TV media as a growth driver for B2C

internet companies in EuropeAndreas Otto, SevenVentures GmbH

IDCEE, Kiev October 9 - 10

2

Agenda

Market trends

4

Strong increase in parallel usageParallel usage

• TV creates reach,

community and

emotions

• Screens are with 59%

still dominant in media

usage

TV still is the lead

medium

0

50

100

150

200

250

2004 2006 2008 2010 2011 2012 2013

+0% in 2013TV

Online

Print

205 min.

115 min.

28 min.

Average daily media usage in Germany

in minutes, 14-49 years

Se

ve

nO

ne

Me

dia

/min

dlin

e2

01

3

+20% in 2013

+0% in 2013

5

TV behavior influenced:

2nd/3rd screen capturing

leads to parallel usage

• Interacting with friends and

gathering of information

• 79% of 14 to 49-year-olds

actively using computer or

mobile devices whilst

watching TV

Se

ve

nO

ne

Me

dia

/Na

vig

ato

r: “

Me

die

nn

utz

un

g2

01

2”

6

• OTT market is changing: shift from PC

to Mobile and Smart TV

• High growth of internet enabled TV

devices (~20m by 2016 with +29%

CAGR 2011-16)

• By 2016, > 50 % of all German TV

households will use TV and internet

content on their TV screen

• Various provider fighting for portal

ownership on TV set

• Multiplatform distribution and user

experience becoming key for traditional

broadcasters

* Via STB/receiver, games consoles, Blu-Ray-PlayerSource: Goldmedia, BLM

0,4 1,12,5

5,2

9,6

13,4

5,26,4

7,6

8,9

8,2

6,7

2011 2012 2013 2014 2015 2016

14.6

5.6

5.4

HHs with internet enabled HbbTV devices

HHs with other internet enabled TV devices*

7.5

10.1

14.1

17.8

20.1

Internet enabled TV devices

in m

+29%

CAGR 2011-16

Smart TV – over 20m German households will have an internet enabled TV device by 2016

Multiplatform exploration

becomes key in the changing

media environment

• 20m Internet enabled TV

devices in GER by 2015

• Thereof about 25%

habitually using Internet

on TV

• eCommerce supported

by multi-platform media

Info

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1 G

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7

P7S1 Group –

the leading TV player in GER

Agenda

8

Market Share

6 Free TV Stations

+3 pay TV channels

Monthly Online

video views

TV Households

in GSA

P7S1 Group

SevenVentures is part of ProSiebenSat.1 Media AG

Unique User

9

ProSiebenSat.1 footprint in German-speaking Central Europe

Austria

Switzerland

Germany

launched in 1984

launched in 1988

launched in 1992

launched in 2010

launched in 2013

launched in 2013

12

Agenda

SevenVentures

13

SevenVentures pursues two aims in co-operations

Venture Growth Strategic investments

21

• Co-operations with limited time

horizon(2-3 years)

• Media investment for

performance-related

remuneration

• ‘Path to majority’

• Fit within clusters, e.g. Travel

• Media and cash investment

• Operational involvement

Low risk investment approach through predominantly media investments and selected

cash investments for larger bolt-on acquisitions

15

TV advertising has three main campaign effects based on a unique

consumer reach and branding power

Direct response Brand building Market creation

• Massive customer reach

through TV

• Fast creation of brand

awareness

• Sustainable brand

establishment

• Creation and fast

development of new and

untapped online segments

at preferred TV costs

• TV is the most suitable

communication medium to

create product awareness

• TV spots show direct

increase of traffic and sales

• Fly-in banner with

dedicated landing page

1 2 3

… and TV has a positive effect on all further marketing-channels

16

• More direct traffic

• More brand searches

• Improved conversion rates, sales & basket values (over time)

• Sustained higher traffic-levels, even post-campaign

• High SEM efficiency: increased search volume, increased quality score,

increased click-through-rate

• Improved SEO: increased direct traffic share/ virality

• Improved other performance channels, i.e. affiliate, display etc.

