Building Global Giants

PRINT MAGAZINE DISTRIBUTED AT NOAH THIS INDEPENDENT INFORMILO PUBLICATION AIMS TO PROVIDE NOVEMBER 13 - 14, 2013 DEEP INSIGHTS INTO THE KEY TOPICS PRESENTED AT NOAH WWW.INFORMILO.COM BUILDING GLOBAL GIANTS How Big Can You Get? The question, posed long ago by famed musician Cab Calloway, is pertinent for both Europe’s Internet companies and their investors. What is the secret to conquering not just your home market but an entire region, and the globe? The theme of the 2013 conference is, “How big can Europe’s Internet companies get?” In online verticals such as advertising, travel, commerce and gaming it appears that even the largest of Europe’s Internet companies have not even started to realize their potential. With significant growth possibilities still ahead they could well reach new heights. The advertising market is a prime exam- ple. Worldwide digital advertising spending levels — including online and mobile advertising spending — represented 21.7% of the total spent on ads in all media this year and is set to account for more than one-quarter of all ad spending. That means more than three quarters of the global advertising market is still up for grabs. Online leisure and unmanaged business travel in Europe was $246 billion in 2012 but only about 42% of the business is currently conducted online, according to a forecast in the European Online Travel Overview, Eight Edition, by Pho- CusWright, a research company special- izing in global travel. In commerce, too, the biggest opportunities are yet to come. In 2012 more Europeans consumers bought videos/ DVDs, music, event tickets and computer software online than offline. And Europe will be the largest eBook market in the HOW BIG CAN EUROPE’S world by 2017, with revenues of $19 billion, according to Forrester Research. It predicts online retail sales in Europe will INTERNET COMPANIES GET? reach ¤191 billion by 2017, up from ¤112 billion in 2012, reflecting an 11% compound and 2016, increasing to $163 billion from then, that companies that understand annual growth rate over the next five years. BY JENNIFER L. SCHENKER $87.3 billion. Digital ad spending is in fact how to operate in this new environment And, despite impressive growth in coun- growing faster than total media ad spend- like France’s Criteo, Germany’s Adtel- tries such as Germany, Britain and France, It is not surprising that Paris-based ing and will drive overall growth in ad ligence, the UK’s Unruly Media, and online commerce still only represent less Criteo, an ad tech company that prices spend. That is because as more people be- Israel’s Outbrain, are generating lots than 14% percent of overall commerce and supplies personalized advertising come Internet and mobile Internet users, of excitement. in real time for its e-commerce clients, marketers across the globe are expected These ad tech companies plus oth- CONTINUED ON PAGE 22 had an upsized IPO on NASDAQ in to continue to increase their budgets for ers including Buzzing, Viewster, Rank late October. online and mobile advertising. Above, Perform Group and Populis, will Worldwide digital ad spending topped If the pundits are right, the effective- all present at NOAH Conference, an an- SEE INSIDE $100 billion in 2012, according to eMar- ness of those ads will depend largely nual event focused on late-stage Internet FOR EUROPE AND ISRAEL’S keter. And digital ad expenditures are on personalization and other types of companies; this year it is expected to at- TOP 25 FASTEST-GROWING projected to nearly double between 2012 effective targeting. It is little wonder tract some 2,000 attendees. INTERNET COMPANIES WHERE BUSINESS MEETS INNOVATION BUILDING GLOBAL GIANTS THIS MAGAZINE WAS PRODUCED BY INFORMILO, A MEDIA COMPANY THAT SPECIALIZES IN CONNECTING BUSINESS WITH INNOVATION. INFORMILO RUNS A NEWS SITE, WWW.INFORMILO.COM, AND PUBLISHES INDEPENDENT MAGAZINES CONNECTED TO MAJOR INDUSTRY CONFERENCES. Digital That entrepreneurial mindset is cru- JENNIFER L. SCHENKER: EDITOR-IN-CHIEF AUDREY MANDELA: CONTRIBUTING EDITOR cial for succeeding in classifieds, whose ERIC SYLVERS, D’ARCY DORAN, core is individuals selling things, says Real BRUCE CRUMLEY: CONTRIBUTING WRITERS Web’s Piccione. “This is probably the best DESIGN: THEDESIGNSURGERY.CO.UK industry for an entrepreneur,” he says. “We come from a technology back- Reboot ground, so we want to offer consumers CONTENTS new technology ahead of the competi- Do today’s digital classified leaders think their tion,” he says. His company prides itself on its top-rated mobile apps, which industry could be on the brink of another wave of include features such as giving users 01 22 23 HOW BIG CAN EUROPE’S INTERNET COMPANIES GET? the ability to search real estate listings disruption? “Absolutely” says Martin Frey, the CEO by drawing a circle with a finger on a 02 03 EUROPE’S FAST- of