The secret to making money online is to segment your audience, Mark Smith, managing director of S1, the Glasgow Herald Times group's online classified business, told the UK Society of Editors conference, Press Gazette reported Monday.

S1, owned by Newsquest, made £6 million in profits on £10 million turnover last financial year, making it perhaps one of the most profitable online ventures in the United Kingdom. S1's classified sections include property, jobs and motors.

“One single thing is key, getting your market segmentation right. The Internet is not a mass audience medium,” Smith told the conference, Press Gazette reported.

Dietmar Schatin, of Ifra Newsplex, presented examples of online revenue-making, such as mixing print supplements, interactive online features and live events.

“Selling banner advertising is not enough anymore. It's about creating new stuff for advertisers and readers. It's about selling eyeballs, reach and exposure. There must also be added value for advertisers and readers,” he said, according to Press Gazette.