We are at level 1 of 10," says Newsnetz boss Peter Wälty about his plans in the area of local content. This also characterizes the state of affairs in the Swiss media landscape when it comes to business on the doorstep of publishers, known in industry jargon as local search: Whereas a year ago (see MTJ 2008 7/8 p. 7 ff) hardly any initiatives in this area could be discerned in Switzerland, the first claims are now being staked out. At AZ Medien AG, management member Christoph Marty even describes the local search business as the "battle zone of the future". For Marty, the goal is clear: "We want to be a strong regional and local first platform."
At the end of July 2008, Aargauer transferred the existing classified ad solutions (real estate, jobs, cars) to the new A-Z portal. Later in the same year, work began on developing the community area, which focuses on clubs, local information and events. According to A-Z project manager Roger Knabenhans, 450 clubs had set up their own presence on the publishing portal by mid-August. By the end of the year, there should be 700 - just under ten percent of the estimated total potential. Ideally, associations should not only set up a one-off presence on the portal, but also regularly disseminate news here. So far, 4,800 contributions have been received in this way. "It's hard work," comments Knabenhans on the efforts to get the clubs to actively participate and then keep them going. "We currently have a member of staff who is working very intensively, persistently and with dedication," he continues. The local editorial team of the Aargauer Zeitung selects and edits a best-of selection, which is published on half a newspaper page (per regional edition).
The extent to which Marty is right in his assessment of the battle zone of the future is shown by Tamedia, where the two online competitors 20 Minuten and Newsnetz (Tages-Anzeiger, Basler Zeitung, Berner Zeitung, Bund, Thurgauer Zeitung) set out to conquer local territory at almost the same time. Although Newsnetz boss Wälty emphasizes that the Berner Zeitung already linked local content with GoogleMaps for individual communities last year, the concept of community pages has been used by the Vorarlberg media group for years and is a role model.
Local information platforms But Hansi Voigt, Head of Online at 20 Minuten, counters this by saying that he thinks "more" and is more comprehensive. He explains how he successfully used Google AdWords privately at the beginning of the year to place target group-specific ads. From then on, the online boss thought ahead and came up with the concept for local information platforms on the Internet. There will be a separate presence on the 20 Minuten website for all municipalities - around 2,600 of them throughout Switzerland. This will offer a range of news - from 20 Minuten articles to community announcements - as well as club news and local advertising.
When it comes to content, the magic word is aggregation - the largely automated collection and processing of content. For example, 20 Minuten has already tapped into sources for event calendars, cinema programs and sports results from the lower leagues. Information from 220 municipalities that offer corresponding data streams is also available automatically. Voigt is also focusing on activating the community of 20-minute readers so that news from the clubs, for example, can also be entered on the website. After one month, around 200 clubs throughout Switzerland have become active on 20 Minuten.
Local communities are importantFor Voigt, such communities are important in the medium term in order to anchor his own offering locally. "We offer the opportunity to transport the discussions to the political base in the municipalities - others can do this too, but only we can do it across the board," he says and is convinced that the decisive factor will ultimately be "which portal is closer to people's hearts".
In order to make triage easier for the editorial team, reader reporters should be able to signal when entering an event that could potentially be of national interest - such as the fishing picture with the catch of the century, which would then appear on the national website and possibly also in the print edition. There are no plans to employ editorial staff for local information other than to accompany the start-up phase. Voigt is therefore considering other approaches: Those who are particularly active and reliable contributors are to be appointed local editor-in-chief - on a voluntary basis, of course.
Wälty is also thinking about how his local offering could become more attractive for clubs and mentions, for example, offering a complete solution for clubs on the web as a white label product or offering local music bands a platform for their songs.
While Wälty has "not yet achieved a significant increase in reach" with his local offer, Voig reports over one million visits to the local portal in September. "That's great," he says, pleased with the 7 percent growth (with around 15 million visits per month, including 20minutes.ch Romandie and Piazza.ch). The local offer has been "very well received" by users, as he knows from various online feedbacks. 20 Minuten first advertised the new online service on its own website as part of a soft launch - it waited to promote it in its own newspaper until it was sure that everything was stable.
