1. Patrick Fuller, Group Director, Haymarket Consumer Media Making money from digital Association of Indian Magazines Congress February 2014

2. Agenda  Introduction to Haymarket  How our business is changing  Case study one: What Car?  Case study two: PistonHeads  Lessons learned

3. 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

4. Association of Indian Magazines Congress February 2014 Our global footprint

5. Association of Indian Magazines Congress February 2014 Haymarket in India Launched 2000 in a joint venture with Hormazd Sorabjee Based in Mumbai and Delhi 200 staff Seven brands

6. Association of Indian Magazines Congress February 2014 Our brands in India

7. Association of Indian Magazines Congress February 2014  Print  Web  Mobile  Awards  Events Autocar, our market leader

8. Association of Indian Magazines Congress February 2014 How our business is changing

9. Volume Value 20071,254,252,231 £1,920,459,496 2012 810,863,058 £1,413,590,937 Change -35% -26% The challenge in the UK Association of Indian Magazines Congress February 2014

11. 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 Our revenue splits in consumer Association of Indian Magazines Congress February 2014

12. 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 Transition from print to digital Association of Indian Magazines Congress February 2014

13. 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 Core values transferred Association of Indian Magazines Congress February 2014

14.  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 Markets and territories Association of Indian Magazines Congress February 2014

15. Stick to our core strengths Be confident that digital is our friend Do not sell at a discount Focus on educating staff… and clients But how can businesses like ours compete? Association of Indian Magazines Congress February 2014

16. Association of Indian Magazines Congress February 2014 Research will help us to win the argument Source: AOP and Comscore ‘Value of Trust’ report 2012 Question: which content do you trust?

17. Association of Indian Magazines Congress February 2014 How that affects behaviour Association of Indian Magazines Congress February 2014

18. Association of Indian Magazines Congress February 2014 Source: comScore Marketing Solutions How that affects behaviour Association of Indian Magazines Congress February 2014

19. Association of Indian Magazines Congress February 2014 Source: comScore Marketing Solutions How this affects behaviour Association of Indian Magazines Congress February 2014

20. 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 Progress so far Association of Indian Magazines Congress February 2014

21. Association of Indian Magazines Congress February 2014 Case study: What Car?

22. The UK’s biggest new car research brand Magazine Website Apps Mobile Haymarket’s most successful product

23. Association of Indian Magazines Congress February 2014 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…

24. 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: 1To publish a unique review of more than 5000 new cars 2Make it easier for our users to find important content 3Create additional high value advertising opportunities

25. Association of Indian Magazines Congress February 2014 Development roadmap

26. 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

27. 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

28. 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: 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

29. Association of Indian Magazines Congress February 2014 Case study: PistonHeads

31. Association of Indian Magazines Congress February 2014 Launched in 1998 “An online magazine for PetrolHeads” Cars for sale & forum Acquired by Haymarket in 2007 2014 Hitwise: 3 rd Biggest UK Motoring Site A short history

32. Association of Indian Magazines Congress February 2014 The challenges for Haymarket Integrate without upsetting both ecosystems Monetise, but discreetly and appropriately Live in and with the community But, above all Learn how to be truly digital

33. Association of Indian Magazines Congress February 2014 PistonHeads 2014 – key facts 300,000 posts pcm Community 80,000 cars for sale Classifieds 5m unique users Traffic

34. Association of Indian Magazines Congress February 2014 Revenue growth – now 5000 lakh rupees

35. Offline - Annual dinner “Black Tie and Pie” - Sunday Services events - Trackday programme - Driving Holidays How to monetise a community Online - Used cars for sale - Car buyer services: insurance, finance, history check - Skimlinks: revenue from post - Network and Google inventory - PistonHeads merchandise - Private Cars for sale

36. Association of Indian Magazines Congress February 2014 Secret of PistonHeads’ success Simplicity of consumer and client offering Everything has a user benefit Diverse revenue streams that feed off size of audience Scaleable market to support growth

37. Association of Indian Magazines Congress February 2014 So how will this apply to India?

38. 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

39. 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

40. Association of Indian Magazines Congress February 2014 Finally, some suggestions ① Define your strengths and focus relentlessly on them ② See through the noise – keep it simple ③ Restructure and see how flexible your staff can be ④ Employ specialists in analytics and SEO ⑤ Maintain high yields ⑥ Remain committed to quality ⑦ Buy a start-up... and use a smartphone