FINN.no

FINN.no – Growing to #1 and beyond
Terje Seljeseth, CEO Finn.no
Norway's leading
classified portal
FINN is by far Norway’s #1 classifieds site and #5
overall in terms of unique visitors
Unique
users
User
sessions
Page
views
Change Change
us
ub
Change
sv
VG Nett
2.836.125
15.578.403
346.594.764
5,0
2,2
-5,49
MSN
1.979.345
8.602.840
37.593.146
11,4
20,8
48,85
Dagbladet
1.716.738
6.820.651
31.397.976
3,6
3
-3,03
Startsiden
1.709.307
10.283.017
33.847.310
3,9
2,2
1,25
FINN.no
1.599.238
5.282.144
193.183.698
1,8
0,6
-2,97
NRK
1.581.319
4.639.668
24.050.116
0,1
-4,3
-7,0
Gule Sider
1.333.577
2.893.473
18.280.869
3,8
3,8
1,95
Nettavisen
1.000.909
3.598.909
23.425.573
-0,9
-1,5
-7, 79
Aftenposten
961.016
3.104.479
16.061.895
8,8
6,4
3,58
SOL
911.699
3.881.887
20.944.982
-0,6
-0,3
-4,86
Growth from last year
Unique
users
Growth
from
2007
VG Nett
MSN
2.836.125
1.979.345
13%
-2%
Dagbladet
1.716.738
9%
Startsiden
1.709.307
-0,3%
FINN.no
1.599.238
20%
NRK
1.581.319
120%
Gule Sider
1.333.577
7%
Nettavisen
1.000.909
-4%
Aftenposten
961.016
7%
SOL
Zett
Tinde
911.699
156.716
86.095
33%
-5%
9%
* SOL og Start.no fusion
FINN’s rise has been extremely rapid...
Usage growth has accelerated rapidly...
... and revenues have followed
Unique users per month in M (2001-2008)
Monhtly revenues in M NOK (2001-2008)
4,5
21%
4,0
29%
29%
70
60
45%
3,5
50
28%
3,0
34%
40
59%
2,5
2,0
30
54%
53%
1,5
42%
53%
33%
1,0
36%
Source: Nielsen Netratings
jun.08
des.07
jun.07
des.06
jun.06
des.05
jun.05
des.04
jun.04
des.03
jun.03
des.02
jun.02
des.01
jun.08
des.07
jun.07
des.06
jun.06
des.05
jun.05
des.04
jun.04
des.03
jun.03
des.02
jun.02
des.01
jun.01
0
jun.01
10
0,5
0,0
31%
20
...and has made FINN a profitable business
FINN revenues, NOK million
576
401
267
43
63
100
133
173
FINN EBIT, NOK million
248
-17
-6
2000
2001
25
42
70
2002
2003
2004
114
2005
153
2006
2007
To meet the internet challenge in 1996, an important
alliance was made
FINN branding in the
Newspapers classified
Section.
FINN branding in the
Newspapers classified
Section.
Advertising in
The newspaper
FINNs growth strategy has changed focus from category expansion to
new markets and products
Current focus
Why
(Rationale)
Become #1 in
main categories
Expand into
subcategories
Establish new
related
markets
Grow through
new products
• Classifieds markets
• Use existing
• Difficult to grow
• Difficult to grow
• Establish new
• Stretch brand to
• Grow in the value
are ”winner takes it
all”
position to
diversify naturally
• Market entry difficult
further within
mature markets
that have been
captured
further within
mature markets
that have been
captured
once you have a #1
brand
How
(Actions)
• Strong co-branding
with regional
newspapers
• Strong partnerships
with key
stakeholders, e.g.
real estate agencies
classifieds
categories closely
related to existing
#1 positions
new classifieds
categories further
away from the
core, e.g. bits and
pieces
chain in captured
markets
• Identify
uncaptured
growing markets,
e.g., travel, dating
• Build innovation
culture
When a strong position in main three categories was
captured...
Jobs
Homes
Cars
...FINN could expand into more specialized subcategories...
Jobs
Homes
Cars
Part time
Professional
properties
Car dealers
Employers
Lettings
New cars
Vacation
homes
Trucks
CV
Foreign property
Plots
Education
Estate agents
Caravans
Construction
...and into new related markets...
Bits and Agriculture
pieces
Jobs
Homes
Part time
Professional
properties
Car dealers
Employers
Lettings
New cars
Vacation
homes
Trucks
CV
Foreign property
Manager
positions
Plots
Estate agents
MC
Boats
Cars
Caravans
Construction
...and their sub-categories
Bits and Agriculture
pieces
Jobs
Homes
Part time
Professional
properties
Employers
Lettings
Equipment Scooters Marinas New cars
Vacation
homes
Dealers Snowmobils Dealers Trucks
CV
Foreign property
Manager
positions
Plots
Estate agents
Harvesters
MC
Boats
ATV
Parts Car dealers
MC dealers
Cars
Caravans
Construction
This strategy led FINN to become a market winner –
then how do you avoid becoming ”lazy”?
76% of the growth since 2004 has been organic/non-innovative
within mature markets
FINN revenues, NOK million
Revenues 2004
Organic/
non-innovative growth
Mainly growth from
increased sales (# of
customers), but also
international expansion
and M&A
173
308
Revenues 2007
without innovation
481
Growth from innovation
95
Revenues 2007
Growth from new
related markets (e.g.
agriculture), entirely
new markets (e.g., Bits
and pieces, Travel) and
new products (excl.
brand ads).
