the drivers of ecommerce - anvr€¦ · source: idc connection, content & creativity | toon...

Toon Bouten, TOMORROW FOCUS

ANVR-Congress , Cypress 2014

The drivers of eCommerce

TOMORROW FOCUS:

The Content-driven Online Consumer Company

15.11.14Connection, Content & Creativity | Toon Bouten

58.8%

0.6%

40.6%

Burda Digital GmbHManagement Board & Supervisory BoardFreefloat

Shareholdings

Key facts

Headquarters: Munich, Germany

Employees end 3Q2014: ≈ 800 employees

Share capital: EUR 58,313,628

Admitted to Prime Standard

Share price November 6th 2014: EUR 3.35

Market capitalisation: EUR 195 million

Revenue and EBITDA 2005 - 2013

53.365.6

74.9 77.1

92.2

128.2135.9

149.1

188.6

0

20

40

60

80

100

120

140

160

180

200

2005 2006 2007 2008 2009 2010 2011 2012 2013

Revenue

2.6

7.6

11.29.6

12.6

18.2

21.4

23.8

38.0

0

5

10

15

20

25

30

35

40

2005 2006 2007 2008 2009 2010 2011 2012 2013

EBITDA

We monetize content

Segment Travel Subscription Advertising

Market Online-Booking Online-Services Display Advertising

Brands

Content User generated Professional

Monetization Commission Subscription Advertising

Business size 2013e* > EUR 110 m. > EUR 30 m. > EUR 35 m.

* Revenue of segment „Other“ (TOMORROW FOCUS AG and Cellular GmbH) not included


The Travel segment benefits from its strong brands ...


Leading hotel rating

and booking portal

for package

holidays in DACH &

Poland

Leading hotel

rating and booking

portal in the

Netherlands

Tomorrow Travel Group : The leading European travel review site

15.11.14Connection, Content & Creativity | Toon Bouten 5

6 + 7Country offerings1

9Languages covered

European focus

10MUnique visitors

per month2

120KNew reviews

per month2

Strong community

11MReviews3

240KHotels, restaurants,

PoI covered by reviews3

High quality content

6MMobile

unique visitors2

3MApp downloads3

Mobile excellence

>120Tour operators

Strong product base 530KHotels bookable

1.4MPassengers

2013

Broad customer base612KBookings

2013

Tomorrow-Focus Companies sharing Connection, Content &

Creativity activities


Connection

Creativity

1

3

Content

2

Providing a unique user experience on all devices -

any time, any place

Delivering highly relevant content by being closer to the

customer

Delivering true customer value through innovative features

based on big data and deep customer insight

1

Connection

2

Content

3

Creativity

Area Description Examples

1

Connection

„Providing a unique user

experience on all devices -

any time, any place“

Smartphones and tablets already cumulate to more than 3/4 of all

currently sold internet devices and highlight the relevancy of mobile

15.11.14 Connection, Content & Creativity | Toon Bouten

Sales of connected devices worldwideIn million units

Source: IDC

148 142 142 143 142 141

202 204 211 223 232 241

722919

10781237

13801516128

191

236

281

319

352

2012 2013 2014 2015 2016 2017

1,200

1,456

1,667

1,884

2,073

2,250

Tablets

Smartphones

Notebook PCs

Desktop PCs

Tablets >

Desktop Pcs

Tablets >

Notebook

PCs

“Connection” denotes the interaction with users via diverse

devices and applications throughout the course of their customer

journey


Finanzen100 demonstrates how companies may profit from

this development with a dedicated mobile first strategy

Source: IDC


Source: www.finanzen100.de

• Focus on user experience

• Develop new features for

mobile use first

• Optimize content for mobile

devices and develop native

applications for specific use

cases

2/3 of Finanzen100 total

traffic is generated by

mobile devices

„Connection“, however, also comprises addressing the user with

relevant offers fitting his context


Location based searches are particularly relevant to users


Use of location based services in Germany 2012 In % of respondents

Source: Fittkau & Mass 2013; Mobile Web & Location-based Services Perspektiven der Nutzer Potentiale fur die Touristik

Multiple answers possible, answers: ‘regular use’ and ‘infrequent use’

Future useIn % of respondents

10.5

18.0

22.2

25.2

34.9

15.2

19.1

74.7

57.2

44.5

30.3

15.8

13.8

10.6

10.6

3.9

route planner

call up timetables from location

search of providers nearby

search of favorable offers nearby

virtual city tour

posting photos/videos with location

check-in services

search of friends nearby

location based games

19.6

12.6

The physician review portal jameda creates value by consequently

tailoring its offer around this need for local information


• Geo-targeting and GPS

allow easy access to

physicians where users need

them

• Comprehensive search

functionalities provide

relevant, location based

results

#1 physician review portal

with > 3 millions searches

per month

Source: www.jameda.de

An optimal design of the factor „connection“, hence, necessitates to

create offers suiting particular contexts and devices


Inspiration

Booking

Check-In

Boarding

Source: www.lufthansa.com

In the future, even more radically new offers will rise based on the

increasing merge of both the offline- and the online world


Source: www.usatoday.com; Source: www.tnooz.com; www.futuretravelexperience.com

http://www.usatoday.com

http://www.tnooz.com

2

Content

„Delivering highly relevant

content by being closer to the

customer”

