Media and entertainment big data pov_do_2014-09

Become Audience-Centric with SAP Big Data SolutionsEnabling Innovation

September 2014

SAP Point of View

Table of Contents

Executive Summary 4

Our Understanding 6

The SAP Solution 10

Why SAP? 20

Next Steps 26

SAP proprietary and confidential | 3

Business BenefitsSAP collaboration with media and entertainment customers on Big Data technology has delivered real business benefits, including:• Increased brand loyalty and stickiness over time by

serving relevant, personalized content• Increased customer lifetime value and churn reduction• Increased campaign effectiveness and reduced market

spend with more targeted messaging

Why SAP?Partner with SAP to achieve these benefits with our:• End-to-end, best-in-class Big Data solution all under

one vendor• Market-leading in-memory platform, SAP HANA,

optimized for both transactional and analytical processing• Choice of flexible deployment alternatives that mitigates

upfront capital expenditure and reduces time to value

Next StepsTo further explore how SAP can help transform and innovate to serve the digitally connected audience, engage with SAP:• Conduct a Design Thinking workshop – joint workshop

with business leaders to help identify opportunities for business innovation

• Connect with other media companies to exchange best practices and experiences

Our UnderstandingThe digitally connected audiences demand relevant, personalized content, instantly, anywhere, at any time, via multiple platforms/devices, through a simple user experience, and at very little to no cost. Trends in mobile broadband traffic confirm that the digitally connected consumers will become the norm within a few years.

Media and entertainment companies must innovate and transform in order to understand the instantaneous needs of the consumer at the individual level and be able to serve each a personalized experience.

The challenges driven by the demands of the digitally connected consumer also present great opportunities. The digital entertainment consumption experience generates a wealth of consumer behavior data – content preferences, consumption habits, opinions, and more.

The SAP SolutionWe believe that SAP can play an important role in helping you transform, innovate, stay competitive, and deliver personalized media and experiences by understanding your audience. By leveraging Big Data technology from SAP, you will be able to:• Capture the increasing volumes, variety, and velocity in

audience data• Analyze and make sense of the data to understand and

profile the individual consumer – all in real-time and instantaneously

• Create a superior viewer experience by improving content delivery performance

Executive Summary

4 | SAP proprietary and confidential

Executive Summary

Executive Summary

“Today’s consumers are networked and on the move. Great products alone are no longer enough to earn their loyalty. Businesses have to provide a next generation experience, tailored completely to the individual. SAP is driven by a relentless passion to help our customers innovate to win. We deliver the industry solutions and the real-time platform for enterprises to run like never before.”

Bill McDermott, CEO, SAP

Changing Consumption Habits

44%Of Americans age 8-64

who are online own a tablet, with 94% using it for consuming content

41%Annually in mobile tablet sales growth

between now and 2018

87%Annual growth in

tablet broadband traffic through 2018

57%Of digital consumers prefer

to buy digital products over the equivalent

physical goods

20 billion+Apple app downloads in

2013; over 60 billion apps and 25 billion songs sold

since inception; over 800K TV episodes and 350K

movies purchased per day

36 billionGlobal mobile ads market by 2016,

growth of in-app ads


Content and Competitive ChallengesDriven by the demands of the digitally connected audience, companies face ever increasing costs to produce, acquire, license, and deliver quality and personalized content. Established companies also face competition from non-traditional, and technologically savvy competitors such as YouTube and Netflix in the content production space.

Competitors such as Netflix have invested heavily in Big Data to understand their audience and become audience-centric. They not only know what their subscribers are watching, but also when, where, on which devices, and even down to each video start, stop, pause, and rewind. Furthermore, they are also in tune with what subscribers are saying about what they are watching. Such investment to become audience-centric has produced notable results in both audience viewership and critical acclaim. For the rest of the industry, this means the bar has been raised, and understanding the audience is a must-have capability inthe enterprise.

Together, the demands brought upon the digitally connected audience and the competition from new entrants mean incredible challenges for the traditional, established companies.