576
Growth within mature markets significantly slower than in new
markets...
Classifieds revenue growth – 2004/2005 & 2005-2006
26 %
19 %
2004/2005
2006/2007
Cars & homes for sale
85 %
B&P
established
as market
in 2004
2004/2005
2006/2007
Bits and pieces & travel
...and continued organic growth within mature markets
may prove difficult
Market share 2004, %
Jobs
Real estate
Cars
30
Market share 2007, %
82
68
76
95
103
100
Source: Aetat; Opplysningsrådet for veitrafikken AS; Norges Eiendomsmeglerforbund
So then FINN moved on to another strategy...
Before transaction
From the initial focus of
expanding the
marketplace...
Display ads
...into value chain
expansion
Multi channel publishing
Travelfusion?
Real estate photo
Personell hiring administration
B2B
Boat MC Aggriculture
JobClassified
Real estate
Car Bits & Pieces Services Travel Dating
ads
Safe payment
Deposits
Applicant Testing
Applicant sorting
Appartment planner
Guarantees
Display ads
After transaction
Increased focus on brand ads has secured further
growth
Year on year revenue growth – 2001/2002 & 2005-2006
91 %
37 %
14 %
2001/2002
2005/2006
B2C Classifieds*
19 %
2001/2002
2005/2006
Display/brand
* Cars & Homes for sale
…and has given FINN a very strong position in brand
marketing on Internett
Share of brand marketing spent on Internett in Norway
12 %
5%
2003
2008 (first 6 months)
Example of value chain expansion:
Apartment planner
Examples of new products: Travel search, web search
and yellow pages
Travel search
Web search and yellow pages
...and these products generate a significant growth.
Travel:
Revenue NOK Million
first 6 months
2006
2007
2008
5
Growth, %
41
11
25
123
131
By establishing a new Strategy and Innovation unit with 14
employees, FINN is clearly dedicated to become an innovation
leader
Priority
1
Joint and clearly communicated
corporate strategy
2
Broad innovation culture with
innovation as a core competency
Main goal for new
Strategy and Innovation unit
Considerable and long-term
value-creation across FINN
3
Cooperating partner with existing
business units
4
Identify and push forward new
business areas
5
Create next generation FINN
Schibsted European best practices in innovation have been
adopted...
Best practise
Tools and methods evaluate
and select the right ideas
and convert them to
products
Tools collect and
attract a wide
spectrum of
ideas
Utilize products
commercially
acoross companies
and countries
Innovation process
1. Idea generation
Open up
Find ideas externally
Kilde: Morten Hansen, INSEAD
2. Realization
“White space”
Ideas across departments and companies
Selection
Select and fund
3. Commercialization
Convert
From idea to
product
Spread
Across organizations in
Schibsted
...and adapted into a company wide process that builds innovation
as a core competency
Innovation process
1. Idea generation
2. Realization
3. Commercialization
Idea owners get support
to develop the idea into
a concept
All employees
generate ideas
Line of business
product owners
generate ideas
Employees comment on
and value-add ideas
Award process
where employees
vote on which ideas
to get funding
Product owners
select and realize
ideas
FINN Innovation Awards contributes to strong enthusiasm, high visibility
and funds to the best ideas
best idea
innovation award
of the year
50 000 NOK
40 000 NOK
best department
of the year
a night on the
town
pr team member
contributor
of the year
25 000 NOK
•
The winners of the 2007 Innovation
Awards received a personal bonus
of 75 000 NOK, and their project
was allocated 3,5 MNOK to be
implemented in 2008
•
The inventors are part of the project
team
FINNopp supports the innovation process by collecting, sharing and
giving value-add to ideas
•
FINNopp was developed by Strategy and Innovation, with go-live date August 2007
Users give feedback by pressing a ”kudos” button, and/or comment on
the idea to value-add
Product owners use FINNopp as a workflow tool, and the life-cycle of an
idea is transparent to everyone
FINNopp has created great enthusiasm among employees and all
employees contribute
Contribution from employees, % of
employees
Posted ideas
Logged in last month
Given feedback
to other’s ideas
65
75
~95-100
Several major new ideas in the pipeline which would not have surfaced
without the innovation process
Since aug. 2007:
•
•
•
•
•
Surf together (increased user experience)
Humanitarian organisations (strengthening of the brand)
Rental marked for equipment (~70 MNOK)
Personification of FINN (increased user experience)
FINN loan (20-140 MNOK)
Idea owners get
support to develop the
idea into a concept
All employees
generate ideas
Employees comment on
and value-add ideas
Line of business
product owners
generate ideas
1000 ideas posted
Award process
where employees
vote on which
ideas to get
funding
Product owners
select and realize
ideas
50 minor ideas implemented
FINNopp creates enthusiasm externally, and is regarded as best practise
for innovation tools
•
”FINN is the Norwegian company that has come the longest way to make innovation come real”
Truls Unholt, Innovation Manager, Devoteam DaVinci (Norway’s larges concultancy company)
•
”We are very impressed – no, we are dumbfounded!” Catherine Janson, Practice Area Manager, Devoteam
DaVinci (after seeing FINNopp)
•
”We see FINN as one of the most innovative Norwegian businesses” Eline Løseth, manager Open
Innovation Forum
•
”Where can I buy it?” Tekna, Gjensidige and the audience at Software 2008
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