the future of media business is digital and the future of digital is automated
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PubliGroupe presentation on the future of mediaTRANSCRIPT
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The future of media business is digital and the future of digital will be automated
Arndt C. GrothIS Directors Conference 201418. SeptemberInterlaken
A shift in media consumption A shift in media
consumption
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47 BC 1450’s 1700’s
Newspapers
Early industrialrevolution
newspapershave published
ads
GutenbergGutenberginvents the
printingpress and print the Gutenberg
Bible
First advertising
Advertisingin Pompeii
for agladiator
1890’s
First large scale
advertisingFirst large
scaleadvertising
1950’s
Major globalagenciesMajor global
agenciesfounded
1990’s
Internetadvertising
IAB firstmeasuresinternet
advertising
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Advertising evolution: the beginning
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2000 2002 2005 2007 2009 2014
2
Internet of things
Deviceconvergence
ProgrammaticTV
DSP
Sharing data/Social tools
Verification
DMP’s & dataaggregators
Ad exchanges
Targeted ad networks/
AMP’s
Data suppliers
Vertical adoperators
Mobile
Ad servers
Ad networkshorizontal
Creative optimization
Trading desks
Retargeting
Video
Advertising evolution in 2000’s
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A shift in media consumption
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NewspapersRadio (analog)Radio (digital)CinemaOutdoorTV (analog)TV (digital)InternetMobileVideo Games 60
70
80
50
40
20
10
30
90
100
1900 1920 1940 1960 1980 2000 2013
80 hours mediaconsumption a
week
Hours perweek
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More and more media consumed
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Yesterday Today
Home-bound
Dedicatedservices
Dedicateddevices
Separatenetworks
Mobile (mostly)
One device,all services
Integrate IPnetwork
Large #devices/
user
21%Mobilevideos
84%2nd Screen
Users
201650%IP-TV in D
430 Mio.
Whatsappusers
+500 Mio.
IP-Geräte inUS-HH
SocialMedia
TV
News
Radio
OTT
Changing pattern in media consumption
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20
22
24
18
16
12
10
14
26
28
1950 1960 1970 1980 1990 2000 2010
30
In millions
Sum of newspapers sales in Germany
-42.5%
198330,1 Mio.
201317,3 Mio.
6
-50% in print circulation in Germany
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More information than ever60 seconds on the web
in
60seconds
320+NEW Twitter
Accounts
100+NEW
LinkedInAccounts
370’000+MINUTESvoice calls on
Skype
12’000+NEW ADS
posted onCraigslist
20’000+NEW
posts onTumblr
13’000+IPHONE
Applications downloaded
600+NEWvideos
70+DOMAINS
registered
60+NEWblogs
695’000+FACEBOOKstatus updates
694’445SEARCH
queries
168 MILLIONEMAILSare sent
510’040COMMENTS
on Facebook
6’600+NEW
pictures uploaded on
Flickr
79’364WALLposts on
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Harder to reachconsumers
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Yesterday Today
Target audience
Contextadvertisement
Channel budgets
2017 global$32,5 Mrd.
ProgrammaticBuying
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Challenge for advertisement today: reaching across channels and devices
Content & Communication
Advertisement
Personalprofiles
Targeting
Real-TimeAdvertising
Advertisement
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Targeting yesterday vs today
VSInventory buyingBroad targeting
NZZ.CH$ 5.00 CPM
TAGES ANZEIGER.CH
$ 3.50 CPM
RTL.DE$ 3.00 CPM
DRS.CH$ 2.00 CPM
BILD.DE$ 3.50 CPM
Inventory strategy
Audience buyingNarrow targeting
Audience strategy
$ 3.00 CPM
NZZ.CH
TAGES ANZEIGER.CH
RTL.DE
DRS.CHBILD.DE
$ 3.50 CPM
$ 12.00 CPM
$ 6.00 CPM
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An increasingly complex ecosystem
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A large number of specialized actors along the value chain
Advertiser Media Buyers & Ad
OperationsTeams
TradingDesk
Web PageDevice App
PublisherAd
Server
PublisherDMP
DSP / DMP Exchanges SSP
Ad Networks
Publisher Programmatic Direct Vendor
Publisher Sales Force& Ad Operations Teams
Buy-SlideProgrammaticDirect Vendor
Buy-slide Ad-Server
End user
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DataManagement
Platform
Applicationof Data
Segmentation
Audience modelling
Analytics
Huge Varietyof Data Sources
Social
Mobile
Display
Search
Online/Offlinesubscriptions
Campaign DataClicks, impressions,
interactions, conversations,..
Audience DataDemographics,
Web and SearchBehaviour,..
CRM DatabaseTransactions,
segments, products,..
Audience DataOffline
segmentation, Digital ad Impact,..
Big data playing important role today
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Change of business model of PubliGroupe
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Key strategic premises
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• Market is becoming a multi-channel and multi-device
• Users are now content producers, putting advertising under pressure
• Data based targeting and advertising automation, the new rule of the game
• Traditional media will continue to lose audience and advertising revenue
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New business model of PubliGroupe
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Start-up
Young compagny
Establishedcompany
Maximization ofads use
Marketingoptimisation
Maximization ofonline sales
Advertising Mediaproviders
E-commercefor
for
through
Media providers
PubliGroupe
Advertising providers
Optimal use of digital ad space
Optimal use of digital advertising over providers networks, technology,
and data use
A I D A
Leading provider of online ad services in Europe
PubliGroupe value proposition today
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Swisscom & PubliGroupe – a possible future scenario
Low HighTelecom Infrastructure
ContentValue Chain
Advertising
Access
• Created Google fiber with USD ⁓3bn investment
• 34 cities are working with Google to implement
Google Fiber• April 2014 Google brings in business to
it’s network
Sweet SpotAdvertising-
Infrastructure
• Created a new USD 500m fund to invest in Advertising and
subscriber video OTT companies
• Offers a USD 70 a month plan if users agreed to let AT&T monitor their online
browsing and sell ads targeted to that customer
based on his or her behavior
• SingTel bought 2 Online Advertisement Companies for USD 359m in June 2014
• Running singtel digital - marketing agengy
• Owns Amobee which offers comprehensive
mobile advertising solutions SingTel Digital
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The best way topredict the futureis to create it. Alan Kay(Born May 17, 1940) is anamerican computer scientist
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Thank you! A shift in media consumption
A shift in media consumption