patrick fuller, group director, haymarket consumer media making money from digital association of...

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


Our global footprint


Haymarket in India

Launched 2000 in a joint venture with Hormazd Sorabjee Based in Mumbai and Delhi 200 staff Seven brands


Our brands in India


Print Web Mobile Awards Events

Autocar, our market leader


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


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


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


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


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


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?



Research will help us to win the argument

Source: AOP and Comscore ‘Value of Trust’ report 2012

Question: which content do you trust?


How that affects behaviour


Association of Indian Magazines Congress February 2014Source: comScore Marketing Solutions

How that affects behaviour


Association of Indian Magazines Congress February 2014Source: comScore Marketing Solutions

How this affects behaviour


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



Case study: What Car?

The UK’s biggest new car research brand

Magazine Website Apps Mobile Haymarket’s most

successful product


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…


‘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


Development roadmap


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


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


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


Case study: PistonHeads


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


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


PistonHeads 2014 – key facts

300,000 posts pcm

Community

80,000 cars for sale

Classifieds

5m unique users

Traffic


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


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


So how will this apply to India?


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


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


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

patrick fuller, group director, haymarket consumer media making money from digital association of...

Documents

indian market

uk largest

indian readership survey

media business

largest markets

autocar india

case of india

live events