• Very good conversion rates from TV to mobile (minor ‘Medienbruch’): up to

40% of mobile traffic generated through TV campaigns importance to have

a good mobile offering! (beside the online presence)

• TV identified as ‘App-Booster’: generation of new downloads, push into app

store charts and re-activation of inactive users

Direct impact

Performance marketing

Mobile traffic &

app downloads

TV has a positive effect on the other marketing channels TV MediaVisits

Conversion

Rates

Branding

Customer

Re-activation

Customer

Loyalty

SEO

Revenue

SEM

17

moebel.de

Media push generated

more traffic of better

quality vs. regular search

engine traffic (pre-flight vs.

flight):

• ‘Best-in-class’ CPV

• Clickouts TV-traffic:

36% higher than non-

TV-traffic

• Avg. bounce rate

(overall):

-15%

• Avg. PIs per visit

(overall): +34%JanNovSepJulMayMar

Nu

mb

er

of

vis

its

2013/14 with TV

2012/13 without TV

JanNovSepMar JulMay

Cli

ck

-ou

ts

2013/14 with TV

2012/13 without TV

1 Example moebel.de: significant performance improvement due to

TV-push

TV start in

Aug 2013

TV start in

Aug 2013

18

…for successful exitTV facilitated the build up…

• Tirendo founded in 2012 with strong

backing of 7V from the very beginning

• Strong media push via P7S1 with

Sebastian Vettel as endorser

• Double-digit million revenue

already in 2nd operating year

• Acquisition of Tirendo by biggest &

well-established only-online-player

with EUR 500m revenues per year,

active in 42 countries and 6 million

members

• Exit within 12 months

• EUR 50m trade sale

Example Tirendo: realization of fast successful exit to strategic

partner2

19

Zalando

Extensive media push created clear

European market leader in online

shoes / fashion

▪ Sales of EUR 1,8bn in 2013 (increase

of 50% vs. 2012)

▪ 95% brand awareness

▪ Online audience increase of 40%

from Sep 2011 to Sep 2013 (5,2m vs.

7,3m unique visitors)

▪ GMV of up to EUR 100m p.a.

01/2006 07/2012

Schuhe onlineZalando

Source: Zalando, Google Insights, Press releases

Launch TV

campaign

Decreasing category

importance, search

for Zalando only

Search for

category

and Zalando

No organic

search for

'shoes online'

Example Zalando: became Europe's No.1 online shoe retailer

and clear market leader through extensive media push3

20

Agenda

Pan-European Media Alliance

21

Investment StoryPan-European Alliance

Pan-European media alliance – Making European market entry easier

Internationalize M4E/R model

across Europe

We are #1 media investor in Germany with a high

degree of operational excellence

International ventures ask for market entries

covering Europe and not Germany standalone

Developed network to make European market entry

simpler

✔

221. Statistics of 2013 2. Signature run

Broadcaster Country Description

TF1

MTG

Dogan

TVN2

• Revenue: 2.5B €1

• Market Share: 29% share of voice • Business lines: TV broadcasting, e-TF1 (digital),

production & enterprises

• Revenue: 0.4bn €1

• Market Share: 33% share of voice (w/o 3rd party channels)• Business lines: TV broadcasting,

online VOD & pay-TV

• Revenue: 1B €1

• Market Share: 19,5% TV ad market share • Business lines: TV broadcasting, digital &

services, Int’l, OTT & radio

• Revenue: 1.52B €1

• Market Share: 35% share of voice • Business lines: TV broadcasting, radio, content

production & MTGx (digital)

Agreements in place with four leading TV networks in Europe

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>750

>100

>250

>150

>250

Thank you!

Q&A.Andreas Otto

Director

SevenVentures GmbH

Medienallee 4

D-85774 Unterföhring

Tel. +49 (0) 89/9507-8680

www.sevenventures.de

andreas.otto@sevenventures.de