11 November /December 2013 publishing strategy the journalists it is highly motivating to contribute to its daily production. Throughout North America, newspapers are cutting their teams, while we are hiring and creating a positive dynamic in the company. Over time, some jobs closely linked to print will disappear, but we are creating jobs in the core area of our business, which is producing contents. In 2010 you set out with the intention to dream up a new product, and especially a new business model. If other publishers wanted to do likewise, what would you recommend? If a group seriously wanted to embark on a similar strategy, we could help them skip several steps. They should come visit us! Our project had to overcome two major challenges. The first was technological, because to enable all the functionalities in the app, the level of interactivity, integration of videos and images, and all the advertising formats especially for the tablet, we had to develop five software programs ourselves and adapt 15 others. The second challenge was cultural, because it is essential to encourage employees to rethink their jobs; that applies to both the editorial and advertising teams. Changes in work processes must be addressed at a very early stage, together with the employees. Interview by Valérie Arnould, Business Editor, Business Development and Emerging Digital Platforms, WAN-IFRA. www.worldnewspublishingfocus.org Profile of La Presse+ Origins of the project Consideration begins in 2010 on how to move from a business model in decline (the daily newspaper) to a growth model, with the aim of attracting a younger audience to the brand. The management of La Presse regards the websites and smartphones as good content distribution models but unsuitable for solving the problem of how to grow revenue. It is deemed necessary to change the newspaper business model more radically. Initial research reinforces two convictions. For one, tablets are penetrating the market three times more quickly than are smartphones. The number of Americans who own a tablet nearly doubled this year (34 percent vs. 18 percent). It is primarily the 35-44 age group that has pushed this growth; 49 percent of this group own a tablet. Consequently, the tablet is the growth medium. Second conviction: To be a mass medium in the digital world, it is essential to offer information free of charge, which means operating an advertisingbased business model. The decision The decision is taken to invest in a new medium that will exploit to the maximum the potential offered by the tablet. The aim is to produce an application that will offer the best content from the printed product, the web, mobile and video, distributed every day for free on iPad and iPad Mini through the Apple Newsstand. The group invests $40 million (Canadian) to develop this new medium: $24 million in personnel, $2 million in research, $6 million in fixed assets, and $8 million in outside contracts. The financial reasoning: “To build a plant today to print La Presse would cost $175 million, plus $100 million annually for paper, printing and distribution. And the plant would only be able to serve a maximum 300,000 subscribers. For $40 million, La Presse+ has set itself up with a production site that works with minimal distribution costs and has no limit to the number of subscribers it can serve.” Guy Crevier puts the ROI time for this investment at two years (towards the end of 2015). The advertising arguments La Presse+ records a reading time of 35 minutes on weekdays and 70 minutes at the weekend. With simple measuring and research tools (Localytic and AdGear), it is capable of precisely demonstrating the effectiveness of every ad, every advertising campaign. “We promote the concept of guaranteed effectiveness similar to the broadcast model,”says Crevier. La Presse has an advertising laboratory in which 26 different interactions have been developed that illustrate the potential and creative power of the iPad. In addition, several hundred different ads have been tested. i Fit for profi tability. Surprise your clients and increase your earning power. State-of-the-art technology from Muller Martini creates competitive advantages: your clients will appreciate the high-quality products and the creative added value. Connex ensures your profi tability by providing the highest level of availability, unbeatable changeover times and intelligent production fl ows. Our modular product program, hybrid systems and extensive MMServices ensure you are equipped for the markets of today and tomorrow. Muller Martini – your strong partner. www.mullermartini.com, Phone +41 (0)62 745 45 75
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