Antena 3 Group ADVERTISING Manuel Ferrer
Agenda I. CURRENT SITUATION II. FUTURE PROSPECTS 2
Agenda I. CURRENT SITUATION II. FUTURE PROSPECTS 3
What market are we in? In a growing market Evolution of conventional media 5500 +18.9% +10.8% 5.5% 1.1% +3.0% +11.3% 4500 3500 2500 1500 500 '99 '00 '01 '02 '03 9M '04 % GDP 0.95 % GDP 0.80 SOURCE:: INFOADEX + INE + ESTIM. MARKETING DEPT. 4
What are we doing? Generating a group project through product integration 2003 2004 Antena 3 Onda Cero Movierecord Antena 3 Onda Cero Movierecord Europa FM Europa FM 5
How have media evolved? They have all strongly contributed to the growth of media in total % Weight and Evolution of Media 9 M 04 vs 03 totals 50% 40% 18.2% +11.3% 30% 4.5% 20% 10% 0% 6.6% 6.0% 9.0% 4.2% 11.0% 23.0% TV Newspapers Magazines Radio External Sunday Suppl. Internet Cinema Weight 04(%) 43.5 25.9 10.1 8.9 7.7 1.6 1.3 0.6 6 SOURCE: ESTIMATE MARKETING DEPT.
How has TV developed? Strong growth in 2004 not yet reaching year 2000 levels TV evolution 2.500 2.000 +17.3% +9.8% 7.1% +0.9% +6.6% +18.2% vs 03 1.500 1.000 500 9M 00 (real) 9M 00 (constant) '99 '00 '01 '02 '03 9M' 04 +13.0% 0.8% const. SOURCE: INFOADEX + ESTIM. MARKETING DEPT. 7
...and Antena 3? Antena 3, the channel with highest growth in 2004, improving its competitive position Ad Share / % growth by TV channels +26,7% 25,0 26,9 +7,8% 31,0 28,3 +26,1% 27,7 29,5 14,8 13,7 +10,2% 9M '03 9M '04 8 SOURCE: ESTIM. MARKETING DEPT.
...and why does it grow? The growth of A3 is the result of increase in audience and price Explanation by Variables 9M 04 Advertising occupancy Turnover Audience +26.7% vs 03 Price Total Turnover SOURCE: TNS + EST. MARKETING DEPT. 9
How has A3 audience developed? A3 has increased its audience in quantitative and qualitative terms Analysis of Antena 3 Audience 9M 03 9M 04 Aud. Share + 4.7% INDIV. 19.6% 71,5% 20.5% 71,5% + 4.7% Aud. Share INDIV. PT 18.6% 71,5% 20.5% 71,5% + 10.2% SOURCE: TNS Total Spain 10
... and what are the results? Increase in sectors focusing on high quality adult targets % Investment weight by TTV Sectors 9M 04 5% 25% 5% 5% 9% 9% 17% 9% 15% FOOD AUTOMOBILE BEAUTY AND HYGIENE BEVERAGES CULTURE, EDUCATION AND MEDIA CLEANING RETAIL AND RESTAURANTS FINANCE AND INSURANCE 9M 04 TTV +16.1% +36.7% +16.2% +17.6% +20.0% 4.2% +24.0% +37.7% OTHERS 11 SOURCE: ESTIMATE MARKETING DEPT.
...and the price? Despite price increase in 2004, prices are still lower than year 2000 prices GRP cost index A3+T5+TVE 100,0 85,8 79,3 79,0 91,7 9 M'00 9 M'01 9 M'02 9 M'03 9 M'04 constant prices GRP Cost National Conventional Adv. GRP s in Adults. 12 SOURCE: TNS + EST. MARKETING DEPT
How has radio evolved? Radio is also experiencing a growth period Radio Evolution 600 +13.3% +7.7% 2.5% 0.9% +4.8% +6.0% vs 03 300 0 99 00 01 02 03 9M'04 13 SOURCE: INFOADEX + ESTIM. MARKETING DEPT.
... and Onda Cero? Growing faster than the market Ad Share and % growth percentage by radio groups + 10.1% vs. 03 OTHERS 19,1 20,4 18,3 42,2 Market Growth 9 M 04 vs 03 : + 6.0% 14 SOURCE:: INFOADEX+ESTIMA.MARKETING DEPT.
