Case study: Ampparit.com (Finland)

The name of the publication and / or company

Ampparit Ltd.

Established

Established in July 1st 2004, a joint stock company established in 2007.

Web Address

www.ampparit.com

Form of the company

A joint stock company

Describe your site or business in few words.

Ampparit.com is a news portal service that gathers and updates almost all of the Finnish news headlines on one site. The news headlines are divided in the different categories that enable the user to navigate according to his/hers interests. For example business, culture, politics, ice hockey, food etc. In addition there are user related categories, created by the site community: for example the most popular headlines per clicks or the most recommended headlines.

There is a weather service, web-TV, TV-guide, and a news map that puts together news by geographical location. Naturally the service also follows what is shared in social media: in a mix-up of social media and news coverage it follows the most shared topics in Facebook, Google+ and Twitter.

Staff numbers

Who’s creating the content

The total staff is four, of whom three are full-time at the moment. Two of them are working in business administration and the sales of our media follow-up (Witpik). One is working in technology. Then a one person is working within both Ampparit.com and the media follow-up service administering the company and affiliates.

Ampparit is not a traditional journalism organization, but an aggregator. We don’t publish our own content. IT takes care of it all.

Business, marketing & sales, paid full-time

3

1

 

 

How they make money

Revenue models and sustainability

 

Would you say your business model is sustainable?

“Yes, we are now in a good position considering our profitability which is now at a good level. We have managed to maintain or increase our profit percent up to 40 percent. This, of course, provides us a greater freedom to think about the development of our company.”

How much is your yearly or monthly revenue?

2011/6 Revenue 504.000 euros (675.000 USD), profit 163.000 euros (218.000 USD). More data in Finnish.

Where does your revenue go?

All the employees are on monthly salary. Three full-time.

What about profit?

One part of using our profit is to secure the resources for developing forward the service. The other part is the proprietors, to ensure their dividend yield. These are the two functions, the two things that come along in the decision-making process.

 

What kind of advertising you sell?

A wide variety: Ad Networks, CPM, CPA, CPC, textual ads, some geolocation ads. Some sponsorhips as well.

Do you sell any other services or products

We sell some consulting and technological know-how. Speaking opportunities are rare, same goes with donations. We also sell user data: what kind of users we have, what do they search and how do they use the site.

Do you see your publication as your main product?

Yes we do. Ampparit.com is our leading product.

What would be the most important thing on your road to sustainability?

The most important thing is the cost management. Increasing revenue doesn’t make any profit for a growing company if the cost structure is not under control during the process.

Some history of the company:

“The business idea came in the early spring of 2004. Shortly after we developed the first demo version of our service and went a step by step forward. Start-up costs were minimal, something 150 €. That included the server and that all that you need starting your business. In the summer 2004 the build up of the service was ready and it launched 1st of July 2004. The first three years the business was run on the side with the studentship. That time we didn’t have any advertising on the Ampparit.com site. It really started rolling when a joint stock company was established in 2007. That was the real starting point and since then it’s been a real business. Of course at first it was a small-scale business, but little by little we have grown upwards.