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01 Worlock Editech 2008 Editech 2008 The European Digital Publishing Marketplace: An Overview David R Worlock Chief Research Fellow Outsell, Inc. [email protected] June 2008 © 2008 Outsell, Inc. All rights reserved. Slower Growth Ahead © 2008 Outsell, Inc. All rights reserved. 2 Search Surges Ahead of Information Industry 26.1% 25.1% 25.2% 24.8% 21.6% 22.5% 18.3% 9.0% 5.0% 4.3% 3.1% 3.1% 3.2% 3.4% 2004 2005 2006 2007 (P) 2008 (P) 2009 (P) 2010 (P) Search, Aggregation & Syndication Info Industry w/o SAS Source: Outsell’s Publishers & Information Providers Database © 2008 Outsell, Inc. All rights reserved. 3 Information Industry $380 Billion in 2007 9% 7% B2B Trade Publishing & Company Information 10% Credit & Financial Information 11% Education & Training HR Information Legal, Tax & Regulatory 5% 10% Market Research, Reports & Services IT & Telecom Research, 1% Reports & Services News Providers & Publishers 4% Scientific, Technical & Medical Information Search, Aggregation & 8% Syndication 1% Yellow Pages & Telephone 34% Directories Source: Outsell’s Publishers & Information Providers Database © 2008 Outsell, Inc. All rights reserved. 4 Search to Soar, While News Nosedives 2007-2010 Est. Industry Growth 5.5% Search, Aggregation & 22.7% Syndication HR Information 15.4% 9.5% IT & Telecom Research, Reports & Services 8.4% Credit & Financial Information 8.1% Market Research, Reports & Services 6.7% Scientific, Technical & Medical 6.7% Information Legal, Tax & Regulatory 5.8% B2B Trade Publishing & 5.7% Company Information Education & Training 5.2% -2.9% Yellow Pages & Directories Source: Outsell's Publishers & Information Providers Database News Providers & Publishers © 2008 Outsell, Inc. All rights reserved. 5 Global Growth in Asia and EMEA © 2008 Outsell, Inc. All rights reserved. 6 Asia and EMEA Will Outpace Americas Information Industry Revenues by Geography 57% 57% 54% 53% 52% 53% 30% 27% 27% 17% 15% 16% US Americas EMEA AP 2004 2005 2006 Source: Outsell’s Publishers & Information Providers Database © 2008 Outsell, Inc. All rights reserved. 7 Mobile Innovation in Europe and Asia © 2008 Outsell, Inc. All rights reserved. 8 Mobile Hot Spot for Innovation & Investment • Asia and Europe markets driving innovation • Mobile and search tightly linked • Transformative iPhone raised the bar • Mobile goes social • Media goes mobile • Mobile goes open © 2008 Outsell, Inc. All rights reserved. 9 Online Ad Models Accelerating © 2008 Outsell, Inc. All rights reserved. 10 Online Ad Variations In-text Pay-per-click or in-line Ad search engine ads auctions ads Virtual world, video game ads & placement Contextual ads Behavioral ads Advertising widgets Mobile advertising Cost-per-action, Cost-per-call © 2008 Outsell, Inc. All rights reserved. 11 Online Media Taking Share from Print 40.1% 5.8% Total 2007 Forecast U.S. Ad Spending Growth 20.4% 19.7% 17.9% 14.6% 5.8% 5.2% 2.7% 2.3% -3.5% Print Media Online Media Events TV, Radio & Other Other Marketing Media (including PR) 2007 Allocation Forecast 2007 Growth Forecast Source: Outsell’s Ad Spending Database Base = 1,010 (Q12, A) © 2008 Outsell, Inc. All rights reserved. 12 Search Engines in the Lead Online 17.9% Total 2007 Online Forecast Spending Growth 58% 39% 38% 30% 28% 17% 18% 12% 11% 10% 9% 8% 3% 3% 3% 2% 1% 1% -2% -4% Company's E-mail Mktg. Search Trade Web Other Info Webinars Vertical Sponsoring Weblog Mktg. Wireless Own Site Engines Site Site Search Content Mktg. 2007 Allocation Forecast 2007 Growth Forecast Source: Outsell’s Ad Spending Database Base = 1,010 (Q14, A) © 2008 Outsell, Inc. All rights reserved. 13 Increasing Demands Cost of good More analytics an issue options Budgets fixed and slowing Print-to-digital accelerating More accountability Better methods to measure effectiveness © 2008 Outsell, Inc. All rights reserved. 14 Web 2.0 & Enterprise 2.0 © 2008 Outsell, Inc. All rights reserved. 15 24eyes 24x7 News 43 Things 4INFO About.com ADDICTINGGAMES.CO AdGabber Advogato Aggregato Alesti Feed Reader AllBusiness Alta Vista Babel Fish AmazonMechanical Turk Amobee AnswerBag Answers.com Applied Marketing Science, Inc. aSmallWorld Assignment Zero Attensa Onlineadvertising BeanRocket aggregators Bebo Big Idea Group ajax annotation BioMedNet attention BlackPlanet.com bBlinkxehavioral Blip.tv BlogL blogsines Blue Dot Break BrightCove Broadcaster.com BullPoo Business.com Buzznet Cambrian House CarDomain Care2 CareerBuilder City-data.com Classmates.com Clip Syndicate Community of Science Consumating Covestor Crackle craigslist blogosphereCrowdfunding.com books Cyworld boomers DailyMotion business Dandelife models Daum citize Del.ciou.usn Delljournalism DemandUsability Media Dictionary.comclick Digg Dodgeball.com DontStayIn Doostang Douban Ducati EA Online ecademy eConozco Editaste eFunda