WAN-IFRA is beginning a collection of case research of digital transformation at media corporations, to be revealed as studies within the coming yr. That is an edited transcript of an interview that WAN-IFRA Director of Insights Dean Roper carried out for the primary report within the collection.

WAN-IFRA: Please describe Aller Media Finland’s construction.

Elina Schüller: Aller Media Finland [2017-18 turnover: 44 million euros] is organized into two sectors: the advertising enterprise and the media enterprise. The latter contains our two magazines, each weeklies: Seiska, the most important weekly and largest journal in Finland, and Katso, the TV information. Seiska has a really giant web site that we focus closely on. After which there’s Suomi 24, which is a dialogue discussion board, circuitously associated to publishing, and which is tied to our relationship service, Suomi 24 dates. Duty for Suomi 24 is shared between the advertising and media enterprise departments.

I additionally ought to point out that in our advertising providers we have now an information analytics operation that we have now constructed ourselves. We promote it to our B2B clients however we additionally use it quite a bit in our media enterprise.

What are your day-to-day tasks?

I am in control of the magazines. I even have a B2B gross sales division, and B2C buyer acquisition and repair. Then we even have improvement groups that are tied to our printed merchandise.

Might you describe the magazines?

Seiska (in photograph under) is an leisure journal, centered on gossip and paparazzi photos, coping with principally home celebrities. It is someplace between Folks journal and Nationwide Enquirer. Katso is a weekly TV information and naturally contains editorial TV content material.

You talked about in an earlier dialog that another magazines have been offered. What have been these?

We offered our 4 month-to-month magazines prior to now yr’s time. The primary one was known as Match, centered on health and well-being. We additionally had Residence and Kitchen; Elle, which was licensed from Hearst; and My Time, which was centered on folks aged 50-70. We first offered Match to Fokus Media, a Finnish firm centered completely on print magazines, and 6 months later offered them the remainder of the titles.

Why have been they offered?

As a result of we needed to behave earlier than we have been pressured to make different drastic adjustments. All of these magazines have been nonetheless worthwhile, however we noticed that they did not have a protracted future, and throughout the subsequent couple of years a few of them would not be worthwhile anymore.

At Aller, we favor to behave earlier than circumstances pressure us to take action.
– Elina Schüller, Director of Media Enterprise, Aller Media Finland

So we offered them and received an affordable value, as a substitute of ready two or three years and getting a lot much less.

Is Aller Media a public firm or a non-public firm?

A non-public, family-owned firm, with headquarters in Copenhagen and operations in all 4 Nordic nations. The operations are fully impartial of each other and all fairly totally different. I imagine Aller Media Denmark is the most important writer in Denmark, with someplace between 20 to 30 magazines. In Sweden additionally they’ve loads of magazines – monthlies and weeklies. The operation in Norway is most much like ours in that we each have made essentially the most dramatic adjustments prior to now couple of years.

You joined Aller Media Finland about two and half years in the past – is that appropriate?

Sure. I began as content material director and after we offered our monthlies, our board determined that as a result of we had fewer print merchandise, it might make sense to place them below one individual’s management. Then my colleague who was in control of B2C and B2B gross sales left the corporate, and I grew to become director of your entire media enterprise. A key issue was the truth that I had labored for tabloids for my whole profession earlier than I got here to Aller.

Had the corporate began on a digital transformation journey earlier than you arrived?

Our CEO had acknowledged the necessity to take motion, and had made acquisitions such because the dialogue platform Suomi 24 and the digital advertising firm Dingle. However we nonetheless had legacy media that, though they continued to make a lot of cash, have been clearly declining, together with your entire media market. So one thing needed to be performed to insure our future – a digital future – and work began at about that point. Seiska was the first focus, since it’s the most worthwhile media model in Finland.

What was your function in getting this journey below method?

From my expertise in information media I introduced concepts about how working strategies wanted to be revamped as a way to construct a digital future; about obligatory developments in merchandise and content material; and about specializing in clients somewhat than merchandise.

At the moment Aller was very intently tied to its legacy. And the general public who labored right here had been right here for someplace round 20 years. There had been only a few newcomers within the media enterprise.