Potential in local tradeContent is one thing - advertising is another: This is because there is still a lot of untapped potential for local online advertising, especially on the doorstep of newspaper publishers - this is one of the central premises of local search concepts. Google is an omnipresent player here. Local business ads appear on Google Maps as well as on Google Earth. Businesses can register for free on the Local Business Center and are then displayed on the corresponding map when searched for, and more recently also on Streetview. While neither the creators at Tamedia nor at AZ Medien AG have anything tangible to show here, the visions are congruent: as with Google's AdWords, advertisers should be able to enter ads online, which are then assigned to the appropriate content and displayed to users. Voigt says that an advertising solution for 20 Minuten is in preparation, while Wälty has a group-wide solution in mind ("just like Google, but better") in order to do the AdWords business himself, as Tamedia generates half a billion page views every month. For the time being, Wälty wants to enrich his own articles with additional metadata so that they can be better assigned locally and linked to suitable advertising messages. In Aarau, Roger Knabenhans hopes to soon have established his portal as the first port of call for all kinds of local information for users in the region. Once the critical mass has been reached, the local advertising business can also be fully boosted. However, he also admits that there are still hardly any recipes for success in this area and that a lot of pioneering work is still needed in terms of both technology and market development.
Local business directoriesBusinesses have long been targeted by others. This is actually the home turf of local business directories, which have had to transfer their long-lucrative business from print to the Internet. In Switzerland, this applies first and foremost to Local.ch, the joint venture between Swisscom and Publicitas. According to Publigroupe's annual report, over 8.5 million copies of the printed directories were distributed to around 4 million households and business addresses last year, generating advertising revenue of CHF 129.7 million; online revenue for the same period amounted to CHF 42 million. A sales team of 370 employees is deployed for this purpose, and for the current year it has been announced that the 26-strong team in the areas of software engineering and marketing will be expanded by ten additional positions. While Local.ch leads in print directories, Search.ch is ahead in terms of user numbers on the Internet. Last fall, Tamedia acquired a 75 percent stake from Swiss Post in Räber Information Management (RIM) GmbH, which operates Search.ch and is considered a true pioneer in this field. To make up ground in the advertising market, CEO Stephan Obwegeser has doubled Salesforce to around 40 positions and introduced standards from the publishing business such as package solutions and workshops for agencies and their customers. Once a good customer base has been established for Search.ch, the company will turn its attention to regional advertising markets and offer additional services for local portals in order to support them in local acquisition with its own expertise from the directory business.
Cooperation with publishersWhen it comes to cooperating with publishers, Obwegeser is thinking about a Swiss news portal that is better than Google News. And the local focus makes sense, as this is Search.ch's strength. "We will never generate news content, and other media titles will not link content from other platforms - we want to step into the breach and create a platform where users can get a picture of the Swiss media landscape." He is not only seeking discussions with the Group's news portals, but is also open to active collaboration with other publishers. Unlike with Google, it will be possible to negotiate conditions. Those who participate could benefit from a free traffic engine. In return, Obwegeser wants other news portals to use Search.ch maps on their websites.
Christoph J. Walther
Nothing works without a brand
First of all, all media companies that dare to get involved in local search and thus document the innovative strength of the industry and, unlike other publishers, are able and willing to take risks with new projects are to be congratulated. These risks should not be underestimated:
If you want to receive local content directly and regularly from communities around associations at no cost, you first need an outstanding brand that is well positioned in the online world. This must be perceived as a credible popular figure, which requires animators rather than journalists. Such employees must first be found and built up. But even then, it remains difficult to achieve a unique selling proposition (USP) in the market: Even association secretaries who enjoy writing want to achieve reach and will therefore feed their sermons to several websites without much grumbling. And where this is not the case, local portals will also automatically collect such content from the competition - those who pay nothing will hardly be able to claim usage rights for themselves in order to prevent such activity.
The situation is no better in the advertising sector: Here, regional newspaper publishers lack the ground crew to explain online advertising to bakers, florists and bookshops and, at best, to sell it profitably. Once small businesses get to grips with online advertising, they will quickly discover that the entry and booking procedures hardly differ significantly between providers, but that they can achieve better reach with AdWords from Google. This is because publishers' websites play a subordinate role in the daily surfing menu of most people, while AdWords ads via the AdSense program are widespread. Publishers run the risk of falling over themselves to explain the benefits of online advertising to customers on their doorstep, with the result that they end up with arch-rival Google.
Publishers can only counter their fearful opponent if they take a joint and consolidated approach and manage to establish a dominant online brand in their catchment areas. In view of the revenue potential in the Swiss online market, even Tamedia would do well to streamline its commitments and initiatives, at least operationally. Publishers that are still on the sidelines here and do not defend their own territory are not only missing out on opportunities for online revenues, but are also falling behind in cross-media advertising space marketing. The window of opportunity is beginning to close