“We Need To Look At A Range Of Different Revenue Models Across Digital”: Bauer Xcel MD

“We Need To Look At A Range Of Different Revenue Models Across Digital”: Bauer Xcel MD
SHARE
THIS



The first year of operations for Bauer Xcel has been a “test and learn” experience, according to managing director Carl Hammerschmidt, who told B&T the company has had to deliver a lot in a short space of time.

“Twelve months in we’re in the process of really optimising the products that we’ve got out there, taking those learnings and then applying them to new categories,” Hammerschmidt said.

“We’ve had to get to market very quickly, and we’ve had to deliver a lot in a very short amount of time, and to do that we’ve had to have complete focus on that digital capability.

Hammerschmidt said it’s a “good time” for Bauer to come to market with its digital offerings, with a serious shake up in the landscape lowering the barriers to entry.

“The environment has shifted significantly in the past three years,” he said. “What with the death of the homepage, the tipping point to mobile, the social nature of content. And to be able to come to market with mobile first products which have no legacy and are built for that environment, it’s a really great opportunity for the business.”

“In the last two years in coming out of the Mi9 partnership we’ve made some really big decisions around what a long term sustainable digital strategy looks like for the business, we’ve invested appropriately and we’ve acted really decisively and we’ll continue to back ourselves with those kinds of big decisions in the future.”

Managing Director Carl Hammerschmidt

Managing Director Carl Hammerschmidt

And while Hammerschmidt said ad revenue has grown “exceptionally fast” since the birth of Bauer Xcel, he did admit the business needs to be constantly looking for new ways to make money, and putting digital as a priority is essential to safeguard against any struggles print may face.

And one of those revenue streams comes in the form of Bauer’s partnership with Gum Gum, which Hammerschmidt says allows the business to perfectly leverage one of its biggest assets, it’s “beautiful photography”.

“We’re always looking for innovative initiatives in the ad space beyond straight display, rich media, strong native offerings, we’re continually looking to expand our services and our offerings from our client,” he said.

“The image recognition technology in Gum Gum allows us to be able to serve contextually relevant ads, contextually relevant messaging for our clients, in the right environment and against one of our strongest assets, which is our business’s images and photography.

“Strategically, our business needs to look at a range of different revenue models across digital in the future, not just editorially driven, display and ad models, but how then do we parlay those audiences and that engagement into other revenue streams, whether it’s lead generation, ecommerce, transactional models – they’re the sort of adjacencies our business needs to look at,” he added.

“When you look at the audiences we have, it’s 90 per cent un-duplicated across print and digital so when you’re investing in digital products and you’re investing in digital initiatives, you’re investing in your audiences and you’re creating a much bigger reach for the business.

“In the last two and a half years since we’ve acquired our digital rights and built this new product set, we’ve gone from being a magazine business to being a truly multi-media, multi-platform business. Mobile first, customer centric and truly cross-platform and we’ve achieved that in a really short amount of time.”

Looking forward, Hammerschmidt added that it’s about extending Bauer’s digital reach and capability and making tracks on the projects already underway. The ‘To Love’ network that kicked off last year saw only half of its planned sites launch, which Hammerschmidt said comes down to a need to learn from the past year’s progress and fine tune future ventures.

“The first 12 months has been test and learn, optimise the platform, optimise the products we’ve got in market, and later this year and into next year we’re looking to go out into new segments and launch new products.

“We’re also looking to launch some of the international Bauer Xcel digital products into Australia. A good example of that is young women’s product, The Debrief, that’s digital only launch in the UK, it’s a great product, really strong digital only product with very strong native offering and there’s a great opportunity to scale that product internationally.

“We already have exceptionally strong offerings in celebrity, homes, food beauty, fashion and it’s not just about creating content verticals for us but also about how do we use our investments in data and audience segmentation to be able to segment our audiences horizontally across the offerings as well,” he added, hinting at the possibility of completition and further expansion of the To Love network over the next year or two.

