ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — Investor Day (December 2017)
42 slides from ProSiebenSat.1 Media's investor day presentation, Dec 6, 2017
Slide 1: Media Trends & TV ROIs
Capital Markets Day – December 6, 2017 ROUNDTABLE PRESENTATIONS MEDIA TRENDS & TV ROIS Sabine Eckhardt, Guido Modenbach
Slide 2: Consumers are always on
CONSUMERS ARE ALWAYS ON … CONSUMERS Multi-media consumption ANY TIME (e.g., TV, tablet, mobile, virtual EVERYWHERE reality, voice recognition) New platforms & media channels e.g., 24 new small TV channels1) +40% products launched2) ON ALL MEDIA +25% products advertised3) INDIVIDUALIZED 13,
Slide 3: Driving need for superior ad effectiveness
… DRIVING NEED FOR SUPERIOR AD EFFECTIVENESS ADVERTISER NEEDS INNOVATIVE EVERYWHERE DIFFERENTIATING ADVERTISING ANY TIME CONTEXTUAL CAMPAIGNS EFFICIENT MASS REACH CAMPAIGNS BRAND SAFE & HIGH QUALITY AD ENVIRONMENTS ON ALL MEDIA TARGETING FOR INCREMENTAL REACH INDIVIDUALIZED SUPERIOR AD EFFECTIVENESS
Slide 4: Ad effectiveness is a triple play
AD EFFECTIVENESS IS A TRIPLE PLAY 01 Creation 02 Media AD EFFECTIVENESS NEW 03 Data 5
Slide 5: Creation is key for ad customers
1 CREATION IS KEY FOR AD CUSTOMERS 49 Creation explains … Creative content concepts – individualized for the ad customer’s needs % A Individualized ads B 360° campaigns C Content Marketing & Branded D New ad product … of Sales impact Innovations Entertainment Source: CBS/Nielsen Catalina Solutions,
Slide 6: A seamless integration of 30 sec spot into content
1 A SEAMLESS INTEGRATION OF 30 sec SPOT INTO CONTENT 30 sec SINGLE SPLIT CONTENT Ad break where ad client’s CONTENT Actor of comedy TV series product is explained on Content continues after 30 goes to white board to white board with famous sec ad break without explain scientific matter speaking voic
Slide 7: 360° campaign combining creativity with reach
1 B 360° CAMPAIGN COMBINING CREATIVITY WITH REACH TV On the ground & Placements Program sponsoring Photo campaign Editorial Opel Lounge sweepstake Placement Product placement Online, Mobile & Social Virtual Reality Online sponsoring 360° Landing page music video Mobile posts So
Slide 8: Integrated creative content marketing concept
1 C INTEGRATED CREATIVE CONTENT MARKETING CONCEPT … TV-advertorial example: musician raps 2x higher ad recall summary vs. average campaigns of last show +51% more young viewers vs. average TV audience 2.5m VV + 11.4m contacts on Social Media CREATIVE 360° MEDIA CONCEPT FOR ALDI’S FIRST TV IMAGE CAMP
Slide 9: Attractive content-driven formats
1 C … AND ATTRACTIVE CONTENT-DRIVEN FORMATS CLASSIC BRANDED ENTERTAINMENT FORMATS NEW MARKET-ORIENTED FORMAT The Stylight “StyleLoft“ addresses new 7NXT “Fitness Diaries” Influencer competing vs. photographer to fashion and lifestyle trends reports from the exciting life of German find “Perfect Fash
Slide 10: New innovative ad products on air and in pipe
1 D NEW INNOVATIVE AD PRODUCTS ON AIR AND IN PIPE COMING SOON BOOKABLE IN EXTENSION PHASE AUTOMIZED CONTEXTUAL AD 6 SEC TV BOOSTER ADS TV LIVE COMMERCIAL REACH BOOSTER Program 6sec Reg Ad Program spot Break REMINDER PUSH 6sec Reg 6sec Reg 6sec Reg spot Ad spot Ad spot Ad Situative Cut-in matching
Slide 11: Ad sales highlights 2017 driven by creation
