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Revenue Structure

Advertising in the convergence era - from a publisher‘s point of view Dr. Andreas Wiele, Axel Springer Verlag AG 33 rd FIPP World Magazine Congress, April 25 th , 2001, Rio de Janeiro. Revenue Structure.

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Revenue Structure

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  1. Advertising in the convergence era-from a publisher‘s point of viewDr. Andreas Wiele,Axel Springer Verlag AG 33rd FIPP World Magazine Congress, April 25th, 2001, Rio de Janeiro

  2. Revenue Structure Axel Springer is Germany‘s biggest publishing company with a growing international presence • Total Revenue 2.4 bn US$ • in bn US$ in % • thereof: newspapers 1.3 56 magazines 0.6 26 international 0.4 15 electronic media 0.1 3

  3. Axel Springer is Europe‘s biggest newspaper publisher Newspapers • 5 national newspapers • 7.8 million copies sold per day • 4 regional newspapers • 0.8 million copies sold per day • 8 regional newspapers (partly owned) • several free papers

  4. Axel Springer is the third largest German magazine publisher Magazines • International* • owned (majority) • 77 titles in 8 countries (Poland, Hungary, Spain, France, Switzerland, Czech Republic, Austria, Romania) • Joint Ventures • 2 titles in 2 two countries (France, Portugal) • Licences • 7 titles in 7 two countries (Italy, UK, Holland, Czech Republic, Turkey, Greece, Croatia) • Germany • fully owned • 26 titles • Joint Ventures • 19 titles *incl. International newspaper activities

  5. The German magazines: Strong presence in nearly all markets • TV-Listings • Car • Women • Computer • Business • Sports • Youth

  6. International:Growing presence of international concepts and brands

  7. Advertising in the convergence era(Germany, 2000) • The reality today: 41 dollar in Print for each dollar Online • million US$ Source: Prognos AG, Basle, „Werbemarkt 2010“

  8. However, the internet is a fascinating medium as a: • 1. Marketplace of goods and services: • Brings people together who want to buy and sell • 2. Marketplace of people: • Brings people together who want to communicate or play • 3. Marketplace of information: • Brings people and customized/personalized information together

  9. In these areas the online content and the print content will converge 3 examples from our company • 1. Marketplace of goods and services: • The real estate section of the Berliner Morgenpost • 2. Marketplace of people: • Our youth magazine YAM! - the reader as reporter • 3. Marketplace of information: • The personalized AS Auto Portal

  10. Berliner Morgenpost(www.berliner-morgenpost.de) The real estate section • Real estate section of the online edition is combined with corresponding section of the print edition • ads for the print edition appear automatically in the online edition for one week • additional service justified price increases of significantly over 10% • market share of Berliner Morgenpost was not affected at all by price increases • ads in Print are by far most the important tool to advertise real estate but: search/information functions are used more frequently • classified ads generate significant traffic rates for online edition

  11. YAM!(www.yam.de) The reader as a reporter • Readers can act as a reporter for the magazine • creation of community sense that is built up further through the online edition • readers receive a special ID as a YAM!-Reporter • names of new reporters are published in each issue • reporters receive a fee for each published article • special section in the print edition is dedicated to the YAM!-Reporter stories • online edition also permits interactivity with the YAM!-Reporter and among the reporters (chatting)

  12. AS Auto Portal(www.autobild.de) Personalized information • AS Auto Portal combines editorial competence of Germany‘s leading car magazine AUTO BILD and its derivatives with e-commerce • independent platform offering comprehensive content of the motor world and broad range e-commerce possibilities • new and used cars database: up-to-date information from the distribution networks of all major manufacturers • users can search for car offers according to their personal information requirements • additional information on cars (e.g. independent tests) is supplied from all editions of the AUTO BILD family • additional e-commerce fields (e.g. car rentals, insurances, travelling) • syndication of content and e-commerce models

  13. The convergence of the future:The screen will replace paper as display medium • These new media types will have the look and feel of magazines • and they will offer the full range of interactivity and functionalities of the internet

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