At its core, Eniro’s business concept is simple and – despite the technological shift – the same as when Eniro began operating 130 years ago: making it easier for buyers and sellers to meet.
Our business model is based on the interaction between users, customers and channels, which are all mutually dependent on each other.
Creating an attractive search service requires a current database and a search algorithm that generates accurate search results. We buy raw data, i.e., basic information such as addresses, registered company names and phone numbers from information registers maintained by telecom operators and Lantmäteriet (the Swedish National Land Survey), for example. Since such raw data includes legal company names, a large share of the data is refined through manual updating by our force of more than 900 sales representatives, who speak in person with our approximately 200,000 customers every year.
This data is further augmented by website crawling, which adds additional information, such as business hours, to the raw data we have compiled.
All information is stored in our database, which is the hub for everything we do. The database is our most important asset and the foundation for all of our product development.
Today we have more than 8 million unique visitors a week who perform local and financial searches from desktop computers or mobile devices. These 8 million users are also 8 million potential buyers for our customers, and they perform nearly a billion searches every year, which represent contact opportunities.
In all of our local search products we sell advertising packages in the form of rankings, i.e., how high up the advertiser appears on a result list when a user performs a search. The pricing varies, depending on the customer’s desired placement on a result list. A higher placement generates more clicks and thereby warrants a higher price. Rankings on result lists are also extremely important for our customers’ ability to reach their customers – who are our users. We know that rankings on search result lists make a difference. As a case in point, we know that an advertiser in the number two spot receives 50% more clicks that an advertiser in spot three.
Advertising packages are usually sold as an annual subscription with 12 months’ advance payment. For larger companies, other types of payment models are also used, such as PPP (pay perperformance), where customers pay for a certain number of clicks, visits or viewings, for example.
Our users search actively for contact information for a company when they are looking to buy a product or service, but regardless of whether they prefer to use our platforms for local search, social media services or Google searches from a desktop computer, a smartphone, a smart watch or a TV, our goal is to offer a total digital marketing solution to our customers. We are therefore working together with a number of different partners to offer our customers complementary products in digital marketing.
Printed telephone directories (Print) are now only available locally as a complement to our digital marketing products and are delivered primarily to select target groups at the local level. We will continue to offer our directory information service (Voice), along with more qualified services by phone, as long as users continue to use the service and it has satisfactory profitability.
Higher user benefit leads to more traffic, which attracts advertisers. All customers receive result reports on a regular basis that show the traffic generated by Eniro’s search services. In this way, customers can see the impact of their marketing and measure the return on their investment. Customers that monitor their marketing impact via Eniro’s result reports have a higher repeat purchase rate than those that do not regularly take an interest in their advertising results. Eniro is striving to help customers to a greater extent in seeing the opportunities and impact of their marketing investment.
One way Eniro will achieve this is by being more perceptive and improving its dialog with advertisers. By working from individual customers’ current needs and market situations, Eniro will increasingly focus on guiding its customers through the digital marketing process and offer customized solutions. These can entail, for example, price models, seasonal offers, or specific solutions for selected market segments.