The drivers of ecommerce. Toon Bouten, TOMORROW FOCUS ANVR-Congress, Cypress 2014

Transcription

1 The drivers of ecommerce Toon Bouten, TOMORROW FOCUS ANVR-Congress, Cypress 2014

2 TOMORROW FOCUS: The Content-driven Online Consumer Company Shareholdings Key facts 40.6% 0.6% 58.8% Burda Digital GmbH Management Board & Supervisory Board Freefloat Headquarters: Munich, Germany Employees end 3Q2014: 800 employees Share capital: EUR 58,313,628 Admitted to Prime Standard Share price November 6 th 2014: EUR 3.35 Market capitalisation: EUR 195 million Revenue and EBITDA Revenue EBITDA Connection, Content & Creativity Toon Bouten Page 2

3 We monetize content Segment Travel Subscription Advertising Market Online-Booking Online-Services Display Advertising Brands Content User generated Professional Monetization Commission Subscription Advertising Business size 2013e* > EUR 110 m. > EUR 30 m. > EUR 35 m. * Revenue of segment Other (TOMORROW FOCUS AG and Cellular GmbH) not included Connection, Content & Creativity Toon Bouten Page 3

4 The Travel segment benefits from its strong brands... Leading hotel rating and booking portal for package holidays in DACH & Poland Leading hotel rating and booking portal in the Netherlands Connection, Content & Creativity Toon Bouten Page 4

5 Tomorrow Travel Group : The leading European travel review site European focus 9 Country offerings 1 Languages covered 10M Unique visitors per month 2 Strong community 120K New reviews per month 2 11M Reviews 3 High quality content 240K Hotels, restaurants, PoI covered by reviews 3 6M Mobile unique visitors 2 Mobile excellence 3M App downloads 3 1.4M Passengers 2013 Broad customer base 612K Bookings 2013 >120 Tour operators Strong product base 530K Hotels bookable Connection, Content & Creativity Toon Bouten

6 Tomorrow-Focus Companies sharing Connection, Content & Creativity activities Area Description Examples 1 Connection 1 Providing a unique user experience on all devices - any time, any place Connection 2 Content Delivering highly relevant content by being closer to the customer Content 2 3 Creativity 3 Delivering true customer value through innovative features based on big data and deep customer insight Creativity Connection, Content & Creativity Toon Bouten Page 6

7 1 Connection Providing a unique user experience on all devices - any time, any place

8 Smartphones and tablets already cumulate to more than 3/4 of all currently sold internet devices and highlight the relevancy of mobile Sales of connected devices worldwide In million units Tablets > Desktop Pcs Tablets > Notebook PCs 1,667 1, , , Tablets Smartphones Notebook PCs Desktop PCs 1, , Source: IDC Connection, Content & Creativity Toon Bouten Page 8

9 Connection denotes the interaction with users via diverse devices and applications throughout the course of their customer journey Connection, Content & Creativity Toon Bouten Page 9

10 Finanzen100 demonstrates how companies may profit from this development with a dedicated mobile first strategy Focus on user experience Develop new features for mobile use first Optimize content for mobile devices and develop native applications for specific use cases 2/3 of Finanzen100 total traffic is generated by mobile devices Source: IDC Connection, Content & Creativity Toon Bouten Page 10

11 Connection, however, also comprises addressing the user with relevant offers fitting his context Connection, Content & Creativity Toon Bouten Page 11

12 Location based searches are particularly relevant to users Use of location based services in Germany 2012 In % of respondents Future use In % of respondents route planner call up timetables from location search of providers nearby search of favorable offers nearby virtual city tour posting photos/videos with location check-in services search of friends nearby location based games Multiple answers possible, answers: regular use and infrequent use Source: Fittkau & Mass 2013; Mobile Web & Location-based Services Perspektiven der Nutzer Potentiale fu r die Touristik Connection, Content & Creativity Toon Bouten Page 12

13 The physician review portal jameda creates value by consequently tailoring its offer around this need for local information Geo-targeting and GPS allow easy access to physicians where users need them Comprehensive search functionalities provide relevant, location based results #1 physician review portal with > 3 millions searches per month Source: Connection, Content & Creativity Toon Bouten Page 13

14 An optimal design of the factor connection, hence, necessitates to create offers suiting particular contexts and devices Inspiration Booking Check-In Boarding Source: Connection, Content & Creativity Toon Bouten Page 14

15 In the future, even more radically new offers will rise based on the increasing merge of both the offline- and the online world Source: Source: Connection, Content & Creativity Toon Bouten Page 15

16 2 Content Delivering highly relevant content by being closer to the customer

17 Content has to be tailored to the individual needs of users to create true value Connection, Content & Creativity Toon Bouten Page 17

18 Consequently, special interest offers gain relevancy, while generic search becomes less important Information search online In % of respondents Mainly use of search functions Equal use of both search functions and specialized sites Mainly use of specialized sites Source: Oxford Internet Surveys 2011, 2012 own projection Connection, Content & Creativity Toon Bouten Page 18

