Insight: B2B
■ Diversification and embedded workflow
Media companies are accelerating their diversification into multiple revenue streams. In addition to an increased focus on marketing services, many B2B trade publishers are increasing their events revenue, both in-person and digital. A bigger leap has been the subset of firms that are adding data and analytics embedded into their customers’ workflows, with leaders capturing large share of day usage.
■ E-commerce
A few B2B media companies are now running their own goods and services e-commerce businesses. Executives leading the charge see a winning combination of great growth potential and strategic necessity. Meanwhile, suppliers with active e-commerce businesses are moving into content. They also see “contextualized commerce” as the future, with content and audience engagement providing premium context. This enthusiasm feeds on the core axiom: Audience and trust are publishers’ most valuable and unique assets, and they are under-monetized by publishers.
■ Global expansion into emerging markets
The economies of the emerging markets in Asia, India, Latin America, and Africa are growing faster than those in the US and Europe, with the number of professionals in all fields in those markets is growing
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Leſt: David Hill, president, IDG and Right: Adriam Barrick, chief content officer, UBM
rapidly. As professional functions in many emerging markets do not have a long history of entrenched information suppliers, there are opportunities for new revenue and profit growth potential for US- and European based media companies that are facing low growth, stagnation, or recession, potentially through local partnerships. Many of these trends are evident at IDG who operate in 95 countries around the world, often through licensed partners, with a diversified portfolio of print, digital, mobile, events and a growing business in marketing services. David Hill, president of IDG, said: “Marketing services is growing very rapidly, and we are doubling our commitment to it, including lead generation as well as data, video, microsites and research.” IDG has invested significantly in their
The dramatic shift taking place in how B2B brands sell and market, will require those in business media to transform
B2B GROWTH RATE HISTORY
growing digital businesses, including their own digital ad network, RTB and programmatic businesses Digital continues to grow rapidly globally for IDG, and is their largest revenue source in the US. However in many emerging markets print continues to be a major contribution, and in many markets events are a
great driver of revenue and growth. At UBM in the UK, events are the majority
of revenue, though a major element of their strategy is supported by building professional communities between buyers and sellers, with a combination of analytical journalism and moderated contributions from professionals in the industry. UBM’s chief content officer, Adrian Barrick, said: “This shift required a new platform that enabled peer to peer learning from professionals, rather than the old model which was solely editors broadcasting their views. The aim is to create engaged communities across our major verticals, and it’s working.” While B2B media owners with more
traditional strategies can continue to succeed, the dramatic shift taking place in how B2B brands sell and market their products and services, will require those in business media to transform their business models and overall strategy to survive. And though global B2B 2013 revenue has improved since the recession, the modest growth of 2.1 per cent overall (see Outsell chart below) highlights the need for B2B media owners to adapt more quickly to meet client expectations. In that interest, our next feature will profile a selection of B2B brands and the transformation taking place in B2B marketing spend.
MICHAEL TOEDMAN is managing director of Soho Syndicate, a media and marketing consultancy focused on international, digital and commercial strategy. The company’s b2bsyndicate. com features expert practitioners in B2B media and marketing, including thought-leadership, professional development and benchmarks. Toedman is also international managing director for the Business to Business Network. Prior to Soho Syndicate, he served in senior roles at BusinessWeek, Euromoney and Institutional Investor. He has also been president of the IAA in Hong Kong and joined the IAA UK board in 2001, including two terms as president (2007-2011), and currently serves as chairman of the UK chapter.
© 2014 Outsell, Inc.
www.outsellinc.com
Source: Preliminary estimate, Outsell Information Industry Database
issue 81_2014 | Magazine World |47
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