Presented by Gerhard Louw, Head of International Media Management & Digital Transformation, Deutsche Telekoms at Digiday Brand Summit Europe, November 2018.

1. EFFICIENCY, EFFECTIVENESS AND TRANSPARENCY:
ADVERTISERS DRIVING THE CHANGE THEY NEED
GERHARD LOUW, DEUTSCHE TELEKOM AG @ DIGIDAY BRAND SUMMIT, NOV 2018
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2. 2
The world’s most valuable resource is no longer oil, but data
May 2017

3. THE DIGITISATION OF MEDIA IS SPEEDING AHEAD
329.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

4. THE IMPACT OF DATA ON MEDIA
4
A new media
paradigm for
advertisers
Changes in consumer habits
Changes in media
ecosystem
Changes in media selling & buying
29.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

5. MEDIA PARADIGM FOR ADVERTISERS? TAKING BACK CONTROL
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“Our future is definitely
going to be…more
thoughtfully using our
data than by
outsourcing”
- David Wheldon, RBS
“If 2017 was the year of
the wake-up call, then
2018 is the year we take
back control”
- Marc Pritchard, P&G
“When you have people
take ownership and
control, you can have
better quality ads plus
savings.“
- Lucas Herscovici, AB InBev
“Now, it’s much more
about self-sourcing and
learning as well as
calling on external
experts or agencies”
- Tatiana Jouanneau, Duracell
29.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

6. 629.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

7. THE MARKET IS ON THE EDGE OF A MASSIVE DISRUPTION
2018
Fully-managed Hybrid In-house
729.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

8. THE LANDSCAPE WILL CHANGE ENTIRELY OVER THE NEXT FIVE
YEARS
2021-2023
Fully-managed Hybrid In-house
829.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

9. EACH ADVERTISER NEEDS TO DEFINE HIS/HER OWN MODEL
IN-HOUSE
FULLY
MANAGED
Technology
contracts
Strategy &
implementation
Publisher data
relationships
Campaign
optimization
Reporting data
pipeline
DMP
Implementation
Publisher inventory
relationships
KPI frameworkAd operationsData science/
algorithms
HYBRID
929.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

10. THE DEUTSCHE TELEKOM MEDIA
OPERATING MODEL (MOM)

11. EUROPE’S LARGEST TELECOMS COMPANY
EU
R
73 billion REVENUE
13EUROPEAN MARKETS
(‘NatCos’)
Formed in 1996, following privatization of
state-owned company
MOST valuable TELCO
BRAND IN EUROPE
1129.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

12. WE HAVE A CLEAR VISION FOR DEFENDING OUR LEADERSHIP
POSITION IN EUROPE
12
Tim Höttges, Deutsche Telekom CEO
The raw material of this revolution
is the data…and we are making
the data usable
We need to be more in control
29.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

13. WE STARTED TAKING CONTROL WITH DEFINING OUR TECH
STACK: TELEKOM DIGITAL BLUEPRINT
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BLUEPRINT
PRINCIPLES:
 Full data access
 Full data
ownership
 Strict safety &
security rules
 Choosing &
contracting the
partner/supplier
directly
One Adserver
One Website tracking & Analytics Programmatic media buying
platform (DSP)
Data Management Platform (DMP)
Personalisation of content, campaigns & channels
Dynamic creatives
Private DMP: personal data Public DMP: anonymised data
CREATIVE
29.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

14. CONTROL OF SERVICE DELIVERY VIA TELEKOM’S MEDIA
OPERATING MODEL (MOM)
14
HighLow
Advertiser
Level of
Advertiser
Control HighLow
Our new Media Operating Model = unpacking the ‘black
box’ by combining internal competency with multiple
external specialists
Old approach = “black box” for advertisers, where one
supplier manages everything
Specialist supplier 1
Media Analytics
services
Specialist supplier 2
Campaign Planning
& Buying services
Specialist
Supplier 4
Programmatic
Operations
services
Specialist
Supplier 3
Search & Affiliates
services
Internal:
Media Strategy &
Steering
LOW SPECIALIZED SERVICE OFFERING
LOW COMMERCIAL TRANSPARENCY
LOW ADVERTISER CONTROL
1 Supplier
(typically
a media
agency)
29.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

