Media in the Digital World - Presentation by Henry Blodget, CEO, Editor-In-Chief of Business Insider at the NOAH 2015 Conference in Berlin, Tempodrom on the 9th of June 2015.
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Old Billingsgate, London Tempodrom, Berlin
12-13 NOV2015 8 - 9 JUN2016
3. The Business Insider story (so far)
The market today
The future
The Future of Digital Media
4. Founded 2007
$400,000 seed investment
3 writers
~1,000 readers per day
Now No. 1 business site in US
~$50 million raised from Jeff Bezos, Axel Springer, IVP, RRE
250 staff (125 journalists)
~3 million readers per day, ~80mm per month
Reaching the new generation of leaders
16. Strong reader growth
Source: Google Analytics
~70 million readers per month
Confidential
July 2007 May 2015
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
17. Strong growth on all platforms…
Source: Google Analytics Confidential
November ‘09 May ‘15
MOBILE
+ TABLET
59%
35%
Y/Y tablet (UUs)
of uniques
109%
Y/Y mobile (UUs)
40%
Y/Y growth (UUs)
Mobile
Tablet
Desktop
20. No. 1 business site in the U.S.
Confidential
40 million+ US readers
Source: comScore
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Jan-14 Mar-14 May-14 Jul-14 Sept-14 Nov-14 Jan-15 Mar 15
Business Insider
Bloomberg - All Properties
CNNMoney.com
Economist.com
Financial Times Group
Forbes.com
Wall Street Journal Digital
Network (all properties)
(millions)
33. Native digital is disruptive
ConfidentialSource: Business Insider
Our newsroom is vastly more productive than print and TV newsrooms
-
20
40
60
80
100
120
140
160
180
Bloomberg.com WSJ Digital Network NYTimes Digital Forbes.com BusinessInsider.com
Monthly Readers Per Journalist (000s)
35. Source: eMarketer, April 2014
45%
25%
17%
9%
7%
4%
37%
18%
11%
4%
2%
23%
TV Online Radio Print Other Mobile
US Consumer Media Consumption Share
2009 2010 2011 2012 2013 2014
Attention is moving to digital, especially mobile
Confidential
36. 75%
55%
25%
45%
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
U.S.AdvertisingRevenue(millions)
Online vs. Offline Advertising (US)
Online
Offline
Spending is following attention…
Source: Company filings and BI Intelligence estimates. Companies include: Google, Yahoo, AOL, Microsoft, Facebook, Time Warner, Disney, Viacom,
CBS, News Corp, New York Times, Gannett, McClatchy, Time Inc, Entercom, CBS Radio, Clear Channel, Citadel, Cumu Confidential
37. Mobile has extended the digital day to 18/7
ConfidentialSource: Google Analytics
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Mobile Visits Desktop Visits
38. Digital is now “multi-screen”
Confidential
Personal Computers
Smartphones
Tablets
Smart TVs
Wearables
0
1
1
2
2
3
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E
UnitsMiljardi
Global Internet Connected
Device Shipments
Source: Gartner, IDC, Strategy Analytics, Company Filings, BI Intelligence estimates
39. Each device has a different “prime time”
ConfidentialSource: comScore Mobile In Focus Report (March 2013)
Share Of Device Page Traffic On A Typical Workday
40. Source: Newspaper Association Of America
*Estimate
$-
$10,000
$20,000
$30,000
$40,000
$50,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*
Millions
Newspaper Ad Revenue (Print vs. Online)
Print Online
Newspapers still collapsing
Confidential
43. Source: Google, NAA, PIB
$0
$10,000
$20,000
$30,000
$40,000
$50,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Millions
Google vs. Magazine vs. Newspaper Ad Revenue,
US Data, 2004-2013
Google (US) US Magazines US Newspapers
Google is now bigger than all newspapers, magazines
Confidential
44. Source: Company Filings, BI Intelligence estimates
$30
$18
$16
$14
$5 $5
$3 $2
$70
Time Warner Facebook CBS Viacom Gannett Yahoo AOL New York
Times
Google
Billions
Estimated 2014 Revenue
Select Media Companies
Confidential
Google now dwarfs “big media” in US
45. Source: Nielsen, January 2013
58%
73%
83%
89%
63%
68%
63%
42%
Age 18-24 Age 25-34 Age 35-54 Age 55+
PercentReach
Facebook vs. TV Daily Reach
(US)
Four TV Networks
Facebook
Facebook reaches more young people than free TV
Confidential
46. Source: Netflix, SNL Kagan
HBO
Netflix
0
10
20
30
40
4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014
MillionsOfUSSubscribers
Paid Domestic Subscribers — Netflix v. HBO
Netflix now has more U.S. subscribers than HBO
Confidential
47. Source: News Reports, Company Filings
iTunes and Netflix already bigger than cable networks
iTunes
Netflix
AMC Networks
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
2007 2008 2009 2010 2011 2012 2013
Billions
Cable Network vs. Digital Content Revenue
2007-2013
Confidential
48. Source: News Reports, BI Intelligence estimates, Company Filings
$-
$2
$4
$6
$8
$10
$12
2007 2008 2009 2010 2011 2012 2013
Billions
YouTube Ad Revenue vs.
