Disruption - will it hit digital classified players?

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Digital classified players - general marketplaces, real estate portals, platforms for new and used cars as well as job boards - have been in existence since more than 15 years. Are they at risk for being disrupted as newspapers and other industries were? And where does the risk originate from? The presentation was given at a workshop at the ICMA conference in Madrid in October 2015.

Presentations & Public Speaking

1 | ICMA - Disruptors| Katja Riefler © 2015
DISRUPTION…

Classifieds – Disrupted or
Disruptor?
Katja Riefler
Principal / Managing Director
Advanced Interactive Media Group LLC
katjar@aimgroup.com
tel. +49 89 621 460-44
m: +49 178 695 76 71
© 2015 AIM Group LLC
Friday, 23 October 2015, Madrid

Let’s revisit some
mantras of the industry…
3 | ICMA - Disruptors| Katja Riefler © 2015

“Newspaper classifieds
are DEAD”
4 | ICMA - Disruptors| Katja Riefler © 2015

“You’re SAFE
once you’re at least
FIVE TIMES BIGGER
than your closest competitor”
5 | ICMA - Disruptors| Katja Riefler © 2015

”A popular
classified site is a
MONEY MAKING MACHINE”
6 | ICMA - Disruptors| Katja Riefler © 2015

What do these statements
have in common?
7 | ICMA - Disruptors| Katja Riefler © 2015
THEY ARE
NOT TRUE!
(or only partly)
And now I'll prove it...

But first…
8 | ICMA - Disruptors| Katja Riefler © 2015

About us ...
Consultants and publishers of
9 | ICMA - Disruptors| Katja Riefler © 2015

10 | ICMA - Disruptors| Katja Riefler © 2015

11 | ICMA - Disruptors| Katja Riefler © 2015
Founded 1998 - Global network
42 consultants / analysts
Many clients you know
Peter M.
Zollman,
founding
principal
Katja
Riefler
managing
director

12 | ICMA - Disruptors| Katja Riefler © 2015
Some clients…

13 | ICMA - Disruptors| Katja Riefler © 2015
We’re
‘consultants
who publish’…

14 | ICMA - Disruptors | Katja Riefler © 2015
‘Newspaper
classifieds
are dead’

15 | ICMA - Disruptors | Katja Riefler © 2015

Why aren’t there more of them?
16 | ICMA - Disruptors| Katja Riefler © 2015

NEXT Phase
Publishers most often fail to realize growth
established
business
disruptive
modell
It grows…
A small digital
something
starts outside
Replacement
hurts! Action!
First pain!
It continues to
grow…
DigitalClone
put their business at risk!
17 | ICMA - Disruptors| Katja Riefler © 2015
Explore -
Ignore!
The clone
doesn’t grow…
Publishers

Little boys beat giants by disruption
7%
4%
12%
8%
18% 22%
% of tons
SteelQuality
19801975 1985 1990
25–30%
55%
18 | ICMA - Disruptors| Katja Riefler © 2015
Source: Clayton M. Christensen 2011

Disruptive Innovations: A driver of leadership
failure and source of growth opportunities
Performance
Time
Incumbents nearly
always win
Entrants nearly
always win
19 | ICMA - Disruptors| Katja Riefler © 2015
Source: Clayton M. Christensen 2011

The “Innovators Dilemma”
today hits the digital pioneers
from 15 years ago…
Outdated, hard to change technology
Inflexible structures
Untimely business models
(that earn so much money…)
Defensive culture (fear of
loosing existing income sources)
Convinced of the superb quality
of their own approach
(focus on existing customer groups)
20 | ICMA - Disruptors| Katja Riefler © 2015

Innovation ≠ Invention
Innovation
=
Combination of
existing
knowledge in a
new way that
resonates with
customers
21 | ICMA - Disruptors| Katja Riefler © 2015

22 | ICMA - Disruptors| Katja Riefler © 2015
Disruption =
product or service
that is 10 times
cheaper and
10 times
more effectiv
than the predecessor
Innovation ≠ Disruption

23 | ICMA - Disruptors| Katja Riefler © 2015
Starting and succeeding
today is much harder

The business of classifieds:
 Automotive ads and listings
 Real estate ads and listings
 Recruitment ads and listings
 “Stuff” ads…
... but also ...
 Social / professional networking
 Directories / service guides
 ... maybe even e-commerce!
24 | ICMA - Disruptors| Katja Riefler © 2015

The business of classifieds:
 Mobility
 Housing and accommodation
 Work and career
 Lifestyle …
AND – big question:
 Is there a future for something
that was used to be called
advertising?
25 | ICMA - Disruptors| Katja Riefler © 2015

