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PubliGroupe: Real Marketing. How the Power Shifts to Consumers (and what Marketeers Need to Understand)TRANSCRIPT
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Real Marketing How the Power Shifts to Consumers (and what Marketeers Need to Understand)
Arndt C. Groth, CEO, PubliGroupe Ltd. Zurich, 21.11.12
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More Than Just Technology For the First Time Consumers Are in the Driving Position
"In a few hundred years, when the history of our time is written from a long-term perspective, it is likely the most important event historians will see is not technology, but the unprecedented change in the human condition. For the first time, people have choices."
Peter F. Drucker American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation
3
Agenda
Business Talk with Arndt Groth Time (hrs:mins)
Responsible
Annual
Greeting and Introduction
Presentation PubliGroupe
Discussion
Apéro Riche / Networking
Closing
16:30 - 17:00
17:00 - 17:30
17:30 - 18:15
18:15 - 18:45
18:45 - 19:45
20:00
All
Prof. Dr. Ch. Belz
Arndt C. Groth
All
All
All
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2
3
4
5
6
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Agenda 3 Chapters
1 6 Backgrounds in Real Customer / Corporate Behavior and Business Environment - #1 Background: Massive Change in Media Usage - #2 Background: Negative Impact to Classic (Offline) Media - #3 Background: Total Information Overload - #4 Background: More and More Competitors in the Same Market - #5 Background: Less USP’s – Not Even A UAP - #6 Background: New Ecosystems Emerge
2 6 Learnings for Real Marketing and Communication - #1 Learning: Likes (in Social Media) Are Completely Overrated - #2 Learning: Video – The Next Big Thing - #3 Learning: Think Mobile – Act Mobile - #4 Learning: ROI Optimization Is More Than Turn the Regulator - #5 Learning: Real Marketing Needs Realtime Advertising - #6 Learning: Deep Understanding of Customer Behaviors (Customer Journey)
3 4 Results for PubliGroupe - #1 Result: Preparing for the New Digital Marketing World (Organisation) - #2 Result: Orchestrate Profitable Growth (DSP – SSP) - #3 Result: Focus On Customers and Partners (Strategy) - #4 Result: Walk As We Talk (6 Take Aways)
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Background
01
Massive Change in Media Usage
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The Consumption of Media Is Shaped by Digital Media Media Usage: ! Hours per Week
Source: Microsoft
0
10
20
30
40
50
60
70
80
90
100
1960 1980 2000 2020
1920 1940
Analog Radio
Kino
Outdoor Digital Radio
Mobile
Games
Internet
Analog TV
Digital TV
! 80h
8
Online Usage in Competition to Traditional Media Development of Usage by Reach in % in Switzerland
Source: WEMF, MACH Cinema Basic, NET-Metrix, Net-Metrix Profile
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Our Daily Life with Digital Media
Source: Tomorrow Focus Media
10
Background
02
Negative Impact to Classic (Offline) Media
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2012e
1,884
550
2011
2,004
543
2010
2,001
533
2009
1,915
517
2008
2,406
527
2007
2,487
516
2006
2,369
497
2005
2,299
479
2004
2,294
467
2003
2,302
455
1. GDP calculation based on production statistics Ad spend Print in CHF m GDP in CHF bn1
-0.1%
-12.3%
2.3%
4.0%
2.6%
2.5% 0.1% 3.8%
1.3%
Forecast
-6.0%
Massive Pressure on Print The Latest Loss of Print Ad Revenues Went Beyond Expectations
Source: WEMF; Stiftung Werbestatistik Schweiz; IMF; SECO; OC&C analysis
Print ad-spend vs. GDP, Switzerland
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48%
30%
4% 1%
7%
10%
Printmedien
TV
Radio
Kino
Teletext
Internet
Plakat
Digitale Werbeflaechen
Mediengattung Mio. CHF
Printmedien 2'288.892
TV 1'449.903
Radio 183.855
Kino 28.996
Teletext 8.322
Internet 344.500
Plakat 465.183
Digitale Werbeflächen 11.859
Gesamt 4'782.500
Sofern bei Internet die Umsätze der Classified Plattformen (Job-, Immo- und Auto) dazugerechnet werden steigt das Volumen auf CHF 520.8 Mio. Internet wäre somit an 3. Stelle vor Plakat!