“We’ve made significant investment in a data layer and a data strategy and how we use that then to identify beauty enthusiasts or busy mums or grocery buyers, or health and fitness enthusiasts across the whole network is something that we’re really looking at building out this year.”

Hammerschmidt also emphasised that this year will see the relaunch of Dolly and Cosmo, to a mobile first strategy.

“Beyond that we’re really looking to scale our international business as well; look to launch international products and bring those into the market, look how we can leverage technology, content, brands, across the big digital territories for Bauer, so the UK, US and Germany, so that’s going to be a focus for us later in the year as well, and how we can bring some real global brands and global scale into this market,” he added.

“All of our clients are looking to leverage the great editorial power that the business has got, the editorial horsepower, and the trusted brand environments we can provide. And as the world either moves towards a programmatic trading landscape or towards a highly bespoke, highly engaged native offering, I think we’re really, really well positioned to service that end of the spectrum and our clients are really looking to us for expertise and guidance in that area.”

Latest News

First Lady Michelle Obama and President Barack Obama Dance Together at the Presidents Ball
  • Media

Netflix Secures Producer Deal With The Obamas

It seems former US president Barack Obama and former First Lady Michelle Obama aren’t quite done with the international spotlight just yet. The Obamas have officially signed a multiyear deal with Netflix, which will see the power couple producing films and series with the streaming giant. According to Netflix, “The Obamas will produce a diverse […]

How To Spot A Trend Versus A Fad
  • Opinion

How To Spot A Trend Versus A Fad

Nils Vesk (pictured below) is an innovation architect who’s delivered programs for some of the most prestigious organisations in the world, including Microsoft, IBM, Commonwealth Bank and Nestle. In this guest post for B&T, he shows you how to spot a lasting trend that’s not merely just another passing fad…   The importance behind learning […]

Opinion

by B&T Magazine

B&T Magazine
Study: Almost Half Of Aussies Browse Mobile Retail Sites For “Retailtainment”
  • Marketing
  • Technology

Study: Almost Half Of Aussies Browse Mobile Retail Sites For “Retailtainment”

A new study today has revealed that although mobile commerce may have begun as a convenient way to shop on-the-go, it has quickly developed into an entertainment experience for many Aussies. The PayPal mCommerce Index Trends Report 2018 (which you can read in full here) found that two thirds (67 per cent) of Aussie smartphone owners browse shopping sites just […]

by B&T Magazine

B&T Magazine
Why Engagement Is The New Rule Of Content
  • Opinion

Why Engagement Is The New Rule Of Content

In this guest post, King Kong’s head of growth, Sabri Suby (pictured below), takes a look at recent changes to Google’s rankings and how it will affect content makers and the measure of any content’s success… Changes to Google’s ranking algorithm mean that time on a page is valued higher than the number of clicks. With these new rules […]

Opinion

by B&T Magazine

B&T Magazine
Fairfax Media Recruits 20 Trainee Journalists Across All Its Titles
  • Media

Fairfax Media Recruits 20 Trainee Journalists Across All Its Titles

Fairfax Media has today announced the recruitment of 20 trainee journalists to join the newsrooms of The Sydney Morning Herald, The Age, The Canberra Times, The Australian Financial Review, Brisbane Times and WAtoday. This represents one of Metro’s largest trainee intakes in years and underlines the commitment of the mastheads to fostering a new generation […]

Sydney Australia - November 7, 2011. An extreme close up of an American express card issued by the Australian bank Westpac.
  • Media

AMEX Launches Global Media Review

Are there not enough hours in the day? Are you cheek-by-jowl with your co-workers? Well, hopefully you won't win this.

