Capital Markets Day December 6, ROUNDTABLE PRESENTATIONS DATA, ADTECH & ADDRESSABLE TV Christof Wahl, Dr. Jens Mittnacht

Transcription

1 Capital Markets Day December 6, 2017 ROUNDTABLE PRESENTATIONS DATA, ADTECH & ADDRESSABLE TV Christof Wahl, Dr. Jens Mittnacht

2 LARGE ADDITIONAL POTENTIAL FOR ADDRESSABLE TV ATTRACTING DECENTRAL, NICHE, AND PERFORMANCE BUDGETS ADDRESSABLE TV MARKET POTENTIAL Attracting new budgets [2016, in EUR bn] Decentral Niche branding Performancedriven Addressable TV Potential Note: Based on Nielsen data and P7S1 own estimates 44

3 ON TOP OF LINEAR TV WITHOUT CANNIBALIZATION DRIVING NEW TV MARKET GROWTH HOW WE PREVENT CANNIBALIZATION P7S1 TV GROWTH POTENTIAL UNTIL 2022 Focus on new TV advertisers Focus on new TV advertising budgets Establish intelligent pricing model to prevent loss of monetization of wastage 2017 (Total TV) Linear TV Addressable TV 2022E (Total TV) 45

4 WE FORESEE A SIGNIFICANT POTENTIAL PRICING UPSIDE DRIVEN BY GRANULAR ADDRESSABLE TV TARGETING 3x 10x Expected realizable pricing upside dependent on granularity of target group 46

5 GENERAL PRINCIPLE OF OUR ADDRESSABLE TV ROADMAP OUR INITIATIVES IN DIGITAL PAVE THE WAY FOR ADDRESSABLE TV Step 1: Digital excellence Step 2: Transfer digital skills to Addressable TV 47

6 FIVE KEY ENABLERS FOR ADDRESSABLE TV 1 AD FORMATS 2 DATA / TARGETING 3 PROGRAMMATIC BOOKING 4 MEASUREMENT 5 PERFORMANCE MINDSET 48

7 AD FORMATS 1 INDEPENDENT ADDRESSABLE TV DUE TO HBBTV COOPERATIONS AND PARTNERSHIPS AS LEVER FOR ADDITIONAL POTENTIAL Addressable TV reach 11.5m TV DEVICES ADRESSABLE VIA HBBTV FURTHER EXPECTED HBBTV GROWTH ADDITIONAL POTENTIAL VIA CO-OPS 49

8 AD FORMATS 1 OUR ADDRESSABLE TV AD FORMATS LEVERAGING MAINLY HBBTV TECHNOLOGY SWITCH-IN BRANDED RED BUTTON FULL SPOT OVERLAY Partial HbbTV overlay ad on top of TV content in the event of a switch-in to one of our channels Partial HbbTV overlay ad on top of an existing linear TV commercial, e.g., with additional info as regional dealers Full overlay of an existing linear TV commercial, e.g., via HbbTV 1.5/2.0, or via partners on SmartTVs and Set Top Boxes 50

9 AD FORMATS 1 OUR SWITCHIN FORMAT ATTRACTS NEW ADVERTISERS ESPECIALLY CUSTOMERS WITH DECENTRAL TARGET GROUPS BOOK ADDRESSABLE TV C&A Bonn Lotto Bayern (Bavaria) Gamescom Cologne 51

10 AD FORMATS 1 WE ARE WORKING ON OFFERING FULL SPOT OVERLAYS SUCCESSFUL TEST WITH HBBTV 1.5 HBBTV PENETRATION SmartTVs supporting HbbTV in Germany [in %] HbbTV 1.0 HbbTV 2.0 HbbTV 1.5 We initially aimed to overlay full TV commercials with targeted ads just with HbbTV Total: 11.5m 55 We are testing a solution to overlay full spots already via HbbTV 1.5, which is more widely distributed <1 We successfully executed first live tests of that solution with Johnson & Johnson and MediaMarkt Source: P7S1 internal estimates 52

11 AD FORMATS 1 SUCCESSFUL LIVE TESTS OF FULL SPOT OVERLAY WITH MEDIA MARKET AND JOHNSON & JOHNSON VIA HBBTV 1.5 Linear broadcast TV Addressable TV commercial by 53

12 DATA/TARGETING 2 WE ARE EXTENDING OUR TV TARGETING CAPABILITIES PLANNING TO OFFER CROSS-DEVICE TARGETING IN 2018 IP-BASED Decentral and weather targeting based on the TV s IP address PREDICTIVE BEHAVIORAL Targeting of attractive target demos (e.g., Singles, Families, 50+, high net income) based on TV viewing behavior CROSS-DEVICE TV/DIGITAL Targeting of households/users based on their digital profiles (e.g., retargeting Verivox visitors with interest on car insurances on TV) 54

13 DATA/TARGETING 2 WE COLLECT VERY BROAD & DEEP TARGETING DATA COMBINING VALUABLE PROPRIETARY DATA WITH EXCLUSIVE DATA PARTNERS P7S1 digital data Exclusive partnerships HbbTV data DOOH Beacon NEW PLANNED One data management platform 55