What else can we do? I. CURRENT SITUATION II. FUTURE PROSPECTS 15
And what else can we do? 2005 Goals II. FUTURE PROSPECTS 1. MULTIMEDIA ACTIVITIES 2. PRODUCT OPTIMIZATION 3. NEW APPROACH: FAMILY TARGET 16
And what else can we do? II. FUTURE PROSPECTS 1. MULTIMEDIA ACTIVITIES. Multimedia Sales Structure Deployment. Multimedia Products Development 2. PRODUCT OPTIMIZATION 3. NEW APPROACH: FAMILY TARGET 17
...add more sources... In 2005, we will also market cinema and musical radio 2003 2004 2005... Antena 3 Onda Cero Movierecord Antena 3 Onda Cero Movierecord Antena 3 Onda Cero Movierecord Europa FM Europa FM Europa FM 18
How will we do it? Through business knowledge and adding value BUSINESS STRATEGY Competition takes place at business unit level TV Advertising Radio Advertising Cinema Advertising CORPORATE STRATEGY VALUE Creation Know How transfer Activities Co participation Multimedia Sales Structure Deployment Multimedia Product Development 19
How will we do it? Multimedia Sales Structure Deployment Know How Economy of scale Bargaining power 20
Multimedia Sales Structure Deployment Use of Know How Use of Know How TV = The most technically advanced advertising media Daily audience measuring Transfer of proven processes from TV to Radio 21
Multimedia Sales Structure Deployment Structure Use Structure Use Broad back office / front office structure Sales Dept. S.Solutions Operations Dept. Marketing Dept. Two markets: National Regional To generate Economy of scale 22
Multimedia Sales Structure Deployment Develope a Must have medium On going contact with main Advertisers Strong position towards main agencies and Media Buyers Increasing volumes Use of bargaining power Use of bargaining power Other Media 47% 53% Tv+Radio+Cinema A3 Group reaches +53% of the Advertising market 23
Creation of multimedia products TV+Radio+Cinema: Integration Model + + = Adding Media x x = Multimedia Offer & Multiplying Effect Creative efforts for Media integration 24
Multimedia Product Development Combination of strategies Spill over effect from TV to radio and cinema Massive communication, coverage Direct communication, customization of contents, segmentation Frequency Profile and Awareness MULTIPLYING EFFECT in communications 25
...in an efficient way 26,9% 20,4% 20,5% 12,8% Power Ratio 1.60 January Sept. Power Ratio 1.31 January Sept. Aud. share %Inv. share 26 FUENTE: TNS EGM + DATO INTERNO
Antena 3 Group OPTIMIZATION Javier del Campo
And what else can we do? II. FUTURE PROSPECTS 1. MULTIMEDIA ACTIVITIES 2. PRODUCT OPTIMIZATION 3. NEW APPROACH: FAMILY TARGET 28
...To continue optimizing the product Internal Management of TV Advertising (Back Office) To Sell to the Right Customer the Right Product At the Right Time For the Right Price MAXIMIZING REVENUE 29
... To the right costumer... Different types of Advertisers: They select programs or look for a global audience By negotiation type: GRP Cost, Discount and Special Adv. 30
... Sell the right product... Advertisers target specific audiences Children Tweens PRP S Family Target Adults 31
... Sell the right product... Product Optimization Process 5. Scheduling 4. Campaigns Checking 3. Automatic Optimization 2. Pre loading 1. Negotiation Marketing Operations Operations Operations Operations On air Campaign Module Gener. Adjustment of purchases to planning Legal constrains GRP Final campaign Commitment location Compliance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 32
... At the right time... Great market knowledge Sales Policy Evolution... Quarterly... 1Q 23.2% 2Q 26.6% 3Q 22.2% 4Q 28.0% Source: Year 2003 Infoadex 33
... At the right time... Great market knowledge Sales Policy Evolution... Quartely... 1Q 23.2% 2Q 26.6% 7,7% 7,4% 8,1% 8,6% 8,9% 9,1% 8,2% 3Q 22.2% 6,6% 7,4% 4Q 28.0% 9,3% 9,2% 9,5% Source: Year 2003 Infoadex January February March April May June July August Sept. Oct. Nov. Dec. 34
