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1 Using Artificial Intelligence to generate revenue and boost reader engagement
2 Ringier at a Glance o Established in 1833, family-owned company, headquarter in Zurich o The largest Swiss multinational media corporation o 7,300 employees in 19 countries o 539 products cover newspapers and magazines, TV and radio channels, online and mobile digital businesses o Turnover of CHF 1.05 billion in 2016, CHF million in Switzerland 2
3 10 Years of Digital Transformation at Ringier
4 Our Core Beliefs in This Long Term Growth Game o Content Platform is the best platform to understand people o Data can only become the common currency if isolated data silos have interoperability o Game of execution - the one who does best to combine reach with frequency will win the game o A strong customer loyalty can only be achieved through emotional bonding o To participate in the national and international market in the long run, one has to be well prepared for the unknown future by keeping pace with technology advancement 4
5 Stay as Destination by Building a Ringier Ecosystem Content Business Marketplace Business Leading Media Houses Leading Online Marketplaces Data Layer Technology Layer 5
6 5 Tactical Moves to Construct The Ringier Ecosystem o Take back the control of our data o Ride on the economy of attention o I can t, but we can form alliances o Explore new business models o Embrace tech & data as an organization 6
7 Tactical move to construct the Ringier Ecosystem Take Back the Control of Our Data 7
8 Data & Technology Platform Sherlock TRANSACTIONS The occasion when an end user buys or sells something SOCIAL MEDIA Activities and user generated content we could capture on an end user in the social media world Transactions CUSTOMERS An end user who buys or sells the goods, or consumes our contents. Logged in or anonymous. / FINANCIALS Content-oriented financial data, including both B2C and B2B Subscription PRODUCTS Physical or digital good which has a price tag. Or a piece of content we produced and has the online presence. SUBSCRIPTION An agreement to allow the interaction with the contents or services. 8
9 Tactical move to construct the Ringier Ecosystem Ride on the Economy of Attention 9
10 Brands need emotions 90% of all purchasing decisions are made subconsciously 10
11 No One-Size-Fits-All Approach to Capture the Attention THE CHALLENGES o Customers have too many choices and too little time o Most products and services are similar in nature o Most customers base their reading or purchasing decisions on past experience o The attention span of customers is measured by seconds THE REQUIREMENTS o Better understand our customers or audiences personally o Get to know customers interests, needs and wants o Keep customers coming back again and again o Capture and retain customers attention at the first moments 11
12 Technology can definitely help Project Sherlock 12
13 When We Talk About the Solution, What Are We Really Talking About? Ingestion Web/App tracking SSO ETL Stream subscription Enablement Data streaming Monitoring Processing NLP/ Text mining Image recognition Deterministic analysis Machine learning Alerting Data streaming Access control Storage Online hot storage Durable storage RDBMS Graph DB Doc/KV storage Cost control Consumption /Execution API Stream publisher Data visualization Onsite engines Operation 13
14 Neither Build nor Buy Works, We Go Hybrid "Reinvent the selected wheels"... o if a component cannot be easily replaced o if a component cannot cover local needs o if a component compromises out control of the data o if a component is critical enough for our technology key value proposition Design principles o Build the orchestrator, and use the third-party offerings for commodity components o Provide the best-in-class capabilities o Enable non-intrusive adoption o Keep low running cost o Ensure on-demand scalability o Build artificial intelligence in 14
15 AI Disciplines We Applied So Far ARTIFICIAL INTELLIGENCE Deduction, Reasoning, Problem Solving Robotics: Motions & Manipulation Machine Learning Planning Perception: Computer Vision Knowledge Representation Natural Language Processing Social Intelligence 15
16 Content Profiling with Artificial Intelligence Named-Entity Recognition Sentiment Analysis Taxonomy Detection Entity linking (against German Wikipedia) Topic Extraction Image Recognition and Face Detection
17 Semantic Engine Ringier TagCloud in Comparison NER(*) by Google Cloud Language Service NER by IBM Watson Natural Language Understanding NER by Ringier Sherlock TagCloud High amount of noise Little recognition High precision 17
18 Semantic Engine Ringier TagCloud 18
19 Reader Interest Profiles INDIVIDUAL INTEREST PROFILES SEGMENTATION & CLUSTERING 19
20 Use Case: Article Tagging for SEO Blick.ch articles Sherlock/TagCloud tagging Search Engine Optimization Top1 Top2 Top3 20
21 Use Case : More on this subject Article Recommendations Comparison of content click rate +32% 1 All Users 2 Control Group = manual content selection Test Group = algorithm content selection 21
22 Use Case: Personalized Content Recommendations Comparison of content click rate User A Interests - News CH - Economy +46% Interests User B - Sport - Beauty Control group = editorial content selection Test group = algorithm content selection 22
23 Use Case : Content Recommendation Content CTR Comparison News affine +127% Sport affine Video affine Control Group random sample user Test group football-affine user 23
24 Use Case: Native Ad Targeting News affine Football affine Video affine 24
25 Use Case: Content Commerce Find similar users in Blick s profile pool (look-alikes) 5 Analytics & Recommendation engine Export profiles of converting users W&G Content CTR Comparison Transfer similar user IDs 7 Play out content commerce article whenever high affinity user shows up % At first show commerce content to all users User clicks User conversion observed by Tracking Solution Control Group low Wine&Gourmet affinity Test group Wine&Gourmet affine users 25
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