Innovation in media advertising. - Publicitas AG

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Group 2: Packages Description The primary focus in this group is simplification for the customer. A product is defined and offered at a fixed price. The product is a combination of various other products that contains different media or media forms as well as possible additional services. The advantages for the customer are obvious: improved price in the package, convenient booking, as well as a solutions orientation and not a product orientation. In this group as well, the «advertisement » and «time » differentiation factors can be applied. Group 4: Performance Description Until today, practically no performance-based offers have existed. The offers system is therefore more input-based. However, if a price is to be offered based on proved performance, this would imply an entirely new dimension, namely the success of the advertisement. This system is more output-based. In this rather avant-garde and future-oriented group, for example, offers could be put together based on the cost per mille (CPM). This would mean that the communication of the offer and the price would be on a completely different level. A CPM offer could be broken down into any number of target groups. A further possibility is determining the price according to real performance. For this, clear standardized studies and measuring tools are required for this to work. A combination of performance-based offers and colors or placements in indexed form is a further, very progressive solution. Requirements There are two important requirements for pushing through this type of offer and pricing model in the market. Besides the willingness of the media houses, measurability of the offers is of fundamental importance. Both preconditions are central if these models are going to succeed. The panel based measurability system RAM (Research analysis of media) could be an adequate instrument for this. It is important that standardized and well established measurability systems are used in order to be able to compare results in a meaningful way. Concept types • Bundling of different offers • Simplification of access to various media Possible offer types • Intra-print packages • Inter-print packages • All-media packages • Media and services packages • Target-group packages Concept types • Price according to proved performance • Price according to guaranteed performance • Measured using adequate input or tools Possible offer types • CPM offers • Target group CPM • Performance based offers and prices 10
Group 3: Dynamics Description The offers are transparently presented. Both the product as well as its composition and publication date are known. All parameters with the exception of the price to be paid are pre-defined. There are different methods available to establish the actual price. First of all, the market can be made the possible driving factor that directly sets the price. In other words, the customer, and not the media publisher, sets the price. Naturally, calculations are made in advance and terms are set. Secondly, the offers could be auctioned off. The market could be given the opportunity to set the price for attractive offers at an acceptable price for the buyer. The third possibility is to use a supply-and-demand-based formula to determine offers and prices. This means that pricing is ultimately very flexible in both directions depending on demand. Group 5: Customer Loyalty Description Among the measures used today to build customer loyalty, other different methods could be created with this group to tie customers closer to the provider. For example, a flatrate offers program could be created. The customer pays a fixed amount for a fixed period. The volume is determined by the customer, however. Or offers could first be paid by the customer at a subscription price, which would afterwards shift to variable price discounts to his benefit. Further, bonus offers are thinkable that could be put together in a way that the customer has an incentive to move from one revenues level to the next in order to benefit from even more attractive bonus offers. Naturally, a combination of these offers also could be the path to success, namely when the market and publisher requirements are so specific that individual solutions must be developed. Concept types • Transaction-driven dynamic forms (pricevaried) Possible offer types • Auctions of advertising space • Name your own price • Yield management Concept types Generate loyalty through • Additional services • Attractive offers • Price discounts • Other benefits Possible offer types • Flat-rate • Non-linear pricing (fixed and variable mixed) • Bonus offers • Club offers 11
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Innovation in media advertising. - Publicitas AG

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