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Advertising in the Convergence Era: Insights from Axel Springer’s Perspective

In the dynamic landscape of the convergence era, Axel Springer, Germany's largest publishing company, navigates the challenges of integrating print and digital media. With total revenue of $2.4 billion, the company leads in both newspaper and magazine publishing. This presentation, delivered by Dr. Andreas Wiele at the FIPP World Magazine Congress in 2001, explores strategies in advertising and the merging of online and offline marketplaces. Discover how Axel Springer leverages its diverse platforms to enhance advertising potential and engage readers in innovative ways.

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Advertising in the Convergence Era: Insights from Axel Springer’s Perspective

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  1. Advertising in the convergence era-from a publisher‘s point of viewDr. Andreas Wiele,Axel Springer Verlag AG 33rd FIPP World Magazine Congress, April 25th, 2001, Rio de Janeiro

  2. Revenue Structure Axel Springer is Germany‘s biggest publishing company with a growing international presence • Total Revenue 2.4 bn US$ • in bn US$ in % • thereof: newspapers 1.3 56 magazines 0.6 26 international 0.4 15 electronic media 0.1 3

  3. Axel Springer is Europe‘s biggest newspaper publisher Newspapers • 5 national newspapers • 7.8 million copies sold per day • 4 regional newspapers • 0.8 million copies sold per day • 8 regional newspapers (partly owned) • several free papers

  4. Axel Springer is the third largest German magazine publisher Magazines • International* • owned (majority) • 77 titles in 8 countries (Poland, Hungary, Spain, France, Switzerland, Czech Republic, Austria, Romania) • Joint Ventures • 2 titles in 2 two countries (France, Portugal) • Licences • 7 titles in 7 two countries (Italy, UK, Holland, Czech Republic, Turkey, Greece, Croatia) • Germany • fully owned • 26 titles • Joint Ventures • 19 titles *incl. International newspaper activities

  5. The German magazines: Strong presence in nearly all markets • TV-Listings • Car • Women • Computer • Business • Sports • Youth

  6. International:Growing presence of international concepts and brands

  7. Advertising in the convergence era(Germany, 2000) • The reality today: 41 dollar in Print for each dollar Online • million US$ Source: Prognos AG, Basle, „Werbemarkt 2010“

  8. However, the internet is a fascinating medium as a: • 1. Marketplace of goods and services: • Brings people together who want to buy and sell • 2. Marketplace of people: • Brings people together who want to communicate or play • 3. Marketplace of information: • Brings people and customized/personalized information together

  9. In these areas the online content and the print content will converge 3 examples from our company • 1. Marketplace of goods and services: • The real estate section of the Berliner Morgenpost • 2. Marketplace of people: • Our youth magazine YAM! - the reader as reporter • 3. Marketplace of information: • The personalized AS Auto Portal

  10. Berliner Morgenpost(www.berliner-morgenpost.de) The real estate section • Real estate section of the online edition is combined with corresponding section of the print edition • ads for the print edition appear automatically in the online edition for one week • additional service justified price increases of significantly over 10% • market share of Berliner Morgenpost was not affected at all by price increases • ads in Print are by far most the important tool to advertise real estate but: search/information functions are used more frequently • classified ads generate significant traffic rates for online edition

  11. YAM!(www.yam.de) The reader as a reporter • Readers can act as a reporter for the magazine • creation of community sense that is built up further through the online edition • readers receive a special ID as a YAM!-Reporter • names of new reporters are published in each issue • reporters receive a fee for each published article • special section in the print edition is dedicated to the YAM!-Reporter stories • online edition also permits interactivity with the YAM!-Reporter and among the reporters (chatting)

  12. AS Auto Portal(www.autobild.de) Personalized information • AS Auto Portal combines editorial competence of Germany‘s leading car magazine AUTO BILD and its derivatives with e-commerce • independent platform offering comprehensive content of the motor world and broad range e-commerce possibilities • new and used cars database: up-to-date information from the distribution networks of all major manufacturers • users can search for car offers according to their personal information requirements • additional information on cars (e.g. independent tests) is supplied from all editions of the AUTO BILD family • additional e-commerce fields (e.g. car rentals, insurances, travelling) • syndication of content and e-commerce models

  13. The convergence of the future:The screen will replace paper as display medium • These new media types will have the look and feel of magazines • and they will offer the full range of interactivity and functionalities of the internet

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