Capital Markets Day – December 6, 2017 ROUNDTABLE PRESENTATIONS
DATA, ADTECH & ADDRESSABLE TV
MARKET POTENTIAL
LARGE ADDITIONAL POTENTIAL FOR ADDRESSABLE TV …
Note: Based on Nielsen data and P7S1 own estimates 44
ATTRACTING DECENTRAL, NICHE, AND PERFORMANCE BUDGETS
ADDRESSABLE
TV
Attracting new budgets
3.1
0.8 1.7
Niche branding Performance- driven Addressable
TV Potential Decentral
[2016, in EUR bn]
P7S1 TV GROWTH POTENTIAL UNTIL 2022
… ON TOP OF LINEAR TV WITHOUT CANNIBALIZATION
DRIVING NEW TV MARKET GROWTH
HOW WE PREVENT CANNIBALIZATION
Focus on
new TV advertisers Focus on
new TV advertising budgets Establish intelligent pricing
model to prevent loss of
WE FORESEE A SIGNIFICANT POTENTIAL PRICING UPSIDE
46
DRIVEN BY GRANULAR ADDRESSABLE TV TARGETING
3x–10x
Expected realizable pricing upside dependent on
granularity of target group
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
FIVE KEY ENABLERS FOR ADDRESSABLE TV
48
AD FORMATS DATA /
TARGETING
PROGRAMMATIC
BOOKING MEASUREMENT
PERFORMANCE MINDSET
1
4 2
3
5
INDEPENDENT ADDRESSABLE TV DUE TO HBBTV
COOPERATIONS AND PARTNERSHIPS AS LEVER FOR ADDITIONAL POTENTIAL
1
AD FORMATS
11.5m
TV DEVICES
ADRESSABLE VIA
HBBTV
ADDITIONAL POTENTIAL
VIA
CO-OPS
FURTHER EXPECTED
HBBTV GROWTH
Addressable TV reach
SWITCH-IN
Partial HbbTV overlay ad on top of TV content in the event of a switch-in to one of our channels
BRANDED RED BUTTON
Partial HbbTV overlay ad on top of an existing linear TV
commercial, e.g., with additional info as regional dealers
FULL SPOT OVERLAY
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
OUR ADDRESSABLE TV AD FORMATS
50
LEVERAGING MAINLY HBBTV TECHNOLOGY
AD FORMATS
1
OUR SWITCHIN FORMAT ATTRACTS NEW ADVERTISERS
ESPECIALLY CUSTOMERS WITH DECENTRAL TARGET GROUPS BOOK ADDRESSABLE TV
AD FORMATS
1
Lotto Bayern (Bavaria)
C&A Bonn
HBBTV PENETRATION
WE ARE WORKING ON OFFERING FULL SPOT OVERLAYS
Source: P7S1 internal estimates 52
SUCCESSFUL TEST WITH HBBTV 1.5
SmartTVs supporting HbbTV in Germany [in %]
We initially aimed to overlay full TV commercials with targeted ads just
with HbbTV 2.0
We are testing a solution to overlay full spots already via HbbTV 1.5, which is more widely distributed
We successfully executed first live tests of that solution with Johnson
& Johnson and MediaMarkt
AD FORMATS
1
HbbTV 1.0 HbbTV 2.0 HbbTV 1.5
Total:
11.5m
45 55
<1
SUCCESSFUL LIVE TESTS OF FULL SPOT OVERLAY
WITH MEDIA MARKET AND JOHNSON & JOHNSON VIA HBBTV 1.5
AD FORMATS
1
WE ARE EXTENDING OUR TV TARGETING CAPABILITIES
54
PLANNING TO OFFER CROSS-DEVICE TARGETING IN 2018
IP-BASED
PREDICTIVE BEHAVIORAL
CROSS-DEVICE TV/DIGITAL
Decentral and weather targeting based on the TV’s IP address
Targeting of attractive target demos (e.g., Singles, Families, 50+, high net income) based on TV viewing behavior
Targeting of households/users based on their digital profiles (e.g., retargeting Verivox visitors with interest on car insurances on TV)
DATA/TARGETING
2
DOOH Beacon HbbTV data
P7S1 digital data Exclusive partnerships
WE COLLECT VERY BROAD & DEEP TARGETING DATA …
COMBINING VALUABLE PROPRIETARY DATA WITH EXCLUSIVE DATA PARTNERS
One data management platform
DATA/TARGETING
2
NEW
PLANNED
… OF WHICH WE BUILD ATTRACTIVE SEGMENTS IN DIGITAL
56
TARGETING OF 20+ PERSONAS AND 115+ INTEREST GROUPS
PERSONAS INTERESTS
Families and Homemakers Luxury & High Value Shoppers
Sport Enthusiast Millenials & Digital Natives
