BtoB Media Business - March 2007 - (Page 34)
MB _ 03-12-07 A 34 B2DB 3/2/2007 12:00 PM Page 1 Endnote By Jim Casella
Private equity will improve the b-to-b industry I have spent more than 25
years working in the b-to-b industry. During that time, working for both
public and private companies, I have experienced the pros and cons of
private versus public b-to-b media companies. I have seen many of the
public companies become frustrated about the cyclicality of our
advertising-driven, controlled-circulation models. I have heard people
say, “I wish there were more paid circulation b-to-b brands.” I have
observed several private companies be more willing to take a long-term
view and be more patient with their launches. We are in the midst of a
major transition from print to online, and many of the companies will find
that private equity funds will be excellent partners in this process. My
experience in the b-to-b industry spans several different areas, with a
primary focus in general management since the mid ’80s. I started in
advertising sales, became an advertising director and then a publisher. A
publisher is one of the alltime great media roles, and its face to the
industry is unique. This is the way many of us grew up in the business.
Then I moved into operations, becoming VP-operations at Capital
Cities/ABC. This job was essential preparation for my general management
roles, starting with my first as president of the special interest
consumer magazine unit. This was during the “Murphy/Burke/Sias era”
and it gave me true appreciation for operational excellence and the need
for efficiency. The skills of an experienced publisher, together with
operational expertise and an appreciation for product excellence, will be
required as our industry moves forward. We need to focus on our strengths
if we are going to be successful in this process. As an industry, we have
always been about bringing buyers and sellers together by generating
leads—both in our publications and through our live events. This
strength is not exclusive, and we need to continue to offer vehicles that
allow for brand building by our clients. We need to be diligent and make
certain that we are providing both print and online opportunities that
deliver on their promise for our clients’ needs. During the nuclear
winter of 2002–04, I actively participated in the search for more
subscription-based properties to Investors embrace our models and
understand that in a private light, we will re-engineer our models once
again, as we have over the past 100 years. offset the advertising decline.
A balanced portfolio should continue to be a priority. Then the paid search
model—or perhaps we should call it the “lead-generation
model”—emerged, with Google leading the way, as the recovery advanced.
During this time, all of us accelerated the development of our online
platforms—built around our strong brands—with community-based sites
and strong lead-generation components. In spite of the cyclical nature of
our business, advertising and sponsor-driven models—when combined with
robust lead-generation programs—will remain strong and continue to be
the most viable marketing vehicles for client companies in the diverse
sectors we serve. During this transition process, there will be
disruptions. The ownership of these unique brands will continue to evolve,
as new investors/owners come into the b-to-b market. Many weaker brands
will not survive, and those that misjudge this migration will be replaced
by those with a clearer vision of the future. I believe this transition
will continue to be greatly assisted by private equity funds that love our
business, our cash flow profile and our low capital expenditures. These
investors embrace our models and understand that in a private light, we
will re-engineer our models once again, as we have over the past 100
years. We must be prepared to go beyond our historic Fortune 1,000
accounts. Through new “self-serve advertising options and other
innovations” made available to the “long tail” by Google, Yahoo and
Microsoft, we must open our audiences to small and midsize enterprises.
Strategic investors will rediscover the strength of our re-engineered
companies. Over the many sectors we serve as an industry, these companies
will emerge from this period with their well-known brands intact and with
new online offerings that will enhance their position. Jim Casella is
CEO-in-residence at Austin Ventures and was most recently vice chairman of
Reed Business, the world’s largest b-to-b media company. He can be
reached at jim_casella@ hotmail.com. 34 | Media Business | March 2007 |
mediabusinessonline.com
http://mediabusinessonline.com
Table of Contents for the Digital Edition of BtoB Media Business - March 2007
Contents
Evolution of the Editor
Ancillary Revenue
Circulation Challenges
Sales & Marketing
M&A
On The Go
Online
Events
Production
Capital Improvement
People
Benchmarks
Endnote
BtoB Media Business - March 2007
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