15. TELEKOM’S MOM DELIVERS SIGNIFICANT BENEFITS
15
Significant benefits of the new Model:Weaknesses of the old approach:
Limited commercial
transparency over supplier
margins, hidden costs and fees
Supplier in control, Advertiser
largely left outside of ecosystem
Inconsistent levels of
competence and excellence
across supplier services
In-house control and ownership over
technology and data
Increased transparency over entire paid media
ecosystem
Data-driven and fact-based decision
making to drive business outcomes
Large cost/price efficiencies delivered
enabling a cost-neutral adoption
29.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

16. MOM PARTNERS CONTRACTED
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Campaign planning and buying
B
Media
strategy &
steering
A1
Programmatic operations
C
Search Engine Advertising
D
Media
analytics
A2
Frame Agreements
in place with:
Advertising
Technology
partner (Digital
Blueprint)
Digital media
transformation
consultants
Media
buying
Media
analytics
Media
strategy
Tub
e
Yo
u
29.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

17. ADOPTION OF MOM CONTINUES SWIFTLY ACROSS EUROPE
Phase 1
DE NL
PL
Phase 2
GR HU
AT SK CZ
Phase 3
Phase 4
RO HR MK
ME AL
HQ

18. TWO MAJOR MOM IMPLEMENTATION CHALLENGES IDENTIFIED
(SO FAR)
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Collaboration Building in-house competence
Internal:
Media Strategy &
Steering
29.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

19. COLLABORATION ATTITUDE & BEHAVIOR ARE BOTH CRUCIAL
TO SUCCESS
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Managing
Communication
Motivation
&
Participation
Empathy,
Respect and
Understanding
Trust
Efficiency &
Delivery
Accountability
& Ownership
1
COMMON LANGUAGE & BEHAVIOURS
2
COMMON MEASUREMENT FRAMEWORK
3
DESIGN THE RIGHT PROCESS & SYSTEMS
Aligned all partners behind what ‘collaboration’
means for us
Evaluating performance against levels of
collaboration – and made it a significant part of the
overall remuneration
All processes, ways of working & systems in the
model are designed to enable effective
collaboration
29.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

20. BUILDING IN-HOUSE COMPETENCE TO ORCHESTRATE & STEER
MOM
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1
CENTRAL VERSUS LOCAL
Alignment on roles and responsibilities – through
clearly defined job descriptions
2
NEW RESOURCES
Hiring new specialist resources, particularly with a
focus on media analytics and digitization
3
OVERCOMING INTERNAL SILOES
A1 to act as a bridge between internal departments
29.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

21. KEY SUCCESS DRIVERS FOR A MEDIA OPERATING MODEL
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 CEO mandate for transformation and change & more control
 Understand own requirements following internal diagnostic before
launching external process
 Align all stakeholders behind ambitions of the model and process
 Make Collaboration THE founding principle of your Media Operating
Model
29.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

22. MOM RECOGNIZED AS ‘PIONEERING’ AND ‘RADICAL’
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DEUTSCHE TELEKOM
NOMINATED AS BRAND OF
THE YEAR 2018 FOR ITS
MEDIA MODEL
DEUTSCHE TELEKOM ON 2017 LIST OF
TOP 100 MEDIA MANAGER
DEUTSCHE TELEKOM RECOGNIZED ON 2017
‘CHANGEMAKERS’ LIST, HONORING THOSE
MODERNIZING MEDIA AND MARKETING
29.11.2018Gerhard Louw, Deutsche Telekom Digiday Brand Summit

23. LASTLY…
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24. THANK YOU