Spirituals, Health-Conscious, Eco & Green Business Partner
Beauty Queens & Kings Trendsetter
Classic Lover Edgy Individualist Smart & Sale Shoppers Party People & Festival Visitors
Tech Lovers & Gamers
Entertainment Nerds
DIY, Handymen & Hobby Gardeners
Art & Design Lovers
Pet Owners & Animal Friends Adventurers & Travelers
20+
Exemplary
Fin/Insurance
• Car Financing
• Gas Change
• Electricity Change
115+
Exemplary
Travel
• Flight
• Hotel
• Winter Sports Telco
• DSL & Landline Change
• Mobile Change Fashion/Beauty
• Shoes
• Clothing
• Perfume Home/Garden
• Relocation
• Furniture
• Kitchens
Automotive
• Middle Class
• SUVs
• Cabrios & Coupés
Tech/Game
• Playstation
• XBOX
• iPhones
Music/Ent
• Rock & Pop
• Comedy & Love
• Horror & Sci-Fi Food/Bev
• Foodie & Gourmet
• Health & Bio
• Beer & Spirits People/Family
• 50+
• Job Starters
• Toddlers
DATA/TARGETING
2
OUR NEW HBBTV NEWS PORTAL AS SOURCE FOR DATA
DATA/TARGETING
2
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
NEW HBBTV RED BUTTON
PORTAL
NEW LOG-IN ALLIANCE EXPANDS REGISTRATION BASE
58
ENABLING AND PROTECTING FUTURE TARGETING PRODUCTS
First partner
One login
angemeldet bleiben
LOG-IN ALLIANCE
Initial reach of 45m users across founding partners New open log-in standard –
open for further partners Enabling essential digital
business models post expected ePrivacy
Regulation
DATA/TARGETING
2
Full spot overlay
OUR VISION: ADDRESSABLE TV BASED ON DIGITAL DATA
EXAMPLE: RETARGETING OF FLACONI VISITORS ON TV
Interest data, e.g.,
Perfume
Cross-device
DATA/TARGETING
2
WE ACQUIRED OUR OWN AD TECH STREET
60
ENABLING BEST-IN-CLASS PROGRAMMATIC ACCESS TO OUR AD PRODUCTS
PROGRAMMATIC BOOKING
3
ADTECH PRODUCT HOUSE
INDEPENDENT, SECURE, INNOVATIVE
BUY-SIDE (DSP) SELL-SIDE (SSP)
AUDIENCE DATA (DMP)
Advertiser Publisher
Exclusive media
& data products Programmatic
access
PROGRAMMATIC BRANDED DATA
PROGRAMMATIC DIGITAL OUT-OF-HOME
PROGRAMMATIC INFLUENCER MARKETING PROGRAMMATIC
ADDRESSABLE TV
WE DRIVE EXCLUSIVE PROGRAMMATIC INNOVATION
EXCLUSIVE PRODUCTS ON ACTIVE AGENT, PLUS NEW PARTICIPATION IN BUZZBIRD
exclusive on
PROGRAMMATIC BOOKING
exclusive on exclusive on
3
EXCLUSIVE MEDIA AND DATA PRODUCTS THAT WE MAKE PROGRAMMATICALLY AVAILABLE
NEW
INVESTMENT INTO BUZZBIRD
Note: Buzzbird transaction signed, closing expected in Dec 2017 62
MAKING INFLUENCER MARKETING SCALABLE, MEASURABLE, AND PLANNABLE
Leading influencer marketing platform
Influencer category Sales/
Platform
Semi-professional influencers (mid-tail) Professional
influencers
Micro influencers (long-tail)
Top influencers
1%
10%
40%
49%
Platform to make influencer marketing scalable, measurable, and plannable Enabling efficient access to mid- and
long-tail influencers
Paving the way for programmatic buying of influencer marketing
PROGRAMMATIC BOOKING
3
/
ADCLEAR PROVIDES ATTRIBUTION TECHNOLOGY
MEASURING TV AD IMPACT WITHIN THE TOTAL CUSTOMER JOURNEY
Video Search
Customer journey tracking & attribution
Linear TV
First attribution solution w/ access
to HbbTV data!
MEASUREMENT
4
MARKETING FUNNEL
ESOME COMPLEMENTS OUR AD SALES PORTFOLIO
Note: esome transaction signed, closing expected in Q1 2018
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
ADDING LOWER-FUNNEL PERFORMANCE CAPABILITIES
Awareness
(CPM)
Interaction
(CPV, CPA)
Transaction
(CPO, CPL)
2018: KPI-driven Addressable TV
NEW
PERFORMANCE MINDSET
5
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
