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System 7. Better Digital Publishing Publishing Expo, April 2006. Interactive from the trenches. Interactive from the trenches Seminar Schedule. Blink and you’ll miss it – digital is going mainstream Music CDs and glossy magazines – analogy or fantasy? There be dragons – The New Competition

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System 7

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  1. System 7 Better Digital Publishing Publishing Expo, April 2006 Interactive from the trenches

  2. Interactive from the trenches Seminar Schedule • Blink and you’ll miss it – digital is going mainstream • Music CDs and glossy magazines – analogy or fantasy? • There be dragons – The New Competition • How to make more money from online than print… • Guest speakers and Q&A: David Maher-Roberts (Future plc) and Lawrence Long (Crimson Business Media)

  3. Blink and you’ll miss it –digital is going mainstream • A KEY MOMENT IN PUBLISHING – April 06Merril Lynch analyst Lauren Rich reports global spending on Internet advertising now surpasses magazines and the Yellow Pages • IAB reports online ad spending in the U.K. was up 66% in 2005 • Search advertising • Banner/display advertising • Online classifieds • Miscellaneous

  4. Blink and you’ll miss it –digital is going mainstream • Sir Martin Sorrell, Chief Executive WPP, on the shift to new media “It is happening now and is strong, rapid and large” (Oct 05) • Bill Gates: “The future of advertising is the Internet” (Oct 05) • Rupert Murdoch has new Internet media arm that will produce “a conservative billion dollars by 2010” (Feb 06) • Numerous leading publishers are restructuring to follow the advertising

  5. Music CDs and glossy magazines – analogy or fantasy? • Broadband is ubiquitous driving much richer online experiences • Also more powerful mobile devices, improvements flat screen technology, digital ink… • Advertisers increasingly prefer the measurability of Pay Per Click and CPM advertising • Advertisers only have so much to spend – increases online, mean reductions offline • Whole new genres of competitors to traditional magazines are emerging online

  6. Music CDs and glossy magazines – analogy or fantasy? • Time magazines lays off 450 and says evolving “from a magazine publisher to a multi-platform media company” (Apr 06) • Some magazine publishers now expect print to be marginalized by the Internet, mobile Web etc within 3-5 years • Every magazine publisher needs to stay tuned and make up their own mind But don’t get caught out!

  7. There be dragons –The New Competition • The “citizen journalism” revolution e.g. • Blogging • Over 100 million blogs now published for fun and profit • Every conceivable special interest covered • About.com • Has over 500 special interest mini-sites operated by paid “guides” – anyone can apply to become a guide • 1 in 5 Internet users visits About.com • Newsvine.com • Mixes contributions from staff journalists with links and citizen journalist submissions

  8. There be dragons –The New Competition • The new world of… PUPROSE-DRIVEN MEDIA • E.g. Kelkoo does price comparison but also hosts reviews and ratings of every product • This impacts on product-oriented magazines • Why isn’t PC Magazine a door stopper anymore? • Competition is accidental but significant • Google/search NAPSTERIZES online content • Big portals such as MSN and Yahoo.com increasingly overlap with consumer magazines • Startups are making use of reduced costs online to launch successful new Web-only titles e.g. see PistonHeads.co.uk for cars

  9. How to make more money from online than print… • Focus on community, forums and blogs • A community is your platform for initiatives • Users create content, you advertise around it • Need to spend time moderating and nurturing • Integrate community with main publication site i.e. single login to main site and forum/blog sites, links to relevant posts next to articles etc

  10. How to make more money from online than print… • Automatically advertise all relevant portfolio content to site visitors • Greatly increase stickiness of content • Cross-promote portfolio titles (benefits-of-scale) Example using System 7 ContentSenseTM

  11. WebPublicationNo. 2 www.abc.com Web Publication No. 1 www.xyz.com XMLContentStore1 XMLContentStore2 XMLContentStore3 XMLContentStoren How to make more money from online than print… • Cross-syndicate and share your content • Content does not belong to any single site • Maximize the doorways to your portfolio Typical architecture usingSystem 7 CMSand System 7 PMS

  12. How to make more money from online than print… • Tempt advertisers with stakeholder microsites • Create “stakeholder” areas on your site, which hold advertorial content from advertisers • Charge advertisers on a rental basis • You are selling “mind-share” not impressions of clickthroughs • Advertisers value more highly and pay more • Good in startup situations where traffic nascent • Use System 7 ContentSense to drive traffic to relevant stakeholder content and add value

  13. How to make more money from online than print… • Pay-Per-View (PPV) and restricted content • Some premium resources can be sold on a pay-per-view basis e.g. PDF document, images • To get your visitors details, restrict some content to registered users • But don’t go overthe top –advertising rules System 7 PMSPPV Tariff Control Panel

  14. How to make more money from online than print… • Create special services and databases • Try to create special services and databases that put you at the centre of your sector • (digital publishing is more than just content)

  15. How to make more money from online than print… • Learn to fly in The Clickstream • Each click through from search advertising to your site has a cost • Each page viewed on your site produces quantifiable advertising revenue; thus each paid search referral generates measurable revenue • If you can track the relationship, you can produce a situation where search advertising purchased, is exceeded by banner advertising earned • Or.. drive huge traffic in a revenue neutral position to grow the brand • System 7 provides the necessary clickstream tools

  16. How to make more money from online than print… • Finally… • Take the online challenge seriously and understand what is going on – much more is involved than just putting content onto a website • Hire, talk and work with smart and informed people – online media is the intersection of media and technology; difficult to have a handle on both • Publishers aren’t software companies: wherever possible buy rather than building as productivity and responsiveness are key

  17. How to make more money from online than print… • Create a centralized strategy for new media – in contrast to print, digital portfolio titles need to work together and therefore Publishers cannot be solely in charge • Provision for investment online – if Publishers are tasked with simply maximizing short term profit, then your online properties are unlikely to receive the initial investment most need to get off the ground

  18. System 7 & Dominic Williams • System 7 [Centre Technologies Limited] • Digital publishing platform technology pioneer • Tools for rapid development and advanced operation • Complete templates for magazines and Web portals • Provider of XML and digital publishing consultancy • Approx. 40 magazines running on platform by Q3 2006 • System 7 in digital publishing since 2002 • Dominic Williams, Founder & Managing Director • 020 7127 5991 ext. 8010 • 07710 469 456 • dwilliams@system7.co.uk • See me on stand A190 • This PowerPoint is online on www.system7.com

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