The Mittmedia Reacher Advertising Initiative
Overview of this campaign
In 2016, swedish Mittmedia was facing a declining advertising business due to competition from Google and Facebook and the fact that the company had a number of internal weaknesses in advertising and sales. After an analysis, the company came up with a spectrum of measures to revive the business.
Among them: Create a new business model offering customers higher efficiency. Offer a full spectrum of marketing channels. Scale volumes and pushing up prices to grow revenues. Move sales force into a digital competence. Renew ad business in a way that doesn´t collide with digital subscription business.
The measures were driving forces behind The Mittmedia Reacher Advertising Initiative, a strategy to renew business and drive growth. The Initiative was launched in 2018, consisting of three cornerstones.
First, the Reacher Marketing tool, a web based tool used by all sales reps in Mittmedia, where they plan and book marketing on a laptop together with customers. The tool is an easy to learn and use interface helping sales reps to step into digital, driving digital transformation and time to market. Reacher enables a new advertising model allowing customers to aim marketing at specific target audiences, creating higher efficiency.
Second, The Reacher Learning platform. Mittmedias sales force has been print oriented but must now help customers in a digital environment. To achieve that, Mittmedia has developed a state of the art web based e-learning competence platform. The platform is a daily part of the work at all of Mittmedias sales offices and consists of 29 interactive digital advertising teaching classes with in-house produced content.
Third, Mittmedias header bidding solution. To increase the value of each ad serving by making the inventory accessible to a maximum amount of buyers, Mittmedia has created a header bidding solution where all adservings are exposed to programmatic through a server side and a client side header bidding wrapper.
Results for this campaign
The Initiative has been in play in 2018. Effects are substantial.
Through the Reacher target audience model, Mittmedia is capitalizing on data from the subscription business to enhance ad business. More data from subscription customers equals better target audiences. Through the high effectiveness of the target audience model, Mittmedia is also able to obtain much higher pricing on sold ads.
Mittmedia is also driving fast growth in number of sold ad campaigns due to the effectiveness of the marketing tool. The combination of higher prices and growing volumes drives overall revenue growth.
Through Reacher, Mittmedia can offer ad customers a 360 marketing since it contains all digital channels needed.
Reacher makes it possible for Mittmedia rationalize chains of production, since all of the roles (sales rep, customer, ad producer, ad ops) are working in one tool/system.
The Mittmedia salesforce is moving into a new digital competence, becoming certified sales representatives through the e-learning platform, leveraging knowledge in combination with the marketing tool, creating substantial value for customers.
Through the header bidding solution, Mittmedia exposes the inventory to an unlimited numbers of buyers through SSP:S and DSP:s, pushing up prices in programmatic trading.
Numbers speak for themselves.
Prices have more than doubled in terms of CPM-levels. Overall revenue from digital sales grew by 27 percent the first half of 2018 compared to 2017. In the same time period, growth for the swedish news media business slowed down to 7,4 percent. For the second tertial, Mittmedias overall digital sales grew by 36,9 percent. Display advertising is the bulk, and grew by 37,4 percent first half of 2018, by 29,9 percent by the second tertial. New segments are growing fast, with native advertising leading the way, paving the way for future business.