Expectations of the Digitally Connected ConsumerToday’s digitally connected audiences exhibit habits and behaviors that pose great challenges to you. They:• Are extremely digitally connected and have a very short

attention span• Consume content via multiple devices/platforms from

anywhere, at any time• Expect extremely fast access to content and simple user

experience; anything less will drive them to the next content piece or provider

• Are socially connected to share, review, rate, and discuss content, including live performances; they have a voice that can be heard and they want to be heard

• Expect to pay very little or nothing for all this content

Trends• Online video audiences are expected to double in 2016,

reaching 1.5 billion globally – growing fastest in social media sites

• Average time spent with digital media per day surpassed TV viewing in 2013

• Facebook’s average referral traffic to media sites increased 170 percent in 2013

• Digital magazine subscriptions now outsell single issues three to one


Our Understanding

Industry Trends and Challenges

Understand Your AudienceThe challenges driven by the demands of the digitally connected consumer also present great opportunities. Digital entertainment consumption generates a wealth of consumer behavior data, including content preferences, consumption habits, opinions, and more. With growth in broadband and mobile-based content consumption, the opportunity is now even greater for your company to:• Transform from a content-centric to an

audience-centric business• Provide the personalized content and offers in the right context,

at the right time• Provide enterprise tools to interact and engage with

your audience• Drive value for advertisers by analyzing and gaining insight into

audience behavior, in addition to the traditional demographics

To achieve this transformation, your organization must embrace and build Big Data capabilities. To lead and innovate in the new market environment, you must be able to capture all consumer/ user interaction data generated via:• Direct interaction between you and the audience • Third-party or social data generated by the audience in sharing,

reviewing, rating, or recommending content

Audience-centric businesses must be able to acquire, process, and analyze the data with lightning speed and in real time to exploit opportunities that can make incremental if not significant impact on revenues.

Our Understanding

The Opportunity: Innovate and Transform



Our Understanding

Understand Your Audience with Big Data……and Monetize Your Audience with Profiles and Behaviors

What is your audience watching? When, from where, and on which devices?

• Optimize content delivery

• Input for content recommendation

• Optimize preview clips/trailers

What is your audience saying about what they watch?

• Input for content recommendation

• Input for service optimization

• Input for content creationHow can you personalize the entertainment experience to increase each subscriber’s lifetime value?

• Increase viewing and “stickiness”

• Decrease churn


The SAP Solution

Content Consumption Behavior Data Translates to Big Data Signals for the Media and Entertainment Industry

Content Consumption

Habits

Audience Targeting

Personalized Product Recommendation

Personalized Content

Product Cross-Sell

Propensity to Churn

Brand Sentiment

360Customers View

MobileUnwire your business to deliver secure, real-time, business-critical information – anytime, anywhere, to anyone, on any mobile device.


The SAP Solution

SAP Big Data Solution Portfolio Combines the Best of Next-Generation Technology to Help You Innovate, Transform, and Grow

CloudCapture the power of the cloud while fully integrating with on-premise investments. Empower your employees, engage customers, and collaborate with partners across business networks.

ApplicationsRun your business smarter, faster, and simpler, with an integrated suite of applications powered by SAP HANA – delivering long-term predictability and nondisruptive innovation.

AnalyticsExplore and exploit data, find answers in real time, and make confident decisions. Harness visually compelling, easy-to-use tools on the devices of your choice.

Database & TechnologySimplify your IT infrastructure dramatically and drive high-value innovation by exploiting integration across structured and unstructured data sources.

A real-time business platform, powered by SAP HANA

Solution Capabilities

Extract public perceptions from terabytes of social media buzz in real time and present them in dashboards. • Data acquisition from social media channels like

Facebook and Twitter• Instant access to terabytes of social media data• Natural language processing for deep and

accurate audience insight• Graphical presentation of sentiment development


The SAP Solution

1 2 3

Gain more insight into audience sentiment by leveraging conversations from millions of social sources.

Benefits

With visibility into current and potential consumers’ views on any topic, better understand how they feel about your brands, programs, products and content while staying tuned to market issues and trends.• Real-time insight into audience of a TV show• Insight into opinions about TV shows, artists,

and actors• Better brand management and greater

customer loyalty• Improved competitive analysis and insight• Early warning and monitoring of

potential issues

Sentiment Analysis

100m

Reviews

1 2 3

SAP helps you to better understand who your audience is and what they are saying about your content.


The SAP Solution

Sentiment AnalysisListen broadly across the social Web

500mTweets/day

1.3bUsers


The SAP Solution

1 2 3

Exploit the opportunity to improve audience engagement by leveraging a wide variety of consumer data sources, all in real time as activities and events occur.

“We saw an opportunity with SAP Audience Discovery and Targeting to influence our customers’ buying behavior and reduce product return rates. We sell over one million products to eight million customers and estimate that decreasing our return rate by only 1% can lead to seven-digit Euro savings on the bottom line. SAP Audience Discovery and Targeting enables our marketing teams to uncover hidden trends driving product returns across different customer groups and build high precision marketing campaigns to target these groups and influence their return behavior.”