1 AD SALES HIGHLIGHTS 2017 DRIVEN BY CREATION +26% MORE BRANDED ENTERTAINMENT FORMATS SOLD 23% OF CONTENT MARKETING REVENUES FROM PRINT BUDGETS 33% OF NEW BUSINESS CUSTOMERS ALSO BOOKED ADFACTORY PRODUCTS 60% OF TOP ADVERTISERS MAINTAINED OR INCREASED SPECIAL AD SHARE 43x REWARDED FOR TOP-NODGE CREA
Slide 12: Uniqueness is our full value chain offering
1 UNIQUENESS IS OUR FULL VALUE CHAIN OFFERING PRODUCE DISTRIBUTION CONTENT Fully owned PLATFORMS & PRODUCTS Monetization along all steps STRATEGY & INSIGHTS In-house production and CONCEPTION PROJECT MGMT & CREATION & REPORTING creative competence 13
Slide 13: Ad effectiveness is a triple play
AD EFFECTIVENESS IS A TRIPLE PLAY 01 Creation 02 Media AD EFFECTIVENESS NEW 03 Data 14
Slide 14: Media increasingly driving sales impact
2 MEDIA INCREASINGLY DRIVING SALES IMPACT FOR ADVERTISERS Media explains … 36% x2.4 15% 2007 today … of sales impact Source: CBS/Nielsen Catalina Solutions, June 2017 (incl. evaluation of hundreds of marketing mix models) 15
Slide 15: We have powerful multi-media reach
2 WE HAVE POWERFUL MULTI-MEDIA REACH 26.7% TV MARKET SHARE 9M 2017, A 14-491) DIGITAL ONLINE MOBILE ADDRESSABLE TV SOCIAL MEDIA OUT OF HOME PLATFORMS2) PLATFORMS ~446m ~282m ~302m ~90m >190m contacts/month contacts/month VV/month VV/month contacts/month 1) Base: All German TV households (German-spea
Slide 16: TV is the superior media
2 TV IS THE SUPERIOR MEDIA VIDEO USAGE ON TV 7.5x HIGHER THAN ALL OTHER VIDEO MEDIA COMBINED Usage time in minutes, A 14-69 TV ~ FREE ONLINE 17 min VIDEO PAYVOD 9 min .5 DVD/BLUE-RAY 5 min 228 min 31 min Usage at least rarely, rolling last 4 quarters, TV includes conventional and alternative TV usag
Slide 17: Reach of digital ad leaders struggling
2 REACH OF DIGITAL AD LEADERS STRUGGLING Limited and even declining Heavy usage dilemma reach in younger audience Facebook reach1) development by age groups 11% [in %] 100 77 80 69 72 73 -43% 66 65 of YouTube’s users 63 61 59 60 54 56 generate 60 61 61 58 57 56 56 52 54 40 45 44 21 22 21 17 18 19 19
Slide 18: YouTube: 43% of usage is not ad relevant
2 YOUTUBE: 43% OF USAGE IS NOT AD RELEVANT CONTENT A 14-69 Youtube usage by genre [in %]1) 43% of usage not ad relevant1) 11 6 26 Private videos Others Music videos 53% of YouTube usage 23 News/documentaries/sport is still on PC and laptop1) Series/movies/TV shows 20 YouTube stars 14 … thereof 45% b
Slide 19: Facebook video impressions are short
2 FACEBOOK VIDEO IMPRESSIONS ARE SHORT … 100 Viewing time of Facebook impressions [in %] 77% drop out rate… …after 3 seconds 23 15 10 7 3 Impression 3 sec 5 sec 10 sec 15 sec 20 sec Note: 5 Facebook-Video-Campaigns 2017, spot length of 20 seconds 20 Source: SevenOne Media
Slide 20: Driving digital CPTs in astronomous heights
2 … DRIVING DIGITAL CPTs IN ASTRONOMOUS HEIGHTS CPT A 14-39 for Facebook impressions [in EUR] 33sec sec to 88 20 20sec= sec = 8x 9x price increase 35 24 16 11 3 sec 5 sec 10 sec 15 sec 20 sec Note: 5 Facebook-Video-Campaigns 2017, spot length of 20 seconds 21 Source: SevenOne Media
Slide 21: And all this without audio
2 AND ALL THIS WITHOUT AUDIO Share of viewers [in %] ALL FACEBOOK VIDEO VIEWS >3 sec only 1% of all Facebook views with sound Note: 5 Facebook-Video-Campaigns 2017, spot length of 20 seconds 22 Source: SevenOne Media
