didier quillot
DESCRIPTION
Digital Media 2.0TRANSCRIPT
Global Digital Magazine Media 2.0. Conference
Digital Strategies for Magazines
Didier Quillot - Lagardère Active Media
Hanover – 15/03/2007
2
Agenda
Opening remarks : A time of convergence
I. In this rocky period of transition, magazines are not doomed to decline
II. Lagardère Active Media Digital Strategy Keys and Implementation
III. A quiet revolution
p.3 to 6
p.7 to 15
p.16 to 27
p.28 to 44
3
A time of convergence
4
• 1922: first BBC radio broadcast
• 1928: first BBC TV broadcast “Television Queen’s Messenger”
• 1995: first free daily newspaper launched in Stockholm by Metro
• 2006: US Online advertising growth : +24%
(Source : Merrill Lynch, MediaPost)
“Print is dead”
“Radio is dead. And so is print, by the way”
“Paying print is dead”
“TV and radio are dead. And print is even
deader”
EVENT MEDIA “EXPERTS”
A time of convergence
5
MASTERING THE STRATEGY FOR
DIGITAL SUCCESSThe website widens
brand recognition and increases print
circulation
MASTERING THE STRATEGY FOR PRINT
SUCCESS
The magazine anchors web traffic and
recognition
Developing a virtuous print / web model
MASTERING THE STRATEGY FOR CONTENT SUCCESS
A time of convergence
6
A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty. Sir Winston Churchill
A time of convergence
7
I. In this rocky period of transition, magazines are not doomed to decline
8
The magazine industry has strong assets to succeed on the web :
• Readers communities
• Trusted brands
• In-depth content
• Specific segment expertise
• Relationships with advertisers
Internet is an opportunity to :
• Leverage those assets
• Broaden brands’ audiences
• Generate additional revenues
Magazine are not doomed to decline
9
A rocky environment
Advertising growth has been slow or negative
• French magazines’ net advertising revenue 2006 compared to 2005 : -1.0%• American magazines’ gross advertising revenue 2006 compared to 2005 : +0.1%
Rationalizating of portfolios is necessaryPublisher US editions closed in 2006
(Source : IREP, Publishers Information Bureau)
10
Prejudice N°1 : "Time spent on the Internet is subtracted from magazine reading”
+4%-1%+28%+4%+1%+5%+5%
2000484 min per day
2006575min per day
0
100
200
300
400
500
600
700
2000 2006
MagazinesNewspapersInternetTVRadioMusicVideo
Total +4%
2000-2006 CAGR
Germany : Time Spent Daily w. Media (> 14 y.old)
Minutes per day
(Source :ARD/ZDF - Studie Massenkommunikation – 01/2007)
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Prejudice N°1 : "Time spent on the Internet is subtracted from magazine reading”
AEPM French Magazine Audience Study – March 2007
97,2% of the French read magazines every month
58,9% of the French read magazines every day
65% read at least one magazine published by Lagardère Active Media in 2006
12
Prejudice N°2 : "Online advertising budgets are subtracted from magazine advertising budgets”
(Source :BIPE – Russia and China include B2B magazines)
13
Prejudice N°3 : "The global magazine market is negatively impacted by the Internet "
WomenKidsCarsShelterTeensNewsCelebsLadsParentingSportsTravel
…
Weekly Monthly Bimonthly …CATEGORY
FREQUENCY
THERE IS NO GLOBAL TRUTH ABOUT THE MAGAZINE MARKET
THE SITUATION IS VERY DIFFERENT ACCORDING TO THE
SEGMENTS AND FREQUENCY
14
Publisher PublicationAd Pages
March 07 / March 06
+23%
+5%
+19%
+11%
+20%
+21%
+51%
+2%
Ad sales growth of US Women Magazines
(source : Publishers Information Bureau)
Prejudice N°3 : "The global magazine market is negatively impacted by the Internet”
15
Internet : a strategic move for magazines
Assured downside
• Some magazine content is available free of charge on the Internet (for instance Der Spiegel, Le Nouvel Observateur etc.)
• Internet takes away ad revenue from magazines
• Ease of entry for new competitors, while some pure plays have already established authoritative brand loyalty (Allociné, Aufeminin etc.)
• Internet giants want to take ad revenue (Yahoo!, MSN, Google etc.)
Potential upside
• Significant savings on production & distribution
• Potential new paying services (commercial referrals, users databases, classified ads, paying archive, etc. For instance DailyCandy.com)
• New digital opportunities to strengthen brands and re-publish magazine contents
• New communities with a new loyalty
• Internet giants look for premium content
16
II. Lagardère Active Media Digital Strategy – Keys and Implementation
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Hachette Filipacchi Medias : a global leading magazine publisher
More than 250 magazines
35%
65%
Magazine revenue
International France
• 2006 revenue : 1 848 M €
• Publisher in 41 countries
18
Lagardère Active Medias : a multiplatform content producer
More than 250 magazinesMovie / TV production
Radios
TV Channels
New Media
Movie / TV distributionMulti-media ad sales house
19
Lagardère Active Media growth strategy
1. Rationalise our Portfolio
2. Shift from operating to licensing magazines in some countries
3. Exit from some underperforming segments
4. Address issues of scale
5. Develop web capacity
6. Benefit from the merger of our advertising sales housesStrong management commitment to achieve Lagardère Active Media’s transformation
20
First priority : WHAT?