... At the right time... Great market knowledge Sales Policy Evolution... Weekly... 1Q 23.2% 2Q 26.6% 7,7% 7,4% 8,1% 8,6% 8,9% 9,1% 8,2% 3Q 22.2% 6,6% 7,4% 4Q 28.0% 9,3% 9,2% 9,5% Source : Year 2003 Infoadex January February March April May June July August Sept. Oct. Nov. Dec. 35
... For the right price...... For the next future: To know the advertising value of each hour of the programming grid Stock Management Techniques (overbooking,...)...analyze a new focus Family Target 36
And what else can we do? II. FUTURE PROSPECTS 1. MULTIMEDIA ACTIVITIES 2. PRODUCT OPTIMIZATION 3. NEW APPROACH: FAMILY TARGET 37
A new approach A new approach...beyond the individual A new approach...beyond the individual Children Parents Household/Family In the context of many products, purchase decisions are shared...since many products are not for oneself Children have a great decision making influence (and not only for products) Consumption depends on: life cycle home size 38
A new approach Individuals aged under 55 At a given life cycle: Couples with small children Couples with teenage children Couples with adult children In large homes with 3 or more individuals With a more group oriented TV consumption FAMILY TARGET With presence of children at home IND. aged under 55, IN IN HOMES WITH 3 OR MORE INDIVIDUALS (59% Pop.: 24,145,000) 39
A new approach Homes with more than 3 individuals concentrate 71.5% of expenditure Expenditure ratio per household + % expenditure per household 6 148,5 4,7% No. of individuals per household 5 4 3 102,4 123,5 141,8 12,6% 30,1% 24,1% 71,5% 2 1 52,3 80,6 21,5% 7,0% 28,5% SOURCE: INE: Family Budget Survey 40
A new approach Why introducing the Family Target? 1. The consumption is above average Great consumption volume due to their life cycle Great consumption due to home size 2. The Tweens role (Ind. aged 7 15) Great decision taking power Great consumption of novelties and launches. Children update their parents consumption pattern Big influence of advertising among tweens and synergies through joint viewing 41
A new approach Why Antena3 It s the channel that most efficiently converts into the Family target: leader in the June October 04 42
A new approach Antena 3: leader in audience and pursuing the Family Target Family Target Share (Ind. 55 Homes of 3 and+) vs. Adults ADULTS FAMILY TARGET 20,6 22,8 22,9 23,1 21,3 17,5 17,2 16,3 15% =% +9% 5% T V E 1 T 5 A 3 A U T O June 27 October 04 SOURCE: TNS PyB.10.00 26.00 43
A new approach Why Antena3 Channel that best pursues its audience according to the Family target: leader in the June October 04 It is the channel that better impact on tweens (Indv. Aged 7 15) 44
A new approach Antena 3 leads among Tweens Monthly Tweens Share (Ind.7 15 ) 28 26 24 22 20 18 16 14 12 %Share 24,5 26,0 25,8 24,9 25,0 24,3 24,1 23,8 21,4 20,4 19,8 19,5 19,8 18,9 19,0 19,5 17,7 19,2 18,7 16,7 17,5 16,6 17,1 16,5 17,1 17 17 17,7 16,6 16,3 16 13,8 25,6 25,6 21,5 20,0 15,3 15,1 14 15 10 JAN FEB MAR APR MAY JUN JUL AUG SEPT 1 27 OCT January 27 October SOURCE: TNS PyB. 45
A new approach Why Antena3 It s the channel that most efficeiently converts into the Family target: leader in the June October period It s the channel that reaches tweens (7 15) best It s the channel with the highest level of group consumption 46
A new approach Group consumption (3 and more individuals) Group consumption: 1% below average Group consumption: 2% below average Group consumption: 9% above average 23,1 24,0 21,3 ADULTS FAMILY TARGET 3+ FAMILY TARGET 5+ June 27 October 04 SOURCE: TNS PyB.10.00 26.00 47
... in summary Using our structure...... Using yield management thenics...developing Multimedia Products 12,8% 20,4% Power Ratio 1.60 In an efficient way 20,5% 26,9% Power Ratio 1.31 January Sept. 04 January Sept. 04 % Aud. share % Inv. share % Aud. share % Inv. share 48