Slide 22: Digital ad spend effect on consumer is limited
2 DIGITAL AD SPEND EFFECT ON CONSUMER IS LIMITED Less than 15% of total ad spend … Digital Ad spend [in %] 5 15 Assumptions 10 ~ 40% ~ 20% viewability ad fraud 25 100 5 24 3 13 Client ad Agency Trading Demand Side Data Exchange Viewability Ad Fraud Working investment Desk Platform Targeting & Media
Slide 23: Digital advertising with more weaknesses
2 DIGITAL ADVERTISING WITH MORE WEAKNESSES Viewability 39% of digital video advertising not viewable1) Ad Fraud Fraud losses amount to 22% of desktop video ad spending2) ~11% of digital video advertising in environments with risks to Brand safety brands1) Autoplay More than one third of digital vide
Slide 24: Digital engagement is very doubtful
2 IN FACT: DIGITAL ENGAGEMENT IS VERY DOUBTFUL Origin of Advocate Less than 1% Other Silent active multiplicators 11% Multiplicators 47% Employee 42% Customers Brand Unrelated Advocates Nursing Cases Critics Ø 0.08% Ø 0.49% Ø 0.18% Ø 0.03% Ø 0.03% Ø 0.8% Engaged Follower/Engaged Subscribers Ø 5% Act
Slide 25: Millennials reached effectively in TV
2 BUT MILLENNIALS REACHED EFFECTIVELY IN TV … Life stages defines TV 2/3 OF VIDEO USAGE IS LINEAR TV1) and online video usage2) Share of complete video usage [per day] [Minutes per day], A 14-34, by life stages TV 200 179 conventional + 160 alternative Millennials 126 4% TV A 14-34 = 67% 120 101 TV
Slide 26: And growing elderly target groups even better
2 … AND GROWING ELDERLY TARGET GROUPS EVEN BETTER Higher daily Increasing relevance TV usage for advertisers Daily TV consumption1) Share of German Population 50+ years2) [Germany; Q3 2017 rolling last 4 quarters; 50+ years] 2016 2030 +142 min A50+ vs. A14-49 44% 48% Available income after fix costs
Slide 27: Power of TV verified by a unique test design
2 POWER OF TV VERIFIED BY A UNIQUE TEST DESIGN TEST DESIGN: REGIONALLY CONTROLLED A/B TEST Regionally controlled A/B test under real-life conditions with two brands Brand 1: sleeping beauty (cold coffee drink brand), not Control area without ads advertised for a significant period but well distr
Slide 28: TV is the most effective driver for brand building and sales
2 TV IS THE MOST EFFECTIVE DRIVER FOR BRAND BUILDING AND SALES AWARENESS EFFECTS (sleeping beauty) SALES EFFECTS (sleeping beauty) SALES EFFECTS (launch product) Online TV Online TV Online TV advertising advertising advertising advertising advertising advertising Top of mind awareness +21% +67% +11%
Slide 29: Even Google, Facebook and Amazon value TV
2 EVEN GOOGLE, FACEBOOK AND AMAZON VALUE TV … TV Ad spend 2016 of total media [gross, in %] 2016 2016 2016 Country AVG 75 49 48 Google 85 30 62 Facebook 76 55 40 Amazon 78 52 71 DIGITAL ADVERTISING LEADERS WITH SIGNIFICANT TV AD SPEND ABOVE COUNTRY AVERAGES Source: Nielsen & Nielsen Global 2016 30
Slide 30: Using TV to sell their own products
2 … USING TV TO SELL THEIR OWN PRODUCTS Major launch of TV campaign TV campaign for Amazon Prime Facebook explains for Google Phone1) incl. fire TV stick and Alexa voice its own product on TV3) recognition2) 1) https://www.youtube.com/watch?v=hi_mOlI0iZU 2) https://www.youtube.com/watch?v=hDHV5FCoch
Slide 31: Ad effectiveness is a triple play
