Cross media: it is all about databases

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Cross mediait is all about databases

• Ruud Bakker
• Chairman and CEO
• VNU Business Media Europe

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VNU an introduction

• Active in over 100 countries
• Market leader with premium brands
• Top 25 Euronext Exchange Amsterdam
• Media and information for professional use
• marketing information
• media measurement information
• business information
• directories
• Headquarters in Haarlem, The Netherlands and New
  York
• Worldwide 38,000 employees
• Revenues over EUR 4.3 billion

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VNU Business Information

• Business information through 3 channels
• Print 140 trade magazines and directories
• Face to face 150 trade shows and events
• Internet 250 related sites
• Insight in business and trade
• Media that connect buyers and sellers

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VNU Business Information

• EUR x million 2001
• Net revenues 926
• Operating income 112
• Operating margin 12
• Employees 3,361

Operations in Belgium, France, Germany, Italy,
The Netherlands, Spain, UK and US.
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Cross media strategy

• Central to VNUs strategy is the connection of
  our core activities and competencies to provide a
  deeper insight of b2b and b2c consumer behaviour
  to clients

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Pressures for change
PRINT PUBLISHING Little Growth Reduced
Profitability Low Share holder value Poor
Customer focus No services
MEDIA INFORMATION Growth Profitability Share
holder value Customer focus Enhanced services

• Dynamic publishing models are changing the
  publishing value chain
• influencing the way users views of how to best
  access information,
• affecting the Brand Print identity,
• transforming the content supply chain, the
  finances, the marketing, the customer
  relationships, the distribution paths, the kinds
  of media channels
• In short changing the strategy for business
  information.

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Cross media strategy The Basic Concept

• Cornerstones of any future publishing strategy
  are formed by a dynamic relation between
• Circulation database
• Content database
• Media platforms
• B2B/B2C publishing will be defined as an
  information business
• Defined communities of professionals and
  consumers
• Deep knowledge of community
• targeting data on demographic and professional
  profile of constituents of community,
• connecting content-behaviour with other
  circulation data
• Combining the circulation- and content data in
  multi-platform distribution
• Print publishing
• Conferences and exhibitions face to face media
• Online electronic media
• Offline electronic media
• Print and electronic direct mail
• Research.

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Cross media strategy The Value of the Concept

• Central strategy the connection of VNUs core
  activities and competencies to provide a deeper
  insight of b2b and b2c consumer behaviour to
  clients
• The past was about building media brands, the
  future is about strategically leveraging their
  assets to offer information based solutions to
  clients
• Objective open up new and more profitable
  revenues by
• providing a one stop media and information
  resource from research and planning through to
  delivery,
• encompassing pre and post awareness research and
  offering analysis of results and buyer behaviour.
  
• Critical success factor a menu of information
  products and services by
• combining databases with data mining tools,
• to deliver better results and unique data to our
  clients through our media channels.

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Top level view of business components
Research
Paper publications
Digital publications
Warehouse
Shows
Conferences
Direct Marketing

• Symbiotic relationship between all businesses and
  platforms
• linked by an information ring main
• having a warehouse at its core to feed a CRM
  tool
• which serves to track revenue contribution of
  each name in the warehouse

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Traditional publishing business model
List db
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Future media information business model
List db
Intelligence db
Publishing db
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This is the way we managed in traditional
publishing - our products
Original Product Paper
In the past product tactics have driven platform
strategy which limited the development of new
products as we tried to protect position of
original at expense of the new
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Key for the future is how we manage and perceive
or brands.
Tactics What to publish? To which audience? On
what platform? Which revenue models? How much
ROI What level of marketing?
Strategy Brand strategy drives product tactics
maximising potential of all and limiting none
Product Paper
Brand
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. which will define and drive our reader
information collection strategy
Each platform has different Reg requirements. The
Brand CRM collects all records for each user,
building up a better picture of cross media use
The user submits less info for each registration.
But we collect more for each individual. All can
be managed from one point. Making registration
easier and more efficient
Brand CRM db
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Proposed ABC cross media audit
GROUP PRODUCT REPORT Magazine circn 1000 Exhibit
ion attend 500 Email sent 700 Website users
900 PDA pulls 300
PRINT CERTIFICATE Circulation by type Terms of
Control Etc Etc Etc
EXHIBITION CERTIFICATE Attendance by
type Etc Etc Etc
EMAIL CERTIFICATE Number sent Number
bounced Level of duplication Opt in Time
started/finished
DATABASE OF REGISTRANTS By job title By company
business By age of data By channel used
(multi) By time spent on channel (where available)
WEBSITE CERTIFICATE Page Impressions Visits Uniqu
e Users Time on page Etc
PDA CERTIFICATE Page Impressions Visits Unique
Users Action on Open Etc

