Rethinking the Digital TransformationIQ DIGITAL PRESENTS

CONTENTS

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Market efforts to further improve quality

Our quality benchmark: better advertising

Focus on content

Alignment with user preferences

Optimum viewability

Value and quality

Annex

Background information on the “Digital Transformation” at iq digital

MARKET EFFORTS TO FURTHER IMPROVE QUALITY

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The needs of users are the focal point for the digital market partners – and with good reason. Because usability is the decisive factor for effective advertising and successful publishing:

The user expects fast access to information on the website. There should be no content overlay. The content should be displayed in a way that suits reader preferences.

Advertising must be integrated in a homogeneous way – inthe visible area and in the reading flow without covering the content. This form of integration greatly increases acceptance for advertising. The growing use of ad blockers shows that users reject advertising they feel is intrusive. The consequence for the advertising client: negative ad impact. The consequence for publishers: it becomes more difficult to refinance editorial content through advertising.

MARKET EFFORTS TO FURTHER IMPROVE QUALITY

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Digital players are already reacting: in future, Google Chrome will block advertising if it impairs the utilisation of content.

Changes in media utilisation also have an impact: The share of desktop-only users in an average month fell by 19% year on year to the end of March 2017. During the same period, the share of mobile-only users increased by 52%. As mobile reach is becoming increasingly dominant, the content needs to meet the cross-device needs of users.

The use of qualitative performance parameters like viewability and ad impact requiresa common basis – which is why “usability” is in the interest of all market partners.

20,7%

2,0%

16,8%

3,1%

Desktop-only users

Mobile-only users

1.41m 2.15m

-19%

52%

MARKET EFFORTS TO FURTHER IMPROVE QUALITY

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This development caters to the requirements of the digital transformation: better positions, new formats and targeted serving of these formats boost the appeal of advertising.

Because media utilisation preferences are changing, the motto for websites and advertising must increasingly be:Mobile First!

At the same time, there is also growing flexibility: as formats are no longer bound by rigid positions, advertising can be served in a user-adapted way. Users are reached exactly when the advertising client needs them.

All of this meets the requirements of the advertising market for new and improved performance parameters such as viewabilityand brand safety.

USABILITY AS TOP-PRIORITY COMMITMENT

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This is also the goal of the COALITION FOR BETTER ADS, in which publishers, advertising clients, media agencies and super-networks like Google and Facebook are all involved.

Members include the OmniCom Media Group, groupm, all IABs in Europe, the German Advertisers’ Association Organisation (OWM), companies in the OQM like IKEA and BMW; Deutsche Bank, Ferrero, Henkel, INGDIBA …

IQ DIGITAL: BETTER ADVERTISING

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Moreover, iq digital supports the initiative of some of our publishers: “No Ads, No Content”. If this initiative is to be a success, it must be ensured that users who deactivate the ad blocker are not bothered by intrusive advertising.

Based on these requirements, iq digital – a founding member of the COALITION FOR BETTER ADS Lab within the Federal Association for the Digital Industry (BVDW) – has drawn up measures that will be implemented in Q4/2017 and Q1/2018.

The objective: The advertising experience – new formats, reliable serving,better viewability, higher user acceptance – should match theeditorial quality of the iq digital portfolio.

“No Ads, No Content” offers the advertising client a key benefit: the planned target group corresponds to the reached target group.

OUR QUALITY BENCHMARK: ONLY THE BEST INGREDIENTS

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CONTENT USER PREFERENCES

OPTIMUMVIEWABILITY

HIGH AWARENESS SMART

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FOCUS ON CONTENT

FOCUS ON CONTENT

10CONTENT USAGE VIEW AWARENESS SERVING

Already the case today: no more stationary layers or pop-ups!

Discontinuation of thelast intrusive formats like:

Wrapper ad

Content switch 3D cubeMobile interstitial

QUALITY SITESwith

QUALITY ADVERTISING!

FOCUS ON CONTENT

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Whether online or mobile – the basic rule is thateditorial content must not be covered up. In other words, the user must have direct access to the publisher’s content.

The new page layout ensures that the FOCUS IS ON THE CONTENT of the websites.

