PubliGroupe: Real Marketing. How the Power Shifts to Consumers (and what Marketeers Need to Understand)

1. Real Marketing
How the Power Shifts to Consumers
(and what Marketeers Need to Understand)
Arndt C. Groth, CEO, PubliGroupe Ltd.
Zurich, 21.11.12
1

2. 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
2

3. Agenda
Business Talk with Arndt Groth Time Responsible
(hrs:mins)
1 Annual 16:30 - 17:00 All
2 Greeting and Introduction 17:00 - 17:30 Prof. Dr. Ch. Belz
3 Presentation PubliGroupe 17:30 - 18:15 Arndt C. Groth
4 Discussion 18:15 - 18:45 All
5 Apéro Riche / Networking 18:45 - 19:45 All
6 Closing 20:00 All
3

4. Agenda
3 Chapters
6 Backgrounds in Real Customer / Corporate Behavior and Business Environment
1
- #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
6 Learnings for Real Marketing and Communication
2
- #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)
4 Results for PubliGroupe
3
- #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)
4

5. Background
01
Massive Change
in Media Usage
5

7. The Consumption of Media Is Shaped by Digital Media
Media Usage: ! Hours per Week
100
90
Games
80 ! 80h
Mobile
70
60 Digital Radio
Outdoor
50
40 Digital TV
Kino
30
Analog Radio
20 Analog TV
10 Internet
0
Print
1920 1940 1960 1980 2000 2020
7
Source: Microsoft

8. Online Usage in Competition to Traditional Media
Development of Usage by Reach in % in Switzerland
8
Source: WEMF, MACH Cinema Basic, NET-Metrix, Net-Metrix Profile

9. Our Daily Life
with Digital Media
9
Source: Tomorrow Focus Media

10. Background
02
Negative Impact
to Classic (Offline) Media
10

11. Massive Pressure on Print
The Latest Loss of Print Ad Revenues Went Beyond Expectations
Print ad-spend vs. GDP, Switzerland
Forecast
4.0%
2,487
-0.1% 2,369 2,406
2,294 2,299 -12.3% 550
543
527 533
2,302 516 517
497
1.3%
467 2.5%
455 0.1%
479 3.8% 2.3%
2,001
2.6%
2,004 -6.0%
1,915 1,884
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e
1. GDP calculation based on production statistics GDP in CHF bn1 Ad spend Print in CHF m
11
Source: WEMF; Stiftung Werbestatistik Schweiz; IMF; SECO; OC&C analysis

12. Market Shares
by Media in 2011 in Switzerland
10%
Mediengattung Mio. CHF
Printmedien
Printmedien 2'288.892
7%
TV
TV 1'449.903
1%
Radio 183.855
4% Radio
Kino
Kino 28.996
48%
Teletext
Teletext 8.322
Internet
Internet 344.500
Plakat
Plakat 465.183
Digitale Werbeflächen
Digitale Werbeflaechen 11.859
30% 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!
12
Source: MediaFocus, Brutto Werbeaufwendungen und Online-Werbestatiistik in Mio. CHF

13. Switzerland not in the Top 10
Share of Online by Media Mix in EU [Online spend as % of main media]
13
Source: WARC / IAB Europe / Screen Digest

14. But the High Potential is Still Not Identified
Time Spendings vs. Advertising Spendings
! $ 50B
50% Global Opportunity
45% Internet Ad Mobile Ad
= $30B = $1.6B
43%
42%
40%
39%
35%
30% 31%
28%
25% 26% 26% ! $ 20B
25%
Opportunity in USA
22%
20%
15% 16%
15%
13%
12%
10% 11%
10%
9%
7%
5%
0%
1%
Print Radio TV Internet Mobile
Time Spent 2010 Time Spent 2011 Ad Spend 2010 Ad Spend 2011
14
Source: Morgen Stanley 16. Nov. 2010 / KPCB "Internet Trends 2012"

15. Background
03
Total Information
Overload
15

16. Digital Media Can’t Replace Real Life Activities
But Can Enrich Our Digital Lifestyle
16
Source: Manfred Spitzer – Digitale Demenz

17. Background
04
More and More Competitors
in the Same Market
17

18. 18

19. Display Advertising Ecosystem Europe We Are Here
in 2012
19
Source: Improve Digital

20. Background
05
Less USP’s –
Not Even A UAP
21

21. Lack of Relevance
Brand Experience Gap – Homeless Communication
22

22. Background
06
New Ecosystems
Emerge
23

23. New Players with New Biz Models Enter the Market
iTunes As Worldwide the Biggest Distributor for Digital Content
24

24. How Can We Help Advertisers and Publishers?
To Reduce Complexity?
Where Stand Alone
to or
Buy? Cooperation?
ROI?
Optimized
Budget?
What About
Free, Social Media?
Freemium
or Premium?
Quantity Who's the
or Typical
Quality? User?
25

25. Learning
01
Likes
Are Completely Overrated
26

26. The New Engagement Paradigm
From 4 P's to 4 I's
Involvement Influence
I feel involved with I would recommend
this brand this brand
Brand
Engagement
Intimacy Interaction
This brand is very much This brand stimulates
present in my daily life interaction with itself
27
Source: Butterfly Media

27. Learning
02
Video –
The Next Big Thing
28

28. Online Video Will Soon Overtake Broadcast TV
Hours:Mins spent Watching Video per Week
> 72 h = Video-Upload on YouTube per Minute!
> 3 h = Video-Upload on YouTube per Minute with Mobile Devices
29
Source: TDB / iBusiness, 14.05.2010

