Making money from digital
Patrick Fuller, Group Director, Haymarket Consumer Media
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
Association of Indian Magazines Congress
February 2014
Haymarket in India
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Launched 2000 in a joint venture with Hormazd Sorabjee
Based in Mumbai and Delhi
200 staff
Seven brands
Association of Indian Magazines Congress
February 2014
Our brands in India
Association of Indian Magazines Congress
February 2014
Autocar, our market leader
 Print
 Web
 Mobile
 Awards
 Events
Association of Indian Magazines Congress
February 2014
How our business is changing
Association of Indian Magazines Congress
February 2014
The challenge in the UK
Volume
Value
2007
1,254,252,231
£1,920,459,496
2012
810,863,058
£1,413,590,937
Change
-35%
-26%
Association of Indian Magazines Congress
February 2014
Our revenue splits in consumer
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
Association of Indian Magazines Congress
February 2014
Transition from print to digital
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
Association of Indian Magazines Congress
February 2014
Core values transferred
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
Association of Indian Magazines Congress
February 2014
Markets and territories
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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
Association of Indian Magazines Congress
February 2014
But how can businesses like ours compete?
Stick to our core strengths
Be confident that digital is our friend
Do not sell at a discount
Focus on educating staff… and clients
Association of Indian Magazines Congress
February 2014
Research will help us to win the argument
Question:
which content
do you trust?
Source: AOP
and Comscore
‘Value of Trust’
report 2012
Association of Indian Magazines Congress
February 2014
How that affects behaviour
Association of Indian Magazines Congress
February 2014
How that affects behaviour
Source: comScore Marketing Solutions
Association of Indian Magazines Congress
February 2014
How this affects behaviour
Source: comScore Marketing Solutions
Association of Indian Magazines Congress
February 2014
Progress so far
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
Association of Indian Magazines Congress
February 2014
Case study: What Car?
Association of Indian Magazines Congress
February 2014
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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…
Association of Indian Magazines Congress
February 2014
‘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
2
3
To publish a unique review of more than 5000 new cars
Make it easier for our users to find important content
Create additional high value advertising opportunities
Association of Indian Magazines Congress
February 2014
Development roadmap
Association of Indian Magazines Congress
February 2014
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
Association of Indian Magazines Congress
February 2014
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
Association of Indian Magazines Congress
February 2014
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:
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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
Association of Indian Magazines Congress
February 2014
Case study: PistonHeads
Association of Indian Magazines Congress
February 2014
A short history
Cars for
sale &
forum
Acquired by
Haymarket
in 2007
2014
Hitwise: 3rd
Biggest UK
Motoring
Site
“An online
magazine for
PetrolHeads”
Launched
in 1998
Association of Indian Magazines Congress
February 2014
The challenges for Haymarket
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Integrate without upsetting both ecosystems
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Monetise, but discreetly and appropriately
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Live in and with the community
But, above all
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Learn how to be truly digital
Association of Indian Magazines Congress
February 2014
PistonHeads 2014 – key facts
Community
Classifieds
Traffic
300,000 posts pcm
80,000 cars for sale
5m unique users
Association of Indian Magazines Congress
February 2014
Revenue growth – now 5000 lakh rupees
Affiliate
and other
Remnant
Classified
Display
Association of Indian Magazines Congress
February 2014
How to monetise a community
Offline
Online
-- Annual
dinner
Used cars
for “Black
sale Tie and
Pie”
- Car buyer services: insurance,
-finance,
Sundayhistory
Services
events
check
-- Trackday
Skimlinks:programme
revenue from post
-- Driving
NetworkHolidays
and Google inventory
- PistonHeads merchandise
- Private Cars for sale
Secret of PistonHeads’ success
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Simplicity of consumer and client offering
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Everything has a user benefit
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Diverse revenue streams that feed off size of audience
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Scaleable market to support growth
Association of Indian Magazines Congress
February 2014
So how will this apply to India?
Association of Indian Magazines Congress
February 2014
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
Association of Indian Magazines Congress
February 2014
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
Association of Indian Magazines Congress
February 2014
Finally, some suggestions
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Define your strengths and focus relentlessly on them
See through the noise – keep it simple
Restructure and see how flexible your staff can be
Employ specialists in analytics and SEO
Maintain high yields
Remain committed to quality
Buy a start-up... and use a smartphone
Association of Indian Magazines Congress
February 2014