One important outcome of this measure is that the new site structure results in higher overall satisfaction levels for utilisation of the website. Participants in an iq digital study say that they can now use the pages more effectively and conveniently. They welcome the fact that advertising (has been) “pleasantly integrated in the text and the website, and does not detract from the overall impression”.*

The higher satisfaction levels during use of the websites also boosts the likeability values of the advertised brands. If the advertising is homogeneously integrated in the site structure and does not cover the content, the likeability scores for the advertised brands increase by up to

* Study – iq digital online community (see Annex)

40%*

FOCUS ON CONTENT

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The homepage helps readers to find their bearings, and this is where advertising clients can continue to use large-format, branding-based formats and therefore use the “calling card” of a website for their campaigns. The new positions in the content create better options for storytelling formats.

The future page layout distinguishes between navigation pages like the homepage and pages featuring editorial content such as articles.

On article pages, the ad positions will be focused on the inner space. The only ads served in the outer area will be wallpaper and sitebar ads. This measure will reduce the number of ad positions per unit of screen area.

Serving of formats in the outer area will be discontinued on tablet devices**.

* Study – iq digital online community (see Annex) / ** With the exception of the homepage

iq digital is removing these ad formats from its portfolio.

FORMAT STREAMLINING FOR ROTATION BOOKINGS

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Fewer intrusive formats, greater focus on visible inner spaces

VIDEO AD PACKAGE

Panorama ad

Multi-screen

Billboard

These ad formats will no longer be offered on the homepage.

FORMAT STREAMLINING FOR HOMEPAGE

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Old formats make way for new advertising options

Panorama ad

Pull-up Banner

Mobile Movie ad

Mobile Preloading

ad (Smartphone)

These ad formats will no longer be offered.

Only banners up to a format of 2:1 will beserved in the top ad slot.

FORMAT STREAMLINING FOR MOBILE

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Streamlining for rotation and fixed positions

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ALIGNMENTWITH USERPREFERENCES

ALIGNMENT WITH USER PREFERENCES

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Streamlining for rotation and fixed positions

Future: aspect ratios instead of pixels

Mobile usability

INHALT NUTZUNG BLICK AWARENESS STEUERUNG

ALIGNMENT WITH USER PREFERENCES

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* Study – iq digital online community (see Annex)

All positions and formats are in line with the motto: Digital First.

There will be convergence of online and mobile ad positions.

The formats will be adapted to the aspect ratios.

Successful outcome: advertising is no longer seen as basically annoying but sometimes even seen as a benefit. This is particularly the case if the advertising is thematically related to the content and can therefore be effectively integrated in the content.*

A further advantage in the stationary segment is that, in future, a maximum of two formats will be visible on a screen, thereby boosting attention levels for the individual advertising client.

Concentration on the inner spaces also takes accountof user preferences.

NEW POSITIONS FOR:

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OPTIMUMVIEWABILITY

Alignment of the positions to the reading flow of the user improves the viewability of content and advertising.

iq digital’s new InView Load technology (proprietary development) supports the viewability of the advertising.

In future, display formats will only be served if they appearin the line of sight of the user. This improves ad impact and– thanks to faster page loading – increases the usability ofthe websites.

This means that first screen positioning is no longer the central factor for viewability.

OPTIMUM VIEWABILITY

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InView loading

InView loading

InView loading

HIGH AWARENESS

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WITH NEW FORMATS

NEW FORMATS – STATIONARY

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Attractive alternatives to underpin digital marketing: formats in the IAB NEW AD portfolio – digital design & strong branding

2:1 1:2

3:1 6:1

Stationary

Width px*

Heightpx*

1:1 300 300

2:1 1,000 500

3:1 1,000 333

4:1 1,000 250

6:1 1,000 167

8:1 1,000 125

10:1 1,000(970)

100(90)

Source: https://www.iab.com/newadportfolio | In brackets: specification for transformation format acc. to IAB Transition Guide

Alongside the familiar sitebar ad, it is above all the new 4:1 format with 1,000 x 250 px that is rated positively. Although the users say the 4:1 format is conspicuous, they nevertheless describe it as trustworthy and acceptable. 70% of users findthe format visually appealing or very appealing.

The response to the 3:1 format (1000 x 333 px) and the 2:1 format (1,000 x 5000 px) is also positive: 58% and 54% of users describe these formats as (very) appealing.

These ad formats also achieve very high scores – up to 84% – in the mobile segment.

The mobile high-impact ad (1:1) banner also performs well, with a positive user score of 68%.

