European Business Press SeminarRome, 21./22. October 2004

& What advertisers expect from media

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What you can expect from this presentation

• Understand the needs and worries of global acting financial service providers

to be able to support agencies & clients with valuable and helpfull information / data

to be able to develop tailormade offers / products that enable clients to implement intelligent communication

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A Global Player

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– A Global Player

• Traditional German insurance company, founded in 1890 in Berlin (now Munich)

• One of the largest insurance companies worldwide

• 70 countries, 167,000 employees, 60 Mill. clients• Business fields: Protection, Provision, Performance

0

20

40

60

80

100

120

Allianz Axa ING AIG Generali BerkshireHathaway

Nippon Life Aviva

Rev

enu

e 20

03 B

ill.

US

$

Sou

rce:

For

tune

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– The Business Fields

Protection Provision Performance

Property & Casualty Insurance

Life & Health Insurance

Asset Management

Banking

Buyout of Dresdner Bank in 2001 = future maintainance as One-stop-financial-service-provider

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Allianz Group Marketing

Strategic Brand Management

MarketingCommunication

Methods &Controlling

Local Operating Entity

CE

NT

RA

LD

E-C

EN

TR

AL

Global Corporate Campaign

Local Corporate Campaign Local Product Campaign

&&

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Allianz Group Marketing & OMD

Strategic Brand Management

MarketingCommunication

Methods &Controlling

Local Operating Entity

CE

NT

RA

LD

E-C

EN

TR

ALLocal Media Agencies

&&

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A Global Player

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The Largest Media Investor in the World

8625

12545

13555

14625

15140

15530

17765

18865

19160

19335OMD

MindShare

Starcom

Carat

ZenithOptimedia

Universal McCann

Mediaedge:cia

MediaCom

Initiative ww

MPG

Billings in $ million

Source: Recma 2004 (2003 billings)

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Truly Global and Highly Ranked in all Regions

Over 80 offices in 55 countries, 4.300 employees, with over $19 billion client billings

#2

#2

#3

#4#2

#3

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Other Local AgencyLocal Image / Product Campaign

Global Media Briefing & Agency Steering

Contact regarding all Int‘l Media IssuesDevelopment of Global Media Strategies

Pan-regional Planning & BuyingInt‘l Media Best PracticesGlobal Media Reporting

Strategic SteeringGlobal BriefingGlobal Media

Guidelines

Client HQ

ClientLocal Operation

Local OMDGlobal Corp. Campaign

Global Understanding & Local Expertise

Adjustment / Approval

OMD InternationalConsultancy & Co-ordination

Strategic Marketing /

MediaGuidelines

ReportingLocal

Marketing /Media

Learning

Local Media Planning /

Buying / HandlingReporting

Local Media Learning

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Key Challenges facing Global Brands

• Transparency & consistent quality standards of local media business

• Strategic steering of local media business in line with global objectives

• Cross-fertilisation & know-how transfer across markets to fully exploit synergy potentials

• Exploit saving potential on all levels locally, regionally & globally

Maximise efficiency & effectiveness

of global media investment

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How does OMD meet these Challenges ?

Media- and marketing data for own and competitive brands

Media plans: plannedvs. actual

Media- and market developments

Navigation through media landscapes

Strategy & Evaluation

Effectiveness

• Global Strategies

• Cross-border Media and Market Analyses

• Local Market Steering & Media Guidelines

• Central Planning & Buying of pan-regional Campaigns

• Media training &Int’l Best Practices

Reporting

Transparency

• OMD Atlas

• OMD FlightPlan

• OMD Post Buy Reviews

• Media- and marketdevelopments

• Client-customised web-based CWA’s

Projection

Accuracy

• Econom. modellingof media & marketingvariables

• Budget allocation models

• Media Observer/Market Response Finder(effective reach/frequency)

• Int’l research projects

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• Creativity in media strategy will become more important

• Understanding the consumer in new, more meaningful ways will be a principle challenge of the future

• Consumer research will be the key driver of media value

• Measuring the delivery of media will be less important than measuring the effect it causes

• Planning will be the key driver of media value

What our client research has shown

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Strategic Communication Planning is an Essential Factor for Success

4. Capitalize…

…the communication activities

Negotiation/Buying • Accountability/ Measurement

3. Create… …the communication

plan

Tactical Media Plan • Media Channel

Selection

1. Understand… …brand business needs and influencing factors

Marketing • Target Groups • Influency of Categories /

Competition

2. Design…

…. the communication strategy

“The Big Idea”

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Key-Issues ofFinancial Service Providers

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Marketplace Dynamics

9/11

Terrorism

StagnatingStock situation

Oil Markets

Demographic issues

“Age Pyramid”

FEAREXCESSIVE DEMANDS

UNCERTAINTY

Yukos Affair

US Election

China

SARS

AIDS

Unemployment

CEEMA

Emerging markets

Deregulation

Concentration

Basel IIMannheimer

Enron

European Union

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Chances & Risks

-

- High expenditures for damage regulation (Terrorism, Catastro- phees) Increasing premiums

- Downswing of stockmarket + low interest rates for capital + shrinking hidden assets Cut of profit participation

Concentration

+

- Increasing importance of pension and private healthcare

- Weak insurance penetration + liberalisation of high potential markets CEEMA and Asia

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Market Insights Finance & InsuranceI don‘t beliefe in the

stock market

I want a sound, riskfree investment

I distrust financial advisors

The state is taking a back seat

The pension system is about to

collapse

I know I have to care for provision but I feel totally swamped with the ways and options

I distrust insurancesSource: Spiegel Debit & Credit 6

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Key Issues

• Individual economic situations / issues per country or region ...

