BILD and WELT: Two successful Paid Content Strategies Capital Markets Day – , December 10, 2014

Donata Hopfen, Publishing Director BILD Group Paid content is key to ’s strategy

Start of a joint project approach for paid content for Axel Springer brands in 2011/2012

Development of one central paid content engine

Overall more than 300 thousand subscribers today

2 Dec. 10, 2014 BILD and WELT: Two successful Paid Content Strategies 3 Dec. 10, 2014 BILD: Paid Content Strategy BILD has a clearly defined brand vision

BILD is ’s key medium.

BILD gives its readers both what moves them and what provokes them. Always and everywhere.

4 Dec. 10, 2014 BILD: Paid Content Strategy Founded in 1952 BILD today is larger and more versatile than ever – all under one brand

1952 1996 2014

2007

5 Dec. 10, 2014 BILD: Paid Content Strategy BILD is leading in news across all channels in Germany

NewspaperDigital Sunday (Online, Mobile, Apps) #1 #1 #1

Total reach: 38.21 million* *this matches a reach of 54.2%: the BILD brand reaches more than half of the German speaking population (14 years and older) at least once a month

Source: MA Presse 2014-II, AGOF digitalfacts 2014-Prototyp; total reach according to Crossmedia-brand reach, best for planning 2014 - I, German-speaking population 14 years+

6 Dec. 10, 2014 BILD: Paid Content Strategy Strategic investment in video segment leads to growth in video views and improved ad sales

Jan-Oct 2014: 227 million video views

Bundesliga bei BILD YouTube Channel

Source: ComScore BILD.de (only Online) Jan – Oct 2014

7 Dec. 10, 2014 BILD: Paid Content Strategy Social media with growing importance for BILD.de Traffic

Facebook referrals to BILD.de Traffic sources of BILD.de

20 10% 9%

8% 15 9% 7% 2% 6% 17% 10 5% 4% 3% 72% 5 2%

1%

0 0% Oct. Jan. Apr. Juli Oct. Jan. Apr. Juli Oct. 12 13 13 13 14 14 14 14 14

BILD.de Facebook Visits in million SEO Traffic BILD.de direct traffic % of traffic to BILD.de through Facebook referrals other referrals Traffic from Facebook referrals

Source: Internal Tracking; Traffic sources Nov 2014

8 Dec. 10, 2014 BILD: Paid Content Strategy Introduction of BILDplus and Paid Content is the change driver for the organization

Driver of Change New structure Multi-platform workflow (content-driven)

Editor in Chief

24/7 News

In charge of In charge of Online Print

9 Dec. 10, 2014 BILD: Paid Content Strategy BILDplus is constantly growing

Oct 2014 No. of subscribers 249 201

June 2013 Launch BILDplus

Source: until May 2014 BILD Controlling, since Mai 2014 IVW Paid Content

10 Dec. 10, 2014 BILD: Paid Content Strategy Unique user growth since introduction of BILDplus

Unique User in million

Introduction of BILDplus 17.9 17.0 17.1 16.7 16.2 16.5 15.5 15.1 15.3 15.4 14.2 14.2 14.2 13.7 14.0 13.7 14.0 13.7 12.3 12.3

Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

2013 2014 Source: AGOF (until 06/2013 years 14+; since 07/2013 years 10+)

11 Dec. 10, 2014 BILD: Paid Content Strategy One paying subscriber generates ten times more revenues than one advertising-based user

ARPU Subscription Sales ARPU Ad Sales excl. ad sales

BILD.de free 10 x

Sources: AGOF, BILDplus IVW, calculation: ARPU BILDplus is recent BILDplus CLV in comparison ARPU ad sales

12 Dec. 10, 2014 BILD: Paid Content Strategy Subscriptions are generated in all departments

7% 6%

15%

29% 5%

9%

13% 17%

Money Politics Regional Entertainment News Service Sport Automotive, Digital, Lifestyle, Travel, Games Source: internal tracking Web / Wap

13 Dec. 10, 2014 BILD: Paid Content Strategy New distribution channels are constantly created to support BILDplus

14 Dec. 10, 2014 BILD: Paid Content Strategy Real time monitoring and conversion optimization facilitates immediate and constant improvement

Live AnalyticsLive Heatmap Live Conversions

15 Dec. 10, 2014 BILD: Paid Content Strategy Constant improvement and innovation makes BILDplus successful

First Offerpage Today’s Offerpage

16 Dec. 10, 2014 BILD: Paid Content Strategy In February 2014 Axel Springer hosted the International Paid Content Summit

Participants:

17 Dec. 10, 2014 BILD: Paid Content Strategy Goals for 2015

1 Complete integration of BILD Group

Further establish paid content as 2nd 2 revenue stream

3 Continued focus on video

4 Mobile and cross device marketing

5 Social Media

18 Dec. 10, 2014 BILD: Paid Content Strategy