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Alma Media has three operating and reporting segments:
Alma Media’s primary sources of revenue are:
The revenue categories listed above comprise several different revenue generating models. The media sector’s historically clear division between circulation sales and advertising sales has become diversified as a result of digitisation.
Alma Media’s business consists of the media and service business. The media business includes, for example, the trade publications, financial media and books published by Alma Talent as well as the national multichannel media published by Alma Consumer. The media business is based on a relationship with readers built through content. As media develops, the reader relationship is shaped into a multidimensional customer relationship with a media brand. The strength of this relationship can vary from occasional visitors or buyers of single copies to regular paid users of online services and long-term subscribers of print publications.
As the digital transformation has progressed, digital marketplaces have become an increasingly significant area of Alma Media’s business. They include services related to recruitment, housing and mobility, among other things. The customers of Alma Media’s digital services include both companies and consumers. The digital services business model is based on fees charged for classified advertising, display advertising, service sales as well as revenue streams from service content and/or advertising targeted at the users of the service, subscription fees and licence fees for the use of information systems. Our other services include information services, the event, training and direct marketing business.
Brand appeal and the marketing efforts aimed at maintaining it are crucial in the digital environment. Alma Media’s services are the best-known brands in their segments in Finland and the Group’s operating countries in Eastern Central Europe.
The popularity of these services among users is based on a high level of usability, unique content and, in many cases, the importance of the social or communal dimension. It is also essential to have the ability to respond to local customer needs by delivering localised products and services.
In both the service business and the media business, readers and online visitors constitute target groups that are characteristic to each medium. These target groups are the basis for advertising sales. These target group contacts are sold to advertisers on a media-specific basis and as audience segments from the digital Alma network. For advertisers, this opens up valuable opportunities to specifically target the businesses, experts, decision-makers, entrepreneurs or consumers in a particular category. The use of data, analytics and machine learning is plays an increasingly important role in improving the product and service offering for advertisers and enriching end user services. Data and marketing automation enable the provision of increasingly high-quality, effective and impactful solutions to advertisers.
In Alma Media’s value creation for customers, shareholders and society, the key roles are played by the strong journalism, marketing and technology expertise of the Group’s employees, strong product and service brands, customer data, the best partners, an efficient production and delivery network and a stable financial position. These are described in more detail in value creation model. The value creation model describes Alma Media's business operations at the end of 2019, before the divestment of regional media business and printing operations.