European Business Press Seminar Rome, 21./22. October 2004

1
European Business Press SeminarRome, 21./22.
October 2004

• What advertisers expect from media

2
What you can expect from this presentation

• Understand the needs and worries of global acting
  financial service providers
• to be able to support agencies clients with
  valuable and helpfull information / data
• to be able to develop tailormade offers /
  products that enable clients to implement
  intelligent communication

3
A Global Player
4
A Global Player

• Traditional German insurance company, founded in
  1890 in Berlin (now Munich)
• One of the largest insurance companies worldwide
• 70 countries, 167,000 employees, 60 Mill. clients
• Business fields Protection, Provision,
  Performance

Source Fortune
5
The Business Fields
Protection
Provision
Performance
Property Casualty Insurance
Life Health Insurance
Asset Management Banking
Buyout of Dresdner Bank in 2001 future
maintainance as One-stop-financial-service-provid
er
6
Allianz Group Marketing
Strategic Brand Management
Methods Controlling
Marketing Communication
CENTRAL
Global Corporate Campaign

Local Corporate Campaign
Local Product Campaign
DE-CENTRAL
Local Operating Entity
7
Allianz Group Marketing OMD
Strategic Brand Management
Methods Controlling
Marketing Communication
CENTRAL

Local Media Agencies
DE-CENTRAL
Local Operating Entity
8
A Global Player
9
The Largest Media Investor in the World
Source Recma 2004 (2003 billings)
10
Truly Global and Highly Ranked in all Regions
2
4
2
2
3
3
Over 80 offices in 55 countries, 4.300 employees,
with over 19 billion client billings
11
Global Understanding Local Expertise
Global Media Briefing Agency Steering
Client HQ
OMD International Consultancy Co-ordination
Contact regarding all Intl Media
Issues Development of Global Media
Strategies Pan-regional Planning Buying Intl
Media Best Practices Global Media Reporting
Reporting Local Marketing / Media Learning
Strategic Marketing / Media Guidelines
Local Media Planning / Buying /
Handling Reporting Local Media Learning
Strategic Steering Global Briefing Global
Media Guidelines
Client Local Operation
Local OMD Global Corp. Campaign
Adjustment / Approval
Other Local Agency Local Image / Product Campaign
12
Key Challenges facing Global Brands

• Transparency consistent quality standards of
  local media business
• Strategic steering of local media business in
  line with global objectives
• Cross-fertilisation know-how transfer across
  markets to fully exploit synergy potentials
• Exploit saving potential on all levels è locally,
  regionally globally

Maximise efficiency effectiveness of global
media investment
13
How does OMD meet these Challenges ?
14
What our client research has shown

• Creativity in media strategy will become more
  important
• Understanding the consumer in new, more
  meaningful ways will be a principle challenge of
  the future
• Consumer research will be the key driver of media
  value
• Measuring the delivery of media will be less
  important than measuring the effect it causes
• Planning will be the key driver of media value

15
Strategic Communication Planning is an Essential
Factor for Success
16
Key-Issues ofFinancial Service Providers
17
Marketplace Dynamics
9/11
US Election
SARS AIDS
Stagnating Stock situation
CEEMA Emerging markets
China
Deregulation
Oil Markets
FEAR EXCESSIVE DEMANDS UNCERTAINTY
Demographic issues Age Pyramid
European Union
Mannheimer Enron
Basel II
Yukos Affair
Concentration
Unemployment
Terrorism
18
Chances Risks
-

• High expenditures for damage
• regulation (Terrorism, Catastro-
• phees)
• ? Increasing premiums
• Downswing of stockmarket
• low interest rates for capital
• shrinking hidden assets
• ? Cut of profit participation
• ? Concentration

• Increasing importance of
• pension and private healthcare
• Weak insurance penetration
• liberalisation of high potential
• markets CEEMA and Asia

19
Market Insights Finance Insurance
I want a sound, riskfree investment
I dont beliefe in the stock market
I distrust financial advisors
The state is taking a back seat
The pension system is about to collapse
I know I have to care for provision but I feel
totally swamped with the ways and options
I distrust insurances
Source Spiegel Debit Credit 6
20
Key Issues

• Individual economic situations / issues per
  country or region ...
• ... with impact on financial / insurance
  markets
• Insurance markets with chances and risks high
  potentials CEEMA Asia
• Target Group needs education but shows clear
  provisos
• Client and agency must understand each
  market

21
HOW EBP could help us

• Implement a summarised Market Profile Insurance
  Market Europe
• Content
• Compare the european Market with US and Asia
• Which are the key countries ?
• Who are the key brands ?
• What are the key issues and concerns per country
  ?
• How do consumers differentiate ?
• Overview of the adspends of the branch