CBS Ad Revenue And AMC Networks Revenue
CBS Ad Revenue
YouTube Ad Revenue
AMC Networks Revenue
YouTube almost as big as a broadcast network
Confidential
49. Native digital media is hitting its stride
2015 Revenue (estimated)
Vice ~$500 million
BuzzFeed ~$250 million
Huffington Post ~$200 million
Vox Media ~$75 million
Business Insider ~$50 milllion
= $1+ billion
53. Younger people use media very differently…
ConfidentialSource: Ofcom
0 10 20 30 40 50 60 70 80 90 100
Total
Aged 16-24
Aged 25-34
Aged 35-44
Aged 45-54
Aged 55-64
Aged 65-74
Aged 75+
Top Five Media Mentions Among all Adults, 2013
Watch TV
Read Newspapers/Magazines
Listen To The Radio
Go Online On A
Computer/Laptop/Netbook/T
ablet
Use A Smartphone
54. Source: Ofcom
To see the future, look at 16-24 year olds…
Confidential
Total Aged 16-24
Use A Smartphone
Go Online On A
Computer/Laptop/Netbook
/Tablet
Listen To The Radio
Read
Newspapers/Magazines
Watch TV
70% of 16-24s say digital is the medium they would miss most
Smartphone
Computer
Radio
TV
Smartphone
Computer
Radio
TV
Print
Now Future
55. Ad spend is following attention, lots left to move
4%
37%
11%
24% 24%
18%
41%
11%
23%
8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Print TV Radio Internet Mobile
Time Spent Ad Spend
2014 U.S. Ad Spending Vs. Consumer Time Spent By Media
Source: Mary Meeker, IAB, eMarketer Confidential
56. Source: Nielsen, IAB
$0
$20
$40
$60
$80
2007 2008 2009 2010 2011 2012 2013
Total TV
Ad Spend
(Billions)
US Ad Spend, 2007-2013
TV Vs. Online Video
TV Ad Spend Online Video Ad
Especially in TV!
Confidential
57. TV is seeing the same
disruption that hit
newspapers 10 years ago
59. Source: Newspaper Association Of America
*Estimate
$-
$10,000
$20,000
$30,000
$40,000
$50,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*
Millions
Newspaper Ad Revenue (Print vs. Online)
Print Online
PREDICTION: Someday, old TV revenue will do this…
Confidential
60. Three strong revenue streams for digital media…
Advertising
Subscriptions and Licensing
Commerce (small but growing fast)
61. “Display” ad revenue still growing, driven by…
Confidential
Google
Other
Yahoo
AOL
Microsoft
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14
Total
Display
Advertising
Revenue
(millions)
US Display Advertising, 2006-2015 (Quarterly)
Source: Company Filings, BI Intelligence Estimates
62. Programmatic…
Confidential
AOL Third-Party
Platforms
Criteo
Rubicon Project
Rocket Fuel
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
Millions
Programmatic Advertising Revenue (Global)
Selected Companies
Note: AOL Third-Party Platforms includes Adap.TV and other ad marketplaces; Rubicon Project based on managed revenue; all others based on GAAP revenue; Source: Company Filings
63. Mobile…
ConfidentialSource: BI Intelligence estimates based on historical data from the Interactive Advertising Bureau
FORECAST: Mobile Ad Revenue (U.S.)
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2013 2014E 2015E 2016E 2017E 2018E
Billions
64. Video…
ConfidentialSource: BI Intelligence estimates based on historical data from the Interactive Advertising Bureau
Digital Video Advertising Revenue (U.S.)
$3.7
$4.2
$4.9
$5.6
$6.2
$6.8
$1.2
$2.0
$2.9
$4.0
$5.2
$6.5
2015E 2016E 2017E 2018E 2019E 2020E
Billions
Desktop Mobile
67. Investments in media now reaching “normal” levels
Vice: ~$750 million
BuzzFeed ~$100 million
Huffington Post ~$100 million
Vox Media ~$100 million
Business Insider ~$50 million
MSNBC: ~$225 million (initially)
68. Digital media companies can achieve massive scale
Global readership and viewership
Unlimited breadth and depth of content
Advantages to scale in editorial, sales,
and technology
Think: “Amazon of content”
69. Digital media is not “winner take all”
Tech is winner-take-all; media and commerce are not
There will be many winners
Amazon has ~2% share of US retail sales
70. But there will not be so
many winners that
everyone will win