Sektor Media Cmd 2010

GfK Capital Market Day 2010MediaWilhelm Wessels, Member of the Management Board

January 2010GfK Capital Market Day 2010, Wilhelm WesselsGfK Group

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Agenda

GfK Media and the media markets

Focus on Television Audience Measurement3

2 Our business

4 The future: TC UMS for TAM

5 Conclusion


GfK Media and the media markets1

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Key facts

TV, Internet, radio, newspapers, magazines, posters - various mass and individual media accompany people through their days

Media are changing their nature

All kinds of media are approaching the digital future in many aspects

Media consumption is massively changing

Local/regional/national media markets define their research demands

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Example: Emerging content on an established platform

iSixt Twittelaror Pro Michelin Guide NavigonRent a car… Stay in touch with your friends… Recommended restaurants… Make a navigation system out of your mobile…

BeejivelMInstant messaging…

S-BankingCheck your bank account…

ScrabbleWould like to play a game?

BloombergBe up-to-date in the stock market…

PhotogenePhoto editing for your pictures…

EurosportCurrent news on sports…

N24Read the most recent articles…

Hotel BookerNeed a hotel room? …

The Sims 3Play you prefered computer game…

OhMyGolf!My iPhone is my caddy…

Lanz kocht! Cooking recipes of the very best cooks…

PostmanSend a postcard to your friends on Facebook, Twitter or by email

Today‘s mobiles are more than just telephones!

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We offer information services on media consumer behavior and attitudes of all established and new media, such as TV, radio, print, Internet and outdoor.

Our qualitative and quantitative research expertise is set-up to create tailor-made research solutions for individual customers’needs.

Media research within GfK Group means continuous development and optimizing of methodologies and technologies as well as combining data from different surveys.

GfK`s media usage data: the currency in their markets


Our business2

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TV (all platforms, all kinds of usage)

Print media

Radio

Internet

Outdoor

Mobile phone – as a new platform

Media to measure…plus Multi/Cross Media

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The German advertising market 2009 reflects it clearly…

Cinema0.3%

Outdoor 4.1%

Magazines15.3%

Daily press23.9%

TV41.6%

Special interest1.8%

Radio5.9%

Internet7.1%

Source: IP Deutschland / Nielsen Media Research, January - November 2009

Total (gross):

EUR 20,2 billion

Our main focus: TV and Print

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TV: diaries -> electronic/digital measurement

Print: PAPI -> CAPI -> Scanners -> RFID

Radio: PAPI -> CATI -> (electronic) diaries -> electronic/digital measurement

Outdoor: PAPI -> electronic/digital measurement

Internet: electronic/digital measurement

From questionnaires to digital measurement

PAPI = Paper And Pencil Interview CAPI = Common ISDN Application Programming Interface RFID = Radio Frequency Identification

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GfK Media digital research instruments

GfK Telecontrol

TV meters

GfK Telecontrol

TV meters

GfK Eurisko

EuriskoMobility Tracker (EMT)

GfK Eurisko

EuriskoMobility Tracker (EMT)

GfK Telecontrol

Mediawatch

GfK Telecontrol

Mediawatch

GfK Eurisko

EuriskoMedia

Monitor (EMM)

GfK Eurisko

EuriskoMedia

Monitor (EMM)

TV TV, Radio, Multimedia Multimedia Outdoor

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Selected partnerships

Enigma GfK

Scanners

Enigma GfK

Scanners

IntomartGfK

webAUDIT/webmeter/

Nedstat

IntomartGfK

webAUDIT/webmeter/

Nedstat

MMA

RFID

MMA

RFID

GfK Austria

PDAs

GfK Austria

PDAs

Various GfK

companies

Online-access-panels for APS

Various GfK

companies

Online-access-panels for APS

Print Print MultimediaInternet, Streaming

Media TV

GfK Panel Services

Nurago

GfK Panel Services

Nurago

Internet

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It‘s not only about…

... media consumption!

But also about

advertising contacts- Print (RFID)- Internet (Nurago)- Cross Media (Internet/TV with Nurago/Mobile RL)

as well as

appreciation- TV, Radio through online (access) panels.


Focus on Television Audience Measurement3

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Electronic TV audience measurement within GfK Group

Austria: 1,540 panel householdsBelgium: 1,650 panel householdsBulgaria: 750 panel householdsGermany: 5,640 panel householdsNetherlands: 1,375 panel householdsRomania: 1,320 panel householdsSwitzerland: 1,870 panel householdsUkraine: 2,540 panel households

8 countries -more than 16,000 gross panel households

Status: January 2009

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Requirements for TV currencies

Measurement of

all distribution platforms (new: IPTV)

all channels

all functions (new: time shift)

the whole media consumption

all target groups

new: Video on Demand (Streaming Media)

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TC score (GfK Telecontrol) for Germany and Austria

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GfK meter technology to cover various types of households (Germany)

DVB-H not included so far

cable

satellite

terrestrial

DVB-S

DVB-C

DVB-T

DVB-H

IPTV

Hard drive receiver / PVRDVB-T, DVB-C, DVB-S

8.9%

Video recorderanalogue tuner

54.7%

DVD-Recorder analogue tuner

19.6%

Digital Set-Top-BoxDVB-T, DVB-C, DVB-S

43.3%

DVD-Recorder with hard diskanalogue tuner

7.2%

… and innumerable combinations of these devices!

