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TV media as a growth driver for B2C 
internet companies in Europe 
Andreas Otto, SevenVentures GmbH 
IDCEE, Kiev October 9...
2 
Agenda 
Market trends
4 
PStarornag ilnlcereals eu ins paargalleel usage 
TV still is the lead 
medium 
• TV creates reach, 
community and 
emot...
5 
TV behavior influenced: 
2nd/3rd screen capturing 
leads to parallel usage 
• Interacting with friends and 
gathering o...
6 
Multiplatform exploration 
becomes key in the changing 
media environment 
Smart TV – over 20m German households will h...
7 
P7S1 Group – 
the leading TV player in GER 
Agenda
8 
6 Free TV Stations 
+3 pay TV channels 
Market Share 
Monthly Online 
video views 
SevenVentures is part of ProSiebenSa...
9 
ProSiebenSat.1 footprint in German-speaking Central Europe 
Austria 
Switzerland 
Germany 
launched in 1984 
launched i...
12 
Agenda 
SevenVentures
13 
SevenVentures pursues two aims in co-operations 
1 2 
Venture Growth Strategic investments 
• Co-operations with limit...
15 
TV advertising has three main campaign effects based on a unique 
consumer reach and branding power 
1 2 3 
Direct res...
16 
TV has a positive effect on the other marketing channels TV Media 
• More direct traffic 
• More brand searches 
• Imp...
17 
1 Example moebel.de: significant performance improvement due to 
moebel.de 
Media push generated 
more traffic of bett...
18 
Example Tirendo: realization of fast successful exit to strategic 
partner 
TV facilitated the build up… …for successf...
19 
Example Zalando: became Europe's No.1 online shoe retailer 
and clear market leader through extensive media push 
Zala...
20 
Agenda 
Pan-European Media Alliance
21 
Pan-European media alliance – Making European market entry easier 
Pan-European Alliance Investment Story 
Internation...
Agreements in place with four leading TV networks in Europe 
Broadcaster Country Description 
TF1 
MTG 
Dogan 
TVN2 
• Rev...
23 
>750 
>100 
>250 
>150 
Thank you! 
Q&A. 
>250 
Andreas Otto 
Director 
SevenVentures GmbH 
Medienallee 4 
D-85774 Unt...
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IDCEE 2014: TV Media As A Growth Driver For B2C Internet Companies In Europe - Andreas Otto (Investment Director @ Seven Ventures GmBH/ ProSiebenSat.1 Media AG)

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Andreas is an investment director at Seven Ventures, the strategic investment arm of ProSiebenSat.1 Media AG, Germany’s largest TV network.

Prior to joining Seven Ventures, he was the Co-Founder and Managing Director of The Iconic (www.theiconic.com.au), an online fashion retailer in Australia and New Zealand. The company, funded by Rocket Internet, quickly became the market leader. Before he was a Project Leader at the Munich office of The Boston Consulting Group (BCG), focusing on sales & marketing topics at global consumer goods companies.

Andreas holds an MBA from the University of California, Berkeley and a BSc from the European School of Business.

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IDCEE 2014: TV Media As A Growth Driver For B2C Internet Companies In Europe - Andreas Otto (Investment Director @ Seven Ventures GmBH/ ProSiebenSat.1 Media AG)

