PubliGroupe presentation on the future of media

1. The future of media business is digital
and the future of digital will be automated
Arndt
C. Groth
IS Directors
Conference 2014
18. September
Interlaken
A shift in media consumption A shift in media consumption

2. 47 BC
1450’s
1700’s
Newspapers
Early industrial
revolution
newspapers
have published
ads
Gutenberg
Gutenberg
invents the
printing
press and print
the Gutenberg
Bible
First
advertising
Advertising
in Pompeii
for a
gladiator
1890’s
First large scale
advertising
First large
scale
advertising
1950’s
Major global
agencies
Major global
agencies
founded
1990’s
Internet
advertising
IAB first
measures
internet
advertising
1
Advertising evolution: the beginning

3. 2000
2002
2005
2007
2009
2014
2
Internet of
things
Device
convergence
Programmatic
TV
DSP
Sharing data/
Social tools
Verification
DMP’s & data
aggregators
Ad exchanges
Targeted
ad networks/
AMP’s
Data suppliers
Vertical ad
operators
Mobile
Ad servers
Ad networks
horizontal
Creative
optimization
Trading
desks
Retargeting
Video
Advertising evolution in 2000’s

4. 3
A shift in media consumption

5. Newspapers
Radio (analog)
Radio (digital)
Cinema
Outdoor
TV (analog)
TV (digital)
Internet
Mobile
Video Games
60
70
80
50
40
20
10
30
90
100
1900
1920
1940
1960
1980
2000
2013
80 hours media
consumption a
week
Hours per
week
4
More and more media consumed

6. Yesterday
Today
Home-
bound
Dedicated
services
Dedicated
devices
Separate
networks
Mobile
(mostly)
One device,
all services
Integrate IP
network
Large #
devices/
user
21%
Mobile
videos
84%
2nd Screen
Users
2016
50%
IP-TV
in D
430 Mio.
Whatsapp
users
+500 Mio.
IP-Geräte in
US-HH
Social
Media
TV
News
Radio
OTT
Changing pattern in media consumption
5

7. 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%
1983
30,1 Mio.
2013
17,3 Mio.
6
-50% in print circulation in Germany

8. 7
More information than ever
60 seconds on the web
in 60 seconds
320+
NEW
Twitter
Accounts
100+
NEW
LinkedIn
Accounts
370’000+
MINUTES
voice calls on
Skype
12’000+
NEW ADS
posted on
Craigslist
20’000+
NEW
posts on
Tumblr
13’000+
IPHONE
Applications
downloaded
600+
NEW
videos
70+
DOMAINS
registered
60+
NEW
blogs
695’000+
FACEBOOK
status updates
694’445
SEARCH
queries
168 MILLION
EMAILS
are sent
510’040
COMMENTS
on Facebook
6’600+
NEW
pictures
uploaded on
Flickr
79’364
WALL
posts on
Facebook

9. 8
Harder to reach
consumers

10. Yesterday
Today
Target audience
Context
advertisement
Channel budgets
2017 global
$32,5 Mrd.
Programmatic
Buying
9
Challenge for advertisement today: reaching across channels and devices
Content & Communication
Advertisement
Personal
profiles
Targeting
Real-Time
Advertising
Advertisement

11. 10
Targeting yesterday vs today
VS
Inventory buying
Broad 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 buying
Narrow targeting
Audience strategy
$ 3.00
CPM
NZZ.CH
TAGES
ANZEIGER.CH
RTL.DE
DRS.CH
BILD.DE
$ 3.50
CPM
$ 12.00
CPM
$ 6.00
CPM

12. An increasingly complex ecosystem
11
A large number of specialized actors along the value chain
Advertiser
Media Buyers
& Ad
Operations
Teams
Trading
Desk
Web Page
Device App
Publisher
Ad
Server
Publisher
DMP
DSP / DMP
Exchanges
SSP
Ad Networks
Publisher Programmatic
Direct Vendor
Publisher Sales Force
& Ad Operations Teams
Buy-Slide
Programmatic
Direct Vendor
Buy-slide Ad-Server
End user

13. Data
Management
Platform
Application
of Data
Segmentation
Audience
modelling
Analytics
Huge Variety
of Data Sources
Social
Mobile
Display
Search
Online/Offline
subscriptions
Campaign Data
Clicks, impressions,
interactions,
conversations,..
Audience Data
Demographics,
Web and Search
Behaviour,..
CRM Database
Transactions,
segments,
products,..
Audience Data
Offline
segmentation,
Digital ad Impact,..
Big data playing important role today
12

14. 13
Change of business
model of PubliGroupe

15. Key strategic premises
14
• 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

16. New business model of PubliGroupe
15

17. 16
Start-up
Young
compagny
Established
company
Maximization of
ads use
Marketing
optimisation
Maximization of
online sales
Advertising Media
providers
E-commerce
for
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

18. 17
Swisscom & PubliGroupe –
a possible future scenario
Low
High
Telecom Infrastructure
Content
Value 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 Spot
Advertising-
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

19. The best way to
predict the future
is to create it.
Alan Kay
(Born May 17, 1940) is an
american computer scientist
18

20. Thank you!
A shift in media consumption shift in media consumption