• ... with impact on financial / insurance – markets

• Insurance markets with chances and risks; high potentials = CEEMA + Asia

• Target Group needs education but shows clear provisos

Client and agency must understand each market

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HOW EBP could help us

• Implement a summarised Market Profile „Insurance Market Europe“

• Content: – Compare the european Market with US and Asia– Which are the key countries ?– Who are the key brands ?– What are the key issues and concerns per country ?– How do consumers differentiate ?– Overview of the adspends of the branch

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UnderstandThe Target Group

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Business Owners small/medium

local comp.

CEO/CFO‘s(large internat.

comp.)

Rating Agencies

Analyst, Portfolio M.,Fin. Journalist

Broker/Intermediaries

End Consumer

The Target Group Challenge

xxx Bill. People

4 continents

Different cultures

Individual needs and worries

Understanding is a challenge !

70 countries

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Where to get these information from

No surveys, just common senseResearch extremely difficult

Information source: Pan-regional media (special surveys)

Numberous local media & market surveysNo real comparability across countries

Local media & market surveys (Decision Makers)Pan-regional studies (EBRS)

No surveys, basics from trade press

Business Owners small/medium

local comp.

CEO/CFO‘s(large internat.

comp.)

Rating Agencies

Analyst, Portfolio M.,Fin. Journalist

Broker/Intermediaries

End Consumer

70 countries

Glo

bal L

eve

lL

oca

l Lev

el

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A Lack of Information

• No data available for top target groups• No consistancy of local data => no comparability

across countries• Quantitative data: Available• Qualitative insights: Rather not available !

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HOW EBP could help us

• Initiate a pan-european „in-depth“ qualitative target group survey

– Guarantee compatibility across countries– X-ray all needs, concerns and attitudes of the

consumer towards a special field

• An example: Debit & Credit (Der Spiegel)

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Debit & Credit: A Quality Survey

• Universe: Adults 14 years + in Germany = 64.72 Mill. (10,000 interviews)

• Detailed analysis of the FSP-Market: – Brand awareness, preference, ownership – attitudes towards investments and finance– Decisions, experiences, demands, prospects.

• Banking, Credit cards, Insurances, Asset Management, Investment consultants

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UnderstandThe Task

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Communication of FSPs

• Reliability• Performance• Customer Focus

• Reach the target group• Educate• Implement communi- cation objectives

• Efficient & Effective

Objective Media Requirements

International Business Press

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Trustworthyness is Your Asset !

• OMD research amongst decision makers (Businessmen, Financial Journalists, VIPs from the german economy)

• Key question: Which medium do you prefer in terms of reliability ?

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OMD Research Results

• Decision Makers trust in print media• The Business Press, esp. Newspapers have a very

good reputation, stand for high quality and in-depth information

• However, quality is decreasing. Wrong facts are being realised !

• TV News-channels are favoured according to fast access to information = advantage !

• The www is highly appreciated in terms of real-time-access to information, but trustworthyness of the medium is called into question = challange !

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Requirements to the Int‘l Business Press

• Ensure Trustworthyness – Support high quality journalism– Fight for the freedom of press

• Maintain your Brands & Products– Updates & Re-Launches– Adopt trends early / set trends– Follow new technologies

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Requirements to the Int‘l Business Press

• Be creative and develop client individual solutions...– ... because this is the future of advertising– ... but make sure that all activities serve

advertisers AND readers => guarantee reliability !

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Reliable Advertising ?

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HOW EBP could help us

• Initiate a pan-european survey asking for the image of local media channels and vehicles

• An example: Media Brand Values– Released on October 15th 2004– Universe: Senior executives, leaders & influentials in

9 european countries– Surveyed 13 attributes towards media (i.e.

trustworthyness, impartial, unbiased); pan-regional media per title/channel versus local media (as category only).

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0102030405060

Is impartial and unbiased

Is a must read

Helps me in my workTrustworthy

I read when travelling

Intl Daily

Nat Daily

MBV: Advantages for Pan-regional Media

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• Each category delivers values that cannot be replaced by the other

Local versus Pan-Regional Media

Local Print Media Pan-regional Print Media

• Approachable / familiar• Competence in terms of national concerns (politics, economy, etc.)• High coverage within high endconsumer target group• Local language

Best supports the objective „customer focus“

• Reaching frequent travellers / people involved in international business• Global perspective (partly US-driven)• Efficient (CpM) within upscale target groups

Demonstrates global presence and importance

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HOW EBP could help us

• „Advantage“ of pan-regional media: Comparability across countries => convinient planning

• Challange for media agency to know and assess the local media landscape

• EBP: – Deliver qualitative information for each title to make

business titles comparable across countries (standardised readership- and content analysis)

– Provide a platform for cross-border-deals

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What Advertisers Expect from Media

• Summary– Help clients & agencies to understand markets

and target groups– Deliver qualitative in-depth insights– Make information comparable across countries– Maintain and develope your brands & products– Initiate new, creative ways of advertisement under

consideration of the importance of reliability– Allow for cross-border-deals

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Thank You