Bruce Annan

Trader.ca adds resale home listings amid competition dustup

It may be months before a definitive outcome in the battle between Canada’s real estate industry and the federal Competition Commissioner, but the showdown has already emboldened a number of players. Trader.ca, owned by Yellow Pages Group, Continue reading

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History made at Canadian Ink and Beyond confab

Canadian newspapers this week achieved an historic level of cooperation, unthinkable a decade ago. Their Ink and Beyond annual conference in Toronto for the first time included an “audience development super session” combining the forces of the Canadian (daily) Newspaper, Community Newspaper and Circulation Management Associations, plus the Ontario Community Newspapers Association. That’s a tribute to some restratined egos — and perhaps an overdue recognition of the state of the industry. Kudos to the organizers.

Some notes and quotes from the two-day conference (contact us if you’d like elaboration):

John Paton, new CEO of Journal Register, kicked off with (an unfortunately technology-handicapped) presentation called Transforming to a Multiplatform Business. Readers will likely be familiar with his revolutionary moves, but you can read Toronto Star coverage here — or better yet, follow John’s blog. Favorite quote, in response to an audience question asking how staff are reacting to becoming multi-media reporters: “Ninety days into it, most reporters are trying to jump out the window. And hoping to land on me.”

Jim Moroney, CEO Dallas Morning News, challenged newspapers to have faith in their product and their audience. The News has raised its subscription rates 40 per cent, which cut circulation by 12 per cent — dramatically increasing revenue while slashing expenses…and delivering advertisers a better quality demographic.

Our own Shannon Kinney delivered an (ahem) excellent presentation on reinventing the classified department, products and pricing.

As part of a panel on building community, Marlon Rodrigues of Toronto’s Polar Mobile — which powers apps for a panoply of heavyweight media companies, from CBS to Time and publishers in Canada, the U.K. and Asia — revealed that while they deliver far more downloads via iPhone, they receive far more traffic via BlackBerry. (Perhaps because BB users have their employers paying for data usage?) And that more than half of their mobile users did not previously “touch” the respective media brands online.

In a panel session on financial strategies, Deloitte analyst Duncan Stewart said advertisers now use a variation on the old quote (note to Duncan: it was John Wanamaker): “I know that 90 per cent of my traditional advertising is wasted, I just don’t know which 90 per cent.” And further that spending $100,000 in newspapers equals $10,000 on Google. Ouch. But he also predicted that in a few years increased mobile data usage, especially video, will congest networks to the point that there will be “perpetual scarcity”, giving renewed value to fast-downloading text, so “may be the savior of the newspaper industry.” And Queen’s University professor Ken Wong was shocked to learn that members of his school’s Dean’s List access Facebook 18 times a day. To which a student replied, “how often do you go on your Blackberry? Then shut up.”

Canadian auto research guru Dennis DesRosiers presented an in-depth look at the market, pointing out striking differences from the U.S. (E.g. “large / luxury cars” are eight per cent of the market up north, compared to 25 per cent down south. To which an American attendee commented, “maybe that’s why our economy got into so much trouble.”) Partnering with Saatchi & Saatchi Canada CEO Stuart Payne, he offered 10 ideas for the newspaper industry, led off by “rebuild your used cars classified section…but we don’t know how”. (Hint: contact AIM Group for advice.)

At the AbitibiBowater luncheon, honoring two outstanding young Canadian journalists, vaunted pollster Angus Reid noted that he was speaking “without an appearance fee” in appreciation of his 40-year relationship with the newspaper industry, and enthused about his newish company, Vision Critical, and its $70-million worldwide online survey business. And took a gratuitous shot at the work of NADBank, the Canadian research cooperative funded by newspapers, agencies and advertisers. One audience member wanted to know how Reid’s online panels can avoid self-selection bias, but his methods are apparently too proprietary and mysterious to share.

 

 

 

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Canwest papers sell for C$1.1 billion

Canada’s largest newspaper chain, Canwest LP, has been sold for C$1.1 billion to a bondholders group led by National Post president Paul Godfrey. The newspaper assets of the Asper family’s Canwest Global Communications Corp. had been up for auction, after receiving creditor protection in January. The winning bid trumps several other offers, including one from Torstar Corp. Here’s news coverage from the Post, Globe and Mail and Toronto Star — and some financial opinion from the Globe and Mail here. (And a Bruce Annan blog item below.)

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Good news in Godfrey-led deal for Canwest newspapers

Paul Godfrey’s last newspaper purchase — he led a $411 million management buyout of Sun Media Corp. in 1996 — was a great financial success for him and his managers, as they flipped it in 1998 to Quebecor for almost $1 billion. A losing bidder for the Sun assets then was Torstar Corp., which again this week failed in an attempt to go national by buying Canwest LP. Godfrey, 71-year-old president of Canwest’s National Post, has now led a group of unsecured creditors in scooping up 11 major dailies and 35 community papers from Montreal to Victoria for $1.1 billion. It’s apparently great news for Canwest employees, as the company promised continuing employment, pensions and benefits to all staff. It’s also good news for Canwest’s neglected digitial properties, including the flagship Canada.com and its verticals Working, Driving and Househunting, as Godfrey committed to growing digital revenues from 8 per cent to 25 percent. All this bonhomie is in contrast to the terse official comment from Torstar’s CFO, David Holland: “…the successful price was well beyond what we are prepared to pay.” There can be few regrets at Torstar that it didn’t pay $1 billion for the Sun papers 12 years ago, given the erosion in those tabloids’ income; check back in a few years to see whether Torstar is delighted by the deal it didn’t make this time. Apparently the match-maker who linked Godfrey up with the creditors was Journal Register CEO John Paton, who was a member of Godfrey’s management team at Sun Media…and will be keynote speaker at this week’s Canadian Newspaper Association conference in Toronto. Should make for some interesting conversations.

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 Apps too cool for newspapers, NAA told

There is no excerpt because this is a protected post.

Canpages turns Yellow for C$225 million

Canada’s largest directory publisher, Yellow Media Inc., has bought its most significant competitor for C$225 million. Vancouver-based Canpages receives $75 million in cash and $150 million in promissory notes, which can be exchanged for shares in Yellow Media, according to the Financial Post, which notes that Yellow is also selling its U.S. directory, YPG Directories LLC, to Ziplocal. Canpages, while far behind Yellow in print directories, has a strong online presence, with its Canpages.ca attracting 3.5 million monthly uniques, plus last year’s acquisition of Gigpark.com and, says the Globe and Mail, its Street Scene visual search about to add augmented reality. (Yellow Media was until last week the Yellow Pages Group, and is owner of Trader Corp. classified ad business.)

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Latin America report …

Digital classifieds are growing in Latin America -- a mixed landscape of traditional media companies and intercontinental giants that are finding new opportunities.

The 64-page report, for sale here, is a compilation of analyses our clients have already received as recipients of Classified Intelligence Report.

(Clients can receive a copy for free -- just drop us a line.)

Gentle reminder…

Clients' passwords change with every PDF issue of Classified Intelligence Report -- basically, once every other Thursday. Look in your latest edition for the newest password.

Not a client yet? Drop us a line about becoming one.

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