Alma Media > Investors > Why invest in Alma Media > Business model

Business model

Alma Media has three operating and reporting segments: 

  • Alma Career
  • Alma News Media
  • Alma Marketplaces

Alma Media’s sources of revenue are:

  • classified advertising,
  • advertising,
  • digital services,
  • content,
  • other sales.

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. 

Description of the business model

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, cars and mobility, for example. The customers of Alma Media’s digital services include both companies and consumers. The digital services business model is based on customer fees charged for classified advertising, fees for increased visibility in classified advertising, service sales, 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.

The media business includes, for example, the professional and financial media and books as well as the national multichannel media Iltalehti. 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 the use of online services as registered users of online services, paying consumers of digital content and long-term subscribers of print publications.

The Group’s other services include information services as well as training, event and direct marketing business.

For all businesses, readers and online visitors constitute target groups that are characteristic to each brand. These target groups are the basis for advertising sales. These target group contacts are sold to advertisers on a brand-specific basis and as audience segments from the digital Alma network. For advertisers, this opens up valuable opportunities to specifically target the businesses, professionals, decision-makers, entrepreneurs or consumers that are relevant to the growth of their business. The use of data, analytics and machine learning plays an increasingly important role in improving the product and service offering for advertisers and enriching the end-user service experience. Data and marketing automation enable the provision of increasingly high-quality, effective and impactful solutions to advertisers.

Brand appeal and the communications and 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 customer needs by delivering localised products and services.

Value creation

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.

alma media value creation