Blocket.se, Sweden’s most popular classified site, city map. GROWING ONLINE The print classified market was not CLASSIFIED AD SECTOR echoing the answer of every CEO Informilo spoke very developed in Turkey before the In- ternet. So for sectors like job classifieds, 04 05 EUROPE’S GOT GAME to for this article. The answer: disrupt yourself. “the market pretty much moved on di- rectly to online,” explains Yusuf Azoz, 06 TURNING ADS INTO VIRAL MEGA-HITS CEO of the country’s first career portal Kariyer.net. Azoz is also a scheduled 07 ADTELLIGENCE BY D’ARCY DORAN speaker at Noah London. He sees mas- sive opportunities in Turkey where only 08 HOW ETORO SCALED The way to capture the story of classi- ten the problem with this industry is we half of the country’s 2.4 million registered fied advertising in the 21st century is have a very defensive way of thinking. companies have made the transition to 09 21 RECRUITING TALENT IS OFTEN THE TOUGHEST simple, says Peter Zollman, a former We want to protect business rather than digital. Of the 600,000 companies that PART OF SCALING UP newspaperman turned interactive occupy new territories. If you think that Azoz believes could benefit from online media and digital classified consultant. way in business, very often you become a recruitment, just under 50,000 deal with 10 11 PREPARING TO EXIT Imagine an “X.” The line that sweeps loser,” says Schibsted Sweden CEO Raoul Kariyer, “which means we have only down, left to right, is that of major U.S. Grünthal. “You must try to win the game,” tapped 8% of the addressable market.” 12 13 ¤7 MILLION, SEVEN CONTESTANTS, SEVEN newspapers’ classified advertising rev- he says, “not only to protect your business; Ever-improving technology will be key JUDGES…THREE WINNERS enues. The rising line is Craigslist’s. it’s a state of mind.” to expanding its market share. “Online “Just compare the two, the change is Speak to more than one online mar- classifieds businesses need to exploit mo- 14 15 TOP 25 HOTTEST LATE-STAGE very dynamic and very telling,” says Zoll- ketplace CEO and you will quickly get bile, social media and also big data,” Azoz COMPANIES IN EUROPE man, a founding principal of the AIM the sense that if the industry had a theme says. In addition to seeing the number of Group, U.S.-based international classified song, it would probably be Abba’s “The job applications submitted by mobile rise 16 17 18 WHO TO PITCH AT NOAH advertising consultants and a scheduled Winner Takes It All.” to 15% of the total, the company has de- speaker at NOAH 2013 in London. “We believe this business is about veloped a popular big data product called 19 DEALROOM: EUROPE’S NEW It’s a raw story of disruption, but it’s being the market leader,” says Andrea ILUSTRATION: ADVANCED INTERACTIVE “Career Map.” VERSION OF ANGEL LIST MEDIA GROUP LLC / AIMGROUP.COM also striking that the product itself, the Piccione, the CEO of Italy-based Real “Career Map guides university stu- 20 DEALROOM: EUROPE’S NEW classified ad, from Avito to eBay, is a natu- Web, who was previously eBay’s gen- dents, graduates and even high school VERSION OF ANGEL LIST ral on the Internet. The Norwegian media eral manager in Italy, another scheduled seniors in their career planning,” Azoz group Schibsted, one the best examples speaker at NOAH. Real Web’s assets in- Since newspapers lost their monopoly on classified advertising, the competition has only intensified. Innovation has become a key factor for global giants and says. “The platform is online and uses THE INFORMATION CONTAINED IN THIS PUBLICATION WAS of a traditional newspaper publisher that clude real estate sites Immobiliare.it and “Of course it’s tough to see their challengers as they jostle for top position in their markets. AIM Group’s General Classifieds 2013 Annual report looks at who is winning. Kariyer.net’s CV database in order to visu- COMPILED USING ETHICAL JOURNALISM PROCEDURES. has transformed into a digital dynamo, is Eurekasa.it and insurance sites Facile.it, alize the career graph of Turkey. Users NO LEGAL LIABILITY CAN BE ACCEPTED FOR ANY ERRORS. NO PART OF THIS PUBLICATION MAY BE REPRODUCED fond of saying “the Internet is made for Assicurazione.it and Mutui.it, as well as that the traditional business can enter the faculty and university name WITHOUT THE PRIOR CONSENT OF INFORMILO. classifieds and classifieds are made for the Seguros.es in Spain, Oferty.net in Poland is suffering. At the same time, of where they study and get real statistics Internet.” Indeed, classified advertising and Spiti24 in Greece. about which industries, departments, is thriving, with more ordinary people “The power to execute is much, much you must look into the future it’s going to take some years to become the company for the next big disruption, pact, AIM’s Zollman says.

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