The document discusses Lagardère Active Media's digital strategy to address challenges facing the magazine industry from digital disruption. It outlines three key points:
I. Magazines have strong assets to succeed online by leveraging communities, brands, and content across devices. The internet presents an opportunity rather than a threat if a virtuous print-web model is developed.
II. Lagardère's strategy is to rationalize print, invest in websites and new platforms, and create a cross-media sales house to benefit from its multi-platform portfolio.
III. Examples like Premiere.fr and CarAndDriver.com show how websites can drive audience and revenue growth by providing rich digital experiences that complement print magazines.
5. MASTERING THE STRATEGY FOR DIGITAL SUCCESS The 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
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10. Prejudice N°1 : " Time spent on the Internet is subtracted from magazine reading” +4% -1% +28% +4% +1% +5% +5% 2000 484 min per day 2006 575min per day 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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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 " Women Kids Cars Shelter Teens News Celebs Lads Parenting Sports Travel … 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. Ad sales growth of US Women Magazines ( source : Publishers Information Bureau) Prejudice N°3 : " The global magazine market is negatively impacted by the Internet ” +23% +20% +11% +19% +5% +51% +2% +21% Ad Pages March 07 / March 06 Publication Publisher
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18. Lagardère Active Medias : a multiplatform content producer More than 250 magazines Movie / TV production Radios TV Channels New Media Movie / TV distribution Multi-media ad sales house
21. Second priority : WHERE? LAM Magazine portfolio (as % of 2005 revenue) Global growth for global brands Take advantage of fast growing countries (China, Russia)
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. Premiere : accompanying the readership move to digital Showtimes anywhere in France Integration of Google Maps to find movie theaters Free showtimes by SMS A service-driven website Spiderman3 – UGC Les Halles – Mon Tue 11:20
31. Premiere : accompanying the readership move to digital 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
32. Premiere : accompanying the readership move to digital PREMIERE.FR TARGET : 1 MILLION UNIQUE USERS ON MOVIE CONTENTS AT THE END OF 2007
33. Premiere : accompanying the readership move to digital Digital transition for the Premiere brand in the US 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) 5,2M 1,3M Page Views November 06 October 06 Premiere.com
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 1,5 M 1,1 M Unique Users 21M 16M Page Views December 06 January 06 Caranddriver.com
35. Caranddriver.com : maximizing brand audience and revenue 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
36. 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 +1,041M$ BRAND AD REVENUE EVOLUTION +2,972M$ Web ad revenue evolution -1,931M$ Print ad revenue evolution 2005-2006 AD REVENUE EVOLUTION
39. 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. Elle.fr : building a leading women’s portal 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)
41. Elle.fr : building a leading women’s portal TARGET : 1 MILLION UNIQUE USERS AT THE END OF S1 2007
43. Digital growth LAGARDERE ACTIVE MEDIAS FRENCH WEBSITES GROWTH 1,26 M 9,32 M February 07 + 26% 1,0 M Visits per week + 24% 7,49 M Page Views per week Growth October 06