Advertising with Axel Springer One face to the customer with Germany's leading media brands
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1 Advertising with Axel Springer One face to the customer with Germany's leading media brands Peter Würtenberger, Chief Marketing Officer Berlin,
2 Agenda 1 Unique size and the power of all titles. 2 At eye-level with media agencies ready to attack TV budgets! 3 One face to the customer. 4 The power of innovation. 2
3 Agenda 1 Unique size and the power of all titles. 2 At eye-level with media agencies ready to attack TV budgets! 3 One face to the customer. 4 The power of innovation. 3
4 Three strong brand units at Axel Springer: BILD group, magazines and WELT group BILD group Magazines WELT group etc. 4
5 are now merged under the roof of one marketer. Axel Springer Media Impact etc. 5
6 Size matters! Axel Springer is Germany s biggest print marketer. Overall we rank on no. 3 behind the biggest TV marketers IP and SevenOne. Gross print advertising revenues 2007 (in m) Axel Springer AG Gruner + Jahr Burda Verlag Heinrich Bauer Verlag Spiegel Verlag Jahreszeiten Verlag 1) Nielsen Media Research
7 Market power with combined reach! In total Newspapers 26.8m contacts 1) 76m 1) contacts Magazines 35.6m contacts 1) Digital media 13.3m contacts 1) 1) Source: MA, AWA Q1-2/2008, AGOF 2008/II 7
8 Agenda 1 Unique size and the power of all titles. 2 At eye-level with media agencies ready to attack TV budgets! 3 One face to the customer. 4 The power of innovation. 8
9 At eye-level with the big market players Axel Springer s powerful positioning versus media agencies. Gross print advertising revenues 1) (in m) ) RECMA Billings 2007 (estimated print shares for media agencies), Nielsen Media Research 2007 * RECMA Billings
10 Ready to attack TV! Mass target group Premium target group 10
11 BILD overtops TV! BILD reach compared with Germany s biggest TV stations. The total daily reach of BILD/TV Ø-1/2 hour 15 24h, 2007 (in m) BILD ZDF ARD RTL SAT.1 ProSieben 11
12 Our Goal Shifting budgets from TV to BILD x Wetten, dass? TV-Formats bigger than BILD Share without sport events 12
13 Sales Modeling Convincing proof of the power of BILD. Product Input in ad campaign Output via BILD, BamS TV BILD/BamS vs. TV Intersnack 2007 Maggi BILD-NRW 220 No trackable success! TV-Benchmark = x 8.9 1) to Benchmark x 3.2 New customers after proof of concept Senseo 2004 L Oréal x 3.7 x 3.2 Nestlé Bahlsen Intersnack L Oréal Granufink Prosta x 1.6 1) Nielsen Media Research, Reading example: 1 spent in BILD advertising is 8.9x as efficient as 1 invested in TV advertising measured in sales of the product. 13
14 Maggi fix case study: Additional sales through media activities Bolognese Primavera Additional sales of packages KW KW 40 Source: Nielsen Media Research 14
15 Bolognese Primavera Increased Return on Investment ROI Bolognese Primavera Print Zusatzumsatz* Additional sales* Spendings 220% 106% Bolognese Primavera TV Zusatzumsatz* Additional sales* Spendings 69% Source: Nielsen Media Research * Ø basic price 0,65 15
16 Sales Modeling Convincing proof of the power of BILD. Product Input in ad campaign Output via BILD, BamS TV BILD/BamS vs. TV Intersnack 2007 Maggi BILD-NRW 220 No trackable success! TV-Benchmark = x 8.9 1) to Benchmark x 3.2 New customers after proof of concept Senseo 2004 L Oréal x 3.7 x 3.2 Nestlé Bahlsen Intersnack L Oréal Granufink Prosta x 1.6 1) Nielsen Media Research, Reading example: 1 spent in BILD advertising is 8.9x as efficient as 1 invested in TV advertising measured in sales of the product. 16
17 Agenda 1 Unique size and the power of all titles. 2 At eye-level with media agencies ready to attack TV budgets! 3 One face to the customer. 4 The power of innovation. 17
18 "One face to the customer"! Best service for maximum customer and agency convenience. Yesterday: More than 30 contact partners for one customer Today: "One Face to the Customer" for maximum customer convenience Cross-media specialist Publisher management Customer Sales Marketing management One central contact person who is informed about every contact to the customer and involves specialists where necessary. 18
19 Being in touch! Key Accounting with regional character. Integrated sales organization BILD WELT Hamburg Magazines Hannover Berlin Powerful triad of Professional competence Düsseldorf Frankfurt Spatial proximity Stuttgart Unity of agency and customer support München 19
20 Distinct customer continuity! Low volatility of our best customers. Gross spendings of our top six customers, A B C D E F Customer ) Nielsen Media Research
21 High market shares! Market shares in the national print ad sector of our top 20 customers % 11% Ø 35% market share 15% 49% 33% 25% 99% 20% 17% 22% 21% 29% 59% 22% 33% 26% 31% 33% 58% 71% A B C D Axel Springer share E F G H I J K L Customer Total national print media spending M N O P Q R S T 1) Nielsen Media Research 2007, National Only print advertisement spending 21
22 Agenda 1 Unique size and the power of all titles. 2 At eye-level with media agencies ready to attack TV budgets! 3 One face to the customer. 4 The power of innovation. 22
23 We are the leading crossmedia player in the market. Print newspaper Print magazines Digital media Direct mail Local TV stations Consumer 23
24 Crossmedia sells! Forbes Sybase brand metrics Aided brand awareness Online 11.2% Recognition on various communication channels Print 17.5% Effects on image through the combination of media and product branding Online & Print 24.2% Source: Dynamic Logic,
25 Case I BILD special edition for October 3 rd Targeted circulation 3m copies City lights campaign Online extension BILD.de 4.4m unique users 1) Activating BILDmobil users Exclusive booking for the launch of Golf VI 1) Source: AGOF 2008/II 25
26 Case II WELT KLASSE campaign Volkswagen Print ad Supplement WELT ONLINE TV spots 26
27 Five strategic goals and guidelines for Axel Springer Media Impact Advantage of size Exploitation of the unique market advantages of Axel Springer's size while keeping the power of the single titles next to the big TV marketers we rank on no 3. Focus on agencies Reinforcement of our agency relations and push towards TV media budgets. Proximity to customers Intensification of our top customer relationships through the powerful triad of professional competence, spatial proximity and the unity of agency and customer support. Power of innovation Germany s most innovative marketer titles with the highest reach combined with the power of a specialist online marketer. Efficiency Realization of scale effects of market handling, brand development and backoffice processes. 27
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