26 | ICMA - Disruptors| Katja Riefler © 2015
Your new
competitive
environment

It‘s a world…
27 | ICMA - Disruptors| Katja Riefler © 2015
Quelle: www.kpcb.com/internet-trends (2015)

It‘s a world…
Mobile
DataSocial
28 | ICMA - Disruptors| Katja Riefler © 2015

Where are the Innovators that
might become Disruptors?
29 | ICMA - Disruptors| Katja Riefler © 2015

Mobile Only
Marketplaces?
30 | ICMA - Disruptors| Katja Riefler © 2015

Super-Aggregators?
31 | ICMA - Disruptors| Katja Riefler © 2015

Client Service Maniacs?
32 | ICMA - Disruptors| Katja Riefler © 2015
Source: Silvio Frison, Presentation at ICMA Berlin Conference, May 2015

Gadget exploiters?
33 | ICMA - Disruptors| Katja Riefler © 2015

Data-Scientists?
34 | ICMA - Disruptors| Katja Riefler © 2015

Data aggregators?
35 | ICMA - Disruptors| Katja Riefler © 2015

Community organizers?
36 | ICMA - Disruptors| Katja Riefler © 2015

Robin Hood?
37 | ICMA - Disruptors| Katja Riefler © 2015

Convenience suppliers?
38 | ICMA - Disruptors| Katja Riefler © 2015

Gamificators?
39 | ICMA - Disruptors| Katja Riefler © 2015

Culture shift?
40 | ICMA - Disruptors| Katja Riefler © 2015

FINALLY, WHAT CAN YOU DO?
41 | ICMA - Disruptors| Katja Riefler © 2015

Must do for classified publishers today
Think beyond YOUR borders
Find out who‘s problem you
are solving
Gain critical mass
Chose whom to work with
42 | ICMA - Disruptors| Katja Riefler © 2015
Task: Connect all nine dots with only 4 lines
without crossing any dot twice

43 | ICMA - Disruptors| Katja Riefler © 2015
You can do
ANYTHING
You can’t do
EVERYTHING
You have to do
SOMETHING

44 | ICMA - Disruptors| Katja Riefler © 2015

Now let‘s discuss!
Katja Riefler
Principal / Managing Director
Advanced Interactive Media Group LLC
katjar@aimgroup.com
tel. +49 89 621 460-44
m: +49 178 695 76 71
© 2015 AIM Group LLC
Friday, 23 October 2015, Madrid

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Disruption - will it hit digital classified players?

2. Classifieds – Disrupted or Disruptor? Katja Riefler Principal / Managing Director Advanced Interactive Media Group LLC katjar@aimgroup.com tel. +49 89 621 460-44 m: +49 178 695 76 71 © 2015 AIM Group LLC Friday, 23 October 2015, Madrid

17. NEXT Phase Publishers most often fail to realize growth established business disruptive modell It grows… A small digital something starts outside Replacement hurts! Action! First pain! It continues to grow… DigitalClone put their business at risk! 17 | ICMA - Disruptors| Katja Riefler © 2015 Explore - Ignore! The clone doesn’t grow… Publishers

19. Disruptive Innovations: A driver of leadership failure and source of growth opportunities Performance Time Incumbents nearly always win Entrants nearly always win 19 | ICMA - Disruptors| Katja Riefler © 2015 Source: Clayton M. Christensen 2011

20. The “Innovators Dilemma” today hits the digital pioneers from 15 years ago… Outdated, hard to change technology Inflexible structures Untimely business models (that earn so much money…) Defensive culture (fear of loosing existing income sources) Convinced of the superb quality of their own approach (focus on existing customer groups) 20 | ICMA - Disruptors| Katja Riefler © 2015

24. The business of classifieds:  Automotive ads and listings  Real estate ads and listings  Recruitment ads and listings  “Stuff” ads… ... but also ...  Social / professional networking  Directories / service guides  ... maybe even e-commerce! 24 | ICMA - Disruptors| Katja Riefler © 2015

25. The business of classifieds:  Mobility  Housing and accommodation  Work and career  Lifestyle … AND – big question:  Is there a future for something that was used to be called advertising? 25 | ICMA - Disruptors| Katja Riefler © 2015

42. Must do for classified publishers today Think beyond YOUR borders Find out who‘s problem you are solving Gain critical mass Chose whom to work with 42 | ICMA - Disruptors| Katja Riefler © 2015 Task: Connect all nine dots with only 4 lines without crossing any dot twice

45. Now let‘s discuss! Katja Riefler Principal / Managing Director Advanced Interactive Media Group LLC katjar@aimgroup.com tel. +49 89 621 460-44 m: +49 178 695 76 71 © 2015 AIM Group LLC Friday, 23 October 2015, Madrid

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