  1. 1. TV media as a growth driver for B2C internet companies in Europe Andreas Otto, SevenVentures GmbH IDCEE, Kiev October 9 - 10
  2. 2. 2 Agenda Market trends
  3. 3. 4 PStarornag ilnlcereals eu ins paargalleel usage TV still is the lead medium • TV creates reach, community and emotions • Screens are with 59% still dominant in media usage 250 200 150 100 50 0 2004 2006 2008 2010 2011 2012 2013 +0% in 2013 TV Online Print 205 min. 115 min. 28 min. Average daily media usage in Germany in minutes, 14-49 years SevenOne Media/mindline 2013 +20% in 2013 +0% in 2013
  4. 4. 5 TV behavior influenced: 2nd/3rd screen capturing leads to parallel usage • Interacting with friends and gathering of information • 79% of 14 to 49-year-olds actively using computer or mobile devices whilst watching TV SevenOne Media/Navigator: “Mediennutzung 2012”
  5. 5. 6 Multiplatform exploration becomes key in the changing media environment Smart TV – over 20m German households will have an internet enabled TV device by 2016 • OTT market is changing: shift from PC to Mobile and Smart TV • High growth of internet enabled TV devices (~20m by 2016 with +29% CAGR 2011-16) • By 2016, > 50 % of all German TV households will use TV and internet content on their TV screen • Various provider fighting for portal ownership on TV set • Multiplatform distribution and user experience becoming key for traditional broadcasters Internet enabled TV devices in m HHs with other internet enabled TV devices* HHs with internet enabled HbbTV devices 5.6 5.4 7.5 0,4 1,1 CAGR 2011-16 +29% 10.1 2,5 14.1 5,2 * Via STB/receiver, games consoles, Blu-Ray-Player Source: Goldmedia, BLM 14.6 17.8 9,6 20.1 13,4 5,2 6,4 7,6 8,9 8,2 6,7 2011 2012 2013 2014 2015 2016 • 20m Internet enabled TV devices in GER by 2015 • Thereof about 25% habitually using Internet on TV • eCommerce supported by multi-platform media Informa, McKinsey Connected TV Quantitative Survey 2011, McK iConsumer survey 2011 Germany
  6. 6. 7 P7S1 Group – the leading TV player in GER Agenda
  7. 7. 8 6 Free TV Stations +3 pay TV channels Market Share Monthly Online video views SevenVentures is part of ProSiebenSat.1 Media AG TV Households in GSA P7S1 Group Unique User
  8. 8. 9 ProSiebenSat.1 footprint in German-speaking Central Europe Austria Switzerland Germany launched in 1984 launched in 1988 launched in 1992 launched in 2010 launched in 2013 launched in 2013
  9. 9. 12 Agenda SevenVentures
  10. 10. 13 SevenVentures pursues two aims in co-operations 1 2 Venture Growth Strategic investments • Co-operations with limited time horizon(2-3 years) • Media investment for performance-related remuneration • ‘Path to majority’ • Fit within clusters, e.g. Travel • Media and cash investment • Operational involvement Low risk investment approach through predominantly media investments and selected cash investments for larger bolt-on acquisitions
  11. 11. 15 TV advertising has three main campaign effects based on a unique consumer reach and branding power 1 2 3 Direct response Brand building Market creation • Massive customer reach through TV • Fast creation of brand awareness • Sustainable brand establishment • Creation and fast development of new and untapped online segments at preferred TV costs • TV is the most suitable communication medium to create product awareness • TV spots show direct increase of traffic and sales • Fly-in banner with dedicated landing page … and TV has a positive effect on all further marketing-channels
  12. 12. 16 TV has a positive effect on the other marketing channels TV Media • More direct traffic • More brand searches • Improved conversion rates, sales & basket values (over time) • Sustained higher traffic-levels, even post-campaign • High SEM efficiency: increased search volume, increased quality score, increased click-through-rate • Improved SEO: increased direct traffic share/ virality • Improved other performance channels, i.e. affiliate, display etc. SEM • Very good conversion rates from TV to mobile (minor ‘Medienbruch’): up to 40% of mobile traffic generated through TV campaigns  importance to have a good mobile offering! (beside the online presence) • TV identified as ‘App-Booster’: generation of new downloads, push into app store charts and re-activation of inactive users Direct impact Performance marketing Mobile traffic & app downloads Visits Conversion Rates Branding Customer Re-activation Customer Loyalty SEO Revenue
  13. 13. 17 1 Example moebel.de: significant performance improvement due to moebel.de Media push generated more traffic of better quality vs. regular search engine traffic (pre-flight vs. flight): • ‘Best-in-class’ CPV • Clickouts TV-traffic: 36% higher than non- TV-traffic • Avg. bounce rate (overall): -15% • Avg. PIs per visit Mar May Jul Sep Nov Jan (overall): +34% Number of visits 2013/14 with TV 2012/13 without TV Mar May Jul Sep Nov Jan Click-outs 2013/14 with TV 2012/13 without TV TV-push TV start in Aug 2013 TV start in Aug 2013
  14. 14. 18 Example Tirendo: realization of fast successful exit to strategic partner TV facilitated the build up… …for successful exit • Tirendo founded in 2012 with strong backing of 7V from the very beginning • Strong media push via P7S1 with Sebastian Vettel as endorser • Double-digit million revenue already in 2nd operating year • Acquisition of Tirendo by biggest & well-established only-online-player with EUR 500m revenues per year, active in 42 countries and 6 million members • Exit within 12 months • EUR 50m trade sale 2
  15. 15. 19 Example Zalando: became Europe's No.1 online shoe retailer and clear market leader through extensive media push Zalando Extensive media push created clear European market leader in online shoes / fashion ▪ Sales of EUR 1,8bn in 2013 (increase of 50% vs. 2012) ▪ 95% brand awareness ▪ Online audience increase of 40% from Sep 2011 to Sep 2013 (5,2m vs. 7,3m unique visitors) ▪ GMV of up to EUR 100m p.a. Launch TV campaign 01/2006 07/2012 Zalando Schuhe online Source: Zalando, Google Insights, Press releases Decreasing category importance, search for Zalando only Search for category and Zalando No organic search for 'shoes online' 3
  16. 16. 20 Agenda Pan-European Media Alliance
  17. 17. 21 Pan-European media alliance – Making European market entry easier Pan-European Alliance Investment Story Internationalize M4E/R model across Europe We are #1 media investor in Germany with a high degree of operational excellence International ventures ask for market entries covering Europe and not Germany standalone Developed network to make European market entry simpler ✔
  18. 18. Agreements in place with four leading TV networks in Europe Broadcaster Country Description TF1 MTG Dogan TVN2 • Revenue: 2.5B €1 • Market Share: 29% share of voice • Business lines: TV broadcasting, e-TF1 (digital), production & enterprises • Revenue: 1.52B €1 • Market Share: 35% share of voice • Business lines: TV broadcasting, radio, content production & MTGx (digital) • Revenue: 1B €1 • Market Share: 19,5% TV ad market share • Business lines: TV broadcasting, digital & services, Int’l, OTT & radio • Revenue: 0.4bn €1 • Market Share: 33% share of voice (w/o 3rd party channels) • Business lines: TV broadcasting, online VOD & pay-TV 22 1. Statistics of 2013 2. Signature run
  19. 19. 23 >750 >100 >250 >150 Thank you! Q&A. >250 Andreas Otto Director SevenVentures GmbH Medienallee 4 D-85774 Unterföhring Tel. +49 (0) 89/9507-8680 www.sevenventures.de andreas.otto@sevenventures.de

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