Better value propositions across all media
In 2014, Sanoma Media Netherlands rationalised its portfolio, launched 17 projects to increase top and bottom line growth, invested heavily in TV and integrated the Sanoma and SBS offerings more closely. New value propositions that combine TV, digital, print and events across four powerful domains, will help us to monetise growing interest from consumers and advertisers.
When Peter de Mönnink became CEO of Sanoma Media Netherlands in January 2014, the decision to rationalise the company’s portfolio had already been made. De Mönnink accelerated the divestment process and by August, 15 titles had been sold and around 500 FTEs had left the company. "We now have a stronger cost base and are in a better position to grow the key brands that remain. What’s more, the divestment process was done with integrity and openness, allowing us to safeguard the commitment of our people," De Mönnink says.
To speed up the return to organic growth, De Mönnink also launched 17 projects designed to impact the top and bottom lines. These are known as Big Oak projects and they include efforts to improve pricing strategies, strengthen internal communications and enhance cross-media marketing. "Our efforts to combine TV, digital, print and events in order to drive the top-line growth of our brands has worked well. Revenues are no longer declining and we expect growth in 2015."
Underlining this result is the strengthening relationship between Sanoma and SBS Broadcasting, which owns TV channels Net5, SBS6, Veronica, and newcomer SBS9, as well as some digital assets. Back in 2011, Sanoma and minority shareholder Talpa purchased SBS, and all parties are co-operating to channel the cross-media power of the Sanoma-SBS combination. A joint marketing and media solutions department was set up as a one-stop-shop for large advertisers, and Sanoma and SBS are working with large advertising agencies to develop new value propositions. In a clear demonstration of this closer alignment, De Mönnink also became CEO of SBS in September.
"We are building value propositions that link digital, TV, print and events across the domains, we appointed a Domain Director Women in 2014 and we did the same for the other domains in early 2015," De Mönnink explains. We are also testing the water to see if entertainment would be viable as a fifth domain. A decision will be made in 2015.
The power of TV
The new formula really took off. Circulation of the magazine increased, the online retail shop boosted revenues, site traffic went up and viewer share increased. Overall, this had a positive effect on the brand’s revenues. In 2015, vtwonen will return to TV with even more episodes and, De Mönnink says, sponsors are already lining up.
And as if all this were not enough, SBS also launched a fourth TV channel called SBS9 in January 2015. Its relatively simple format of a movie every night at 20:30 and a top series is beating all expectations, according to De Mönnink. In addition, the video-on-demand platform KIJK was revamped, and clocked up close to 100 million stream starts in 2014. KIJK provides access to all SBS content and the team is currently studying whether to monetise it through advertisements or subscriptions.
Year of oppurtunties
In 2015, De Mönnink wants to deliver on top and bottom line results by growing Sanoma Media Netherlands’ premium brands and adding TV and video-on-demand wherever possible. Marketing spend is stable and consumer confidence seems to be improving, so provided the Eurozone remains undisturbed by a Grexit or some similar upset, "2015 will be a year of opportunities. We will continue to work on our Big Oak projects and our domain strategy, and also to cooperate closely with media agencies to build new propositions for advertisers."
Video will take a front seat in 2015. Video on demand and multi-channel networks, which would enable free-to-air TV to evolve into different models, are interesting markets. Sanoma is also laying the groundwork for Hybrid Broadcast Broadband TV, which combines TV with internet services. "HBB TV will take another two years to go mainstream, but we have begun experiments with a media agency to get the learning in so that we are ready when it takes off." HBB TV also hints at the increasing value of data. De Mönnink foresees that Gross Rating Points, the main KPI for TV, will soon become GRP + data, and over time that will become data + GRP. "Data will eventually become the predominant element in the value proposition for advertisers." For this reason, 2015 will also be the year of big data, as Sanoma and SBS try to turn sales data into better value propositions. "We are well on the way to enabling a single sign-in for all Sanoma and SBS channels, which could become the glue between all our assets," De Mönnink concludes.
Arthur Hoffman: speed, agility and quickly changing course when needed
It has been an important and eventful first year for Sanoma Digital. The newly formed business unit is part of a matrix organisation, together with Sanoma Media Netherlands and Sanoma Media Finland, which oversees the pure-play digital businesses and their development, spearheading the digital transformation of Sanoma. “The other roles for Sanoma Digital are to work closely with the country organisations on cross-media opportunities and in key areas such as mobile, video, and Big Data,” says CEO Arthur Hoffman. “Additionally, the Sanoma Lab and our venture arm are part of Sanoma Digital, and both of these are very important company-wide innovation initiatives.”
Harri-Pekka Kaukonen: "This is a great company, with a great heritage and a great future"
Three years into its transformation process, Sanoma has reinvented itself as a digitally savvy company. With the organisation’s structure, strategy and culture firmly defined, Sanoma is making confident strides towards organic growth in 2016. CEO Harri-Pekka Kaukonen explains why Sanoma’s credibility was restored in 2014 and why growth and culture will be the core themes of 2015.