“Content” has to be tailored to the individual needs of

users to create true value



20

56

6461

59

19

10 10

15

19

61

33

2623 22

2005 2007 2009 2011 2012

Information search onlineIn % of respondents

Mainly use of

specialized sites

Equal use of both

search functions and

specialized sites

Mainly use of

search functions

Source: Oxford Internet Surveys 2011, 2012 own projection

Consequently, special interest offers gain relevancy, while generic

search becomes less important

netmoms is a „One-Stop-Shop“ for all topics concerning parenting


• Specialized online search

for parental topics enables

strong user experience

• Clear target group allows for

rich and relevant content

• One-stop-shop for all topics

around parenting

Top parenting website

with 1.3 mn UU / month

Source: www.netmoms.de


The relevancy of content is also reflected by the willingness of users

to share information as essential part of social networks

Monthly time spend on web portals vs. social networks

In billion minutes

Sources: comScore Media Metrix USA panel-only data

0

20

40

60

80

100

120

jun-08 dec-08 jun-09 dec-09 jun-10 dec-10 jun-11 dec-11 jun-12 dec-12

Since June 2011 more time

has been spent on social

networks than on web

portals

web portals

social networks

Dec Dec Dec Dec Dec

Huffington Post, an innovative news portal, benefits from this trend

with more than 1 million facebook links and likes per day


Source: www.huffungtonppost.de; * 2012 figures for the entire Huffington Post network

70 mn Articles per day*

450 k Blogger world wide

> 1.600

> 50 k

> 450 kfacebook links per day

> 1 mln

Rele

van

t C

on

ten

t

http://www.huffungtonppost.de

reviews

HolidayCheck is one of the pioneers in this realm, supporting its

users to find their perfect holidays by the help of customer reviews


Source: www.holidaycheck.com

pictures/

videos

ratings

• Provide users the

possibility to engage and

interact

• Use user generated

content as valuable

information source and

traffic driver

More than 6.8 million

hotel ratings,

pictures & videos

HolidayCheck together with Zoover is Europe’s market leader for

hotel reviews written by travellers


• We are creating transparency in the travel

market through user generated content

• TASK – Each traveller should have the

opportunity to gather honest, up-to-date, and

authentic information about any hotel before

booking

• Quality is one of our main goals –

HolidayCheck is regularly audited by TÜV and

Stiftung Warentest

• HolidayCheck has been awarded as best

German hotel review portal*

• Technical check including algorithms and a

manual check of filtered reviews by content

specialists

1

2

3

4

5

TÜV certificate

„Safer Shopping“

6 x

Travel Website

of the year

3 x

test winner

in succession

* Stiftung Warentest / Testsieger 5/2012

3

Creativity

„Delivering true customer value

through innovative features

based on big data and deep

customer insight“

Big Data enables a significantly deeper understanding of customer

behavior and thereby paves the ground for more „creative“ offers


Source: www.springcreeksystems.com

21.131.4

37.747.6

60.8

77.9

0.4

0.9

1.8

3.3

5.5

8.7

2011 2012 2013 2014 2015 2016


Source: Cisco Systems, Cisco Visual Networking Index 2012, page 9

Global consumer internet traffic 2012-2016In billion gigabyte per month

The global consumer internet traffic volume is expected to double

during the next three years, creating a huge amount of data

21.5

32.3

39.5

50.8

66.3

86.6

mobile

stationary

> x 2

The permanent analysis of user behaviors enables ElitePartner, to

continuously improve its offer according to observed needs


TV spot

Ad Banner

Landing Page

E-Mail

Source: www.elitepartner.de

• Information about consumer

behavior and preferences

help managing and targeting

advertising in real time

• Better fitting offers increase

conversion rate

ElitePartner is the most

profitable matchmaking

company in Germany

Organize.me provides innovative features and autonomously

improves its semantics by a self-learning algorithm


• Innovative Features:

• Automatic archiving

• Reminders (e.g., to quite

mobile contract)

• Cost optimization (e.g.,

by suggesting cheaper

energy suppliers)

• Lean design based on

continuous user tests

• Transition from an internal

bootlegging project to a

new company

Big data also provides opportunities to create innovative and

value creating offers in the travel segment


“Hotel Rates Heat Map”

When is the best time to book a hotel and get

the cheapest rate?

“Predictive Price”

Shows you whether or not the price will go up or

down in the next seven days.

Source: http://labs.orbitz.com; www.kayak.com

http://labs.orbitz.com

The next step: with predictive analytics, companies will be able to

anticipate customer needs and deliver true customer value


Prediction of location

Uber knows where you’ll be next and waits for you to pick you up before you thought of it...

Source: www.uber.com

Connection, Content & Creativity are essential factors to improve

the stickiness of products and, thus, to better engage with users


Connection

Creativity

1

3

Content

2

Providing a unique user experience on all devices -

any time, any place

Delivering highly relevant content by being closer to the

customer

Delivering true customer value through innovative features

based on big data and deep customer insight

1

Connection

2

Content

3

Creativity

Area Learning

Summary and discussion


Winning in online increasingly depends on being close to the

customer from various perspectives:

• Being relevant wherever the customer is with a unique product

and UX on all devices (“connection”)

• Being relevant with content that is based on true customer

needs and delivers true value (“content”)

• Being relevant with innovative products and features that clearly

set you apart from competition (“creativity”)

Mobile is real – if you postpone the formulation of a native mobile

strategy that takes into account new use cases you will not succeed

Strong brands that clearly stand for specific topics and inspire

confidence will become increasingly important when cost of search rises

Big Data will remain a buzzword if you do not transfer your data into

valuable personal products for your customers

15.11.14Connection, Content & Creativity | Toon Bouten 33

the drivers of ecommerce - anvr€¦ · source: idc connection, content & creativity | toon...

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