22
UnderstandThe Target Group
23
The Target Group Challenge
70 countries
Rating Agencies Analyst, Portfolio M.,Fin.
Journalist
xxx Bill. People 4 continents Different
cultures Individual needs and worries Understand
ing is a challenge !
CEO/CFOs(large internat. comp.)
Broker/Intermediaries
Business Owners small/medium
local comp.
End Consumer
24
Where to get these information from
70 countries
No surveys, just common sense Research extremely
difficult Information source Pan-regional
media (special surveys)
Rating Agencies Analyst, Portfolio M.,Fin.
Journalist
Global Level
CEO/CFOs(large internat. comp.)
Broker/Intermediaries
No surveys, basics from trade press
Business Owners small/medium
local comp.
Local media market surveys (Decision
Makers) Pan-regional studies (EBRS)
Local Level
Numberous local media market surveys No real
comparability across countries
End Consumer
25
A Lack of Information

• No data available for top target groups
• No consistancy of local data gt no comparability
  across countries
• Quantitative data Available
• Qualitative insights Rather not available !

26
HOW EBP could help us

• Initiate a pan-european in-depth qualitative
  target group survey
• Guarantee compatibility across countries
• X-ray all needs, concerns and attitudes of the
  consumer towards a special field
• An example Debit Credit (Der Spiegel)

27
Debit Credit A Quality Survey

• Universe Adults 14 years in Germany 64.72
  Mill. (10,000 interviews)
• Detailed analysis of the FSP-Market
• Brand awareness, preference, ownership
• attitudes towards investments and finance
• Decisions, experiences, demands, prospects.
• Banking, Credit cards, Insurances, Asset
  Management, Investment consultants

28
UnderstandThe Task
29
Communication of FSPs
Objective
Media Requirements

• Reach the target group
• Educate
• Implement communi-
• cation objectives
• Efficient Effective

• Reliability
• Performance
• Customer Focus

International Business Press
30
Trustworthyness is Your Asset !

• OMD research amongst decision makers
  (Businessmen, Financial Journalists, VIPs from
  the german economy)
• Key question Which medium do you prefer in terms
  of reliability ?

31
OMD Research Results

• Decision Makers trust in print media
• The Business Press, esp. Newspapers have a very
  good reputation, stand for high quality and
  in-depth information
• However, quality is decreasing. Wrong facts are
  being realised !
• TV News-channels are favoured according to fast
  access to information advantage !
• The www is highly appreciated in terms of
  real-time-access to information, but
  trustworthyness of the medium is called into
  question challange !

32
Requirements to the Intl Business Press

• Ensure Trustworthyness
• Support high quality journalism
• Fight for the freedom of press
• Maintain your Brands Products
• Updates Re-Launches
• Adopt trends early / set trends
• Follow new technologies

33
Requirements to the Intl Business Press

• Be creative and develop client individual
  solutions...
• ... because this is the future of advertising
• ... but make sure that all activities serve
  advertisers AND readers gt guarantee reliability !

34
Reliable Advertising ?
35
HOW EBP could help us

• Initiate a pan-european survey asking for the
  image of local media channels and vehicles
• An example Media Brand Values
• Released on October 15th 2004
• Universe Senior executives, leaders
  influentials in 9 european countries
• Surveyed 13 attributes towards media (i.e.
  trustworthyness, impartial, unbiased)
  pan-regional media per title/channel versus local
  media (as category only).

36
MBV Advantages for Pan-regional Media
37
Local versus Pan-Regional Media

• Each category delivers values that cannot be
  replaced by the other

Local Print Media
Pan-regional Print Media

• Approachable / familiar
• Competence in terms of
• national concerns
• (politics, economy, etc.)
• High coverage within high
• endconsumer target group
• Local language
• ? Best supports the objective customer focus

• Reaching frequent
• travellers / people involved
• in international business
• Global perspective (partly
• US-driven)
• Efficient (CpM) within
• upscale target groups
• ? Demonstrates global presence and importance

38
HOW EBP could help us

• Advantage of pan-regional media Comparability
  across countries gt convinient planning
• Challange for media agency to know and assess the
  local media landscape
• EBP
• Deliver qualitative information for each title to
  make business titles comparable across countries
  (standardised readership- and content analysis)
• Provide a platform for cross-border-deals

39
What Advertisers Expect from Media

• Summary
• Help clients agencies to understand markets and
  target groups
• Deliver qualitative in-depth insights
• Make information comparable across countries
• Maintain and develope your brands products
• Initiate new, creative ways of advertisement
  under consideration of the importance of
  reliability
• Allow for cross-border-deals

40
Thank You