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STATE OF THE
GERMAN


INTERNET
2021
MAY 20, 2020
JUNE 8, 2021
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y
109
72
GIX +51%
Let’s get right into it with a look at the
GIX. Impressive 51% growth was
driven by larger caps like Delivery
Hero (+32%), Zalando (+52%) and
HelloFresh (+120%), as well as some
newcomers. Auto1, MyTheresa (both
IPOed), trivago, zooplus (now
valued >1B) offset the de-listing of
AxelSpringer and Rocket Internet.
MARKET CAPS IN €B
Source: Google Finance / Yahoo Finance
German Internet Index:


Digital Core Business,
valued >€1B, B2C
EIX
397
279
+42%
European Internet Index:


Digital Core Business,
valued >€1B, B2C
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MARKET CAPS IN €B
The same holds true for the EIX, as
listed European digital companies
had an excellent year. Key drivers
include Spotify (+35%), Booking
(+40%), Yandex (+60%), Farfetch
and Kindred (+200%), plus
newcomers Kahoot (Norway), The
Hut Group (UK) and Global Fashion
Group (Luxemburg).
Source: Google Finance / Yahoo Finance
MAY 20, 2020
JUNE 8, 2021
BAT
1139
1052
+8%
BAT:


Baidu, Alibaba, Tencent
In contrast, the major Chinese
platforms had a rather poor year
regarding growth. The reason: The
Chinese government prioritized
increasing their power and turned up
regulatory pressure. If you recall: the
cancelled IPO of Ant Financial and
the temporary disappearance of its
and Alibaba's CEO Jack Ma at the
end of 2020.
S
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p
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b
y
MARKET CAPS IN €B
Source: Google Finance / Yahoo Finance
MAY 20, 2020
JUNE 8, 2021
GAFA's total value is, again,
overwhelming. Just the additional
value created in roughly one year is
in the range of €1400B. To put it
another way, GAFA's growth in the
past year alone is 3.5 times the total
value of the EIX.
GAFA +36%
5172
3810
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b
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GAFA: Google, Apple,
Facebook, Amazon
MARKET CAPS IN €B
Source: Google Finance / Yahoo Finance
MAY 20, 2020
JUNE 8, 2021
GIX
72 109
+51%
EIX
279
397
+42%
BAT
1052
1200
+8%
GAFA +36%
3810
5172
The good news:
While the absolute
value of GAFA is
beyond compare,
Europe is catching up
in terms of growth.


We still fancy the idea
of illustrating the
dominance of the
digital behemoths
annually.
Source: Google Finance /


Yahoo Finance
MARKET CAPS IN €B
MAY 20, 2020
JUNE 8, 2021
12.9
2.5
2.1
€17.5B
€19B
Last year we compared
revenue from AirPods
with that of RedBull,
Puma and Bose. We
kind of liked the idea
and found that this year
AirPods revenue bested
that of Snapchat,
Twitter and Spotify—
combined.


Who knows, maybe
next year Apple's
AirTags will also be
worth its own story.
AIRPODS REVENUE VS TOP TECH COMPANIES 2020
Source: StatsPanda, OMR Research
2020: +€400M GMV


EACH DAY
€400M SALES


EACH YEAR
HAMBURG
MÖNCKEBERGSTR.
Source: Amazon Annual Report 2020,
Handelskammer Hamburg, OMR Research
Amazon's GMV (Gross
Merchandise Value - the
value of everything sold
on Amazon) grew by
€400M. Each and
every single day of
2020. All this stuff will
not be sold elsewhere.


