Axel Springer Media Impact Integrated advertising sales. Peter Würtenberger, Chief Marketing Officer Capital Markets Day, December 10, 2010, Berlin

Transcription

1 Axel Springer Media Impact Integrated advertising sales Peter Würtenberger, Chief Marketing Officer Capital Markets Day, December 10, 2010, Berlin

2 Agenda 1 Market share growth in times of economic crisis 2 Ad sales strategy in line with corporate strategy 3 The future: Online and mobile growth 2 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

3 Agenda 1 Market share growth in times of economic crisis 2 Ad sales strategy in line with corporate strategy 3 The future: Online and mobile growth 3 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

4 Market share growth during economic crisis Gross advertising revenues (in %) +3.9 pp M/08 9M/09 9M/ pp +0.1 pp pp pp pp Axel Springer Bauer Burda Gruner+Jahr DuMont IQ Media Basis: Leading German print marketers. Source: Nielsen Media Research, Newspapers and magazines without classifieds and media ads. 4 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

5 Successful price increases at Axel Springer BILD Germany (full page) BILD.de Wallpaper Homepage (day) DIE WELT / WELT KOMPAKT (full page) 2010: % 2010: % 2010: % 2009: : % 2009: : % 2009: : % 5 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

6 Agenda 1 Market share growth in times of economic crisis 2 Ad sales strategy in line with corporate strategy 3 The future: Online and mobile growth 6 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

7 Our strategy focuses on our core competencies 1 Leadership in Germany Strengthen and expand leading market position Strong brands drive high media reach and advertising revenues Core Competencies 2 International expansion 3 Digital transformation Replicating the German model internationally JV with Ringier in CEE Existing brands extended online Business model enhanced in digital world 7 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

8 Crossmedia-Campaigns: 100th flight of Volks products 1 Leadership in Germany Partner: Dairy Alois Müller Campaign period: , six weeks Publications: BILD, BILD am SONNTAG, BILD der FRAU, BILD.de Campaign: Three products: Volks rice pudding, Volks milk & Volks yoghurt 8 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

9 Franz Beckenbauer Kaiser card 1 Leadership in Germany Partners: Vodafone, Deutsche Post, C&A, Erdinger Weissbräu, Karstadt Sports, Adidas Campaign period: , 13 weeks Publications: BILD, BILD am SONNTAG, Sport BILD, BILD.de, BILD mobil, BILD der Frau, TV Digital, Computer BILD, Auto BILD, Hörzu, B.Z. Campaign: Free of charge customer card, that granted discounts and free products at partner stores and daily raffles Success: Six well-known partners, around 3.7m cards in circulation, overall very positive feedback 9 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

10 Axel Springer s FMCG revenues are steadily increasing 1 Leadership in Germany Development FMCG revenues BILD/BamS +45% +10% 9M/08 9M/09 9M/10 Source: Company data. 10 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

11 Successful start of Ringier Axel Springer Media joint venture in CEE 2 International expansion No. 1 tabloid: Blesk (Ringier) Reach: 1.5m No. 1 tabloid: Nový Čas (Ringier) Reach: 1.2m No. 1 tabloid: Blic (Ringier) Reach: 0.8m Czech Republic Axel Springer Presence Ringier Presence Poland Slovakia Hungary Serbia No. 1 tabloid: FAKT (Axel Springer) Reach: 4.7m No. 1 tabloid: Blikk (Ringier) Reach: 1.1m 5 market leading mass market brands with strong digitiziation potential >100 print titles and > 70 online offerings 50% economic ownership with 100% consolidation for Axel Springer Consolidation of all JV countries except Hungary since July ) Common goal: Growth and digitization 1) Approval from the Hungarian merger control authority in Q1/11 expected 11 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

12 2 International expansion Market leadership with tabloid daily and women s weekly in five CEE markets CZ SK SER HU PL Tabloid daily Market position Media reach No. 1 No.1 No. 1 No. 1 No million CZ SK SER HU PL Women s weekly Blesk pro Ženy Blic Žena Nový Čas pre ženy Kiskegyed Market position Media reach No. 1 No. 1 No. 1 No million 12 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

