A multifaceted online expansion rooted in print journalism at Poland's Agora

The headquarters of Agora, Poland's biggest media concern, in a southern district of Warsaw, have huge windows as a façade, and inside, terraces on every floor. The whole configuration seems to facilitate contact between the different editorial units housed in this imposing building. They are numerous and varied, from flagship daily Gazeta Wyborcza to freesheet Metro, from talk-news radio Tok FM to countless Internet portals and the administrative departments. Their members or contributors don't need to go to the basement, to the cafeteria, to see people from other platforms or professional cultures. The in-house newsstand and bookstore, which sell not only the group's productions, also remind them they are not alone in the industry.

Agora, which also has a strong presence in magazine, book and DVD publishing, in music-film production and in outdoor advertising, has more than half of its 3,150-odd employees based in this "horizontal skyscraper". The architecture building that is longer than it is tall, with stretching, low wall corridors, may reflect the interaction between separate units. Ironically however, it also contradicts the term "vertical", often heard in this four-storey building and applied to some of the integrated online activities.

"We are in all media platforms except television," says Grzegorz Piechota, the special projects editor for Gazeta Wyborcza, Poland's leading quality newspaper.  "For a decade, we have been particularly active in extending our expertise in Internet, finding synergies between online and print operations. Agora is in everything except porn, instant messaging and mapping!"

The group, whose operations are essentially Polish, counts more than 80 portals (more than Germany's Axel Springer for example, another media titan but at a world level). Agora's main portal gazeta.pl, fed by an independent newsroom integrated with radio Tok FM, is complemented by webradio tuba.fm and many other stand-alone verticals. These cover all sorts of issues, including sport, business, education, recruitment and real-estate. Most of them are leaders in their niche, and their combined audience is sixth right after Google, Polish equivalents of Facebook (nasza-klasa.pl) and E-bay (allegro.pl), and the two leaders onet.pl and Wirtualna Polska. Nearly two thirds of Poland's 17 million Internet users regularly visit gazeta.pl and its affiliated portals. Wyborcza.pl, the flagship daily's e-edition, attracts three million users and brought in  24% of the daily's advertising revenues in 2009.

Agora has been particularly proactive in looking for synergies and complementary activities made possible by the Internet. The group has implemented a multi-brand strategy which is adjusted according to the fields covered. Gazeta Wyborcza, for instance, is fully integrated only in areas that make it more appropriate, with the verticals sport.pl (launched in 2006) or wyborcza.biz (created last year).

This business portal was editorially independent from the daily when it started, in order to be more flexible than print journalists, who were considered "too serious and slow". It was filled with gossips on economic players, which was a mistake, Agora's executives admitted. "It was not the right way to attract a loyal audience. The people we target, let's say graduate readers in their 30s, with minimum 1,000 euros monthly income, have no time and are in search of serious news," explains Leszek Olszanski, the head of wyborcza.pl. "Advertisers also want to reach them through non-trivial material, which is why we work with seasoned print editors. We realized there are complementary abilities between online rapidity on one hand, and thoughtful coverage of an industry on the other."

Thanks to this integration, top economic columnists of Gazeta Wyborcza now write more. They allegedly enjoy having more space for their texts, and having the possibility to work on breaking news in real-time. The portal benefits from the credibility conferred by the paper, which in turn has become more analytical rather than news-driven. "We try to wait for the print edition for exclusivities, if possible. These scoops can be accompanied in the website's pages by teasers before, and follow-ups after," Olszanski notes.

Wyborcza.biz  has become a strong brand, along with its associated portal money.pl. Financial institutions, in particular, compete to be advertised in their pages. This year, the online revenues of the economic section should represent 50% of print earnings. Like the in-house newsstand, the sales forces also market ads for other business sites. It is in Agora's philosophy to tap into all potential income sources - not only news driven - and on the cooperative character of the Internet. "On the Net, you do business with your competitors. There is a business reason to build networks to cover them, and our expertise also includes sales to advertisers," Piechota explained.

Agora does not only play with complementarities rooted on its traditional print activities. The 50-person team managed by Pawel Stremski, as gazeta.pl/Tok FM's chief editor, is half web and half radio. Last January his unit added another website to Agora's e-basket, with the launch of tok-fm.pl, which is not a webradio (a station by the same name, broadcast in Poland's nine main cities, was already accessible on the webradio portal tuba.fm). Agora did not create another website for the sake of it, but saw Tok FM's recognized brand as an opportunity for Internet too. "The same team fills gazeta.pl for a mass market audience, and tok-fm.pl for politics and business with some entertainment content. People can follow a major hearing by a politician live, in a video coverage on tok-fm.pl, and get a summary in the other portals," Stremski says.

The website's beta version was successful in having radio journalists send in their notes, according to its promoters. Conscious of brand impact, these reporters see it as a more dynamic, immediate way to publish their stories. Gazeta Wyborcza's central newsroom is not a tok-fm.pl contributor, but its local editors are. They are based in 20 bureaus out of Warsaw, and can publish their non-print productions in the new portal. They receive no extra pay for these contributions, but they have an incentive: there is an award each month for the best exclusive story.

"We have to be fast, entertaining and multimedia, finding the way to be different," Stremski says. "There is room for good profitable journalism in Internet. By going multimedia, you get more informers, your story is not stuck on page 6, even though the credibility conferred by print remains essential."

Another advantage of creating tok-fm.pl is that in Poland's competitive media environment, newspapers not belonging to Agora are less reluctant to refer to Tok FM as a source, rather than Gazeta Wyborcza. Having many brands gives more possibilities to be quoted for scoops, and to be profitable too. "We cannot expect to make money with every website. A lifestyle or a local news website is more likely to be cost-effective from the start than a general news portal," Stremski notes.

Agora's online operations have gone even more vertical in the past months, with the majority takeover of AdTaily. This start-up company based in Krakow provides a widget-based system for advertising monetization of Internet services (including those offered by the group's platforms which at the moment house about 130,000 bloggers). "AdTaily developed a universal tool that can be used for cooperation with external customers," commented Tomasz Jozefacki, Agora's director of Internet operations. "Currently its system is used by 80% of our online media."

In other words, the group is taking advantage of the blogosphere's innovations and income potentials, including e-commerce for web entrepreneurs who want to monetize their social media. "Agora realized that to be online, you need to acquire the bright guys who are in the business, and can help you to be more efficient in new platforms. Our expertise is not just about gathering news; we have to think wide," Piechota says.

AdTaily is based on the assumption that anybody can be an advertiser. It has developed a self-service ad tool designed for niche blogs, giving advertisers the opportunity to reach narrowly-targeted audiences. Its promoters insist that their system allows 70% of the ad revenues to go directly to the bloggers, with an easy to understand flat fee, unlike Google's  AdSense. "It is a great instrument for hyperlocal news websites, covering towns or districts with around 10,000 residents, where they can advertise the local shoe shops," says Jakub Krzych, one of the start-up's co-founders. "It would not make sense for Agora to buy a website on white boots or on a Krakow district. But through AdTaily, it can indirectly get some revenue streams from very specialized news websites."

Will Agora be successful with its online activism and verticalism? The group is at least trying to be as active as possible in new media platforms, and in a way that is not too costly. The investment in AdTaily also reveals that it does not believe in the online pay walls envisaged by Rupert Murdoch or the New York Times, as most contents are being commoditized. Its multi-brand strategy invites the editorial units to fill the empty spots that appear on the Net. "The publishing business used to be easy!" Piechota joked.