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August 02 2012

14:00

6 Questions for Rafat Ali on Skift.com, His New Travel Startup

Rafat Ali is one of those rare people in the media industry who understands the power he wields with his written words, yet can be so humble and friendly in person. I was struck by that quality in him when we first met probably 10+ years ago when he was first starting the paidContent blog as a one-man operation focused on digital media.

What he accomplished with that site was a lesson for all of us who are running small media ventures, taking a one-man operation and expanding it into a full-fledged online business. Ali received venture funding, expanded staff and built more sites, and eventually sold the site to the Guardian (which later sold it to GigaOm).

rafat mongolia.jpeg

After selling his baby, Ali decided to take time off to travel the world and disconnect from the intense 24-hour news cycle that consumes everyone who lives on Internet time for breaking news. And now that he has resurfaced, his new baby is Skift.com, billed as a "travel intelligence media company."

As he has described the startup on various Mediatwits podcasts (we co-host the show together for MediaShift), Skift will put a laser-sharp focus on the business of travel, the travel business and business travelers, disrupting the current incumbents who cover the industry in a less intense fashion.

We recently connected by email, and he answered my six burning questions about Skift and his plans for the site.

6 Questions for Rafat Ali

1. Why did you decide to target the travel business with Skift? From all your trips abroad?

Rafat Ali: It is in the travel sector, but not really built upon my own travels over the last two years. The cliche is: A startup guy sells his company, goes off to travel the world, and through his experiences during his travel, hits a brainwave in the middle of Mongolia on how to solve all the travel woes in the world. Thankfully, mine isn't that.

My travels inform my worldview on how we want to build Skift, how broadly we look at travel, but the genesis of Skift is more prosaic: We saw a big white space in the travel information industry, and we're attacking it.

2. What lessons did you learn from paidContent, and how did you apply them to Skift?

For one, we're bringing the same energy of the saturation coverage of the digital media industry that we did for years at paidContent, and now bringing it to the world's largest sector: travel. We'll be a digital native, 24/7, breaking news, analysis, opinion, somewhat similar to what we did with paidContent.

Also pC, back when it started in 2002, brought together then disparate silos of the larger media-information-entertainment industries, and with Skift, we're attempting the same with the very large silos of aviation, hospitality, destinations, cruises, technology and others, and bringing them together. The underlying assumption, that these silos will collapse, is the same as paidContent. We'll see if they're borne out.

3. Who are your first investors, and how did you find them?

A long list of 17 angels, 14 disclosed: Chris Ahearn, Luke Beatty, Gordon Crovitz,
Craig Forman, Jim Friedlich, Tom Glocer, Vishal Gondal, Jason Hirschhorn, Peter Horan, Alan Meckler, Mohamed Nanabhay, Sanjay Parthasarathy, Amol Sarva, Chris Schroeder.

These are all very accomplished business execs in the media-tech industry that I've known for years, covered them at paidContent, they spoke at pC conferences, and I have developed relationships with.

So they're betting on us, the team, to build a large media+information+data business in a very large sector.

rafat medillin.jpeg

4. How is it different starting a site in 2012 vs. when you started paidContent?

We realize trying to scale just using media/content will not cut it; we're trying to build a very large travel intelligence company, and that means we have to go beyond what we did at pC.

For us, that means building the company at the intersection of travel and data, and that means first pulling in that data, and then building services on top, all of which we hope the industry will pay for.

Also unlike paidContent, where we tried in small ways to do some crossover stories, with Skift we really will attempt it, aimed on the consumer side at business travelers. While paidContent helped define the digital media industry as it exists now, our ambition was to go deeper into the vertical, not go broad and consumer.

Skift hopes to redefine a new generation of data- and information-heavy media companies, built to break out of the vertical media ghettos and scale.

5. Tell me more about the "studio model" and how much revenue you think you'll get from services vs. ads.

This for us means we'll build a slew of data services, some of which will succeed and some won't. It means we'll be quick to prototype, and quick to discard if it doesn't work -- that's what we mean by studio model. It means we'll learn what the information and services black holes are for the travel industry and professional travelers as we grow, and we'll adapt quickly to address those needs.

We think we'll get a majority of our revenues from services. Ads will be a decent part, both on B2B and especially on the business traveler side. Business travelers are a very addressable and lucrative category for all sorts of advertisers, including travel brands, financial services, luxury and others.

6. Will you ever look at travel the same way again after getting so deep in the weeds on the business side? How will things change?

Great question. I hope I don't lose my sense of wonder in travel. If I can keep traveling to the kinds of places I have over the last two years, then I surely won't, but if I just restrict myself to work and business travel, then I'll always be in work mode!

