6%Absolute UVs grew by 325.6%

TRAFFIC ANALYSIS

• www.hardwarezone.com.ph

• Observations– News % > Reviews & First Looks % (products in reviews &

first looks too advanced for PH market?)– Blog @ 10.73% (content in blog is in line with what

community wants?)

Reviews 11.98% Price Guide 32.52%

First Looks 3.97% Blog 10.73%

News 28.27% Others 12.53%

TRAFFIC ANALYSIS

• www.hardwarezone.com.au

• Jan – Dec (Y2Y)Absolute UVs grew by 130.6%Absolute UVs grew by 130.6%

TRAFFIC ANALYSIS

• www.hardwarezone.com.au

• Observations– Reviews @ 66.78% (high relevancy?)– Price Guide @ 3.1% (can be grown more, only have

downloads now)– First Looks @ 8.07% (due to Cnet AU?)

Reviews 66.78% Price Guide 3.1%

First Looks 8.07% News 10.86%

Others 11.19%

TRAFFIC ANALYSIS

• www.hardwarezone.com.th

• Oct – Dec (Y2Y)Absolute UVs grew by 7.53%Absolute UVs grew by 7.53%

No analysis as site not managed by HQNo analysis as site not managed by HQ

TRAFFIC ANALYSIS

• MY, PH, TH and AU has comparable UVs, despite short operating years.

• Aim to hit 1M unique visitors to form critical mass

Portal 2007 Unique Visitors % Yrs

Global 3,869,236 4.75 (7.25)

Singapore 6,916,326 4.75 (7.25)

Malaysia 438,530 35.2 3.75

Philippines 235,812 18.9 3.25

Thailand 227,133 18.3 3

Australia 343,705 27.6 2

TRAFFIC ANALYSIS

• General Observation– May have a high degree of context irrelevancy in certain

portals, leading to low trafficneed to work closer with regional EDT teams to provide more relevant content

– FL tends to enjoy a much less % in terms of PV with Reviewsshould not differentiate FL with Reviews, instead should combine them

– Services attract more traffic than contentNeed to identify what community wants – service a need

FORWARD - 2008

• What to strive for 2008?– Increase of traffic/UVs into regional portals– Increase content collaboration between HQ and regional

offices– Increase absolute ad spend for regional portals

• How?• What are the obstacles/problems?

PROBLEMS

• Product coverage mismatch with ad sales revenue• Content irrelevancy– Regional portal content > 80% similar to that of SG

PH & MY have editor’s blog to add local flavor– Inflexibility of existing CMS

discourage content collaboration

• Existence of hobbyist sitesfirst-mover advantage, no business overheads

PROBLEMS

• Identifying needs of community– Services attract more PVs than content. we need to serve a

need. What’s the need?– The aim is to know and understand the customer so well

the product or service fits him and sells itself.

• Online sales know-how– online ad sales terminology is vastly different– existing regional teams are mostly print sales

SOLUTIONS - PROJECT REJUVENATE

• To enhance HWZ.com content offering• To enhance ability of HWZ.com to ‘cater’ content &

services to a regional audience• Includes– Editorial– Content Mgmt System– User Interface– Ad Serving (Banners & Emails)– Server Infrastructure Mgmt

PROJECT REJUVENATE - EDITORIAL

• Merger of HWZ.com EDT with HQ HWM EDT– Instantly HWZ.com will have substantial CE content– Beneficial to HQ as well as Regional– Planning in progress (HWM content adv will not be

cannibalized)

• Change of HWZ.com Ratings– To change to numerical rating , 1 to 10– Allow ‘easy’ adaptations from HWM’s content

PROJECT REJUVENATE - EDITORIAL

• Identification of Core Categories– By ad spend/budget– By readership

• Expansion of content offerings– How-tos, Commentaries, Feature Stories (since larger EDT

team)

• To solve adspend/mismatch problem

PROJECT REJUVENATE - EDITORIAL

• Content contribution from regional– Similar to EDT merger between HWZ.com & HWM HQ– Inject localized flavor– Exact working model TBD– Qn is HOW to contribute?

PROJECT REJUVENATE - CMS

• Current CMS is restrictive• State-of-art CMS in development (with an external

consultant)• New CMS will allow– Multi-languages– Multi-contributors– Configurable access control list– Single log-in

PROJECT REJUVENATE - CMS

• Heart of new CMS will be powered by a Google Mini– Allow easy cross-linking of various content– Allow easy cross-referencing of related content

• To solve content irrelevancyHQ/SG

MY

PH

TH

AUCMS

ID

PROJECT REJUVENATE – USER INTERFACE

• New UI being developed (with an external design house)– Ease of navigation– Increase stickiness

• UI will apply across the entire network

• Each site will be‘independent’ from each site.

PROJECT REJUVENATE – USER INTERFACE

PROJECT REJUVENATE – AD SERVING / MIS INFRASTRUCTURE

• Banner Ad Serve– DoubleClick

• Email Delivery– Campaign Monitor

• Server Maintenance– Readyspace

INCREASE ONLINE AD SALES

• Still recall the basics from last regional conference?– PV/PI– CTR– CPM– CTR– CPC– CPA– ASD– SOV

INCREASE ONLINE AD SALES

• Moderate adoption of online advertisement in SEA (except SG)– Climate is better than previous years

• Build rapport with local media agencies– Easier option, can see ‘rewards’ faster– Mindshare, Starcom, ZenithMedia etc– Essential to be trained in online ad sales– Training can be provided by HQ (HWZ.com PSC), but

regional team(s) has to come down to SG

INCREASE ONLINE AD SALES

• Add on to HWM supplement pitches– Putting a whole supplement online (as pdf)

for online community download– Include an online media

entitlement (eg: catfish) – Do 1 time, sell multiple times– Just remember to check with HQ

on availability– Each supplement can give an

average of 20-30% additionalrevenue

CONCLUSION

• Analysis of various portals– We identified areas of improvements within each portal

• Forward 2008– Increase traffic– Increase content collaboration– Increase regional ad spend

CONCLUSION

• Problems– Inflexible CMS– Content irrelevancy– Adspend/content mismatch– Identify needs

• Solutions– Project Rejuvenate– Build rapport with local agencies to start pushing brand– Offer an online entitlement on top of print supplements

Q&A

A market is never saturated with a good product, but it is very

quickly saturated with a bad one