Market Shares by Media in 2011 in Switzerland
Source: MediaFocus, Brutto Werbeaufwendungen und Online-Werbestatiistik in Mio. CHF
13 Source: WARC / IAB Europe / Screen Digest
Switzerland not in the Top 10 Share of Online by Media Mix in EU [Online spend as % of main media]
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But the High Potential is Still Not Identified Time Spendings vs. Advertising Spendings
Source: Morgen Stanley 16. Nov. 2010 / KPCB "Internet Trends 2012"
12%
16%
31%
28%
7%
15%
43%
26%
10%
26%
9%
39%
13%
25%
11%
42%
22%
1% 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Print Radio TV Internet Mobile
Time Spent 2010 Time Spent 2011 Ad Spend 2010 Ad Spend 2011
! $ 50B Global Opportunity
Internet Ad = $30B
Mobile Ad = $1.6B
! $ 20B Opportunity in USA
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Background
03
Total Information Overload
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Digital Media Can’t Replace Real Life Activities But Can Enrich Our Digital Lifestyle
Source: Manfred Spitzer – Digitale Demenz
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Background
04
More and More Competitors in the Same Market
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19
Display Advertising Ecosystem Europe in 2012
Source: Improve Digital
We Are Here
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Background
05
Less USP’s – Not Even A UAP
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Lack of Relevance Brand Experience Gap – Homeless Communication
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Background
06
New Ecosystems Emerge
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New Players with New Biz Models Enter the Market iTunes As Worldwide the Biggest Distributor for Digital Content
25
Free, Freemium
or Premium?
ROI? Optimized Budget?
What About Social Media?
Stand Alone or
Cooperation?
Quantity or
Quality?
Who's the Typical User?
How Can We Help Advertisers and Publishers? To Reduce Complexity?
Where to
Buy?
26
Learning
01
Likes Are Completely Overrated
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Involvement I feel involved with
this brand
Influence I would recommend
this brand
Intimacy This brand is very much present in my daily life
Interaction This brand stimulates interaction with itself
The New Engagement Paradigm From 4 P's to 4 I's
Source: Butterfly Media
Brand Engagement
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Learning
02
Video – The Next Big Thing
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Online Video Will Soon Overtake Broadcast TV Hours:Mins spent Watching Video per Week
Source: TDB / iBusiness, 14.05.2010
> 72 h = Video-Upload on YouTube per Minute! > 3 h = Video-Upload on YouTube per Minute with Mobile Devices
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Learning
03
Think Mobile – Act Mobile
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• Shortcut:
• QR-Code:
• Augmented Reality (Visual Search):
• Interactive Advertising:
Interactive Offline-2-Mobile Possibilities Generates More Value and Experience for Customers
32 Source: Namics
Not Technology But User Experience in the Focus Responsive Design for the Same Content On Every Digital Channel
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Learning
04
ROI Optimization Is More Than Turn the Regulator
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Marketing Goals
Awareness Interest Action Desire
CPM Cost per Mille
Contacts Reach
CPC Cost per Click
Visitor / User
CPS Cost per Sale
Sales
Display / Brand Advertising
Search Advertising
Performance Advertising
The CPM-Based Pricing Model Is Not Dead But Performance-Based Models Tends to Create More Transparency
CPC
C
ost p
er C
lick
CPL
C
ost p
er L
ead
CPO
C
ost p
er
Ord
er
CPA
C
ost p
er
Act
ion
Performance Modelle Performance Models User
Banner Ads Text Ads
eMail Contextual Ads
Keywords
Advertising
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Learning
05
Real Marketing Needs Realtime Advertising
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1592 1641 1651 1801
2008 62 149 252
366 495
0
500
1000
1500
2000
2500
3000
2011 2012 2013 2014 2015
Klassisch RTA-basiert = ! 20% of all Online Display Ad Spendings
Online Display Advertising Spendings RTA Is Strongly Gaining Relevance In Germany [in Mio. $ US]
CAGR 11%
68%
6%
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The Future of Display Advertising in 2020
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Learning
06
Deep Understanding of Customer Behaviors
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360° View – The Right Crossmedia Mix Analysis for More Sales-Performance & Positive Brand-Association
Source: Accelerom
The
right
clie
nts
(and
non
-clie
nts,
em
ploy
ees,
sta
keho
lder
) …
know
of a
par
ticul
ar b
rand
to invest in the right touchpoints for the relevant target audience
to initiative and manage the right m
arketing processes for acquisitions, custom
er retention and branding
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KPI’s in 360° Controlling Aggregated in an Integrated Reporting
Source: Namics
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Big Data – The New Oil Analytics of All Kind of Insights (Product, Service, Customer …)
Source: SAS
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Do You Know the Value of Your Touchpoints? The Customer Journey and the Performance of Various Touchpoints
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Attribution Modeling - Audience plus Performance Data Improves the Relevance of the Advertising Delivery
Source: Quisma
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Result
01
Preparing for the New Digital Marketing World
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Performance-Oriented Full-Service Provider Organized into 3 Segments, Emplying State-of-the-Art Data Tools
Search & Find
Producer and seller of media products facilitating the search for persons, companies, products and services focusing on local markets.