Sydney Water & Republic of Everyone Create Vinyl Records Made Of Recycled Marine Plastic
  • Campaigns
  • Marketing

Sydney Water & Republic of Everyone Create Vinyl Records Made Of Recycled Marine Plastic

Sydney Water has pioneered a way to create records from marine plastics and, in doing so, encourage more people to join the movement of local clean-up groups rolling up their sleeves every weekend to clean plastics, litter and other pollutants from the city’s beaches and waterways. Plastics are collected by volunteers, then cut in pieces […]

Credit Card Compare Names Its First Head Of Marketing
  • Marketing

Credit Card Compare Names Its First Head Of Marketing

Aussie credit card comparison site Credit Card Compare has announced the appointment of Caroline Raffan as its inaugural head of marketing. Raffan (pictured above) has over 10 years’ experience in brand strategy, campaign development, digital marketing, events, public relations, content creation, market research, advertising, stakeholder management, social media marketing, and project management. She joins Credit […]

Why Programmatic Needs To Become A Branding Machine
  • Advertising
  • Marketing
  • Opinion
  • Technology

Why Programmatic Needs To Become A Branding Machine

In this opinion piece, Phil Murrell (pictured below), country manager for Australia and New Zealand at Sizmek, argues that programmatic ad spend needs to move up the branding funnel. When I started in digital advertising way back in 2004, we got our media insertion orders via the fax machine. We relied on that machine to […]

Opinion

by B&T Magazine

B&T Magazine
An Apology To Salmat’s Karen Lewis
  • Media

An Apology To Salmat’s Karen Lewis

Whoops! B&T's stuffed up and this certainly comes with our sincerest apologies for any offence caused.

by B&T Magazine

B&T Magazine
Adland Execs To Be Locked Up
  • Media

Adland Execs To Be Locked Up

Continuing adland's fascination with prison when it comes to charitable causes comes this latest trip to the slammer.

Australian Directors’ Guild Announces Mentorship Winners
  • Campaigns
  • Media

Australian Directors’ Guild Announces Mentorship Winners

Now in its second year, the Australian Directors’ Guild’s (ADG) Commercial & Content Directing Mentorship program announced its next round of eight mentoree recipients. The winners were announced at a special event held last night at FINCH, Sydney and attended by members of the screen and advertising industries. Acclaimed director, and ADG President, Samantha Lang, […]

Diversity Case Study Series: OMD
  • Advertising
  • Marketing
  • Media

Diversity Case Study Series: OMD

One need only look at the Cadbury Favourites chocolate selection to know it has nought to do with industry diversity.

by B&T Magazine

B&T Magazine
Eyeota Deep Dives Into Australian Automotive Purchase Behaviour
  • Media

Eyeota Deep Dives Into Australian Automotive Purchase Behaviour

Eyeota, the global leader in audience data, has today released its latest results on automotive purchase intentions in Australia. The results provide a deep dive into what motivates the buyer and segments those into six different personas.

APN Outdoor Joins The AANA
  • Marketing
  • Media

APN Outdoor Joins The AANA

AANA's annual Christmas dinner and dance got a teensy bit more crowded following this announcement this morning.

QMS Introduces ‘The Lonsdale’ To Melbourne
  • Advertising
  • Media

QMS Introduces ‘The Lonsdale’ To Melbourne

Digital outdoor media company QMS Media has turned on a new premium landmark digital billboard situated in the heart of Melbourne’s CBD. Delivering a commanding presence at the major intersection of Lonsdale and Russell Streets, ‘The Lonsdale’ offers extended dwell times to both vehicle and pedestrian traffic, impacting more than 2.2 million contacts per month. […]

Portrait of a woman looking through out the blinds. Office worker looking through window blinds
  • Opinion

The Lurking Brand Threats Facing CMOs

Treading on gardening rakes and possible alien abduction notable omissions from this CMO threats piece.

Opinion

by B&T Magazine

B&T Magazine
Women In Media Profile: Susannah George
  • Media

Women In Media Profile: Susannah George

B&T is delighted to profile Urbanlist supremo Susannah George who, we understand, is not related to George Brandis.

by B&T Magazine

B&T Magazine
Ikon Lands Avis Budget Group Account
  • Advertising
  • Marketing
  • Media

Ikon Lands Avis Budget Group Account

B&T chooses and recommends Avis and John Karandonis shoes. Hang on, that was the end of Sale Of The Century.

by B&T Magazine

B&T Magazine