Source: ma 2009, Tranche Radio II

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German Panel re-equipped

Since May 2009, over 5,100 homes of the German TV panel

have been equipped with new TC sore devices and

the individually necessary set-top-boxes!

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What is television?

The new AGF definition for the German market:

Television is all content sent by broadcasters with relation to broadcast content where the broadcasters have the authority to plan a program (or something comparable for on demand services) and/or the broadcasters have the authority to sell airtime for advertising (or something comparable for on demand services).

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Translation for our TAM operation

Our future system will have to cover

- all broadcasting technologies and distribution channels (incl. IPTV)

- real time broadcast

- time shift

- streaming (TV content only)

- YouTube channels of broadcasters

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GfK Fernsehforschung / AGF

Contract status

Running till 2011 with a yearly volume of EUR 16.5 million

Expected prolongation 2012/13 with a yearly volume of

EUR 18.5 million

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Current gaps

The current TC score system does not cover

- TV via PCs through tuner cards

- IPTV

- proprietary Set Top Boxes of some cable operators

- streaming (TV content)

furthermore

- secondary homes are not included

and

- secondary sets are not completely covered

All this is on the AGF/GfK agenda for 2010 !

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Our current approach: Expansion of TC score


The future: TC UMS for TAM4

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What is GfK Telecontrol Universal Meter System (UMS)

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Approved methods for Radio and TV measurement

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Matching

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Coding/Watermarking

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Visual recognition technology - SIP

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A new highlight

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The USX technology

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USX – Computer Based Research Technology

USB-StickUseable as normal portable data storage deviceSoftware to measure internet usage, TV / radio via internetMeasurement: URL / matching / watermarkingData transmission: UMX / internet

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Another highlight

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The Mediawatch technology

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Place of Consumption

in car

at work

cinema RF signal

at home


Conclusion5

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Follow the changes

Media systems – especially TV – are dramatically changing.

Our process of continuously adopting and developing our

measurement devices will speed up. 2010 will become the year of

experiments and tests in cooperation with our clients.

With the step-by-step implementation into our running operations the

business perspectives for the coming years are very promising.

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We are well prepared for the Digital Media challenges

We have solutions …

… inhouse (TC Score, GfK Mediawatch, EMM)

… in cooperation with external partners (Nedstat, Nurago)

… delivered by our clients (scanners, RFID, PDAs…)

… in cooperation with other GfK sectors (e.g. GfK Consumer Tracking ->Nurago).

Cross media planning is a topic of growing importance for advertisers and ad agencies. We have the research tools/instruments, but must roll them out where possible.

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Our responsibility

In media landscapes which go through evolutions but not resolutions we have to

shelter media currencies

carefully complete and develop the research systems with additional methods and instruments

accompany media on their way into a digital future

Our slogan:

Innovative Continuity

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Disclaimer

This presentation constitutes neither an offer nor recommendation to subscribe or buy in any other way securities of GfK SE or any of the companies that are members of the Group at present or in the future, nor does it form part of such an offer and it should not be understood as such. The presentation or any part thereof should not form the basis for a contract for the purchase or subscription of securities of GfK SE or any of the companies that are members of the Group or represent a guarantee in connection with such contract.

All the information contained in this presentation has been established with care. Nevertheless, we cannot guarantee its reliability or completeness and the information contained herein should not be deemed as a guarantee in this respect.

The information contained in this presentation may be supplemented, amended and updated. Certain statements made herein may express future expectations, which are based on current opinions and assumptions of the management and are subject to foreseeable and unforeseeable risks and uncertainties. Actual results, performance and events may differ considerably from the statements expressed in the present information, partly due to changing business or market conditions and to the growth prospects forecast by the management of GfK SE. These and other factors may have an unfavorable impact on the results and financial consequences described in this presentation. GfK SE does not undertake to update or revise statements on future developments, on the basis of new information, future events or for other reasons. You should not rely on statements made about future developments, which simply express expectations as of the date of this presentation.

This document does not constitute an offer of sale of securities in the United States of America. Securities may not be offered or sold in the United States of America without registration or exemption from registration in accordance with the U.S. Securities‘ Act of 1933 in its currently valid form.

GfK Capital Market Day 2010MediaWilhelm Wessels, Members of the Management Board

Additional information: Corporate CommunicationsNordwestring 10190419 Nuremberg/GermanyFon +49 911 395-2012Fax +49 911 395-4075eMail: [email protected]

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Sektor Media Cmd 2010