To put that into
perspective, €400M is
the total value of all
goods sold on
Hamburg's Möncke-
bergstraße, our little
Champs-Elysee, 5th
Avenue or shopping
mile—in an entire year.
HAMBURG
MÖNCKEBERGSTR.
2020: +€400M GMV


EACH DAY
€400M SALES


EACH YEAR
PAST 12 MONTHS*
DIGITAL
WINNERS
*Early June 2021.
All right then, so the listed digital companies are
very much trending in the right direction. Now,
let's take a look at the:
We already spoke
about the GAFA
companies impressive
growth.
#5 +36%
Source: Yahoo Finance (June 8th 2021)
Even though ARK
Innovation ETF and
superstar investor
Cathie Wood took
quite a hit in early
2021, its total value
almost doubled in the
year.
#4 +80%
#5
Source: Yahoo Finance (June 8th 2021)
A couple of single
stocks, like Peloton or
Tesla, clearly
outperformed ARK ETF
in the last 12 months,
to come in third in our
Digital Winners
rankings.
#3 +220%
+140%
#5
#4
Source: Yahoo Finance (June 8th 2021)
Cryptocurrencies are
kind of a rollercoaster
asset, a nail-biting
investment thriller. If
you happened to have
invested about a year
ago, there's a good
chance you're just fine
with where things
stand now.
#2 DOGE: +12700%
#5
#4
#3
BNB +1960%
ETH +940%
BTC +240%
Source: CoinGecko (June 8th 2021)
Our top spot goes to
this guy from
Wisconsin. He
became the world's
top living artist in the
last 12 months. His
name is Mike
Winkelmann…
#1 No. 1 Living Artist
#5
#4
#3
#2
…better known as
Beeple. An NFT (Non-
Fungible Token) of his
piece “Everydays: The
First 5000 Days" was
sold for roughly
42,300 Ether at
Christie's in February
2021. Given the
growth of the Ether, this
would convert to
roughly €85M today
and thus surpass Jeff
Koons' "Rabbit" as the
most expensive artwork
by a living artist.
Kudos!
#1 No. 1 Living Artist
#5
#4
#3
#2
Beeple Source: OMR Research,
Christie’s, New York Times
If there are winners,
then there must be
losers as well, right?
Well, truth be told
finding digital losers
this year was difficult.
Even travel or leisure
companies, like Live
Nation and trivago,
considerably grew
their market cap.
Some smaller
companies saw their
value decline slightly,
but overall we could
not really find anyone
that could be called
"losers."


This leads us to the
basic question:
PAST 12 MONTHS:


NONE!
DIGITAL
LOSERS
HOW TO
CREATE
DIGITAL
VALUE?
In our last State of the German Internet
keynotes, we opined that value creation is
accelerated by bundling when platforms are at
work, customer access is under control, services
are combined and flywheels are set into motion.


This year, we want to focus on creating value by
unbundling. In our eyes, this is the most relevant
trend in the past year. The most compelling
example for this is…
… the unbundling of
banks. A traditional
bank might look like
this.
This lady might be
busy with her
checking account. This
service is offered, for
instance, by these new
players.
There are also a host
of new players
offering all kinds of
payment services…
… credit card


services …
… and trading
options.
The total value created through the unbundling of
banks is already massive, but has still not
materialized fully. It has disrupted entire
industries and even applied pressure to digital
platforms. Ebay feels competitive pressure with
regard to second hand, as does Google when it
comes to travel and shopping.
Let's change gears now and focus on the
applicable. What six trends might be worth
keeping an eye on for your company in the near
future?
D2C*
DECONSTRUCTING
*DIRECT TO CONSUMER
<
<
<
<
Two of the most
frequently asked
questions last year
were, "What is D2C
and how can I
become a D2C
brand?"