29. Learning
03
Think Mobile –
Act Mobile
30

30. Interactive Offline-2-Mobile Possibilities
Generates More Value and Experience for Customers
• Shortcut:
• QR-Code:
• Augmented Reality (Visual Search):
• Interactive Advertising:
31

31. Not Technology But User Experience in the Focus
Responsive Design for the Same Content On Every Digital Channel
32
Source: Namics

32. Learning
04
ROI Optimization Is More
Than Turn the Regulator
33

33. The CPM-Based Pricing Model Is Not Dead
But Performance-Based Models Tends to Create More Transparency
Marketing Goals
Awareness Interest Desire Action
Contacts
Visitor / User Sales
Reach
CPM CPC CPS
Cost per Mille Cost per Click Cost per Sale
Display / Brand Search Performance
Advertising Advertising Advertising
User Advertising Performance Models
Performance Modelle
Banner Ads
Cost per Lead
Cost per Click
Text Ads
Cost per
Cost per
Action
CPO
Order
CPC
CPA
CPL
eMail
Contextual Ads
Keywords
34

34. Learning
05
Real Marketing Needs
Realtime Advertising
35

35. Online Display Advertising Spendings
RTA Is Strongly Gaining Relevance In Germany [in Mio. $ US]
3000
CAGR
2500 11%
495 68%
2000 366
252 2008
149 1801 6%
62
1500 1592 1641 1651
1000
500
0
2011 2012 2013 2014 2015
Klassisch RTA-basiert = ! 20% of all
Online Display
Ad Spendings
36

36. The Future of Display Advertising in 2020
37

37. Learning
06
Deep Understanding
of Customer Behaviors
38

38. 360° View – The Right Crossmedia Mix
Analysis for More Sales-Performance & Positive Brand-Association

The right clients (and non-clients, employees, stakeholder) …
to initiative and manage the right marketing processes for
acquisitions, customer retention and branding
know of a particular brand

to invest in the right touchpoints
for the relevant target audience

39
Source: Accelerom

39. KPI’s in 360° Controlling
Aggregated in an Integrated Reporting
40
Source: Namics

40. Big Data – The New Oil
Analytics of All Kind of Insights (Product, Service, Customer …)
41
Source: SAS

41. Do You Know the Value of Your Touchpoints?
The Customer Journey and the Performance of Various Touchpoints
42

42. Attribution Modeling - Audience plus Performance
Data Improves the Relevance of the Advertising Delivery
43
Source: Quisma

43. Result
01
Preparing for the New Digital
Marketing World
44

44. Performance-Oriented Full-Service Provider
Organized into 3 Segments, Emplying State-of-the-Art Data Tools
Media Sales Search & Find Digital & Marketing
Services
Portfolio of leading international
Producer and seller of media
marketing and technology service
products facilitating the search for
companies, helping brand owners
Preferred partner for media owners persons, companies, products
to spend
and advertisers worldwide, using and services focusing on local
marketing budgets more effectively.
effective advertising solutions. markets.
45

45. PubliGroupe
Marketing.More.Effective.
• 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.
46

46. Result
02
Orchestrate
Profitable Growth
47

47. Digital Ecosystems Remains Complex
PubliGroupe with Stakes Across the Entire Digital Display Ecosystem
Digital display ecosystem and selected Google & PubliGroupe investments
Ad
Exchange
ADVERTISER
AUDIENCE
Agency Demand- Supply-
Agency Trading Side Side Publisher
Desk Platform Platform
Ad
Network
+ acquisition of Wildfire interactive
for social media marketing solutions
48
Source: IAB; Google; Press

48. Online Revenues with Strong Growth
Good Progress with Consolidated and Associated Online Revenue
Online Revenues, in millions of CHF
• Consolidated online revenue grows
by 15.5%; incl. participations growth PubliGroupe Associated companies
800
represents 18% at constant fx 710
700 657
• Online revenue reaches 40% of total 600
493
business revenue; in terms of gross 500
margin, online represents 50% 548
400 517
300 380
• Growth mostly from Zanox and Namics:
Zanox CAGR 29% since creation of the 200
joint venture in 2007; Namics with 14% 100 162
140
of continuous organic growth since 2004 113
0
2009 2010 2011
• Media Sales with CHF 50 m online sales Total revenue
2009:
Total revenue
2010:
Total revenue
2011:
CHF 1’898 m CHF 1’906 m CHF 1’775 m
(online 26%) (online 34%) (online 40%)
49

49. Result
03
Focus On
Customers and Partners
50

50. PubliGroupe
Customers and Partners
The group has more than 400’000
customers:
• Private persons
• SME
• National advertisers
• International brands MSN
The group cooperates with:
• Well-known media companies
• Digital Media owners
• Different types of websites
51

51. Switzerland and Europe Largest Markets
Geographical Distribution
52

52. Result
04
Walk
As We Talk
53

53. 6 Take Aways
For More Effectiveness in Your (Digital) Marketing Strategy
1 SOCIAL: Communities + Engagement = MME (Marketing.More.Effective.)
2 VIDEO: All-Screen-Planning = MME (Marketing.More.Effective.)
3 MOBILE: Smartphone + Local = MME (Marketing.More.Effective.)
4 PERFORMANCE: CPM + CPx = MME (Marketing.More.Effective.)
5 REALTIME: RTA = ! CPA + ! Conversion = MME (Marketing.More.Effective.)
6 CUSTOMER JOURNEY: 360° + Attribution Modeling = MME (Marketing.More.Effective.)
54

54. Thank You for Your Attention
“ “
55