AD EFFECTIVENESS IS A TRIPLE PLAY 01 Creation 02 Media EFFECTIVENESS NEW 03 Data 32
Slide 32: Data increases efficiency of TV advertising
3 DATA INCREASES EFFICIENCY OF TV ADVERTISING NEW TARGETING POSSIBILITIES VIA ADDRESSABLE TV TARGETING CRITERIA DATA TYPES AVAILABILITY OPTIONS AGF/ Audience- e.g., age, gender GFK Since 2015 targeting Panel based Geo- e.g., states, Since 2016 targeting cities, weather Detailed in the following IP b
Slide 33: Geo: relevance push via local weather integration
3 GEO: RELEVANCE PUSH VIA LOCAL WEATHER INTEGRATION Targeting by weather or temperature Applicable for weather-related occasions such as cinema, cold & flu, running, BBQ, tire change Sunny – cloudy weather Foggy, rainy weather Source: SevenOne Media 34
Slide 34: Behavioral: different TV ads in line with household needs
3 BEHAVIORAL: DIFFERENT TV ADS IN LINE WITH HOUSEHOLD NEEDS Single Household Generation 50+ Household Dating service ad with Ad for relevant fashion brand with Call-to-Action Call-to-Action Source: SevenOne Media 35
Slide 35: Behavioral targeting segments to access untapped budgets
3 BEHAVIORAL TARGETING SEGMENTS TO ACCESS UNTAPPED BUDGETS Bookable since Sep. 2017 Family +58% Print with kids uplift within target group budgets HHNI +40% Budgets of above uplift within Luxury brands EUR 3,000 target group Budgets for Generation 50+ +39% public channels uplift within households ta
Slide 36: TV market expansion with addressable TV
3 TV MARKET EXPANSION WITH ADDRESSABLE TV EXISTING BUSINESS NEW BUSINESS I II Ad clients’ niche & secondary brands Providing III Medium-sized and incremental reach decentral business IV Local & small business 11.5m DEVICES REACHABLE 446m CONTACTS/MONTHS Source: SevenOne Media 37
Slide 37: 3-fold data strategy
3 3-FOLD DATA STRATEGY FOR AUDIENCE-DRIVEN CAMPAIGNS COMPREHENSIVE INTELLIGENT DATA STRATEGIC OWN DATA PROFILES COOPERATIONS LOG-IN ALLIANCE Online 20m+1) Data Mobile 40m+1) Data Addressable TV Data 10m+1) 1) Based on unique cookies active per month 38 Source: P7S1
Slide 38: Data co-ops to derive and reach special target groups
3 DATA CO-OPS TO DERIVE AND REACH SPECIAL TARGET GROUPS … DATA CO-OP PARTNERS DEFINED TARGET GROUPS EXAMPLE CAMPAIGNS e.g., Payment Plus-Sizes Luxury Lover Fashion Shoppers P7S1 data e.g., Smart shopper Consumer Campaigns planned Electronics for 2018 Telecommunications 39
Slide 39: Realizing performance uplifts for ad clients and own assets
3 … REALIZING PERFORMANCE UPLIFTS FOR AD CLIENTS AND OWN ASSETS AWARENESS AND SALES CAMPAIGN FOR FASHION CLIENT +92% +233% Purchase Intent Awareness BRAND ENGAGEMENT ZALANDO DATA AS INPUT CAMPAIGN FOR DATA CAMPAIGNS FOR OWN ASSET +141% +130% Purchase Intent Awareness Source: SevenOne Media 40
Slide 40: Ad effectiveness is a triple play
AD EFFECTIVENESS IS A TRIPLE PLAY 01 Creation 02 Media EFFECTIVENESS NEW 03 Data 41
Slide 41: We continue to invest into creation, media & data
1 2 3 WE CONTINUE TO INVEST INTO CREATION, MEDIA & DATA CREATION MEDIA DATA Leverage our unique Expand our TV & Grow our Data and combination of TV, Digital Entertainment AdTech for highly Digital and Creation products competitive products 42
Slide 42: Disclaimer
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 objecti