Digital & Marketing Services
Portfolio of leading international marketing and technology service companies, helping brand owners to spend marketing budgets more effectively.
Media Sales
Preferred partner for media owners and advertisers worldwide, using effective advertising solutions.
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• PubliGroupe is a leading Swiss-based provider of marketing and media sales services, enabling advertisers to spend their marketing budgets more effectively and allowing media owners to help monetise their reach more successfully.
• Ultimate goal is to make marketing processes more effective for their clients, be it in traditional or digital media.
PubliGroupe Marketing.More.Effective.
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Result
02
Orchestrate Profitable Growth
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Agency Publisher Demand-
Side Platform
Supply- Side
Platform
Ad Exchange
Ad Network
Agency Trading
Desk
Digital display ecosystem and selected Google & PubliGroupe investments
+ acquisition of Wildfire interactive for social media marketing solutions
Digital Ecosystems Remains Complex PubliGroupe with Stakes Across the Entire Digital Display Ecosystem
Source: IAB; Google; Press
AD
VER
TISE
R
AU
DIE
NC
E
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Online Revenues with Strong Growth Good Progress with Consolidated and Associated Online Revenue
113 140 162
380
517 548
0
100
200
300
400
500
600
700
800
• Consolidated online revenue grows by 15.5%; incl. participations growth represents 18% at constant fx
• Online revenue reaches 40% of total business revenue; in terms of gross margin, online represents 50%
• Growth mostly from Zanox and Namics: Zanox CAGR 29% since creation of the joint venture in 2007; Namics with 14% of continuous organic growth since 2004
• Media Sales with CHF 50 m online sales
Online Revenues, in millions of CHF
PubliGroupe Associated companies
Total revenue 2010: CHF 1’906 m (online 34%)
Total revenue 2009: CHF 1’898 m (online 26%)
Total revenue 2011: CHF 1’775 m (online 40%)
493
2009 2010 2011
657 710
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Result
03
Focus On Customers and Partners
51
MSN
The group has more than 400’000 customers: • Private persons • SME • National advertisers • International brands
The group cooperates with: • Well-known media companies • Digital Media owners • Different types of websites
PubliGroupe Customers and Partners
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Switzerland and Europe Largest Markets Geographical Distribution
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Result
04
Walk As We Talk
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6 Take Aways For More Effectiveness in Your (Digital) Marketing Strategy
SOCIAL: Communities + Engagement = MME (Marketing.More.Effective.) 1
VIDEO: All-Screen-Planning = MME (Marketing.More.Effective.) 2
MOBILE: Smartphone + Local = MME (Marketing.More.Effective.) 3
PERFORMANCE: CPM + CPx = MME (Marketing.More.Effective.) 4
REALTIME: RTA = ! CPA + ! Conversion = MME (Marketing.More.Effective.) 5
CUSTOMER JOURNEY: 360° + Attribution Modeling = MME (Marketing.More.Effective.) 6
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Thank You for Your Attention
“ “