Michael Kuenzel, VP of IT, Home Shopping Europe GmbH (HSE24)


Social contact intelligence• Follow conversations and understand

consumer affinities• Track and score interactions• Follow leads from anonymous contacts to

buying consumers• Create target groups based on real-time conversations

Audience discovery an targeting• High-performance customer segmentation on Big Data• Great visualization and exploration tools to slice and dice

data on the fly• Optimize target groups leveraging predictive analytics• Personalization of messages for any channel

Customer value intelligence• Strategic market segmentation using the current and

potential value of your customer• Prioritize customers with behavior profiling, whitespace

analysis, and buying propensity• Personalize your engagement for every customer

Benefits

• Real-time insights into your audience by consolidating and aggregating all relevant data sources and then slice and dice to find patterns and understandings, all in real time as activities and events occur

• Multidimensional view of you customer relationship: not just revenue, but margin, lifetime value, churn, engagement, and satisfaction

• Proactively choose which customers to invest in and engage with

• Tailor the offering for each segment and consumer• Recommendations for which offerings to cross-

sell/up-sell to which customer segments• Invest the right resources with the right customers

for growth• Stratification, segmentation, and playbooks to

manage differentiated treatment

Audience Engagement

STRATEGY

Customer value intelligenceGrow your most valuable

customers

EXECUTION

Audience discovery and targetingOptimize target groups for

omi-channel campaign

INSIGHTS

Social contact intelligenceMarket to the right people

1 2 3

SAP Customer Engagement Intelligence provides deep understanding of your audience and personalized engagement – available for deployment in the cloud or on premise.


The SAP Solution

Audience EngagementTranslate audience data into revenue growth


The SAP Solution

1 2 3

Achieve an entirely new level of personalization on your Web site to increase site stickiness and click-through rates.

“SAP InfiniteInsight Recommendation allows us to offer our members new services that have boosted engagement and overall site stickiness. Best of all, results have been consistent over the past year, giving a real competitive advantage to our company.”

Rémi Kirche, Marketing Director, Skyrock.com


Provide business analysts and data scientists with a fully automated process

Analytical data sets with clicks not code• Create thousands of derived attributes• Define metadata once• Build analytic dataset automatically

Fully automated modeling process• Regression/classification• Segmentation• Forecasting• Association rules

Social network analysis• Use social variables for enhanced prediction

Advanced model deployment and management

Benefits

Content personalization• Tailor the content displayed on the home-page to

the visitor’s profile before (s)he makes a single click

• Include your visitors’ social circle information to generate better recommendations

Product recommendation• Propose similar products that are highly relevant to

your visitors• Push complementary offers to shoppers when

they’re about to convert their shopping carts

Social recommendation• Recommend friends based on individuals with

similar profiles, interests, behaviors, or purchases

Targeted ads• Display the most relevant ad

E-marketing• Pinpoint your viral “influencers” • Personalize your newsletters/e-mail campaigns

Predictive Analysis

Predictive AnalysisAnalyze more data to get more personalized

1 2 3

SAP InfiniteInsight can analyze as much (or little) data as you have. The more data you analyze, the more personalized your Web site will become for your audience or customer.


The SAP Solution

NO Personalization

You might like… like…

DYNAMIC Personalization

You might like…VS.

SAP HANA Platform

Mobile First Experience

Applications Analytics

Partnersand

Startups

With our Open Platform, Thousands of Partners and Startups are Bringing More Innovations to You Faster than Ever


The SAP Solution

1,200SAP HANA

Startups

2,000Software and Tech Partners

3,000Service Partners

4,000Solution Resellers

Why SAP?


Why SAP?

SAP’s vision is to help the world run better and improve people’s lives. Our mission is to help every customer become a best-run business – this is what we bring to you.

We are the market leader in enterprise application software, with more than 253,000 customers across 180 countries. Our solutions and services are today’s business enablers and we continuously work with customers to help them address the needs of tomorrow.

Our media and entertainment solution portfolio provides:• A comprehensive, end-to-end solution on a modern architecture• Deep industry experience and customer base• Excellent customer references with tangible results• Platform for the 21st century: Innovations to support your business

model today and in the future

Our inspiration: “We remain focused on the success of our customers – they are at the heart of our ambitions. The passion of SAP employees has brought amazing momentum…our best-ever financial results…are testament to our strategic direction, our customer orientation, and our world-class employees.”

Bill McDermott, CEO, SAP

Our Place in the Media and Entertainment Industry


Why SAP?

2,000+ customers worldwide

Deep, industry-specific capabilities

Global reach and scale

Co-innovation with customers

Clear industry roadmap

7 of the top 10Media companies use SAP

SAP Drives Value in Media and Entertainment


Why SAP?

