Advertising Innovation

Eric ChristiaensCommercial Director Concentra Media

León - november 17th, 2006

Testimonial

• one editor’s view on defending newspapers vs other media on the advertising market

• our experience over the last years, our truth, not the truth

Agenda

A. Belgian Market OverviewB. Reasons for growthC. Conclusions

Belgium

10,4 mio inhabitants 30.000m²

3 communities

3 official languages

Brussels 1.000.000

Antwerp 457.000

Ghent 231.000

Charleroi 201.000

Liège 186.000

64%

35%

1%

Vl W D

B

A

G

LC

longest distance between 2 points = 280 km…

A. Market overview

Dailies in Belgium

28 paid for dailies 1 free daily 1 free sundaypaper

cover price: single copy : 0.95-1.60subscription: 0.67-1.05

daily reach:51% total population

format: Belgian berliner tabloid no broadsheets

source : WAN-World Press Trends 2006

A. Market overview

Belgian Dailies

Source: BVDUData 2005

average 12 mths

Het Laatste Nieuws - De Nieuwe Gazet 287.001 - 0,23 %

Het Nieuwsblad /De Gentenaar 208.485 - 1,12 %

Gazet van Antwerpen 111.445 - 2,50 %

Het Belang van Limburg 99.250 - 1,20 %

De Standaard 81.983 + 2,73 %

Het Volk 74.977 - 7,13 %

De Morgen 50.890 + 0,15 %

De Tijd 36.395 - 6,53 %

Total Flemish Dailies 950.426 - 1,36 %

Sud Presse 127.906 - 2,97 %

Editions de l'Avenir 98.580 - 1,15 %

Le Soir 97.075 - 0,91 %

La Dernière Heure/Les Sports 86.407 + 1,08 %

La Libre Belgique 47.038 + 0,33 %

L'Echo 18.489 + 5,04 %

Grenz-Echo 9.830 - 1,81 %

Total French Dailies 485.325 - 0,85 %

TOTAL 1.435.751 - 1,19 %

A. Market overview

Belgian advertising market

• flat market– 2005 : dramatic losses for TV– 2006 : -15% vs 2005 in display ads national

market

• fight for market share– radio is main competitor for newspapers– TV is picking up– development of internet

A. Market overview

Trend in ad spendings

15,9

14,6

46,0

11,51,69,80,6

24,5

11,9

39,7

12,11,29,01,5

0%

20%

40%

60%

80%

100%

2001 2005

newspaper magazines tv radio cinema outdoor internet

source : WAN-World Press Trends 2006

A. Market overview

47.646

52.863

55.964

50.962

49.968

54.055

55.475

57.809

61.437

45.000

47.000

49.000

51.000

53.000

55.000

57.000

59.000

61.000

63.000

1998 1999 2000 2001 2002 2003 2004 2005 B2006

k€

Concentra Media Print

+21%

A. Market overview

29% 31% 30% 31%39%

45% 43% 43% 44%

21% 21%19%

22%

23%

23% 23% 21% 21%

22% 20%19%

21%

20%

18% 18%17% 15%

27% 28%31%

26%

18%14% 16% 19% 19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1998 1999 2000 2001 2002 2003 2004 2005 B2006

NATIONAAL REGIONAAL CLASSIFIEDS (incl. Familieberichten) JOB (incl. aandeel Concentra in Vacature)

Share per ad marketA. Market overview

47.646

52.863

55.964

50.962 49.968

54.05555.475

57.809

61.437

0

10.000

20.000

30.000

40.000

50.000

60.000

1998 1999 2000 2001 2002 2003 2004 2005 B2006

k€

GAZET VAN ANTWERPEN HET BELANG VAN LIMBURG H-à-H MAGAZINES HEBBES Spin-offs METRO TOTAAL

Share per titleA. Market overview

B. Reasons for growth

1. Community2. Brand building3. Innovation4. Cooperation5. Creativity6. Simplicity

1. Community

• clear focus on a target audience

B. Reasons for growth

• “…For this reason the title of our daily newspaper is a programme, to which all who will lead our paper in the future have to remain loyal….”

Frans Theelen, about “Het Belang van Limburg” in 1955

1. Community

• ambitious positioning

B. Reasons for growth

Luc Rademakers

Chief Editor

Gazet van Antwerpen

“I like things to happen after we’ve written

about them in our newspaper”

Our newspapers go for the head,the heart

andthe soul

of our target audience

2. Brand buildingB. Reasons for growth

2. Brand building

from the cradle to the grave

B. Reasons for growth

…tap into audience’s emotions…

2. Brand buildingB. Reasons for growth

3. Innovation

• only free daily in Belgium

• only bilingual daily in Belgium

• strong community builder

• open to creative ads

B. Reasons for growth

3. Innovation

• content-related products

• target audience adapted to objectives of advertiser

B. Reasons for growth

4. Cooperation

• between publishers :– common products for all newspapers

• NP-deals– buy an ad in all newspapers– run it 3 times, in order to build impact– get 40-50% off

B. Reasons for growth

NP3 Offer

4. Cooperation

• between departments :– management of newspaper by committee :

• 2 editors in chief + commercial director– joint decisions on all topics :

• editorial• advertising• marketing

B. Reasons for growth

5. Creativity

• allow the advertiser to stand out

• create “intrusive ads” by playing with layout of the newspaper

• one size only : full page

B. Reasons for growth

5. CreativityB. Reasons for growth

KICK …. SHAKE…. DRESS …. THE PAGE

5. CreativityB. Reasons for growth

5. Creativity

• never intrude the content

• beware of audience

• even advertisers are conservative

B. Reasons for growth

5. Creativity

• Conditions :– approval concept & visual by chief editor– approval of visual by prepress manager– deadline visual = 10 days– restrictions on pages, days…

• Price :– +70% vs 1/1 rate card !

B. Reasons for growth

5. Creativity

• create events with the advertiser

• distribute 70 tons of strawberries in one day !

B. Reasons for growth

6. Simplicity

• try to make offer simple for advertisers

• lower the treshold to enter newspapers– modules vs mm/col– tabloid = tabloid

• align technical specs– constant # columns, constant breadth of

columns

D. Lessons from Hollywood

Errol Flynn ?

Cary Grant ?

Gary Cooper ?

D. Lessons from Hollywood

W.C. Fields !

“I try harder...”

D. Lessons from Hollywood

More information?

Eric ChristiaensManaging Director

Concentra Media Regie+32-11-878369

echristiaens@concentra.be