Local World to ‘re-invigorate UK regional media’
David Montgomery has said that Local World “signals the fight back in Britain’s regional media industry,” and has promised the creation of a strong media business dedicated to the provision of quality local content and advertising platforms.
Launched yesterday, Local World has been created from the newspapers and websites of Northcliffe Media, the regional publishing arm of Daily Mail and General Trust (DMGT), and Iliffe News & Media, the publishing subsidiary of Yattendon Group.
The new business intends to transform regional publishing to create a one-stop shop for local content to serve the community and business in every aspect of life.
Artefact Group, an Investment Fund associated with Lord Ashcroft, DMGT, Odey Asset Management, Trinity Mirror and Yattendon Group will be shareholders in the new company.
Montgomery, one of the most experienced media executives in the UK, will be Chairman of Local World.
Steve Auckland, formerly Managing Director of Metro, Yorkshire Post Newspapers and Northcliffe Media, will be Group Chief Executive. Rachel Addison, currently Chief Financial Officer of Northcliffe, will assume the same role at Local World.
Announcing the new venture, Montgomery said: “This is an entirely new type of media business. The value of Local World will lie in its people, its franchises and its IP. It will be unencumbered by the infrastructure of the industrial past such as property, printing presses and large scale distribution or any legacy issues such as high levels of debt.”
The management team led by Montgomery, a former Chief Executive of publishers Mecom and Mirror Group, intends to re-invigorate local newspaper publishing and the digital distribution of local content.
The new business aims to build on leading regional media titles, with strong audience loyalty in local communities, and expand Local World’s digital presence with the investment of £10 million.
Local World will meet strong demand for local content and commerce. Research conducted in 2011 by NS, the industry body, has shown that people continue to spend most of their time and money locally, that local media is the best way for brands to take advantage of the new ‘rise of local’ – with 60% of people acting on local advertising and 76% spending half or more of their money within five miles of home, rising to 92% for 10 miles.
Market leading brands
The combined product portfolio of 63 local portal websites has a monthly audience of over seven million unique users. The print business includes 16 daily titles, 36 paid weeklies, 40 free weeklies, two Metro franchises and a number of niche products including magazines.
Notable brands include the Cambridge Evening News, Leicester Mercury and Hull Daily Mail. The combined print portfolio has a weekly reach of six million people.
Local World has a vision to create comprehensive content for local communities and provide a range of solutions for advertisers to reach a local audience.
The business will focus on the provision of content across multiple platforms, targeting opportunities for both digital audience and revenue growth. Print products will remain “a prestigious part of the portfolio,” complementing the digital offering.
Digital audience growth
Local World has also said it is committed to accelerating digital audience growth with the provision of rich online content, including relevant local news, information, entertainment and advertising.
The overall audience for Local World’s outlets is expected to grow as increased focus is placed on digital distribution, with editorial resources devoted to increasing online traffic.
The new company, which will rely on digital for 8.4% of total revenue and 11.2% of advertising revenue at launch, aims to more than double its digital revenues to 20% of the total. A stronger digital offering will attract a younger audience, which will strengthen the overall offering to advertisers.
New operating practices
A number of new working practices will be put in place to help transform the business. Technology developments will enable better audience targeting for advertisers and e-commerce across all platforms. Increased use of remote working for staff and use of contributors will enhance online products.
Citing his experience at Mecom, Montgomery added: “Demand for local content remains as high as it has ever been. The correct strategic approach can transform a local media business focused on that opportunity. We look forward to satisfying this continuing demand and monetising our strategy.”