Presentation of the World Innovation Report at FIPP World Congress in Toronto, October 2015

2. THE
MOST
SUCCESSFUL
MAGAZINE
MEDIA
INNOVATION
IN THE
WORLD

3. CASES FROM
12 MONTHS OF
RESEARCH
& LESSONS
FROM OUR
GLOBAL
CONSULTING
WORK

4. THERE IS A CLEAR WAY
FORWARD TO REBUILD
THIS BUSINESS BASED
ON DIGITS AND ATOMS
INNOVATION MEDIA CONSULTING

5. FROM
PROGNOSTICATION
TO PRESCRIPTION

6. 5 KEYS TO
SUCCESS
ALL ROUTES TAKE
YOU THROUGH
ONE OF THESE
ROADS

7. 1. MOBILE
IS THE DOMINANT PLATFORM
2. VIDEO
THE DOMINANT MODE
3. NATIVE ADVERTISING
WILL BE THE DOMINANT VEHICLE
4. PROGRAMMATIC
WILL BE THE DOMINANT METHOD
5. EVENTS, E-COMMERCE
WILL HELP REPLACE LOST PRINT
REVENUE

8. ALL THESE MUST BE
PART OF THE NEW
BUSINESS MODEL MIX
INNOVATION MEDIA CONSULTING

9. 5+3key
innovations

10. MICRO-
PAYMENTS
1!

11. MICROPAYMENTS
ANSWER MEDIA’S
TOUGHEST
“WHAT IF”
QUESTIONS

12. • You could read all the
journalism you care for
in one place
You would only need to
register once to read all
of what you do want
“WHAT IF”

13. • You would only pay for
the articles you were
interested in and actually
read and liked
You wouldn’t be pressured
to subscribe
“WHAT IF”

14. • You wouldn’t be
bombarded by ads
You’d get your money
back if you didn’t like the
storY
“WHAT IF”

15. ENTER
BLENDLE

17. • ALL MAJOR DUTCH
NEWSPAPERS &
MAGAZINES

18. • 400K
REGISTERED
USERS
TWO-THIRDS
UNDER AGE OF 35

19. • ESTIMATED 5,000
NEW USERS/MO.
ONE IN FIVE TOP UP
THEIR ACOUNTS

20. • AVERAGE ARTICLE
PRICE = €0.20
AVERAGE REFUND
REQUEST = 10%

21. • GERMAN LAUNCH W/
ALL DAILIES BUT ONE
GERMAN BETA TEST:
USERS TOPPED UP
ACCOUNTS 5x HIGHER

22. AND …

23. “It’s money from
people who weren’t
paying for
journalism before.”“”
— Blendle founder Alexander
Klöpping Klöpping

25. “My friends had
never paid for
music and movies,
until Spotify and
Netflix.”
— Blendle founder Alexander
Klöpping Klöpping

26. “And with
Blendle, they’re
paying for
journalism, often
for the first time
in their lives.”
— Blendle founder Alexander
Klöpping Klöpping

27. PUBLISHERS AND
BLENDLE
SPLIT THE
REVENUE,
70% GOING TO THE
PUBLISHER

28. OUTSIDE OF THE
NETHERLANDS &
GERMANY:
The Washington Post,
The New York Times,
The Wall Street Journal,
and The Economist

29. ANOTHER
MICROPAYMEN
T CASE:
The Winnipeg
Free Press here
in Canada

31. LOSING PRINT
CIRCULATION

32. THEY
DISCOVERED
WHERE FORMER
SUBSCRIBERS
HAD GONE

33. THEIR MOST AVID
ONLINE USERS
WERE PEOPLE
WHO’D LET THEIR
SUBSCRIPTIONS
LAPSE“”

34. SO, THE ‘FREEP’
LIMITED ONLINE
READERS TO
THREE STORIES IN
THEIR LIFETIME!

35. READERS MUST
REGISTER THEIR
CREDIT CARD,
PAY 27 CENTS
PER STORY

36. THEY GET BILLED
AT THE END OF
THE MONTH,
UP TO THE PRICE
OF AN ONLINE
MONTHLY
SUBSCRIPTION

37. IT’S WORKING

38. “We get a couple of
dozen new casual
readers sign up
every day and are
selling a substantial
number of articles
every day online”
— Free Press publisher Bob Cox

