Speaking Sensis

Gerry Sutton, Sensis COO, and Robert Rath, CEO of Sensis China, talk about the achievement of a major milestone for Sensis.

WA:    Hi Gerry and Robert. This year’s financial results contain a real milestone for Sensis. On a reported basis, Internet advertising revenues, including online and mobile, grew by 47% to reach $502 million. So we’ve hit half a billion dollars in Internet advertising revenue – the first Australian owned and operated company to do so, I believe.

GS:    It’s a great achievement. Fourteen years ago we entered the online space with the first online directory in the world. Like everyone at the time, our people had high hopes, but no real idea where digital media would take us. To stand here now and see an audience of millions, well over 100,000 Australian online advertising customers and half a billion dollars in revenue is really satisfying.

RR:    I feel really privileged in a way. I’ve worked closely with the Yellow Pages® and White Pages® teams for a long time, so I’ve got to see that business grow. Now, I’ve had the chance to play a role in the birth of Sensis China. It’s fantastic.

WA:    How has Sensis achieved this result?

RR:    Gerry, I think we’ve achieved growth in China and Australia in two very different ways. One is pure start up while the other is extending a traditional media business. What do you think?

GS:    I agree. In Australia, we’ve integrated digital into the existing Yellow Pages® and White Pages® businesses. It’s been a way of adding value to an existing proposition for both buyers and sellers.

RR:    And, in China, it’s pure online start-up. I saw an interesting statistic the other day. In the USA, they have about 2,000 directories for every thousand people – a 2:1 ratio. In Australia, it’s more like 1:1. But in China, there are only about 20 directories for every thousand people. And, of course, we’re not in the directories market in China.

WA:    Can you point to any defining moments over the years?

GS:    A few years ago, we changed the business model for Yellow Pages® Online. In the beginning, it was a separate business to print with a different sales force. We then integrated the two businesses. If you advertised in print all your content went online. A simple tick the box solution. You could then sign up to enhanced content and position online if you chose to. The minute we did that, online customer numbers skyrocketed. And it was great for buyers too because it put more content into the online directory.

Once we’d integrated the print and online directories, we set about extending what we call the Yellow Pages® network even further. Firstly into our own services like Whereis® and 1234 and then into third party services like Google Maps and Bing Maps. This has added enormous reach for our advertisers and made cross-platform advertising simple for them.

The other thing that comes to mind is much more recent. In my other interview with you, I mentioned the White Pages® Online Platform and how that product led to a real growth spurt in customer uptake and revenue. Thanks to that one product White Pages® Online has tripled in two years and doubled in the last year.

Actually, White Pages® Online Platform flags another big milestone that hasn’t happened yet. This year we’ll complete our systems and process transformation. We actually turned part of it on for White Pages® last year. And the new systems meant we were able to produce the White Pages® Online Platform product in just a few days. Under our old legacy systems, it would have taken weeks.

WA:    So White Pages® Online Platform is a sign of things to come?

GS:    That’s right.

WA:    Robert, what have been the big moves for you?

RR:    Of course, our China investments are only about two years old, but there have been some big wins already. Clearly we’ve invested in the right businesses. We’ve integrated them well, which can be seen in the great way our people are working together: and the team has delivered on expansion plans, like the Soufun 100 cities program. As a result, these investments are delivering really exciting growth.

WA:    So, where to from here?

GS:    I’ve already mentioned our transformation. This will have a huge impact on the types of services we can deliver and the way we deliver them. On that score, I do want to acknowledge one thing. People forget that everything we’ve achieved in our online directories has been done on twenty to thirty year old legacy systems. To be honest, it’s been a real struggle at times and our people have done a fantastic job to deliver what they have. The future’s going to be very different.

RR:    In China’s case, we’ll keep doing what we’re doing. Looking for opportunities for geographic expansion and looking for new services we can deliver to our customers. We’ll also focus more and more on the mobile space, which is starting to emerge. It’s an exciting time.

WA:    Thanks Robert. Thanks Gerry.

There’s a lot of support for small and medium enterprises (SMEs) coming through from Sensis at the moment. We’ve just launched a new ‘Small Business’ section on the Sensis corporate website. Here you’ll be able to find all the free resources Sensis produces for SMEs  in one convenient location. And we can also confirm that a new book specifically for SMEs focusing on sustainable business practices is in the making.

The ‘Small Business’ page is the new home to a range of popular resources Sensis produces for Australia’s SMEs, including the Small Business, Big Opportunity advertising and marketing guide; Sensis® research reports such as the quarterly Business Index, Consumer Report and annual e-Business Report and a summary of Sensis’ small business partnerships and a useful links page.

With all the free resources produced for SMEs now in one convenient location, smallbusiness.sensis.com.au has been concluded and traffic to that site is now redirected to the new ‘Small Business’ page.

As well the new page, following the great feedback received about the advertising and marketing guide Small Business, Big Opportunity, Sensis has decided to produce a new book exploring how SMEs can grow and prosper by implementing sustainable business practices.

Jon Dee

Environmental expert Jon Dee has partnered with Sensis to research and write the book, which will deliver easy to understand practical insights.

Jon co-founded Planet Ark with Pat Cash in 1991 and today is Founder and Chairman of the Australian advocacy organisation ‘Do Something!’ He is also the Environment Editor for Channel Nine’s nationally broadcast TODAY Show.

Jon has more than 25 years working on cause-related projects. Some of the highlights include co-producing ‘The World Against AIDS’ global broadcast which launched ‘World AIDS day’ in 1988; initiating and running ‘Rock Aid Armenia’ in 1989; co-founding Australia’s ‘National Tree Day’ with Olivia Newton-John which resulted in more than 12 million native trees and shrubs being planted… and that’s just to name a few!

Jon and Sensis have worked together before when Jon initiated the Sensis sponsored RecyclingNearYou.com.au. Working alongside Sensis’ ongoing commitment to supporting SMEs, the new book will be available to download or order at no cost from the new ‘Small Business’ page towards the end of the year. Keep an eye out on about.sensis.com.au for updates.

If you have any feedback about the new ‘Small Business’ page or any questions about the upcoming book, please contact Smallbusiness@sensis.com.au.