Advertising in the convergence era-from a publisher‘s point of view

Dr. Andreas Wiele,Axel Springer Verlag AG

33rd FIPP World Magazine Congress,

April 25th, 2001, Rio de Janeiro

Revenue Structure

Total Revenue 2.4 bn US$

in bn US$ in % thereof: newspapers 1.3 56

magazines 0.6 26international 0.4 15electronic media 0.1 3

Axel Springer is Germany‘s biggest publishing company with a growing

international presence

Newspapers 5 national newspapers 7.8 million copies sold per day

Axel Springer is Europe‘s biggest newspaper publisher

4 regional newspapers 0.8 million copies sold per day 8 regional newspapers

(partly owned) several free papers

Axel Springer is the third largest German magazine publisher

Magazines Germany

fully owned 26 titles

Joint Ventures 19 titles

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)

*incl. International newspaper activities

The German magazines: Strong presence in nearly all markets

TV-Listings Car Women Computer Business Sports Youth

International:Growing presence of international concepts

and brands

Countries Car ComputerWomen

(weekly)Women

(monthly) Youth TV-ListingGermany AUTO BILD COMPUTER BILD BILD DER FRAU YAM HÖRZU

COMPUTER BILD SPIELE MÄDCHEN BILDWOCHEPOPCORN

Poland AUTO SWIAT KOMPUTER SWIAT PANI DOMU OLIVIA POPCORNKOMPUTER SWIAT GRY DZIEWCZYNA

Spain COMPUTER HOYRomania OLIVIAFrance AUTO PLUS TELE MAGAZINEPortugal AUTO FOCOUK AUTO EXPRESSItaly AUTO OGGIHolland AUTO WEEKCzech Republic AUTO TIP POPCORN

TOP DIVKYTurkey AUTO SHOWGreece AUTO NEACroatia AUTO BLICAustria AUTO BILDSwitzerland AUTO BILD

Advertising in the convergence era(Germany, 2000)

The reality today: 41 dollar in Print for each dollar Online

215

3.010

5.728

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

Online AdSpending

Magazine AdSpending

Newspaper AdSpending

million US$

Source: Prognos AG, Basle, „Werbemarkt 2010“

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

In these areas the online content and the print content will converge

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

3 examples from our company

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

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)

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

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