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The future of media business is digital and the future of digital is automated


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PubliGroupe presentation on the future of media

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The future of media business is digital and the future of digital is automated

  1. 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. 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. 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. 4. 3 A shift in media consumption
  5. 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. 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. 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. 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. 9. 8 Harder to reach consumers
  10. 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. 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. 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. 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. 14. 13 Change of business model of PubliGroupe
  15. 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. 16. New business model of PubliGroupe 15
  17. 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. 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. 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. 20. Thank you! A shift in media consumption shift in media consumption