*****

What do you think about Skift.com and its "studio" business model? Can an upstart disrupt the business travel industry? Share your thoughts in the comments below.

Mark Glaser is executive editor of MediaShift and Idea Lab. He also writes the bi-weekly OPA Intelligence Report email newsletter for the Online Publishers Association. He lives in San Francisco with his son Julian and fiancee Renee. You can follow him on Twitter @mediatwit. and Circle him on Google+

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October 19 2010

09:38

Scraperwiki/RBI launch first in-house Hacks & Hackers event – for B2Bs

Tickets are now available for a Scraperwiki hack day at Reed Business Information (RBI) on Monday 29th November in Quadrant House, Surrey, from 8am (registration) – 8.30pm.

B2B journalists, developers and designers are invited to attend the one-day ‘Hacks and Hackers’ event hosted and sponsored by RBI, B2B publisher of titles including FlightGlobal, Farmers Weekly and New Scientist.

The idea is that business journalists and bloggers (‘Hacks’) pair up with computer programmers and designers (‘Hackers’) to produce innovative data projects in the space of one day. Food and drink will be provided throughout the event. Prizes for the best projects will be awarded in the evening.

Any journalist from a B2B background, or developer/designer with an interest in business journalism is welcome to attend. We’re especially keen to welcome people who are interested in producing data visualisations.

“Data journalism is an important area of development for our editorial teams in RBI,” said Karl Schneider, RBI editorial development director:

“It’s a hot topic for all journalists, but it’s particularly relevant in the B2B sector. B2B journalism is focused on delivering information that it’s audience can act on, supporting important business decisions.

“Often a well-thought-out visualisation of data can be the most effective way of delivering critical information and helping users to understand key trends.

“We’re already having some successes with this kind of journalism, and we think we can do a lot more. So building up the skills of our editorial teams in this area is very important.”

The event is the first in-house hack day that Scraperwiki has organised as part of its UK and Ireland Hacks & Hackers tour.

5o places are available in total: half for RBI staff; half for external attendees. People wishing to attend should select the relevant ticket at this link.

Past hacks and hackers days have run in London, Liverpool, Birmingham and Manchester. For a flavour of the projects please see this blog post.

If you have any questions please contact Aine McGuire via Aine [at]scraperwiki.com.

August 19 2010

13:30

The Newsonomics of the FT as an Internet retailer

[Each week, our friend Ken Doctor — author of Newsonomics and longtime watcher of the business side of digital news — writes about the economics of the news business for the Lab.]

Back in 2002, the Financial Times took a radically different path than most of its news publishing peers: It decided to charge its online readers to access its content. Flash forward eight years, and the FT model — a metered model — is the one many publishers are eying and beginning to test. The New York Times plans on debuting its metered model early next year; the Times Company-owned Worcester Telegram went metered this past week. Journalism Online is now powering MediaNews’ metering tests in York, Pennsylvania and Chico, California.

We can see the FT lineage in the Journalism Online Press+ pay solution. “The FT pioneered use of the meter as an elegant approach to freemium for news publishers — letting casual visitors continue to sample a selected number of articles per month while asking the most engaged readers to pay for unlimited access,” Journalism Online co-founder Gordon Crovitz explains. “In this way, the FT has been a pioneer.”

In the eight years since 2002, the FT has persevered through thicker and thinner markets. Now, it is one of the few companies showing advertising and circulation revenue growth and building a seemingly stable and successful model for the next decade. Its recent financial performance, most of which was released as part of its parent Pearson’s half-yearly report:

  • The FT group, responsible for about 8 percent of Pearson’s ongoing revenue and home of the Financial Times newspaper and digital products, showed an operating profit of £14 million, double last year’s profit. Revenue at the FT Group moved into positive territory, up 7 percent year over year, with advertising showing growth as well as readership revenue.
  • Overall ad revenue now makes up 45 percent or less of the FT’s revenue, down from 74 percent in 2000.
  • Digital readership increased by 27 percent, while the number of registered users — spurred by a no-unregistered views policy (with exception of home page and section pages) — saw a 77 percent increase to 2.5 million during that period.
  • Digital subscriptions grew by 27 percent to 149,000.
  • The FT raised its subscription rates by about 10 percent recently, with standard subscriptions now costing $225 or £190 and premium subscriptions going for $330 or £299.

That’s an impressive report. It contrasts with the experience of most news publishers, who are struggling to stave off continuing year-over-year losses in both ad and circulation revenue — and are finding themselves too dependent on ad revenue as the ad marketplace morphs away from traditional media.