39. ANOTHER
EXAMPLE

40. CoinTent

41. TWO TO FIVE TIMES
MORE PAYING
READERS
than publishers draw
with subscriptions
— Bradley Ross, Founder and CEO

42. 55% PURCHASE
ANOTHER ARTICLE
— Bradley Ross, Founder and CEO

43. READERS ARE
GETTING MORE
COMFORTABLE
PAYING DIGITALLY

45. MOBILE
FIRST
2!

46. WHAT IS THE BEST
STRATEGY FOR A
MOBILE MAGAZINE?
DON’T HAVE A
MAGAZINE MOBILE
APP…

47. IS YOUR
WEBSITE
RESPONSIVE?

48. GOOD FOR
YOU, BUT …

49. THAT
ISN’T ENOUGH
ANYMORE

50. AS HOCKEY
GREAT
WAYNE
GRETSKY
ONCE SAID:

52. “DON’T
SKATE TO
WHERE THE
PUCK IS!”

53. “SKATE TO
WHERE IT WILL
BE!”

54. IN OTHER
WORDS,
RESPONSIVE IS
SO YESTERDAY

55. READERS NO
LONGER JUST
WANT YOUR
WEBSITE TO
LOOK NICE ON
MOBILE

56. READERS WANT A
MOBILE
EXPERIENCE
THAT DELIVERS
ON THEIR MOBILE
EXPECTATIONS

57. AND THAT
DELIVERS
USING THE
UNIQUE
POWERS OF
MOBILE

58. MOST OF US
DO NOT DO
THAT; MOST
OF US ARE
PLAYING
CATCH-UP

60. TODAY, YOU
MUST BE
MOBILE-FIRST

61. WHY?

62. “CUSTOMER
EXPECTATIONS
HAVE CHANGED”
— Andres Wolberg-Stok, Citi Global
Head of Emerging Platforms

63. “This is a mobile
mind shift, not just
‘mobile first’. It is
a complete
change in the
psychology of
consumers”— Forrester Research
senior vice president Josh Bernoff

64. “WHAT LIES
AHEAD ISN’T
JUST A MOBILE-
READY CUSTOMER
EXPERIENCE.”
— BRIAN SOLIS, ALTIMETER GROUP

65. MOBILE-ONLY
IS BECOMING THE
NEW STANDARD
— BRIAN SOLIS, ALTIMETER GROUP

66. MOBILE IS
62 % OF TOTAL
DIGITAL TIME
SPENT IN U.S.
— Comscore 2015 Mobile App Report

67. MOBILE IS
EMERGING AS A
SELF-CONTAINED
EXPERIENTIAL
PLATFORM

68. FOR EXAMPLE:
FACEBOOK DIDN’T
JUST MAKE ITS
DESKTOP SITE
MOBILE-FRIENDLY

70. FACEBOOK
DESIGNED A
COMPLETELY
UNIQUE MOBILE
EXPERIENCE
SUITED TO
SMARTPHONES

71. FACEBOOK ALSO
DESIGNED AN
ENTIRELY NEW
ADVERTISING
PLATFORM
TO MONETISE THEIR
UNIQUE MOBILE
EXPERIENCE

72. NOW
MORE THAN 50%
OF THEIR
REVENUE
IS FROM MOBILE

73. SO DO NOT,
REPEAT DO NOT,
BUILD YOUR
MOBILE
EXPERIENCE ON
YOUR LEGACY
FOUNDATION

74. THAT WOULD BE
ITERATING
NOT
INNOVATING

75. THAT WOULD BE
INCREMENTAL
CHANGE
NOT
INNOVATION

76. READERS
WILL
PUNISH
YOU

77. THEY WILL
JUMP TO A
COMPETITOR
WHO BETTER
UNDERSTANDS
THE MOBILE
EXPERIENCE

78. YOU MUST
PUBLISH
CONTENT THAT
IS UNIQUE TO
MOBILE

79. ON A
UNIQUELY
MOBILE
SCHEDULE

81. • 7 AM: Prepare me for the day
9 AM: Make me feel connected
11 AM: Help me follow a
developing event
Noon: Improve my lifestyle; help
me plan
3 PM: Update me on what I’ve
missed
4 PM: Empower me to appreciate
or take part in an event
9 PM: Entertain me

