The power of television

Transcription

1 The power of television Capital Markets Day October 13, 2016 Data Christof Wahl

2 In advertising, user data becomes a key success factor From context buying to audience buying Advertisers used to target their audiences based on context of the ad now, data-driven advertising enables advertisers to target specific users (one-to-one), independent from specific context We leverage data from our broad Digital Entertainment, Commerce and TV portfolio to fully exploit opportunities arising from targeted advertising 2

3 Addressable TV transfers digital targeting approach to TV Addressable TV core targeting approaches Addressable TV targeting formats (examples) Mass markets with relevance for larger geographics Geographic segments, detected via IP address Switch-Ins Switch-In (XXL) Shown after channel switch ALREADY AVAILABLE ALREADY AVAILABLE Special interest national 1) Household related interest segments based on TV usage e.g. single household with high automotive affinity Spot Fullscreen Overlay For national campaigns IN PREPARATION IN PREPARATION 1) Only applied to users who pressed the red button 3

4 ... and will create additional advertising opportunities in TV Red Button user User tracking Segmentation Targeting Tracking pixel Data pool + user segmentation Jetzt RED BUTTON drücken Segment Family with kids, age 6-13 Ad overlay (Switch-In or Spot-Overlay) with family vacation theme Benefits New offerings - Incremental reach of TV ad campaigns on digital P7S1 properties - Incremental reach of digital ad campaigns on Addressable TV layer - Frequency capping across devices (incl. HbbTV) Upside - Additional revenues from existing TV customers - Access to new advertiser segments thanks to more granular targeting 4

5 Also in e-commerce, data significantly drives value From top selling products for everybody to segment specific offers Sport watch Family vacation Ibiza Ibiza Café del Mar User ID 4711 Female with young kids & preference for premium products Perfume top brand Aftershave Pearl necklace premium Perfume top brand Family vacation Ibiza Pearl necklace premium We continue to expand our data pool to drive personalization and thereby increase conversion rates and visits 5

6 Data will be a key value driver across our portfolio Addressable TV: Incremental revenues Digital ad sales: ecpm effect Online video: PI/VV 2) uplift Commerce: Conversion uplift Data type: Behavioral data from HbbTV usage and in future also registration data Data type: Highly valid sociodemographic user data from registrations Data type: Content interest & usage data Data type: Intent data from P7S1 e-commerce touch-points Impact: Incremental revenues from new profile based targeting proposition (still in test phase) Impact 1) : 30-50% ecpm increase possible for remnant inventory Impact 1) : 10-20% usage uplift, e.g. for Video Views and thus preroll ad impressions Impact 1) : 20-40% conversion uplift Upside potential cannot be applied to all revenue streams as data availability and granularity is not given for all assets/units on same level 1) Market benchmarks indexed 2) Page Impressions/Video Views Source: Internal benchmarks and expert assessments 6

7 BECOME AWARE Our vision: Leverage data potential to further address customers SELECTED EXAMPLES Addressable TV CONSIDER INTEREST TV websites SOCIO DEM. X DEVICE INTENT BUY Commerce websites ENGAGEMENT USE Entertainment websites APP 7

8 We have acquired a proprietary AdTech stack... Demand Side Platform Exchange/Marketplace Supply Side Platform Ad server 70% of German Top 20 AGOF sales houses use Yieldlab P7S1 stake in Virtual Minds: 51% Data Management Platform VM with minority stake in ADEX (Minority stake only) We cover the full value chain 8

9 to enable independent & publisher friendly data-driven advertising Budget AdTech Media & data Agency Demand Side Platform Supply Side Platform Ad server DMP Our AdTech stack gives advertisers access to combination of inventory and data and prevents data leakage 9

10 Price In addition, we offer with smartstream a powerful video targeting product AdTech 2 brand-strategy Top contents & premium websites on top placements Premium reach Fully transparent, AGOF-measured Audience reach Advanced audience targeting on brand-safe high reach inventory Volume 10

11 We have built a unified data pool across our key digital assets Anonymous tracking Data segmentation Core use cases Financial potential Selection P7S1 internal data Data pool 2) today: Targeted advertising Ad revenue per user ADDRESSABLE TV 1) ~40 P7S1 websites ~30m user profiles 3) Targeted media buying Site personalization Onsite recommendations Sales per customer Cost per order Thanks to our broad asset portfolio we can leverage our e-commerce data for advertising 1) To be linked with digital data pool 2) Only pseudonymous data 3) Estimated cross-device unique user reach (desktop web/mobile web) 11

12 Case example: Targeted advertising with own DMP data works CASE EXAMPLE Impact of data pool based targeting Test setup & insights Click-through rate (CTR) 160% uplift User affinity to destinations (e.g. Spain, Italy, Croatia) captured at wetter.com via data pool in data protection compliant way Performance display campaign for überflieger.de based on targeting information from P7S1 data pool Untargeted (Control group) Targeted (Based on data pool) Targeted ads delivered on wetter.com (high priority) Results from pilot test case upside potential cannot be applied to all revenue streams as data availability and granularity are not given for all assets/units on same level 12

13 Case example: First tests show power of targeted media buying CASE EXAMPLE Look-alike display ad targeting Test setup & insights Cost per order >20% Cost reduction From different campaigns Approach: Analyze conversion profiles and buy similar profiles programmatically in marketplace 1) Insight: Targeting decreases cost per order by more than 20% 2) Untargeted (Control group) Targeted Next step: Combine look-alike media buying with retargeting to drive CPO further down Results from pilot test case upside potential cannot be applied to all revenue streams as data availability and granularity are not given for all assets/units on same level 1) Test conducted with Semasio/Adlicious 2) Post view results (30 days after end of campaign) 13

14 We push registration via 7Pass to enable cross-device targeting Applications for all devices QR scan technology 1) to link mobile to smart TV Cross-device logins via smartphone, tablet, web & smart TV Key enabler: 7Pass as crossdevice Single-Sign- On (SSO)-tool 1) Already integrated into 7Pass product used in 7TV as log-in mechanism 14 Note: Marketing usage of real identity attributes requires opt-in of user or anonymization of all Personally Identifiable Information (PII)

15 Summary: We create value for digital and TV with data plus tech Data pool AdTech Digital Advertising User profiling covers now >30M UU 1) at >40 P7S1 majority assets Usage of own AdTech maximizes data control along value chain DMP based ad targeting works with own and 3 rd party data HbbTV Digital Commerce SSO HbbTV targeting generates incremental TV ad revenue streams Data pool is used for onsite personalization and targeted media buying 7Pass SSO roll-out will improve cross-device targeting & sociodemographic profiling 1) Estimated cross-device Unique User (UU) reach (desktop web/mobile web) 15

16 Key strategic next steps to further develop impact of data Illustrative strategic impact of data Summary We have a unique value proposition in data We can combine Commerce, Entertainment and Addressable TV data for our core use cases Track and use further interest & intent data on our Digital Entertainment and Commerce assets Further create registrations for cross-device in Digital Entertainment and Commerce; further push and use socio-demographic data Capture further Addressable TV data and link addressable with digital data (cross-device addressable & digital) Ad Targeting Content and Commerce personalization In addition we consider to further develop our proprietary tech stack and build data partnerships with 3 rd parties 16