We can parse a number of reasons for the FT’s upward trajectory. In the end, though, I think that FT.com managing director Rob Grimshaw sums it up best, and in a way that should make all news publishers pause and re-think.

“Where we’ve found inspiration is Internet retail, not publishing,” he told me last week. “We’re becoming a direct Internet retailer and we have to have expertise to do that. When you do that with publishing, it looks like a different business.”

Internet retailing — think Amazon — seems like a very different business than publishing. In the endlessly measurable digital age, though, the parallels are striking. It’s not in what you are selling — books, electronics, or news stories — it’s what you know about your customers, their habits and wants.

In February, I produced a report for Outsell, a global publishing industry research and advisory company, about the FT. I called it “Five Things to Learn from FT.com,” and my greatest learning was that analytics, the smart gaining of knowledge from data, was at the heart of the company’s successes and plans. If we look at the emerging newsonomics under the FT business, we see how analytics are driving both of the FT’s two basic business lines, reader revenue and advertising revenue.

Reader revenue now accounts for more than half of the publisher’s income. While there are many moving parts under it, the FT’s pricing of its subscriptions, its targeting of markets, its tweaking of offers, and its valuing of paying customers are all increasingly done on the basis of analytics — not on the gut calls that have long fueled news company decision-making.

Much of it is “propensity modeling,” fancy words to say: What’s the likely reaction of what percentage of people if we offer them this, that way? The modeling grows out of the analytics, now put together by a team of nine people at the FT — up two from a year ago. The group is relatively new, and it’s one that Grimshaw says has produced a night-and-day difference for an outlet that, like most of its fellow news companies, used to “hold and manage” data, rather than using it to drive the business.

The FT has been able to gauge consumer behavior well enough that its subscriber volume and pricing have risen. Even though the site allows fewer unregistered clicks than it did a year ago, Grimshaw says page views overall have gone up — the result of the paying customers using the product more.

In addition, the FT has taken a new tack in the enterprise licensing of its content. Two years ago, it began to reclaim its syndication business. It still works with third parties to deliver the contract, but directly contracts and licenses more than 1,000 companies for its usage. The direct licensing does help a bit in pricing and margin, says the FT’s Caspar de Bono, who directs the B2B business, but the direct pipeline of customer-usage data it provides is the bigger win. Analyzing that data helps the FT improve its products and its delivery — and increasingly gives the content licensees themselves a view into the content’s usage and value for their workforces.

Advertising, too, is benefiting from the research work. The more knowledge the FT can share about its audiences, their habits and preferences, the better advertisers can target their messages. In addition, analytics support the FT’s eight-member Strategic Sales team as it customizes marketing approaches for firms and their agencies. Grimshaw says that by early 2011, advertisers themselves will get some access to FT audience data.

It’s all a work in progress, but one that is coming closer to offering a virtuous circle of business results. It’s a model — an Amazon model for the news world — that bears attention from months-old online news start-ups and venerable, nineteenth century brands alike.

June 18 2010

09:54

#newsrw: Countdown to Journalism.co.uk’s news:rewired event – are you coming?

It’s just one week till news:rewired – the nouveau niche at Microsoft UK in London, our one-day event for journalists and communications professionals with a specialist subject or beat.

**Last chance to buy** We have a couple of tickets still available, so click through fast, to be in with a chance.

So who’s coming along on Friday 25 June? You can see a full list of delegates here; and a full list of speakers at this link. We’ve also created this Wordle showing the various organisations at which our delegates work (click through image to see larger version):

As reported on our news:rewired site, UBM is the best represented B2B publisher, with 10 delegates, followed by Reed Business Information in second, with five delegates and three speakers. Follow this link for further breakdown.

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#followjourn: Dan Raywood/online news editor

#followjourn: Dan Raywood

Who? Experienced B2B writer and editor

What? Raywood is currently online news editor for SC Magazine, which covers the IT security industry.

Where? Find his contact details and work history over on his LinkedIn page.

Contact? Follow @danraywood.

Just as we like to supply you with fresh and innovative tips every day, we’re recommending journalists to follow online too. They might be from any sector of the industry: please send suggestions (you can nominate yourself) to judith or laura at journalism.co.uk; or to @journalismnews.

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09:15

#Tip of the day from Journalism.co.uk – B2B reporting leads

Reporting: Feeling short of story leads? Have a think about where you could look outside your patch for ideas and inspiration. Online forums, email lists and jobs boards can provide lots of industry reporting tip-offs, for example. Tipster: Judith Townend. To submit a tip to Journalism.co.uk, use this link - we will pay a fiver for the best ones published.


December 17 2009

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