Monitoring the business by categories
21
Second priority : WHERE?
LAM Magazine portfolio (as % of 2005 revenue)
Global growth for global brands
Take advantage of fast growing countries (China, Russia)
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• Improve overall productivity and reduce purchasing costs by implementing pre-press automated copy flow management
• Improve coordinated paper and printing negotiation and review specifications at international level
• Improve distribution practices and develop collaboration with distributors in the US and Russia
• Invest in core business titles and segments (for instance Elle and Tele 7 Jours in France)
Third priority: HOW?
Improving print publishing efficiency
23
Websites
Magazines
TV
Radio
Production
Mobile
Events
Web distribution
Developing a virtuous ecosystem with group assets and partners
24
4 levers to develop our websites in all key segments / themes by 2010
1. Organic growth (launch or relaunch of content websites)
2. Digital acquisitions ( november 2006)
3. Digital alliances ( + )
4. Dedicated organisational structure (250-strong staff by the end of 2007)
Our multiplatform strategy implies that print and web editorial teams collaborate closely
25
1. Segment expertise (women, auto, celebrities, news, kids etc.)
2. International brands
3. Current advertising market trends
4. Ad attractiveness of brands and contents
A strategy built on Lagardère Active Media assets
26
Merger of own advertising sales houses
27
Cross-media campaigns
Audience aggregation based on Lagardère Active Media portfolio and integrated sales house
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III. A Quiet Revolution
29
Premiere : accompanying the readership move to digital
A content-driven website
Premium content (Reviews, Interviews, News)
Rich Media Content (Trailers, Slideshows)
Community content (forums, user comments)
Exclusive box-office game (develops loyalty)
Premiere.fr was launched in Februrary 2007
30
Spiderman3 – UGC Les Halles – Mon Tue 11:20
Showtimes anywhere in France
Integration of Google Maps to find movie theaters
Free showtimes by SMS
A service-driven website
Premiere : accompanying the readership move to digital
31
Content synergies : website is feeded with L.A.M.’s databanks
Movie reviews
Movie Showtimes
Celeb news
Theatres & Restaurants
TV Listings & reviews
News
TODAY
TOMORROW
Premiere : accompanying the readership move to digital
32
PREMIERE.FR TARGET : 1 MILLION UNIQUE USERS ON MOVIE CONTENTS AT
THE END OF 2007
Premiere : accompanying the readership move to digital
33
Digital transition for the Premiere brand in the US
Premiere : accompanying the readership move to digital
Premiere.com October 06
November 06
Page Views 1,3M 5,2M
Print edition will end in April 07
The Premiere brand will continue to grow online…
… and on mobile phones (Premiere mobile launched in november 06)
34
Caranddriver.com : maximizing brand audience and revenue
80% of Caranddriver.com users are new to the brand
Online traffic growth benefits to the brand
Caranddriver.com January 06 December 06
Unique Users 1,1 M 1,5 M
Page Views 16M 21M
35
In-market content (buying guide, vehicle reports, used car pricing, comparisons, dealer quotes)
Rich media content (Slideshows, video road tests and interviews)
Community content (forums, user-provided road tests)
Video advertorials (Virtual Test Drive)
For in-market users, deeper content than in print magazine
Caranddriver.com : maximizing brand audience and revenue
36
2005-2006 AD
REVENUE EVOLUTION
Print ad revenue
evolution-1,931M$
Web ad revenue
evolution+2,972M$
BRAND AD REVENUE
EVOLUTION +1,041M$
The US auto magazine ad market is depressive :2006 vs 2005 auto ad pages : -13.8%
Fast-growing revenue
But LAM’s investment in Caranddriver.com allows online growth to exceed print erosion
Caranddriver.com : maximizing brand audience and revenue
37
TARGET : 2008 WEB AD REVENUES = 40% OF PRINT AD REVENUES
Caranddriver.com : maximizing brand audience and revenue
38
Creating value for a multimedia group strategy
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Elle.fr : building a leading women’s portal
Relaunch of the website
Elle.fr will cover all the women subcategories : Fashion, Beauty, Diet, Food, Entertainment etc.
Each category is built as a proper web site (ex : the food subcategory Elle à Table includes 11 700 pages)
Elle à table, launched in october 2006, was the first element of the new portal
Video recipes
40
Four ways to increase content and service
In-house premium content (Recipes, Astrology)
Group synergies (Nanny Finder with Parents.fr and Infobebes.com, Evening Planner with T7J.fr and Premiere.fr)
Partnerships with category experts (dating, ecommerce)
Community contents (blogs, forums)
Elle.fr : building a leading women’s portal
41
TARGET : 1 MILLION UNIQUE USERS AT THE END OF S1 2007
Elle.fr : building a leading women’s portal
42
Creating value for a multimedia group strategy
43
Digital growth
October 06 February 07 Growth
Page Views per week 7,49 M 9,32 M + 24%
Visits per week 1,0 M 1,26 M + 26%
LAGARDERE ACTIVE MEDIAS FRENCH WEBSITES GROWTH
44
Conclusion
1. Magazines will still be there for years• Target : save quality content
Think added value contentAdapt content to segmented audiences
• Digital usage will grow because of digital generation
• Digital ad spending will follow
• Need to reverse paradigm and to come to :• Multiplatform content publishing• Management of segments / brands• Internal digital transformation : editors, publishers, salesforce, production
1. A general and cultural (r)evolution
2. Timing is everything