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Ali A. Abhary CEO Spectrum Medya
Copyright 2013 by Spectrum Medya Labs Internte Hizmetleri Tic. A.S. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the permission of Spectrum Medya Labs Internet Hizmetleri Tic. A.S. This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion. COMPANY CONFIDENTIAL
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The Global Market for Digital Audio Advertising The Context The Audience The Advertisers The Publishers
Karnaval.com
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1930s 1950s
1960s 1970s
1980s 1990s
Today
Disrupted by: FM
AM radio Music-focused
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Variety
HEAD Top 40 AC News / Sports
Shorter Ad Breaks
Unlimited spectrum Increased in variety of content offerings Tailoring needs of the long tail of consumer taste
Popularity
Ubiquity
Availability wherever there is connectivity Device agnostic 3-4x more devices today deliver radio than 10 years ago
Personalization
Skip songs Ban artists Time-Shift Social music sharing with friends and likeminded individuals
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The Global Market for Digital Audio Advertising The Context The Audience The Advertisers The Publishers
Karnaval.com
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Number of people that have listened to online radio in the past month (US population 12+, millions)
200 180 160 140 120 100 80 60 40 20 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
186
64% of Population (12+ years of age)
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29.50%
60.00%
0.00%
Q2 2009
Q2 2010
Q2 2011
Q2 2012
Source: Ofcom
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2000
500
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Pakistan: Radio listening locations % of people who said they had listened to radio in the following locations
80% 74%
70%
60%
57%
50%
40% 30% 30% 20% 20% 8% 5% 0% 0% Home Work Car Elsewhere (caf, shop) Mobile Phone 4% 3% 4%
Men Women
10%
Source: BBC Pakistan Survey of Adults 15+ (n=1172 weekly radio listeners)
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Average monthly reach of radio listeners via Internet / MP3 Player / Mobile Device (000s people)
10,000
9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 20% 1,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 23% 22% 30% 36% 41%
44%
47%
47%
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18%
15%
Fewer commercials
15%
13%
Less DJ chatter
6%
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Contents
The Global Market for Digital Audio Advertising The Context The Audience The Advertisers The Publishers
Karnaval.com
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US Addressable Market
In the US, ad dollars for online radio are sourced from a combination of online advertising; broadcast ads; and mobile ad markets combined markets which are forecasted to grow 12% annually over the next several years.
$13.4B $9.8B
Mobile Advertising
$0.9B
* Display / mobile / rich media / video
2010
2014
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Online-only players
$295.0
Note: includes display (banner, rich media, and video) and search * Includes other ad networks and publishers
Cable / Satellite
$12.9
Other Print
$2.1
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Source: IAB
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18% 16%
15%
8%
2.7x
4% 3%
3x
2% Became a "fan" on social network
5x
1% Called for information 1% Sent email / text
Source: Targetspot / Park Associates Digital Audio Advertising Impact Study for IAB (2012)
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By station audience
Targetability
Measurability
Call-to-Action
Audio ads synchronized with banners, rich media Pageskins / videos Context-based (user click, action, song change, station change)
Immersive Ad Experiences
Audio calls to action reinforce banners Increased immediacy of response to audio prompts
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7% 6%
3% 2% 1%
18-24
Source: Arbitron
25-34
35-44
45-54
55-64
65+
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Contents
The Global Market for Digital Audio Advertising The Context The Audience The Advertisers The Publishers
Karnaval.com
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Listening Experience Walled-off from the rest of the world Solitary Proprietary closed-loop
Listening Experience Connected to the rest of the world Social Discovery of new music Relationships with personalities News and local information
45 years
110 years
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DESCRIPTION Broad selection of tracks Significant royalty costs Freemium models Little consumer acceptance for advertising Little / no non-music content Un-curated Repurposing of terrestrial stream Simple listening experience Not unlike car stereo
Radio
Basic Broadcasters
Aggregators
Thousands of station choices, across country / world Simple listening experience (interoperability problem) Ideal for world travellers keeping in touch Paradox of Choice problem Targeting music selection based on consumer preference Limited non-music content Arguable not radio
Personalized Radio
Rich Radio
Reinforces curated and mediated nature of radio Across multiple genres to capture broadest audience Augmented experience beyond simple listening (personalization, timeshifting, artist information)
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Spotify
Last.fm
MOG
TTNet Muzik
Turkcell Muzik
Fizy
MUSIC LOCKERS
Rhapsody
Rdio
BASIC BROADCASTERS
AGGREGATORS
PERSONALIZED
RICH RADIO
CBS Radio
Kral FM
Accuradio
RADIO
iHeartRadio iPower
Karnaval
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Likely launch in Q1 2013 Digital audio advertisingsupported, personalized radio service Likely to raise the bar for user experience Positive long-term impact on growing demand for digital audio advertising
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Contents
The Global Market for Digital Audio Advertising The Context The Audience The Advertisers The Publishers
Karnaval.com
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287M TL
Online Advertising*
414M TL Overall
Search engine Owned by Turkcell On-demand platform GSM operator On-demand platform Owned by TTNet ISP On-demand platform GSM operator
121M TL
Mobile Advertising
6M TL
* Display / mobile / rich media / video
Were not selling mobile phones, internet service, or beer. We are about the listening experience in and of itself. We are radio, not a music locker.