Increased confidence and a renewed sense of purpose were the dominant sentiments across Sanoma in 2014. "We have our mojo back."
Increased confidence and a renewed sense of purpose were the dominant sentiments across Sanoma in 2014. Chief Human Resources Officer Jackie Cuthbert says that Sanoma will now continue to focus on culture and skills in 2015 in order to return to growth in 2016.
Kim Ignatius: back to organic growth in 2016
“We want to make the most of our resources and capital – which means we need to prioritise and choose those assets with the best strength and potential,” says Kim Ignatius, Chief Financial Officer at Sanoma.
Pia Kalsta: taking the multi-channel perspective in everything we do
Sanoma Media Finland’s CEO Pia Kalsta is pleased to report significant digital developments for numerous brands. For television and radio, 2014 was also a good year. Print remains an important element in the portfolio.
John Martin: co-creating solutions together with teachers
Sanoma Learning had a successful year. It delivered organic growth and strong profitability, achieved high growth in digital sales and extended its international reach. CEO John Martin says Sanoma Learning is poised to transform K12 education with digital solutions that improve learning outcomes for pupils, support teachers and increase engagement.
Key figures financial report 2014
Key figures financial report 2014
Chairman of the Board Antti Herlin: signs of growth
“The employees of Sanoma have shown their determination and diligence during tough times on the market. They have restructured the company and refocused their portfolio. They have invested in people and technology. And they have made swift progress towards creating innovative multi-channel offerings.
Chief Technology Officer Mikael Nurmi: ready for the digital future
Sanoma’s technology organisation worked hard during 2014 to build the structures and capabilities necessary for taking the Group further into the digital future.
Vice President Strategy and PMO Leila Kaleva: committed to change
”Sanoma's employees are very committed to transformation. Thanks to this mindset we are moving forward fast,” says Leila Kaleva, who has been leading the implementation and follow-up of Sanoma’s strategic change programme and strategy process since January 2014.
Young Digital Planet ready to teach the world
With high-end products and deals in multiple continents, Young Digital Planet is taking mobile curricula global.
bingel wants to be a favourite learning brand
Mobile, and with more adaptability and gamification, the new version of VAN IN's bingel is hot in Belgium and now in Sweden too. And it’s ready to take on more European countries.
VOoruit digital platform as a frontrunner
VOoruit is a platform started by Malmberg in 2013 to speed up the time to market of new digital learning products.
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Corporate Social Responsibility
Helsingin Sanomat, a mobile multimedia brand
In making the transition from a traditional newspaper to multimedia, and thus growing its digital media market share, Helsingin Sanomat is demonstrating that it can adapt and exploit the strength of its brand.
Fresh concepts strengthen Nelonen Media
In 2014 Nelonen Media successfully launched two new brands, a radio station called Loop and a TV channel called Hero. Both have added something unique.
New services at Sanoma recruitment
A strategy review in early 2014 convinced Mika Ruokonen, Director Recruitment Business Sanoma Digital Oikotie.fi, that it was time to make some changes.
Mun Treenari, lean is good!
A great example of Sanoma Lifestyle's successful application is a new app called ´Mun Treenari´. Developed by Sanoma Lifestyle’s health team, this app targets busy women who want to live a healthier lifestyle or change their living habits.
A trendsetter for 50 years, vtwonen goes multi-channel
In 2014 vtwonen celebrated its half century. What started as a simple magazine has since morphed into an all-round home decorating brand.
LINDA. spreads her wings
The people behind LINDA. brand professionalised the news website, launched a new book-publishing company, and even started up an advertising agency.
Sanoma Ventures, nothing ventured nothing gained
Sanoma Ventures was created to support independent start-ups that are responsible for some of today’s best innovation and the resulting new services and products.
KIJK: supply meets demand
KIJK is a house of content that sources movies, Dutch and US series (including earlier seasons), and extras such as exclusive interviews from Dutch TV channels SBS6, Net5, Veronica and SBS9.
Sanoma Digital leads the way
In 2014 Sanoma Digital's Performance Concepts team explored exciting new ways of making smarter use of Sanoma’s email database for advertisers.
Kymppi adds up to success in Finland
A product of the Maths and Science department of Sanoma Pro in Finland, Kymppi has already proved its worth with schools’ lower grades and will now build on that success.
Leading the way in personalised learning
By developing a new personalised and adaptive learning solution Malmberg, Sanoma Dutch Learning subsidiary, is proving to be a trailblazer in digital learning.
Sanoma Lifestyle, home-grown content producers
When Sanoma Lifestyle couldn’t find the right people to produce the kind of commercial content its clients were increasingly asking for, the company simply created its own training programme.
Exam preparation and performance tools
In 2014 Nowa Era, part of Sanoma Learning in Poland, launched the first edition of the Diagnoza Nowej Ery suite, which comprises final-exam testing and assessment services for teachers and students.