eHow EI Village eMindsource Encarta Enchanted Learning EngageMedia Entopia EntreMate ePALS Classroom fraudExchange Inccommons eSPIN Expert Witness Network ExpertVillconsumerage Facebook coolFaceparty cooperation Faculty of 1000 copying Faniq copyright FeedBucket FeedFeeds FeedLoungeCommunity FeedReader.net FeedShow.com FeedZilla Fidg't Findarticles.com Flickr Flirtomatic Flock Flurl Fotki Fotolog Free Translation FREEONLINEGAMES.COM Friends Reunited Friendster Frühstückstreff Gaia Online Gather Generate Geni.com GlobalSpec GodTube GoFish Goldcorp ChallengeGoogle Google Reader Google ScholarParticipation Google Video Grabline.comculture Graduates.com cyberlaw Grono.net design GuildCafe digital cocooningGuru.com Haystack digital n hi5atives Hoover’s Hyves Ideastorm iFilm imeem IndiaNews InfoPlease.com Inkling Markets Inmobile InnoCentive Intota IRC- Galleria iStockphoto ITToolbox iWiW Jaiku WebJambo Jobste2.0r Joga Bonito Kaneva Kinja Kiva.org KnowledgeStormdistraction Last.fm DRM LegoSharing LibraryThinge-books LinkedIn enterpriseLiveJournal 2.0 LiveLeakenvironment LookSmart.com LunarStorm epaper Manta flat Marketocracy MEETin Meetup.com MetaCafe metaRSS MiGente.com MINICLIP.COM Mixi mnemomap Mochila MOG Monster Moreover Technologies Mososo Mozilla MSN Games MSN Soapbox Multiply Multiverse Network My Opera Community My Yahoo! MyChances.net MyChurch My-Currency MyNewsbot MySpace myYearbook Nature Publishing Group NBXfolksonomy Net Promoter free NetInformer fun games Netlog NetscapeConversation Netvibes Neuronagaming NewAssignment.Net global internet NewsAlloy ipod NewsBurst NewsGator NewsIsFree NewsNow NewsOnFeeds Newsvine Nexopia NineSigma Ning NowPublic Nuance OhMyNews OkCupid One World TV Open Directory Project orkut Our Media OUTeverywhere Oxford Analyticalibrary2.0 Pajamas local Media location-aware Passado Pearson Education long PtaileekVid maps Pickheadsmarketing Pickspal millennials Piczo InnovationPlayahead Plazes Pluck Pownce Pressrank Primary Insight ProfileHeaven Protopage PutFile QubeTV RateItAll RealArcade Reddit Reunion.com Revver Rezzibo Rocket Rojo Round Table Group RssPress.it Rummble Ryze Salesforce.com MMOGScience Navigationmobility Group Scintillamusic Sconex net neutralitySearchles networkingSecondLife news Sermo onlinesevenload open access sexi Shared Insights, Inc. Sharkle Shelfari Shockwave.com slashgeo SmartPlanet.com So You Wanna Sofomo Soundpedia Sportsvite Stage6 Steve Jackson Games StudioDell Studivz Stumbleupon Sunday Strategy Swarm of Angels Swicki Beta Swivel Tabber TagWorld TakingITGlobal Techquila Shots TechTarget The Student Center The Well Third Screen Media ThomasNet Forums Threadless Todou TopCoder Topix TravBuddy.com Travellerspoint Tribe.net Twango Twitter Umbria UpToDate uVu Veoh Vimeo Visible Path Vistage International Vizu Vmix Vox Voxant Vuze Wagerline WAYN We Are Smarter than Me WebBiographies WebEx Wikipedia WildTangent Network Windows Live Spaces Woophy Work.com Xanga XING XpertUniverse Yahoo Buzz Game Yahoo HotJobs Yahoo Video Yahoo! Yahoo! 360° Yahoo! Answers Yahoo! Games Yahoo! © 2008 Outsell, Inc. All rights reserved. 16 MyWeb Yahoo_mash Yelp Yet2 YodPod Yoqoo You Are TV Your Encore YouTube YRUHRN Zaads Zillow.com Zoints ZoomInfo Zooomr Zopa Zylom The DNA of Web 2.0 Enterprises • Quick, agile, global • “Open”-minded about content and software • “Unchain my chart”: content without containers • Play well with others • Service-oriented • Conversationalist © 2008 Outsell, Inc. All rights reserved. 17 Gated Communities © 2008 Outsell, Inc. All rights reserved. 18 Professional Networks Evolving Consumer Social Networks Collegiate Social Networks Professional Social Networks Enterprise Networks Sharing Networking Problem Solving Crowdsourcing © 2008 Outsell, Inc. All rights reserved. 19 Community 3.0 © 2008 Outsell, Inc. All rights reserved. 20 Community-Based Innovation New ways to gather customer input Tribal marketing & product development Reinventing R&D © 2008 Outsell, Inc. All rights reserved. 21 Business Model Experiments © 2008 Outsell, Inc. All rights reserved. 22 New Revenue Models Licensing Bundling Subscription Syndication Advertising Pay per view © 2008 Outsell, Inc. All rights reserved. 23 Emerging Business Models Around Community © 2008 Outsell, Inc. All rights reserved. 24 10 to Watch © 2008 Outsell, Inc. All rights reserved. 25 Software & Information Mergers © 2008 Outsell, Inc. All rights reserved. 26 Pay for Software and Tools MercuryMD © 2008 Outsell, Inc. All rights reserved. 27 Open Source Everything © 2008 Outsell, Inc. All rights reserved. 28 Open …Access …Education …Mobile …WiFi …Source …Standards …Innovation © 2008 Outsell, Inc. All rights reserved. 29 Web 2.0 to Web 3D © 2008 Outsell, Inc. All rights reserved. 30 Virtual Work Spaces © 2008 Outsell,
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