13 Axel Springer s global opportunities for advertisers: One Stop Shopping One personal contact for all media enquiries at ASMI International Sales for agencies and advertisers. Goal: Simplify the planning and buying of multi-market campaigns across all divisions and all countries within Axel Springer AG 2 International expansion Media-Planning Media-Buying Invoicing Individual countries or combination of a number of countries Mass market or premium audiences available Print + Online Creation and implementation of an international partnership Maximum benefit for advertising customers (eg. Global Deal) Creative concepts from a central hub International creativity (incl. Germany): Tailored concepts such as advertorials, supplements, Volks product, Family product etc. Pan-Regional Media kits Country-Specific Know-How 13 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

14 Axel Springer Media Impact: Positioning and potential 3 Digital transformation Relevance Reach-orientated Stars 7/1 UIM IM ToFo Convergence Axel Springer Media Impact QC Repositioning desired AOL Relevance Quality-orientated Quality AS Bauer FAZ IQ Quality 14 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

15 Performance activities lead to accelerated growth Growth key factors Digital transformation Performance - normal -Post View - Retargeting 1. Ad is displayed to user 2. If user clicks on ad ad is performing 3. Publisher is paid either by clicks or ecpm 1. Ad is displayed to user but user does not click on it 2. System tracks user further and sees if and where user clicks on ad later 1. User shows interest in certain product 2. User leaves webpage without buying product 3. System remembers user and displays product ad at next internet visits Ad performance is trackable!! +54% Revenue growth from e 15 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

16 Agenda 1 Market share growth in times of economic crisis 2 Ad sales strategy in line with corporate strategy 3 The future: Online and mobile growth 16 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

17 Predictive behavioral targeting: Highly efficient focus on target-groups Online online Behavior behavior + Market / market Research research Data Initiation at Axel Springer Objective Future potential gender: female reveal Reveal PBT-profiles and affinity for socio demographic target groups since quarter IV 2009 sports product interests since February 2010 affinity for E- commerce age: years affinityfpr for FMCG-products Online-Shopper online-shopper reduce fluctuation and lift average revenue reads books Household household household income > household size: > 4 persons Personen affinity for cell-phones enable to show ads accordingly optimized income pricing, integration of Predictive Behavioral Targeting in > >2.000 Crossmedia, continuous development of unique ASMI Prective Behavioral Targeting products student (income: > ) age: affinity for cars likes music 17 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

18 Optimized advertising appeal and reduced fluctuation by predictive behavioral targeting Initiation at Axel Springer Socio demographic target groups since quarter Q4/2009 Product interests since February 2010 Objective Reduce fluctuation and lift average revenue Future potential Optimized pricing, integration of predictive behavioral targeting in crossmedia, continuous development of unique ASMI predictive behavioral targeting products 18 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

19 Video advertising enhancement of Axel Springer s crossmedia competence Pre-Roll Ad Skyscraper 19 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

20 Video advertising enhancement of Axel Springer s crossmedia competence Objective Commercialization of Axel Springer video content Reinforcement of first commercialization, initiation of secondary commercialization Future potential High attention and emotional advertising appeal Generation of more own video content Predictive behavioral targeting for video ads, new special ad formats, strengthening ASMI contribution 20 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

21 Mobile advertising reaching the customers anywhere and anytime In 2014 number of mobile internet users will outrange number of desktop users worldwide. 1) Continuous boost of surfers intensive usage of the mobile internet. 2) Strengthening specific mobile sales capacities and all sales managers know-how in mobile will perfect crossmedia expertise of Axel Springer. Empowerment of offering a complete value-added chain in mobile to win first timers By continuing ability to offer exclusive special advertising forms assuring advertisers first mover -budgets. Attracting inquiries of retailers for Point of Sale-marketing by offering geologic targeted advertisement 1) Source: Study Morgan Stanley: Internet Trends, April 12 th ) Source: Study Mediascope Europe 2009 der European Interactive Advertising Association (EIAA) March 3rd, Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales

22 Axel Springer ad sales best positioned for future developments Print Online Mobile FMCG initiative Internationalization Pricing initiative Performance Targeting Video advertising App advertising Mobile devices advertising Geologic targeted advertising 22 Dec. 10, 2010 Axel Springer Media Impact - Integrated advertising sales