19 netmoms is a One-Stop-Shop for all topics concerning parenting Specialized online search for parental topics enables strong user experience Clear target group allows for rich and relevant content One-stop-shop for all topics around parenting Top parenting website with 1.3 mn UU / month Source: Connection, Content & Creativity Toon Bouten Page 19

20 The relevancy of content is also reflected by the willingness of users to share information as essential part of social networks Monthly time spend on web portals vs. social networks In billion minutes web portals social networks Since June 2011 more time has been spent on social networks than on web portals jun-08 Dec dec-08 jun-09 Dec dec-09 jun-10 Dec dec-10 jun-11 Dec dec-11 jun-12 Dec dec-12 Sources: comscore Media Metrix USA panel-only data Connection, Content & Creativity Toon Bouten Page 20

21 Relevant Content Huffington Post, an innovative news portal, benefits from this trend with more than 1 million facebook links and likes per day > mn Articles per day* > k k Blogger world wide > > 1450 mlnk facebook links per day Source: * 2012 figures for the entire Huffington Post network Connection, Content & Creativity Toon Bouten Page 21

22 HolidayCheck is one of the pioneers in this realm, supporting its users to find their perfect holidays by the help of customer reviews pictures/ videos Provide users the possibility to engage and interact Use user generated content as valuable information source and traffic driver ratings reviews More than 6.8 million hotel ratings, pictures & videos Source: Connection, Content & Creativity Toon Bouten Page 22

23 HolidayCheck together with Zoover is Europe s market leader for hotel reviews written by travellers We are creating transparency in the travel market through user generated content 1 TASK Each traveller should have the opportunity to gather honest, up-to-date, and authentic information about any hotel before booking 2 Quality is one of our main goals HolidayCheck is regularly audited by TÜV and Stiftung Warentest 3 HolidayCheck has been awarded as best German hotel review portal* 4 Technical check including algorithms and a manual check of filtered reviews by content specialists 5 * Stiftung Warentest / Testsieger 5/ x test winner in succession 6 x Travel Website of the year TÜV certificate Safer Shopping Connection, Content & Creativity Toon Bouten Page 23

24 3 Creativity Delivering true customer value through innovative features based on big data and deep customer insight

25 Big Data enables a significantly deeper understanding of customer behavior and thereby paves the ground for more creative offers Source: Connection, Content & Creativity Toon Bouten Page 25

26 The global consumer internet traffic volume is expected to double during the next three years, creating a huge amount of data Global consumer internet traffic In billion gigabyte per month mobile stationary > x Source: Cisco Systems, Cisco Visual Networking Index 2012, page 9 Connection, Content & Creativity Toon Bouten Page 26

27 The permanent analysis of user behaviors enables ElitePartner, to continuously improve its offer according to observed needs TV spot Ad Banner Information about consumer behavior and preferences help managing and targeting advertising in real time Landing Page Better fitting offers increase conversion rate ElitePartner is the most profitable matchmaking company in Germany Source: Connection, Content & Creativity Toon Bouten Page 27

28 Organize.me provides innovative features and autonomously improves its semantics by a self-learning algorithm Innovative Features: Automatic archiving Reminders (e.g., to quite mobile contract) Cost optimization (e.g., by suggesting cheaper energy suppliers) Lean design based on continuous user tests Transition from an internal bootlegging project to a new company Connection, Content & Creativity Toon Bouten Page 28

29 Big data also provides opportunities to create innovative and value creating offers in the travel segment Hotel Rates Heat Map When is the best time to book a hotel and get the cheapest rate? Predictive Price Shows you whether or not the price will go up or down in the next seven days. Source: Connection, Content & Creativity Toon Bouten Page 29

30 The next step: with predictive analytics, companies will be able to anticipate customer needs and deliver true customer value Prediction of location Uber knows where you ll be next and waits for you to pick you up before you thought of it... Source: Connection, Content & Creativity Toon Bouten Page 30

31 Connection, Content & Creativity are essential factors to improve the stickiness of products and, thus, to better engage with users Area Learning 1 Connection 1 Providing a unique user experience on all devices - any time, any place Connection 2 Content Delivering highly relevant content by being closer to the customer Content 2 3 Creativity 3 Delivering true customer value through innovative features based on big data and deep customer insight Creativity Connection, Content & Creativity Toon Bouten Page 31

32 Summary and discussion Winning in online increasingly depends on being close to the customer from various perspectives: Being relevant wherever the customer is with a unique product and UX on all devices ( connection ) Being relevant with content that is based on true customer needs and delivers true value ( content ) Being relevant with innovative products and features that clearly set you apart from competition ( creativity ) Mobile is real if you postpone the formulation of a native mobile strategy that takes into account new use cases you will not succeed Strong brands that clearly stand for specific topics and inspire confidence will become increasingly important when cost of search rises Big Data will remain a buzzword if you do not transfer your data into valuable personal products for your customers Connection, Content & Creativity Toon Bouten Page 32

33 Connection, Content & Creativity Toon Bouten