Transcript Presentation for Nestle

Money and online media:
The INQ7 experience
INQ7 Interactive Inc.
Profile
• Joint venture between top newspaper
(Inquirer) and top television network
(GMA-7)
• 35-41 million pageviews per month; 21
million unique visitors per month; 90,000
SMS alert subscribers
• 70% of audience is overseas, mostly from
the US
• Top sections are homepage,
entertainment, breaking news, and
national headlines--in that order usually
INQ7 Interactive Inc.
INQ7 news desk
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7 reporters
5 full-time editors
12 technical personnel
Full number of employees: 43
Wire agency style operation
Daily volume: Around 150 stories, 12 video clips
Breaking news frequency is generally twice per
hour. Near real-time during coups and other
emergencies when running account is used.
• Wire feeds: AP, AFP, XFN-Asia, Reuters, Inquirer,
GMA-7
INQ7 Interactive Inc.
What pays for all this?
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50% RP-based advertisers
35% US-based advertisers
15% Syndication, SMS, and other revenue
Advertising revenue has grown an
average of 100% each year for the past
three years. Main driver for revenue
growth
INQ7 Interactive Inc.
Implications on editorial
• Pressure to run press releases of advertisers
• Pressure to create content that “sells”
• Homepage and inner pages become battleground between
sales and editorial in terms of ad space
• Newness of medium means less awareness of church-state
division
• Projects without a clear upside for advertisers receive less
priority
• The short of it: The more things change, the more they stay
the same.
• No threat of an ad boycott…so far
INQ7 Interactive Inc.
Responses
• Salespeople told that they cannot promise press
releases as part of ad packages and that the
site’s editorial credibility is the key to high
readership
• Express and mobile editions of site that have
fewer ads. These are the editions used in hightraffic situations.
• Exploring paid subscription model as option for
readers who want no ads at all
• Editorial OK required for certain types of rich
media ad campaigns
INQ7 Interactive Inc.
Summary
• Advertising appears to be the most promising
business model online to date for news sites.
• Such a business model results in online media
outfits facing the same problems as traditional
media counterparts that also depend heavily on
advertising.
• Editorial’s best defense is to educate sales on
good editorial practices and explain to them that
keeping to these practices will result in long-term
viability.
INQ7 Interactive Inc.