The new formats will be bookable on the portals that have implemented the new positions in the digital transformation.

NEW FORMATS ARE EXTREMELY POPULAR

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Acceptance levels among users for the new formats are high across the board.

* Study – iq digital online community (see Annex)

POSITIONING OF FORMATS

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Which formats will be stationary in which position?*

Position Format allocation to article pages

P1 Wallpaper| Sitebar

P2 Billboard | 3:1 | 4:1 | 6:1 | 8:1 | 10:1

P3 Medium rectangle | Halfpage ad | Skyscraper | 1:2 (300px wide) | 1:1 (300px wide)

P4 Content video ad | Wide rectangle | Superbanner | Billboard | 3:1 | 4:1 | 6:1 | 8:1 | 10:1

P5 Content video ad | Wide rectangle | Superbanner | Billboard | 2:1 | 3:1 | 4:1 | 6:1 | 8:1 | 10:1 | Fallback for content video ad

P6 Medium rectangle | Halfpage ad | Skyscraper | 1:2 (300px wide) | 1:1 (300px wide)

P7 Content video ad | Wide rectangle | Superbanner | Billboard | 2:1 | 3:1 | 4:1 | 6:1 | 8:1 | 10:1

Position Format allocation to homepages

P1 Wallpaper | Sitebar | Fireplace | Double sitebar

P2 Billboard | Cinema ad | 3:1 | 4:1 | 6:1 | 8:1 | 10:1

P3 Medium rectangle | Halfpage ad | 1:2 (300px wide) | 1:1 (300px wide)

P4 Billboard | 1:1 (1000x1000px) | 2:1 | 3:1 | 4:1 | 6:1 | 8:1 | 10:1

P5 Billboard | 1:1 (1000x1000px) | 2:1 | 3:1 | 4:1 | 6:1 | 8:1 | 10:1

Position Format allocation to centre pages

P1 Wallpaper| Sitebar

P2 Billboard | 3:1 | 4:1 | 6:1 | 8:1 | 10:1

P3 Medium rectangle | Halfpage ad (also rotation) | Skyscraper | 1:2 (300px wide) | 1:1 (300px wide)

P4 Billboard | 3:1 | 4:1 | 6:1 | 8:1 | 10:1

P5 Not applicable

P6 Not applicable

P7 Wide rectangle | Superbanner | Billboard | 2:1 | 3:1 | 4:1 | 6:1 | 8:1 | 10:1

*Client-specific deviations possible – 1:1 (1,000x1,000px) always subject to specific approval (only possible on FAZ, SZ and ZOL)

POSITIONING OF FORMATS

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Which formats will be mobile in which position?

Position Format allocation to article pages

P1 2:1 | 3:1 | 4:1 | 6:1 |

P2 2:1 | 3:1 | 4:1 | 6:1 |High-impact ad (1:1) | Halfpage ad | Pull-up banner | Carousel ad | Rollover ad | Premium rectangle | Mobile content video ad

P3 2:1 | 3:1 | 4:1 | 6:1 |High-impact ad (1:1) | Halfpage ad | Pull-up banner | Carousel ad | Rollover ad | Premium rectangle | Mobile content video ad

P4 Standard as formats (low CPM) | Residual position formats

*Client-specific deviations possible

Multiple positions can be booked for storytelling both on the homepage as well as in time-based volume bookings inthe sections.

Homepage storytelling:

Combination of 3 positions (P2+P4+P5)

P2: billboard | cinema ad | 3:1 | 4:1

P4: billboard | 3:1 | 4:1 (with SZ and ZO also 1:1* + 2:1*)

P5: billboard | 3:1 | 4:1 (with SZ, ZO and FAZ also 2:1*, with FAZ 1:1* also possible here)

All formats are possible with rollover effect.

Combinations are freely selectable.

Standard price, regardless of the chosen combination

NEW STORYTELLING FORMATS FOR CAMPAIGNS

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Takeover bookings with iq digital

* Combinations with 2:1 and 1:1 formats are only possible by arrangement. 2:1 and 1:1 cannot be inserted simultaneously.