The following respected media companies have already realized value through business transformation, enabled by SAP.

Customer Solution Implemented Realized Benefits of SAP

• SAP CRM• SAP HANA• SAP Predictive Analysis• SAP Customer

Engagement Intelligence

• Real-time aggregation of customer data that provides a complete view of every customer

• Meaningful customer interaction that is more powerful and effective• Targeted marketing campaigns that focus on unique

customer segments• Relevant offers that more accurately address customer demands

• SAP InfiniteInsight (predictive models to help create personalized offers more quickly and accurately)

• 14 % more products per customer household• 28 % reduction in customer churn rate• 80 % reduction in model creation time• 42x greater throughput for central analysts

• Early signal detection system • Automated signal detection system powered by predictive analytics on SAP HANA selects best model for metrics automatically; increases accuracy of forecasts (detects critical signals from 100 PB of eBay data)

• Decision tree logic and flexibility to adjust scenarios allow eBay to adapt best model for its data

• Real-time offer management (online gaming)

• Per-player profitability analysis and increased understanding ofplayer behavior led to 10-30% increase in annual revenues

• Increased data volume and processing capabilities to communicate personalized messages to players (5,000 events/second loaded onto SAP HANA)

• SAP Sybase IQ (very large and fast analytic database)

• 800% faster data loads• Responses up to 100x faster• 70% compression rate = hard-cost storage savings

The SAP single, integrated platform, SAP for Media, provides a comprehensive, end-to-end solution that:• Supports all lines of business and industry verticals,

including broadcasting, entertainment, publishing, and agencies

• Aligns and accelerates activities across all business functions

• Supports local, regional, and global business growth• Supports a modular implementation approach

Corporate Functions > Human Resources | Procurement | Information Technology

Technology > Big Data | Analytics | Enterprise Mobility | Cloud Solutions

Compelling Content Creation Media Content Monetization Audience Monetization

• Media planning• Content acquisition and

management • Collaborative job management• Production management

and accounting• Editorial production

• Marketing and brand management• Rights management and

license sales • Digital content sales• Subscription management• Multichannel publishing

• Audience analysis• Engaging customer

experiences• Cross-platform advertising

With more than 15 years of product innovation, SAP offers a complete media suite – all under a single platform, providing your company with the choice of one or more business modules to address customer requirements.

We believe our strategy and solutions will provide the enabling platform to support your business transformation objectives.

Industry Value Map for Media

SAP’s Integrated Solution


Why SAP?

Choice of Deployment Alternatives: Develop, Test, Deploy on Premise, Cloud, or in a Hybrid Environment


Why SAP?

Production

Pilot/POC

CapitalExpenditure

OperatingExpenditure

On Premise Cloud Pilot Hybrid Cloud

Integrated Big Data Stack

SAP provides a single, integrated stack that supports the full range of Big Data solutions to meet customer requirements. In addition, we have a team of 100+ data scientists working with customers on some of the most sophisticated use cases.

Proven Time to Value in Large-Scale Implementations

The world’s leading media and entertainment companies, across every major segment of the industry throughout the world, continue to rely on SAP to enable them to offer a comprehensive customer experience.

Key Breakthrough Innovations

The SAP portfolio is based on the industry’s most innovative technology foundation – including SAP HANA, mobile solutions, analytics, and cloud solutions – to deliver business process optimization and efficiency at the lowest possible cost.

Delivering Value to Media and Entertainment Companies

Most of the world’s leading media and entertainment companies, across every segment, are reaping the benefits and running better with SAP software and services.

The Value of Partnering with SAP


Why SAP?

SAP brings a strategic partnership with an unparalleled amount of experience and strong track record in the media and entertainment industry to lead you on your business and IT transformation journey. Whether a customer needs solutions in applications, cloud, mobile, analytics, or database and technology areas, SAP can partner and deliver.

Next Steps

Next Steps

Achieving your company’s vision will require significant focus and executive commitment along with a business partnership with SAP to drive a successful outcome. SAP brings unparalleled experience and a strong track record that will help you run and grow your business more competitively for years to come.

Recommended next steps for your transformation journey:• Conduct a Design Thinking workshop – joint workshop with business

leaders to help identify opportunities for business innovation• Connect you with other media, entertainment, and publishing companies

to exchange best practices and experiences• Leverage the SAP Value Engineering approach to identify commercial

business and use cases• Proof of concept design and development against a specifically designed

use case

SAP is committed to enabling a successful transformation program. SAP is looking forward to growing the relationship and helping you achieve your corporate and business strategy objectives.


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