Digital magazine revenues are growing and will probably continue to do so. While mobile advertising spend is expected to go through the roof in 2016, many publishers still struggle with their business models. Thanks to the FIPP, we had the chance to interview the Head of Media Communication of Nestlé Deutschland, Tina Beuchler, during the Digital Innovators’ Summit 2014. Tina participated at the conference as the chairwoman of the Organisation Werbungtreibende im Markenverband (OWM), the German advertisers’ organization, and held a speech on the Return on Brand Building Investment (ROBBI).
The OWM is the voice of German advertisers. It defends the freedom to advertise and communicate with consumers above and below the line. In addition, the organization offers guidance to help members maximize the effectiveness of their marketing expenditures.
What is the biggest challenge for German Advertisers in the coming years?
“Last year we asked our OWM members about their key challenges in advertising. The answers provided showed that there are four main issues. First of all, advertisers need information about the Return on Brand Building Investment (ROBBI). Second, there is no common media currency, which makes it difficult to compare advertising investments. There are many different channels, but the holistic view is missing. Third, there should be more transparency within media buying systems. Companies investing in advertisement, want to know: what does the single ad cost? Right now, media buying systems lack transparency because advertisers can’t control the whole process. Fourth, advertisers see the media fragmentation on the one hand and consolidation of media agencies on the other side. The German media agency market is heavily consolidating and advertisers fear an impact on transparency.”
What challenges do advertisers face with respect to the changes brought about by digital media?
“The main challenge here again is the effectiveness of advertisements. Advertisers need to know how many ads are needed for a certain time to gain an effect.”
Are there any other challenges?
“Another important challenge is the freedom of advertising. All products that can be bought in the market should also have the possibility to be advertised. We, the OWM, therefore fight for freedom in advertising. “
Why is the ‘Return On Brand Building Investment’ (ROBBI)-platform so important for German Advertisers?
“The Return On Brand Building Investment initiative is created to improve the cross-channel measurements of advertising effectiveness. If advertisers do not have the proof for the return, the investment in advertising might be reduced and shifted into different departments within a company.”
What are the biggest trends in the media business?
“There are two clear trends, which were visible during the Digital Innovators’ Summit in Berlin as well: video and mobile. They are both related to social media. In general, digital will continue to grow and the revenue in digital advertising will grow with it. We will continue looking for new ways to advertise.”
What advice would you give to magazine media owners?
“Magazine media owners have to reconsider their core competencies. They need to be very clear and creative in these core competencies; think about new products, new business models and the way they market these products. If media owners have interesting products, there will also be more opportunities for advertisers!”
What are your biggest advertising challenges? Share your thoughts with us in the comments!