Section storytelling:

Combination of P2 with P4 OR P5

P2: billboard | 3:1 | 4:1

P4: billboard | 3:1 | 4:1

P5: billboard | 3:1 | 4:1

Only for exclusive insertions

Combinations freely selectable

Standard price, regardless of the chosen combination

NEW STORYTELLING FORMATS FOR CAMPAIGNS

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Takeover bookings with iq digital

Serving of P2 is not relevant for the reach guarantee | Not all 3 positions are integrated in all page types of a section. As positions P4 and P5 are not part of all page types, connection of the ad spaces via e.g. local-connect is not recommended.

SMART SERVING

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BASED ON VALUE

& QUALITY

SMART SERVING BASED ONVALUE AND QUALITY

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iq digital separates display andyield image teasers.

The quality of an ad matches the quality of the position.

High-quality display advertising is shown in viewability-optimised format. These positions are made available exclusively to the advertising client (and not to advertising networks).

DISPLAY(both IO and programmatic)

CONTENT(native teasers)

YIELD(image-text advertising)

OUR QUALITY BENCHMARK: ONLY THE BEST INGREDIENTS

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FOCUS ONCONTENT

ALIGNMENT WITHUSER

PREFERENCES

OPTIMUMVIEWABILITY

HIGHAWARENESSGUARANTEED

SMARTSERVING

USABILITY PORTFOLIO CONTENT DATA

More pronouncedstand-alone character

Intelligent storytelling formats thanks to the new positioning concept

Wide-ranging presenceover the entire page

WHAT’S IN IT FOR ME?

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How advertising clients profit from our measures:

Improvedviewability

Optimum control of net reach driven by digital

ad formats

Greateradvertising impact

A further important factor in improved usability of the website is the

ad performance – in other words, the loading time and the file size of an ad This is something over which iq digital has no influence.It lies within the sphere of responsibility of the advertising client and must be organised in such a way that the advertising reaches the user in optimum fashion. Themain precondition for this is compliance with the ad specifications of iq digital.

WHAT CAN THE ADVERTISING CLIENT DO …

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ANNEX

How does an online community work?

The duration is generally one or more weeks. During this period, participants are given new tasks and stimuli every day for discussion in a forum setting. The closed or open questions can be supplemented by stimulus material (e.g. images, videos, website dummy, link to live website). Eachuser can flexibly schedule the answering of questions or participation in the discussion during this period. It is also possible to set such things as target group filters and to predefine sequences of tasks.

What are the advantages of an online community?

The contributions and opinions of the users are surveyed and documented in real time. Targeted follow-up questions and moderator contributions are also possible. This means that interesting or unexpected aspects can be handled flexibly and quickly in order to address the topic in more depth.

The online community provides a preselected user base with a platform for …

• Handling tasks and questions(open and closed)

• Exchange and discussion based on predefined stimuli with other participants (forum)

USER SURVEY ON THE DIGITAL TRANSFORMATION ONLINE COMMUNITY: THE CONCEPT

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STUDY DESIGN

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A total of 93 selected persons were invited to take part in the iq digital online community. They were given various stimuli, questions and tasks to respond to during the 7-day duration of the community.

Method Online community (combination of qualitative and quantitative elements)

Field phase July 6-12, 2017 (Thursday – Wednesday)

Target group Users of the stationary sites of FAZ, Süddeutsche, Zeit Online, Wiwo, Handelsblatt

Target quotas

18 years of age + in Ger/Aus/Switz Strong communication skills/Expressiveness

No strict rejection of the ZEIT brand No general rejection of advertising

Willingness to visit websites via PC/laptop

Men: 55% / Women: 45% 18-29 yrs of age: 30% / 30-49: 45% / 50+: 25%

Education/Training: 15% / Working: 70% / Not working: 10% / Pensioner/Retired: 5%

School diploma: low: 20% / middle: 30% / high: 50%

INFLUENCE OF SITE STRUCTURE ON BRAND LIKEABILITY

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After contact with the new site structure, all the advertised brands are rated as more likeable.

BrandOld site structure

(Top2*)New site structure

(Top2*)

49% 69%

63% 66%

57% 66%

56% 59%

Question: How likeable do the advertised companies appear to you? (n=59)

*Contains both online and mobile users and reflects the weightedsum of their top 2 boxes (scale from 1 to 4).

<

NEW SITE STRUCTURE ACHIEVES VERY HIGH SCORES

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Question: Regardless of the content of the article: how would you describe your overall experience with the website you have just visited? How happy were you with the use of the website? (n=59)

The new site structure results in far higher satisfaction levels among respondents with useof the website. This applies to both articles used as stimuli.

