Is running an e-commerce operation any different north of the
border? David Young talks to Mark Smith, director of Scottish
listings and job site, SI
What is the business plan behind S1?
S1 was set up by SMG (Scottish Media Group), Scotland's largest
media company, to exploit the Internet in Scotland. We felt that,
although the Internet is of obvious global interest as regards
business-to-business transactions, the business-to-consumer market
is better suited to specific locations; hence S1deals only with
Scotland. S1play is the second site in the group, the first being
S1jobs that deals with online recruitment. S1play.com was launched
in May of this year. It is basically a comprehensive guide to
anything and everything to do with leisure in Scotland - from
cinema and theatre to clubs, music, restaurants and kids events. We
also draw from editorials in SMG newspapers, so there is a wealth
of information available.
The motivation behind the site was based on the perceived need -
apart from a few small guides and specialist sites, no one else
doing anything like it, certainly not on this scale. Hence there
was a gap in the market for a leisure site covering the whole of
Scotland.
Why launch this year, when the bubble seems to have burst for
dotcoms, and funding is more difficult to come by?
I'm not convinced that there is any real benefit in being the first
in a new market, very seldom is it that the first mover emerges as
the winner. We took our time, and watched what was happening. We
saw that the big portals weren't that attractive to people and felt
that a different way of doing things was needed, then went the
route of developing a very targeted site, giving the consumer a
one-stop shop for their leisure needs, and hence one specific
reason to go there. With the benefit of this hindsight, a lot of
planning went into developing a realistic proposal, which could
encompass the needs of the public and take in economic
considerations.
What lessons have you learnt from your job?
Coming from
television production rather than an IT background, I've been
surprised by the lack of standards on the Internet - it is still
very much a jungle as far as I can see. It needs to acquire
standards and ways of measuring the quality of what is presented,
similar in some way to what is done in television.
Relating to this, the main lesson I've learnt has been to be wary
of the technology and the claims that are made.
How successful has the launch been and how will the site make a
profit?
Branding has been very important, so that
consumers recognise and trust that they can go online and address
their interests. There has been a heavy marketing campaign for S1
as a whole, and it is already seen as a credible and trustworthy
online brand. The recruitment site (S1jobs) has more traffic than
any other similar site in Scotland, and S1play has benefited from
that. The profit comes from advertisers who are impressed by the
number of hits we are getting. Banner advertising also plays a
role, but it is predominantly specific organisations advertising
their facilities and services via our site.
How do you foresee the development of e-commerce?
I
don't think the Internet suits everybody or every business. But now
that funding is less available, companies who want to stay in the
market are beginning to understand the requirements needed for
conducting business over the Internet, and are starting to realise
the true benefits. I think there is still some way to go before it
reaches its full capabilities.
How would you could sum up your 'dotcom experience' so
far?
It's been an exciting, fascinating and frustrating
period. Exciting because setting up a new business is always going
to be so, fascinating because I've learnt a huge amount about areas
of business I knew nothing about and frustrating because, although
the technology and the technological gurus promise a lot, the
reality is somewhat different.
Any advice for others starting up an e-commerce
operation?
Be absolutely sure you understand why large
numbers of people would want to use your site, and do the market
research. Don't believe the hype - the Internet is still run by the
technocrats who have a vested interest in selling the technology
and aren't averse to overstating their case. Finally, I'd suggest
keeping it simple: simple concept, simple software, simple design,
and simple message.
Bookmarks
www.s1play.com I find
it very useful for the kids at weekends!
www.s1jobs.com I would
find it useful if I were looking for another job, which I'm
not
www.theherald.co.uk
An excellent news source
www.expedia.co.uk
Good for buying flights in Britain
www.virginradio.co.uk
A good source of information
CV: Mark Smith
1982: Left Edinburgh University
1983-88: Independent local radio journalist
1988-90: BBC Scotland journalist
1990-2000: Scottish Television journalist, then moved into
production and on to executive production
2000-present: Director of S1, responsible for running all S1
sites