It was a bit tough and it induced some ache to vary the methods folks work, since Seiska was nonetheless very worthwhile. However we needed to do it, to encourage these folks and present them the longer term past the subsequent month’s or yr’s time.
– Elina Schüller, Director of Media Enterprise, Aller Media Finland

We would have liked to look 5 years down the street, to see the place we have been going and put together for that.

How was the roadmap drawn up?

The imaginative and prescient got here from our CEO, Pauli Aalto-Setälä, however he wanted somebody to carry it to life, so I, our COO, Teemu Puurunen, and our IT director, Juha Kuokka, began to work intently collectively. We arrange cross-border groups. As an illustration, we have now a digital media enterprise workforce that features consultants from IT, from the editorial aspect, from B2B and from design, they usually began to attract the roadmap and describe the duties that they noticed would assist us on the best way.

We maintain steering conferences the place we administrators give the groups recommendation and make the choices they can’t make. Now we have empowered the groups to make selections that do not contain spending cash or including assets. For these sorts of selections they must ask us.

And the whole lot they do needs to be aimed within the route we have now envisioned. We after all consider the whole lot, to see what works and what would not. We work in an agile method not solely in IT but additionally in enterprise. So we do not have a set of mounted plans – we experiment, consider, study, take motion, after which repeat the method. That is the best way we began working.

You are speaking about tradition change, after all. Is there one factor that you could level to that is been a profitable tactic in creating tradition change? Is it a matter of speaking the imaginative and prescient you are speaking about, spelling it out?

I feel it was creating an total technique and customary targets. At Aller, managers and workers have been used to working towards their very own particular targets – B2B targets, B2C targets, and editorial targets, similar to rising market share, for instance. However I began setting frequent targets throughout my administration workforce. Every workforce member was evaluated primarily based on whole development and progress towards these frequent targets.

Managers began working collectively extra and began to go away their consolation zones. They began to study extra about each other’s work.
– Elina Schüller, Director of Media Enterprise, Aller Media Finland

At first they thought this was simply ‘good to know’, however they progressively realized how the whole lot they do impacts different components of the enterprise.

One other large improvement was bringing information analytics to the forefront. We began making selections and taking actions primarily based on information somewhat than assumptions. We had constructed our personal information capabilities, however they have been used fairly little within the media enterprise. We began measuring how effectively our direct advertising campaigns labored in the long run, as an example – what number of subscribers caught with us for 3 or 4 months or longer. So the evaluation went deeper.

How are you going to see the outcomes of the adjustments mirrored quantitatively, within the type of stronger KPIs or the like?

We will see three enhancements when it comes to measurable outcomes. For one factor, Seiska is doing higher than the general market is doing – quite a bit higher. Now we have managed to extend our subscriber numbers, which within the media panorama of 2019 isn’t any small achievement. That is a great measure of our success.

The above slide from Schüller’s presentation at Digital Media India 2019 paperwork Seiska’s statistics.

Secondly, the event work we have now put into Seiska’s digital presence, the web site, has paid off. We have not stared on the statistics, as a result of we all know the numbers do not imply cash. However we have now turned the income graph right into a ‘hockey stick’ type, and it has continued to rise for a lot of months somewhat than peaking after which declining.

And the third issue is how glad individuals are with their work.

Workers motivation and work satisfaction are bettering. Folks really feel they’re getting higher at what they do and are creating extra worth for the corporate on the identical time.
– Elina Schüller, Director of Media Enterprise, Aller Media Finland

How a lot of your whole income comes from digital operations?

Within the media enterprise we get 30 p.c of our income from digital, the remaining from print. Print income comes principally from B2C but additionally from B2B.

Most of our digital income comes from promoting however some is from subscriptions, because it additionally contains our relationship service, which is predicated on digital subscriptions. Advert income is usually programmatic, from show advertisements, however branded content material is beginning to develop in significance. Income was nearly 95 p.c from programmatic, since Seiska is devoted principally to gossip and paparazzi photographs and Suomi 24 is a dialogue discussion board, and people do not work effectively for branded content material.

The work on Seiska’s improvement has elevated its worth, although, and prior to now six months we have now satisfied a few the most important advertisers in Finland that we’re the place the place they’ll attain the plenty, the place they’ll attain individuals who go to supermarkets and purchase purchasing carts filled with issues for his or her each day lives.

I assume that many of the site visitors comes from cell.