18%

52%

39%46%

71%

48%

35%

46%

4%23%

4%7% 3% 4%

Old structure New structure Od structure New structure

Very interesting Quite satisfied 50/50

Not very satisfied Very dissatisfied

Article A Article B

“What I found initially annoying was the

displayed advertising itself, as I had to click it away before I could read the

article properly.”Female, 30-39 yrs of age

“The advertising is pleasantly integrated in

the text and the website, and does not detract from the overall

impression.”Male, 18-29 yrs of age

NEW FORMATS ARE SEEN POSITIVELY ANDDESCRIBED AS ATTRACTIVE

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44%

40%

42%

46%

37%

46%

14%

2%

33%

33%

28%

12%

18%

9%

4%

2%

Sitebar

Medium rectangle

4:1 format (1000x250px)

3:1 format (1000x333px)

2:1 format (1000x500px)

Wide rectangle

Wrapper

Layer/Pop-up

Appealing Very appealing

Question: If you think of your everyday surfing habits, how appealing do you find the displayed advertising format? (n=56)

Top 2 box

77%

74%

58%

54%

18%

The new page-wide ad formats are described as (very) appealing – while the old ad formats of wrapper and layerreceive low scores.

70%

4%%

4:1 format (1000x250px)

3:1 format (1000x333px)

2:1 format (1000x500px)

FAR MORE POSITIVE OPINION OF NEW FORMATS

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Question: Please assess the individual examples using the following descriptions Once again, please do not assess the advertising brand or the content but the type of advertising (e.g. the format, position, integration in the website).This type of advertising is … (n=57) Top2 from 6: 1=agree fully; 6=do not agree at all

The 4:1 format is described as conspicuous and acceptable. Wrappers and layers are seen as being particularly annoying, distracting and intrusive.

Trustworthy

Visally appealing

Likeable

Acceptable

Restrained

Annoying

Distracting

Inappropriate

Intrusive

Conspicuous

Novel

A good fit for thewebsite

Sitebar Wide rectangle Wrapper Layer

Trustworthy

Visally appealing

Likeable

Acceptable

Restrained

Annoying

Distracting

Inappropriate

Intrusive

Conspicuous

Novel

A good fit for thewebsite

Medium rectangle Billboard 4:1 Billboard 3:1 Billboard 2:1

THE CORRESPONDING MOBILE COUNTERPARTSARE ALSO SEEN POSITIVELY

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41%

52%

39%

57%

50%

43%

7%

5%

43%

23%

32%

11%

11%

9%

5%

7%

Banner 4:1

Banner 2:1

Banner 3:1

High-impact ad

Medium rectangle

Premium rectangle

Halfpage ad

Fullscreen interstitial

Appealing Very appealing

Question: If you think of your everyday surfing habits, how appealing do you find the displayed advertising format? (n=56)

Top 2 box

84%

75%

68%

61%

52%

The banner 2:1 and banner 3:1 are also popular on mobile devices. But users also really like the high-impact ad; more than two in three describe these ad formats as (very) appealing. In contrast, the fullscreen interstitial is not at all popular.

71%

13%

13%

THE CORRESPONDING MOBILE COUNTERPARTSARE ALSO SEEN POSITIVELY

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Question: Please assess the individual examples using the following descriptions Once again, please do not assess the advertised brand or the content but the type of advertising (e.g. the format, position, integration in the website).This type of advertising is … (n=55) Top2 from 6: 1=agree fully; 6=do not agree at all

Despite its prominent position, the banner 2:1 is very well received. The high-impact ad (1:1) is also seen as trustworthy and visually appealing. The fullscreeninterstitial is described as annoying and intrusive.

Trustworthy

Visally appealing

Likeable

Acceptable

Restrained

Annoying

Distracting

Inappropriate

Intrusive

Conspicuous

Novel

A good fit for thewebsite

Medium rectangle Premium rectangle Halfpage ad Fullscreen intersticial

Trustworthy

Visally appealing

Likeable

Acceptable

Restrained

Annoying

Distracting

Inappropriate

Intrusive

Conspicuous

Novel

A good fit for thewebsite

Banner 4:1 Banner 2:1 Banner 3:1 High-impact ad