What’S Their Secret Key Elements For Successful Web Publishing Formats Presentation
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What’s their secret?
Business models for successful webpublications:10 Dutch cases
Erik Stevens, Phaff & PartnersAntoine van den Berg, Next Level
Tools of Change. February 11th 2008 1© phaff & partners / next level
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What can you expect?
Content of Presentation:
• Introduction• The basic model• Findings of the research• Elaboration of the value proposition• Questions
Tools of Change. February 11th 2008 © phaff & partners / next level 2
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Our Background
Phaff & Partners:- Operates mainly in The Netherlands (Europe…)- Specialized in the Publishing & Printing Industry- Consultancy topics:
- Strategic planning of companies- Marketing & Sales development- Organizational development- Empowerment
Next Level:- is a strategic partner and specialized in online
publishing and online marketing
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Why this study?
Research was commissioned by The Netherlands Press Fund:
• Advisory board for the Dutch Government• Main goal: stimulate press diversity in The
Netherlands (democratic necessity)
Main reasons for commissioning study:• Publishers losing ground in information
dissemination • Turnover goes down: less paying readers, smaller
volumes of advertisements• Webpublishing: ‘strategic investment’… (sic)
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Focus
Main questions:
What are successful business models for publishers active on the internet?
What are key elements of these models which explain this success?
Success is defined as:Generating turnoverPositive resultIndirect positive effect on brand and image
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10 cases studied
Newspapers Electronic Publishers Special Interest (print)
-Wegener.nl (regional newspapers)
-Telegraaf.nl (largest national newspaper)
-Surined.nl (first Surinam paper)
-Cobouw.nl (for construction & building industry)
-MarketingFacts.nl (e-marketing professionals)
-Documentwereld.nl (professionals in corporate document production)
-VI.nl (soccer, soccer & soccer)
- Bright.nl (techno lifestyle)
-Zoom.nl (semi-pro fotography)
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THE BASIC MODEL
Tools of Change. February 11th 2008 7© phaff & partners / next level
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Tools of Change. February 11th 2008 © phaff & partners / next level 8
Analytical Framework: Alex Osterwalder’s model
CoreCapacities
Partner Network
Value Configuration
Value Proposition
Cost Structure
CustomerRelationship
DistributionChannel
CustomerSegment
RevenuStreams
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RESEARCH FINDINGS
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Value proposition (WYSIWIG)
A successful webpublication creates a THEMATIC publishing SPACE with content for a well defined target group
Content is freeThe site has it’s own editorial format (even within a crossmedia setting): FOCUS & SIMPLICITYActuality (daily news) and interactivity are key elementsGrowing importance of multimedia (‘simple’ film productions)Emotional bond (passion) is strong and explicitSite tries to appeal to curiosity of target group …and tries to establish habitual behavior (e.g. daily check as you start up your computer)
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Tools of Change. February 11th 2008 © phaff & partners / next level 11
CoreCapacities
Partner Network
Value Configuration
Value Proposition
Cost Structure
CustomerRelationship
DistributionChannel
CustomerSegment
RevenuStreams
Value Proposition
AuthorityAuthenticity
Editorial FormulaCommunity Space
StakeholdersBrandTheme
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Value configuration
Webpublishing is more complex than ‘traditional’ print.
Traditional content production proces:
Tools of Change. February 11th 2008 © phaff & partners / next level 12
Furthermore: more or less strict separation of content and commerce (ads)
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Value configuration
Web value creation: a ‘democratic’, simultaneous and continuous production of content by several stakeholders/community members
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Tools of Change. February 11th 2008 © phaff & partners / next level 14
CoreCapacities
Partner Network
Value Configuration
Value Proposition
Cost Structure
CustomerRelationship
DistributionChannel
CustomerSegment
RevenuStreams
Value Configuration
Decentralised managedFuzzy
ContinuousSimultaneous
Prosuming
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Partner Network
Technical partners:• Hosting• Open source application developers (CMS)
Commercial partners:• Google (AdSense): +/- (a ‘quick buck’ versus
‘depersonisation’ and ‘losing contact’)• In online specialised Ad Acquisition companies
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Tools of Change. February 11th 2008 © phaff & partners / next level 16
CoreCapacities
Partner Network
Value Configuration
Value Proposition
Cost Structure
CustomerRelationship
DistributionChannel
CustomerSegment
RevenuStreams
Partner network
TechnologyOpen Source
Experts / BloggersUsers
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Core Capacities
Management discipline:• Technology savvy: basic ICT knowledge• Giving room to experimentation• Sharp guarding of cost (low cost solutions,
barters, etc.)Editorial discipline:• Editor-in-chief = community manager (weighing
the interests of the different stakeholders)• Editor is multiskilled:
text writingfilm and photo shooting“live” presenting and interviewingEditing and sampling
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Core Capacities
Commercial discipline:• Dedicated sales (even within crossmedia settings)• Skilled in detecting needs of (potential)
