Successful B2B Magazine Media

Nikkei BP’s Perspective

Yuko Tanaka

International Relations & International Ad Sales

Nikkei Business Publications, Inc.

How big is the Internet in Japan?

Population: 126 million*

Internet users: 85 million**

Penetration: Approx. 67%

* Ministry of Internal Affairs and Communications (August 2006)

** Ministry of Internal Affairs and Communications (end of 2005)

Online ad spend in Japan

Year Billion yen (%)

1996 1.6

1997 6.0 375.0%

1998 11.4 190.0%

1999 24.1 211.4%

2000 59.0 244.8%

2001 73.5 124.6%

2002 84.5 115.0%

2003 118.3 140.0%

2004 181.4 153.3%

2005 280.8 154.8%

2006 363.0 129.3%

0

50

100

150

200

250

300

350

400

(Source: Dentsu)

See the rapid growth..

0

5,000

10,000

15,000

20,000

25,000

1986 87 88 89 90 91 92 93 94 95 96 97 98 99 20

00 01 02 03 04 05

ＳＰTV

Newspaper

Magazine

RadioInternet

(Source: Dentsu)

(Unit: ten million yen)

In the earlier days of the Internet…

Yes, we had industry portal sites but they weren’t really functioning as powerful traffic drivers to our magazine sites

Yes, each magazine had a website but it was more like an “add-on” to print rather than something with independent content and value

The problem was that there was no coordination in the efforts being made in the company. The left hand didn’t know what the right hand was doing!

Hence, the birth of the Online Business Development Center!

Renewals to existing portals and introduction of new portals/websites that maximize the leverage

of our print magazine brands

Pageviews (unit: ten thousand)Unique browsers (unit: ten thousand)

Figures from SiteCensus

Pageviews

Unique Browsers

PV/UB growth at Nikkei BP

1. Inherit the DNA of Nikkei Business in print and go beyond

2. Provide compelling original content

3. Exploit the benefits of an online medium

NBonline: Concept <Nikkei Business>

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■Promotion overview

Period

May 1 through 31, 2006 (one month)

Objective

Achieve Audi brand penetration among Nikkei Business readers and gather a questionnaire respondent list (target: 400; obtained: 388)

Magazine exposure

・ Nikkei Business May 8, 2006, 　 inside front cover spread ad

・ Nikkei Business May 22, 2006, single page ad facing News & Trends column

Web exposure

・ NBonline tie-up site during entire month of May 2006

・ nikkeibp.jp text ad and email ad

・ Medical Online banner ad and email ad

・ Nikkei Design Express email ad

Cross media: Audi × Nikkei Business × NBonline

User registration system

As of October 2006, most of the content on NBonline requires registration of basic information (name, email, etc.), contact information (home or office address, phone/fax numbers, etc.) and attribute information (company name, title/position, annual income, area of interest, etc.).

Number of registered users163,036

　　　　　　　　　　　　　　　　　　　 (As of Dec 20, 2006)

“★ Target Who?” Corporate executives and business leaders involved in corporate decision-makings

“★ Offer What?” Insightful trend forecast and contents serving as guidelines for business and management

Nikkei Business and NBonline

“★ How?”

Speed（ Quick reporting around the clock）Continuity（ Continuous follow-up of major events)

Review (In-depth analysis from unique perspectives)

Coverage（ Articles written by a dedicated editorial teams

Expertise（ Coordination of Nikkei BP’s wisdom）Real time（ Full use of audio/video）

We made full use of the advantages of a web media to break through the limits of print

Features particular to NBonline

About Nikkei BP’s online businesses

* Monthly page views: 　 86,928,236 (as of 2006 end)* Domestic ranking by Alexa: 31st place (1. Yahoo!, 2. Google, 3. Mixi…24. Nikkei NET…30. IT Media, 31. nikkeibp.co.jp, 32. Asahi…35. Yomiuri-Online…)

* Nikkei BP’s key websites and their page views nikkei BPnet: 21,233,691 NB Online: 11,947,487 ITpro: 13,592,966 Tech-On!: 7,921,996 Nikkei Medical ONLINE: 2,014,896

About Nikkei BP’s online businesses* Online revenues (ad + content sales)

[2006] Approx. 5 billion JPY (or 42 million USD) 35% increase year-on-year

* Revenue milestones2007: 6 billion JPY (or 50 million USD)2008: 7.5 billion JPY (or 63 million USD)2009: 9 billion JPY (or 75 million USD)

*Exchange rate of USD@119JPY

* Goal: Generate 20% of the company’s annual turnover and account for 40% of the profit

Nikkei BP’s Online Business Policy 1　* Don’t compete with portal sites

* Don’t compete with news sites

* Greater emphasis on “business” than “private”

* Greater emphasis on “analysis” than “news”

Nikkei BP’s Online Business Policy 2

* Highly targeted websites: Just like our print magazines sold through annual subscription, we make sure we know who our users are

* Registration system: Access is free except for premium contents but advance registration is required

* Cross media selling together with print magazines

As a B2B publisher, Nikkei BP advocates the “Page Value” concept. In B2B advertising where reach to to targeted audience is of essence, who is coming to the website matters more than how many.

Pageview model Page value model

Search engines Portal sites

News sites of newspaper companies

nikkeiBP net

＜ Tech＞ ＜ Biz＞ ＜ Life＞

B2CB2B

PageValue

Low

High

View,CPC-oriented

UB,Profile-oriented

Open to public

Membersonly

General public

GeneralBusiness people

Businessprofessionals

A portal site for business professionals, based on members-only, specialized websites. It also serves as a portal site for Nikkei Business Publications.

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For more information, please contact:

Yuko Tanaka

International Advertising Sales

Nikkei Business Publications, Inc.

Email: yktanaka@nikkeibp.co.jp