Sure, most of it comes from cell. Now we have performed quite a lot of improvement work on the cell expertise. Simply two years in the past desktop was nonetheless massively necessary, however cell has elevated steadily.

Do you could have devoted apps for these manufacturers you talked about?

No, we do not. Solely a beta model of an app for our relationship service has gone reside.

Our pondering is that we have to have sufficient direct site visitors earlier than we begin constructing apps. Customers must be so closely engaged with one among our merchandise that they’re really prepared to obtain the app.
– Elina Schüller, Director of Media Enterprise, Aller Media Finland

We need to do apps, however we’re taking a long-term strategy to this – one step at a time.

Again to promoting for a second. I assume your editorial construction wanted to be revised as a part of the digital transformation, however how about your advert gross sales groups?

These days our gross sales groups are centered on sure manufacturers. We made that change about 4 months in the past. Beforehand, they have been promoting throughout manufacturers, however that did not work in addition to we needed it to. So we determined that it may be finest to have centered gross sales groups for Seiska and Suomi 24, and that has introduced us actually good outcomes. There are clear indicators that it was an excellent change.

The place does Aller Media Finland stand with regard to paid digital content material? Do you envisage paid content material for some components of your on-line publications?

Sure, we do, which is why we have now an experiment happening. Now we have began to place a few of Seiska’s greatest and most tempting information behind a ‘registration wall’ so customers must register, with their e-mail tackle, to learn it. We see that as a primary part that may inform us what sorts of content material and providers customers need a lot that they’re prepared to offer their e-mail tackle and check in. Within the subsequent part, as soon as we see what they may be prepared to pay for, we’ll begin trying into fee for content material. Which may occur this yr, or it’d occur subsequent yr. At any fee, we positively see that there are potentialities.

What’s the greatest problem you face in the intervening time?

What we have been simply speaking about: get folks to pay for content material.

We all know that advert revenues is not going to develop indefinitely, so taking a look at the way forward for media, we see that there have to be a call to cost customers for content material. However how will we do this?
– Elina Schüller, Director of Media Enterprise, Aller Media Finland

That poses the most important problem, as a result of Finland is a small market and language space, so we’re a bit apprehensive about whether or not there’s sufficient cash to go round for all of the manufacturers. Additionally, Seiska is working rather well in print and might be one of many longest-living manufacturers as a printed product, however for the way lengthy? So how can we monetize it digitally?

Might you describe a few of your different operations and the way they slot in to the general image at Aller Media Finland?

We had two way of life web sites, however they have been sort of left behind after we offered the month-to-month magazines, so we closed them down on the finish of final yr. They nonetheless exist however are not actively developed.

On the advertising aspect we have now three items. One is Information Refinery, which is our information middle. It serves our personal media enterprise in buyer acquisition, constructing focus teams, and so forth, to call simply a few examples. In addition they promote their capabilities to exterior clients. Then we have now Dingle, which creates advertising content material for exterior corporations, particularly on social media. The third unit is Concepts, which is targeted on producing magazines and web site content material for purchasers. For instance, it publishes for Ok-chain, one of many largest teams of grocery shops in Finland, which is owned by Kesko Oyj. We create and publish their journal. One other buyer is the Vepsalainen chain of furnishings shops. Fairly a couple of of our journal editors have moved to that division, as a result of they’ve data and experience in that space.

Please touch upon the staffing state of affairs at Aller Media Finland. What number of workers does the corporate have? Have been there vital numbers of layoffs and departures prior to now two years due to the transformation? And I assume that as a part of your funding in information, you might be hiring folks with new talent units.

Now we have 220 workers at this level and sure, we have now had some layoffs, about 15 in whole. A few of these have been in our tv content material division, which was nonetheless sort of old style after I arrived. Since I had labored at tabloid newspapers that additionally had TV guides, I noticed the methods we might run that operation extra effectively. We had a brand new CMS that automates quite a lot of the dealing with of the EPG [electronic program guide] information, so we did not want so many individuals there.

About 25 individuals who have been working on the 4 monthlies moved to the corporate that bought these titles.

We’re specializing in hiring the talents we’d like. We didn’t do these layoffs simply to economize, however to spend money on the talent units we’d like for our future: information evaluation, IT, structure and product house owners, for instance.