14 DATA/TARGETING 2 OF WHICH WE BUILD ATTRACTIVE SEGMENTS IN DIGITAL TARGETING OF 20+ PERSONAS AND 115+ INTEREST GROUPS PERSONAS Exemplary INTERESTS Exemplary 20+ Business Partner Sport Enthusiast Millenials & Digital Natives Luxury & High Value Shoppers Tech Lovers & Gamers Trendsetter Edgy Individualist Party People & Festival Visitors Smart & Sale Shoppers DIY, Handymen & Hobby Gardeners Classic Lover Spirituals, Health-Conscious, Eco & Green Art & Design Lovers Families and Homemakers Entertainment Nerds Pet Owners & Animal Friends Adventurers & Travelers Beauty Queens & Kings 115+ Home/Garden Relocation Furniture Kitchens Telco DSL & Landline Change Mobile Change Fashion/Beauty Shoes Clothing Perfume Fin/Insurance Car Financing Gas Change Electricity Change Travel Automotive Flight Middle Class Hotel SUVs Winter Sports Cabrios & Coupés People/Family 50+ Job Starters Toddlers Tech/Game Playstation XBOX iphones Food/Bev Foodie & Gourmet Health & Bio Beer & Spirits Music/Ent Rock & Pop Comedy & Love Horror & Sci-Fi 56

15 DATA/TARGETING 2 OUR NEW HBBTV NEWS PORTAL AS SOURCE FOR DATA NEW HBBTV RED BUTTON PORTAL New HbbTV Red Button portal will offer a lot of complementary news content on the TV set By tracking its usage, we ll learn about the interests from each TV household (e.g., sports, fashion, business) HbbTV portal usage thereby becomes crucial data enabler for Addressable TV targeting 57

16 DATA/TARGETING 2 NEW LOG-IN ALLIANCE EXPANDS REGISTRATION BASE ENABLING AND PROTECTING FUTURE TARGETING PRODUCTS LOG-IN ALLIANCE One login angemeldet bleiben Initial reach of 45m users across founding partners New open log-in standard open for further partners First partner Enabling essential digital business models post expected eprivacy Regulation 58

17 DATA/TARGETING 2 OUR VISION: ADDRESSABLE TV BASED ON DIGITAL DATA EXAMPLE: RETARGETING OF FLACONI VISITORS ON TV Full spot overlay Interest data, e.g., Perfume Cross-device match (e.g., via IP address) 59

18 PROGRAMMATIC BOOKING 3 WE ACQUIRED OUR OWN AD TECH STREET ENABLING BEST-IN-CLASS PROGRAMMATIC ACCESS TO OUR AD PRODUCTS ADTECH PRODUCT HOUSE INDEPENDENT, SECURE, INNOVATIVE Advertiser BUY-SIDE (DSP) SELL-SIDE (SSP) Publisher Programmatic access AUDIENCE DATA (DMP) Exclusive media & data products 60

19 PROGRAMMATIC BOOKING 3 WE DRIVE EXCLUSIVE PROGRAMMATIC INNOVATION EXCLUSIVE PRODUCTS ON ACTIVE AGENT, PLUS NEW PARTICIPATION IN BUZZBIRD EXCLUSIVE MEDIA AND DATA PRODUCTS THAT WE MAKE PROGRAMMATICALLY AVAILABLE PROGRAMMATIC BRANDED DATA PROGRAMMATIC DIGITAL OUT-OF-HOME PROGRAMMATIC ADDRESSABLE TV PROGRAMMATIC INFLUENCER MARKETING exclusive on exclusive on exclusive on NEW Note: Buzzbird transaction signed, closing expected in Dec

20 PROGRAMMATIC BOOKING 3 INVESTMENT INTO BUZZBIRD MAKING INFLUENCER MARKETING SCALABLE, MEASURABLE, AND PLANNABLE Influencer category Sales/ Platform Leading influencer marketing platform 1% Top influencers Platform to make influencer marketing scalable, measurable, and plannable 10% Professional influencers / Enabling efficient access to mid- and long-tail influencers 40% Semi-professional influencers (mid-tail) Paving the way for programmatic buying of influencer marketing 49% Micro influencers (long-tail) Note: Buzzbird transaction signed, closing expected in Dec

21 MEASUREMENT 4 ADCLEAR PROVIDES ATTRIBUTION TECHNOLOGY MEASURING TV AD IMPACT WITHIN THE TOTAL CUSTOMER JOURNEY Customer journey tracking & attribution Linear TV First attribution solution w/ access to HbbTV data! Video Search Addressable TV Display banner Purchase Note: AdClear transaction signed, closing expected in Q1 2018; AdClear is a majority acquisition by Virtual Minds AG 63

22 PERFORMANCE MINDSET 5 ESOME COMPLEMENTS OUR AD SALES PORTFOLIO ADDING LOWER-FUNNEL PERFORMANCE CAPABILITIES MARKETING FUNNEL Awareness (CPM) Interaction (CPV, CPA) Transaction (CPO, CPL) NEW 2018: KPI-driven Addressable TV Note: esome transaction signed, closing expected in Q CPM: Cost per Mille (1 000 impressions); CPV: Cost per View; CPA: Cost per Action; CPO: Cost per Order; CPL: Cost per Lead; CPcV: Cost per completed View 64

23 DISCLAIMER This presentation contains "forward-looking statements" regarding ProSiebenSat.1 Media SE ("ProSiebenSat.1") or ProSiebenSat.1 Group, including opinions, estimates and projections regarding ProSiebenSat.1's or ProSiebenSat.1 Group's financial position, business strategy, plans and objectives of management and future operations. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of ProSiebenSat.1 or ProSiebenSat.1 Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements speak only as of the date of this presentation and are based on numerous assumptions which may or may not prove to be correct. No representation or warranty, expressed or implied, is made by ProSiebenSat.1 with respect to the fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein. The information in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning ProSiebenSat.1 or ProSiebenSat.1 Group. ProSiebenSat.1 undertakes no obligation to publicly update or revise any forward-looking statements or other information stated herein, whether as a result of new information, future events or otherwise.