• The aim is to ensure we DO NOT add different
  channel data together while we DO deduplicate the
  addressees when that information is available. In
  other words, the last section database cert.
  would be the net, registered addressees that
  could be reached by a brand/company.

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Digitalife a case study

• It is all about visitor data,
• .. stupid!

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VNU and Jaarbeurs Exhibitions Mediastarting a
traditional media-partnership

• Per January 1, 2002 VNU acquired 50 of Jaarbeurs
  Exhibitions Media (JEM), the independent
  software company of Jaarbeurs
• Right from the start the shareholders, Jaarbeurs
  VNU, have actively pursued a cross media
  strategy
• VNU is market-leader in the Dutch market in
  ICT-publishing, JEM has just one niche
  ICT-event ICT in the Public sector
• For the year 2002, JEM is aiming to have 3 to 4
  ICT-exhibitions, based on the unique opportunity
  that the partnership with VNU provides
• We started the traditional way a
  media-partnership developing a product
  (exhibition) leaning heavily on the
  media-cooperation i.e. content,
  advertiser/exhibitor relations, marketing
• But did we create a cross media business?

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The value is in the combination.

• JEM decided to extend the partnership through a
  joint venture to Sanoma (largest
  consumer-publisher in The Netherlands) and the
  Telegraaf (leading national daily), and via the
  j.v.-partners to commercial television (SBS) and
  the leading web-portal (Ilse)
• The concept developed into an interactive,
  content driven event (Edutainment Plazas) with a
  unique seeing, specifying buying concept
  (IKEA-model)
• The broad media-partnership will guarantee a
  minimum of 100.000 visitors at launch, with a
  combined marketing-budget of 2.5 million, a
  combined circulation of the media-partners of
  over 5 million, a special interest
  computer-magazine circulation of 600.000 and b2b-
  IT-magazines of 300.000, apart from t.v.-audience
  and web-visitors
• A great concept, a great media-combination, but
• Is it a cross media concept?

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However, the ultimate valueis in the database

• The ICT- and digital entertainment industry
  immediately recognised the quality of the concept
  and the combination of partners
• However, they only asked for one thing how can
  we really interact with the visitors, how can we
  generate sales leads?
• Therefore we will work with core database driven
  activities
• Intensive direct mail and especially
  email-campaign on combined subscription-databases
  (intelligence sharing with customers)
• Complete web-registration feeding into the
  exhibition visitor database
• Datamining through VNU-subsidiary Claritas
  (consumer-profiling)
• Pre-exhibition and pre-awareness web- and
  email-research, targeting of customer-visitor
  database (web-panels VNU Business Media)
• Pre-exhibition point of sales research through
  VNU-subsidiary AC Nielsen
• Visitor guidance system (e.g. Tracker)
• Post-exhibition and post-awareness research
  through web-panels, POS-research
• Post-exhibition direct and email-marketing
  campaigns, sharing the data (profiling) with the
  customer.

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A database driven partnership

• Jaarbeurs Exhibitions Media, a database driven
  exhibition company, and VNU, a database
  information company, guarantee targeted
  interaction between exhibitors and visitors
• Claritas (Europe largest consumer-databases in 9
  territories),
• AC Nielsen (world-leader in point of sales
  research)
• Content on websites and in magazines both before
  and during the exhibition are part of the
  data-mining, through categorized content-tracking
  (web-based, action based response in print)
• In summary
• Central to VNUs strategy is the connection
• of our core activities and competencies to
  provide a deeper insight of b2b and b2c consumer
  behaviour to clients.
• With the ultimate goalto open up new and more
  profitable revenues,
• by providing a one stop media and information
  resource from research and planning through to
  delivery,
• encompassing pre and post awareness research
• offering analysis of results and buyer behaviour.

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Thank you,andAny questions?