commercial parties:Reach (mass) for branding Interactivity (contact, communication, profiles)Direct sales
• Skilled in negotiating alternative paying models (CPM versus No Cure No Pay models)
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CoreCapacities
Partner Network
Value Configuration
Value Proposition
Cost Structure
CustomerRelationship
DistributionChannel
CustomerSegment
RevenuStreams
Core Capacities
Multi taskingPassion
Technology SavvyCommunity management
ExperimentationalOnline marketing knowhow
Knowledgable about getting traffic, interactivity and online selling
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Cost structure
• Small scale of operation, 5-6 people average• Strong focus on controlling costs to keep them
lowBartering for contentMultiple skills of employees lowers production costsMeans are low cost (‘open source’)Marketing costs are low, online marketing and viral effects are being used
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Tools of Change. February 11th 2008 © phaff & partners / next level 21
CoreCapacities
Partner Network
Value Configuration
Value Proposition
Cost Structure
CustomerRelationship
DistributionChannel
CustomerSegment
RevenuStreams
Cost structure
Low cost operationsFlexible
Small scale
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Customer Relationship
• Stakeholders: blogger, editor, publishers, commercial partners (ads and content)
• Web analytics leads to relevance• Commitment shows through comments• Ads are another type of content
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Tools of Change. February 11th 2008 © phaff & partners / next level 23
CoreCapacities
Partner Network
Value Configuration
Value Proposition
Cost Structure
CustomerRelationship
DistributionChannel
CustomerSegment
RevenuStreams
Customer Relationship
InteractiveCo-creation
Management of interest
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Distribution Channels
• Marketing and deliveryWebsiteRSSE-mailSearchSocial bookmarkingMobile internetOffline media
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Tools of Change. February 11th 2008 © phaff & partners / next level 25
Analytical Framework: Alex Osterwalder’s model
CoreCapacities
Partner Network
Value Configuration
Value Proposition
Cost Structure
CustomerRelationship
DistributionChannel
CustomerSegment
RevenuStreams
Distribution Channels
Multi channelAlways everywhere
Customer choicePush and Pull
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Customer Segment
• Again: stakeholdersProfessionals/special interest: readersCommercial partners, theme oriented: suppliersProfessional with theme knowledge: content suppliersEditorsChief-editor / community manager: manages and balances interests of all stakeholdersPublisher: supplies and exploits the platform
• Theme is based on strong vision / branding and on PASSION
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Tools of Change. February 11th 2008 © phaff & partners / next level 27
Analytical Framework: Alex Osterwalder’s model
CoreCapacities
Partner Network
Value Configuration
Value Proposition
Cost Structure
CustomerRelationship
DistributionChannel
CustomerSegment
RevenuStreams
Customer Segment
StakeholdersProsumers
Passion
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Revenue Streams
• Ads (90%, cpm, cpc)
• Subscriptions (fixed / variable / combination)
• Commision on transactions (webshop)
• Spin-offs
Annual reviews in print (‘yearbook’)
Conferences, seminars
Training, courses, workshops
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Tools of Change. February 11th 2008 © phaff & partners / next level 29
Analytical Framework: Alex Osterwalder’s model
CoreCapacities
Partner Network
Value Configuration
Value Proposition
Cost Structure
CustomerRelationship
DistributionChannel
CustomerSegment
RevenuStreams
Revenu Streams
Ads (cpm)Subscriptions
Transaction Commisions(CPL/CPS)Spin-offs (cross media & brandbuilding)
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Tools of Change. February 11th 2008 © phaff & partners / next level 30
Analytical Framework: Alex Osterwalder’s model
CoreCapacities
Partner Network
Value Configuration
Value Proposition
Cost Structure
CustomerRelationship
DistributionChannel
CustomerSegment
RevenuStreams
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VALUE PROPOSITION ELABORATED
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Value proposition elaborated
Value = Effect * Reach
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Effect – Reach matrix
Tools of Change. February 11th 2008 © phaff & partners / next level 33
BrandingCommunication
CPM
High rewardsContent
suppliers pay
SUBSCRIPTIONS
No proposition (yet)
START / EXIT
Transactional targets
CPL/CPA/CTR
Effect
Reach
L
L
H
H
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Effect – Reach matrix
Tools of Change. February 11th 2008 © phaff & partners / next level 34
General interestNon-theme
Involvement:interaction
Special interest:Thematic spin-offs
Effect
Reach
L
L
H
H
Authority
Authority &Authenticity
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Effect – Reach matrix
Tools of Change. February 11th 2008 © phaff & partners / next level 35
General interestNon-theme
Involvement:interaction
Special interest:Thematic spin-offs
Effect
Reach
L
L
H
H
Add user generated content and blogging
Offer options for content from
comm
ercial stakeholders
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Closing remarks:
• General interest sites (in combination with editorial independance/authority) have less possibilities for creating a commercial publication space
• Quality of information as asset for branding (print)titles: marketing versus commercial succes
• Do themes fit with your brand and within your cross-media publishing strategy?
<Naam project / klant> <datum> 36
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Questions and Remarks?
Tools of Change. February 11th 2008 37© phaff & partners / next level