82. WITH A
UNIQUE MOBILE
TEAM THAT
“GETS MOBILE”

83. AND THEN, GET
READY FOR
WEARABLES!

84. GET READY, TOO,
FOR LOCATION-
BASED
NOTIFICATIONS!

85. YOUR ADVERTISERS
AND YOUR READERS
MAY BE READY
BEFORE YOU ARE!

86. NEW, LOW-ENERGY
SIGNALS, LIKE APPLE’S
iBEACON & SAMSUNG’S
PROXIMITY, ARE
OFFERING IN-STORE
MOBILE CONNECTIONS

87. HALF OF THE TOP U.S.
RETAILERS ARE
STRATEGISING
AROUND IN-STORE
BEACONS
TO IMPROVE THE
SHOPPING
EXPERIENCE

88. ALREADY, 20%
OF AMERICAN
ADULTS OWN A
WEARABLE…

89. MEDIA
HUBS -
CULTURE
3!

90. INNOVATION
IS NOT
IMITATION
INNOVATION MEDIA CONSULTING

91. WE ARE NOT GOOGLE OR
FACEBOOK
INNOVATION MEDIA CONSULTING

92. WE DO STORY TELLING,
JOURNALISM,
NOT ALGORITHMS
INNOVATION MEDIA CONSULTING

93. EXPERIMENTATION YES…
BUT
SORRY, FAILURE IS
OVERRATED
INNOVATION MEDIA CONSULTING

94. WE KNOW ENOUGH
ABOUT WHAT WORKS
TO EMBRACE AND
IMPLEMENT
INNOVATION MEDIA CONSULTING

95. INNOVATION DOES NOT
HAPPEN IN A VACCUM
INNOVATION MEDIA CONSULTING

96. INNOVATION DOES NOT
HAPPEN BECAUSE YOU
HIRE DIGITAL NATIVES
OR CREATE INNOVATION
LABS
INNOVATION MEDIA CONSULTING

97. INNOVATION HAS TO
PERMEATE EVERYTHING,
EVERYWHERE AND
EVERY ONE
INNOVATION MEDIA CONSULTING

98. INNOVATION
MUST START AND END
ON THE EDITORIAL
FLOOR
INNOVATION MEDIA CONSULTING

99. HOW DO YOU
REORGANISE TO DO
MORE GREAT THINGS
THAN EVER
INNOVATION MEDIA CONSULTING

100. TO
INNOVATE,
YOU MUST
CHANGE:

101. ORGANISATIONAL
STRUCTURE
WORK FLOWS
ARCHITECTURE
JOB DESCRIPTIONS
STAFF MIX
CULTURE

102. YOU MUST
INTEGRATE
YOUR TEAMS

103. YOU MUST
REWARD
RISK-TAKING

104. HE WHO NEVER
MADE A MISTAKE
NEVER MADE A
DISCOVERY

105. YOU MUST
FLATTEN YOUR
ORGANISATION

106. YOU MUST GIVE
DEVELOPERS, DATA
ANALYZERS, & VISUAL
JOURNALISTS A PLACE
AT THE PLANNING
TABLE

111. …WHAT REALLY
MATTERS IS
JOURNALISM, EDITORS
WILD IDEAS AND CRAZY
PEOPLE
INNOVATION MEDIA CONSULTING

112. …EDITORS
WHO FOCUS ON:
GREAT WRITING
CONSTANT
REINVENTION
PICKING UP NEW
GADGETS WITH BOTH
HANDS
INNOVATION MEDIA CONSULTING

113. FEAR IS THE MORTAL
ENEMY OF CREATIVITY
CREATIVITY IS THE FUEL
OF INNOVATION
INNOVATION IS YOUR
GUARANTEE TO
SUCCESS
INNOVATION MEDIA CONSULTING

114. IF YOU ACCEPT CHANGE
YOU NEVER GROW OLD
INNOVATION MEDIA CONSULTING

115. CHANGE IS WHAT
WE DO AT INNOVATION
WE ARE ENABLERS
OF CHANGE
INNOVATION MEDIA CONSULTING

116. THE GLOBAL EXPERTS IN
HELPING MEDIA COMPANIES
INNOVATE

118. IT’S TIME
TO INNOVATE
INNOVATION MEDIA CONSULTING

119. www.innovation-mediaconsulting.com
THANK
YOU!