Here’s an overview of the latest developments in the mobile Internet industry. I used current reports from Morgan Stanley, Distimo, NetMarketShare and other sources published in June or July 2010.

The presentation features also some early findings on usage of newspapers on iPad thanks to John Einar Sandvand of a Norwegian daily newspaper Aftenposten. John Einar disclosed them during his speech at the Oxford Tablet Summit organized in May by INMA, Innovations Media Consulting Group and the Reuters Institute for the Study of Journalism. We had been trying to ask the right questions in Oxford — the list is included in the slideshow. Where to find the answers?

I hope we will be able to learn more this September in Kraków, Poland, at the annual INMA/OPA Europe Newsmedia Conference where we plan to have a special session on tablets and mobile reading devices. As we want to share the most current case studies, we are going to put them on the programme very close to date of conference. Expect then the unexpected.

Update: This deck made one of three Top Presentations of the Day at SlideShare on July 28, 2010. I think it just proves how important this topic is today.

De Persgroep's portfolio

It is the best time ever to invest in newspapers and the best time to look back on hypes that never materialized, a fresh look at the business models of newspapers, mobile, internet, free newspaper, etc. but especially a story about the passion for the most beautiful medium on earth. De Persgroep made the largest newspaper investment in Europe in 2009 by buying PCM Uitgevers, editor of AD, NRC, Volkskrant en Trouw. Xavier Verellen, the Chief Commercial Officer of De Persgroep (Belgium) spoke about it on the second day of the INMA Outlook 2010 conference in Liverpool.
Xavier Verellen showed the attendees the love that Persgroep has for printed newspapers. As he said, all great ideas he takes from INMA conferences, such as marketing campaigns, internet strategies (they look at best examples and implement the best ideas), books and dvd collections. All of those have made Persgroep very successful in Belgium. They publish 3.7 million paid newspapers per day. There is no tv programme in Belgium that reaches even 1.7 million viewers per day.

Here are all the hypes Xavier Verellen recognizes as most important to the newsmedia market and how Pergroep deals with them:

1. Free newspapers. Nobody talks about it anymore, suddenly it’s no more a threat. Persgroep does not follow that concept. 275 million dollars cumulated loss of Metro in 2000-2009 makes Persgroep treat the idea of free newspapers as the mistake in the industry.
2. Format changes: broadcast, belgian, berliner, tabloid, compact, micro. Basic idea is for Persgroep fully acceptable, but the execution in different parts of the world was not right. Persgroep followed the trend of format change.
3. Internet. Persgroep goes the same internet path, but it believes web has not the same power, not the same involvement as print does. Paper attracts readers for 45 minutes daily, in web, readers only scan the information. Persgroep looks closely at the internet and believes it is important to invest in that.
4. Integrated newsroom. Pergroep has a main goal: they want to grow on the internet, but they don’t want to lose a single paper copy. Despite starting online operations in 2003, Persgroep has separated newsrooms, with different people working there – crossing only in marketing. This way print journalists remain creative towards every print edition of the newspaper.
5. Newspaper as a magazine. Absolutely not supported by Persgroep. They want to make every day there’s a pleasure to read newspapers. Everyday, the newspaper brings news. They shouldn’t become “daily magazines”.
6. Mobile. The jury is still out. Of course people will use mobiles, but it’s going to be a huge work involved to build the right business model. Profits are needed to be seen for Persgroep to invest in this market.
7. Cross media selling. Those are two different worlds according to Persgroep. They differ in terms and in usage. Persgroep wants to diverse, and focus on each platform singlehandedly.

Xavier Verellen concluded, that print is stillthe best business model in the world, and it will never be equalled to by internet or mobile business models.

Junkmail's free classifieds website

The world is changing, and classifieds are changing the world for publishers as well. Felix Erken, the Chief Executive Officer of Junkmail in South Africa who spoke at INMA/OPA Outlook 2010 conference on Thursday, experienced it with his newspapers.
Felix Erken divided his speech into two parts, with two different timetables. One had only the good times for southern african newspapers noted. The other one, on the contrary – was pointing the times when the market was not really kind to newspapers.

Good times for Junkmail in South Africa:

• 1994 – market leader in carrying classifieds
• 1997 – launched online and being no 1 in the country for many years
• 1999 – launched mobile versions of the sites
• 2006 – uninterrupted growth for 7 years, print online and mobile
• 2008 – record profits both online and print

Bad times for Junkmail in South Africa:

• 1999 – circulation peaked and started to decline
• 2006 – gumtree and other sites launched in South Africa
• 2007 – classified numbers started to decline
• 2008 – website traffic slowed down
• 2009 – global recession

As for main threats to southern african newspapers, Felix Erken pointed out 3 things: Google, social networks, and craigslist.

1. Google changed attitude towards web, as it actually worked. Google ad revenue model worked as well. It changed the way many people have behaved. People started trusting the web more and had higher expetations. Google enhanced the dependence on SEO/SEM. Will Google kill newspublishers’ classified ads business? This film, suggested by Felix Erken, could bring the answer:

2. Social networks. Users distanced themselves from the publishers, nearly saying: leave us alone, who needs a publisher online!. It’s not out medium to control or own anymore. It is a medium, when news, if important, will alone find a group that could be interested in it.

3. Craigslist – free classifieds network which is so popular, that if it was to put Google adWorks on the page it would earn billions of dollars. Free internet classifieds are killing the ones in the papers. And despite trying to compete with it online, by letting the readers have online classifieds for free, Junkmail is losing the battle because Craigslist already is there.

Due to the above, a big decision had to be met in Junkmail. A new model was born: free to view, with ads live, and free trade online. Online, however, will never be dictating the print strategy of Junkmail.

Felix Erken left the listeners with words of advice: Watch, read, listen, and look ahead but always watch your back. Get the basics right: use the right platform, maps, video, and use the strongest assets: brand, and trust.

South Africa has a 47 million population, and about 7 million internet users.

Wanja Oberhof

the internet, and communities. Niiu is printed on classic newsprint and delivered at the home each morning.

Niuu has various sources, and various paths of information. The idea was inspired by social networks. But the real question was how to create a new business model – through information, creating special interests, and targetting the audience.

Niiu is combined from national and regional newspapers, from different sources. Wanja Oberhof believes that print is still the most comfortable medium, but at the same time he is thinking about ebooks, kindle and so on.

Wanja Oberhof has been working on this project for 2,5 years. The preparations included finding content providers and signing the agreements with them (which wasn’t easy), creating a software to combine this all together, and then classical in newspaper production cycle: printing and delivery.

Now Niiu cooperates with ca. 20 newspapers: regional, national, and international (like New York Times or International Herald Tribune).

Niiu is now being tested. The official start is set for 16th November. So far it receives great feedback, especially from the young target group. The next steps, as Wanja Oberhof said, will include finding other distribution channels, and building a variety of online pages.