Source: Reklamcilar Dernegi, 2011
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Lean Back
Lean Forward
Curated music streams Non-interactive Personalities and DJs to help navigate Real radio experience News, weather, sports and related content
radio network
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radio network
Karnaval aims to have no more than 20 curated radio stations covering the broadest range of musical tastes both the head and a substantial part of the tail of consumer tastes. Just enough choice, no confusion.
Super FM
Top 40 Turkish Pop Tarkan, Ajda Pekkan, Mustafa Ceceli, Halil Sezai
Zeplin
Turkish / Foreign Independent Music Vera, Motto, Melis Danismend, Supergrass
Metro FM
Top 40 Foreign CHR Rihanna, David Guetta, Beyonce
Kantin
Teen Music Carly Rae Jepsen, Jessie J, Carrie Underwood
Joy Turk
Turkish Slow Sila, Seksendort, Ferhat Gocer
Retroturk
Turkish retro music (60s-70s-80s) Nesrin Sipahi, Sibel Egemen, Baris Manco, Ayla Dikmen
Joy FM
Adult Contemporary Zaz, Elvis Costello, Charles Azanavour
Jeton
Gamers radio Fuat, Manga, Tyga, Jay Sean, T-Pain, Ne-Yo
Radio Mydonose
Dance / Electronic
Flo Rida, Inna, Guru Josh Project
Borusan Klasik
Classical Fazil Say, London Philharmonic, Sir Neville Mariner
Joy Jazz
Jazz Kerem Gorsev, Dizzie Gillespie, Dave Brubeck, Miles Davis
Lounge
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radio network
DJ Personalities, Radio-Feel
Real Radio
Music News
Time Shifting
Giveaways, Sweepstakes
On Demand News
Contests
Concert Tickets
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Digital Sometimes Exclusive Jelli. Social 100% User Radio and Partner Controlled FM-Broadcast. you Experience. want in Turkey. to Radio. lean forward. Adding 30,000 registered users / month.
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315827
54106
MAR12
APR12
MAY12
JUN12
JUL12
AUG12
SEP12
OCT12
NOV12
DEC12
JAN13
FEB13
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7 8 9
Slacker, Inc.
EMF Corporate NPR Member Stations Cox Radio Inc.
63,092
32,866 32,546 31,925
33,466,492
5,403,632 10,067,368 9,424,073
0.60
1.91 0.97 1.07
10
11 12 13 14 15 16 17 18
28,580
25,143 24,481 19,771 18,402 14,758 13,488 13,016 11,729
12,230,771
* 9,953,316 2,930,540 7,061,648 2,304,510 1,665,776 7,821,902 2,941,415
0.74
* 0.78 1.69 0.75 1.94 2.30 0.53 1.26
19
20
COPE
Emmis Communications
10,011
9,973
4,105,213
4,772,340
0.69
0.66
JANUARY ALL STREAMS RANKER (based on AAS) DAYPART 6:00am to 8:00pm, Monday through Friday Confidential
10,332,164
10,674,496
8,060,216 6,779,658
7,871,775
8,040,264
8,277,623
4,111,733
4,428,208
Feb.12
Mar.12
Apr.12
May.12
Jun.12
Jul.12
Aug.12
Sep.12
Oct.12
Nov.12
Dec.12
Jan.13
Feb.13
* Total number of hours of streaming to listeners that were connected for a minimum of 60 seconds during a given time period. Source: Karnaval Streaming Statistics
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140,000
80,000
60,000
40,000
20,000
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81
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Time Shifting
On Demand Music On Demand News, Weather Next Up Song Song History Music News
Iphone App
Number of Ratings Number of Stars 2.678 4,5 83 3,5 204 4 12 3,5 4.000 4,5 43 3 366 4,5 6 5 1551 3 1954 3 960 3
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10000000
12000000
14000000
16000000
2000000
4000000
6000000
8000000
Social Buzz
Total Cumulative Gross Impressions on Twitter Mentions of Karnaval versus Competitors (2012)*
Delivering buzz in the social media is also a key measure of Karnavals success and by this measure, the newly formed brand has outdone established competitors over the past year.
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Jan 01, 2012 Jan 08, 2012 Jan 15, 2012 Jan 22, 2012 Jan 29, 2012 Feb 05, 2012 Feb 12, 2012 Feb 19, 2012 Feb 26, 2012 Mar 04, 2012 Mar 11, 2012 Mar 18, 2012 Mar 25, 2012 Apr 01, 2012 Apr 08, 2012 Apr 15, 2012 Apr 22, 2012 Apr 29, 2012 May 06, 2012 May 13, 2012 May 20, 2012 May 27, 2012 Jun 03, 2012 Jun 10, 2012 Jun 17, 2012 Jun 24, 2012 Jul 01, 2012 Jul 08, 2012 Jul 15, 2012 Jul 22, 2012 Jul 29, 2012 Aug 05, 2012 Aug 12, 2012 Aug 19, 2012 Aug 26, 2012 Sep 02, 2012 Sep 09, 2012 Sep 16, 2012 Sep 23, 2012
fizy
karnaval
power fm
powerturk
Spectrum Medya Labs nternet Hizmetleri A.. Bykdere Caddesi No. 23 CEM Merkezi Kat 4 stanbul, Turkey 34361 Tel: + 90 368 6200 2012-2013 All Rights Reserved
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