To start, this is how
traditional retail is set
up. Items are offered
in a third-party shop to
customers.
RETAIL
This, by contrast, is
D2C.
D2C
<
<
The most obvious
advantages: Cutting
out the middleman
means higher margins,
a deeper
understanding of your
customers and having
full control over your
brand image.
PROFIT
MARGINS
BRAND IMAGE
CONTROL
DIRECT
RELATIONSHIP
💎
The best example of a
global brand
transforming into a
D2C brand is Nike.
2017 2018 2020
2019
D2C ANNOUNCEMENT
<
<
<
In June 2017, Nike
announced its plans to
focus on D2C in the
future. The
performance of Nike
stock underlines the
value it has created
since.
NIKE SHARE VALUE
Source: Nike, Yahoo Finance
<
<
<
<
<
It's by no means
merely the global
legacy players that
can benefit from a
DTC strategy. Several
European brands
created value by
adopting the practice.
So how exactly are
they doing this? Let's
break it down in our
"D2C Playbook."
EUROPEAN PLAYERS
≈ €1B
VALUATION
>€300M
ACQUIRED FOR
≈ €1.2B
VALUATION
BUILD A
COMMUNITY
STEP #1
D2C


PLAY


BOOK
<
<
<
<
Each of these
companies either
grew out of or are
firmly rooted in a
niche community. The
key pillars to
successful community
building are:


Proximity to influencers
and opinion leaders
and strengthening the
relationship.
#1 BUILD A COMMUNITY
PROXIMITY


TO COMMUNITY
INFLUENCERS
<
<
<
Being a relevant and
authentic content
creator within the
community. This can
be straight forward,
like with tutorials or
simple tips on how to
use your products.
#1 BUILD A COMMUNITY
PROXIMITY


TO COMMUNITY
INFLUENCERS CONTENT


CREATION
<
<
Creating and
maintaining a thriving
offline community. This
could be travelling the
world to engage with
your community, like
GymShark did, or
opening up pop-up
stores and organizing
offline events.
#1 BUILD A COMMUNITY
PROXIMITY


TO COMMUNITY
INFLUENCERS
CONTENT


CREATION OFFLINE


CONNECTION
<
Personally interacting
with your community.
Take the example of
German hype brand
6PM.
#1 BUILD A COMMUNITY
PROXIMITY


TO COMMUNITY
INFLUENCERS
CONTENT


CREATION
OFFLINE


CONNECTION PERSONAL


INTERACTION
<
<
INSTAGRAM
@achraf: Here is your exclusive
code to the 6PM Shop: XYHECZ 🔥
1m ago
6PM founder Achraf
has reset the bar for
creating both
engagement and
proximity. This post
triggered over 24K
comments—all because
Achraf personally
asked if anyone wants
a code to buy his
clothes a little earlier.
And would you
believe it: he still
answers every single
PM himself.
<
<
PERSONAL


INTERACTION
SUMMARY: BUILD A COMMUNITY
PROXIMITY


TO COMMUNITY
INFLUENCERS
CONTENT


CREATION
OFFLINE


CONNECTION
So, this is step one:
Walk your talk!


Live, breathe and be
your community.
SHARPEN
YOUR
PRODUCT
STEP #2
D2C


PLAY


BOOK
<
<
<
#2 SHARPEN YOUR PRODUCT
If your product is hard
to differentiate, try to
stand out with a
unique story. Sneaker
brand Veja is a prime
example with their
spin on sustainability.
UNIQUE


NARRATIVE
<
<
<
#2 SHARPEN YOUR PRODUCT
Part of your owned
narrative can also be
special editions. Nike
attracts their
community to their
proprietary channels
via exclusive offers
and products.
UNIQUE


NARRATIVE
SPECIAL


EDITIONS
<
<
<
#2 SHARPEN YOUR PRODUCT
Finally, the 101 of
marketing: scarcity.
Make sure that it's
(sort of) hard to get
your stuff. This creates
hype and FOMO.
UNIQUE


NARRATIVE
SPECIAL


EDITIONS
ARTIFICIAL
SCARCITY
PUSH
CUSTOMERS
INTO YOUR
PROPERTIES
STEP #3
D2C


PLAY


BOOK
#3 PUSH CUSTOMERS INTO YOUR PROPERTIES
REDUCED SUPPLY
TO 3RD PARTY
RETAILERS
Now that you got
your community's
attention: How to cut
out the middleman?


Starve the retailers.
#3 PUSH CUSTOMERS INTO YOUR PROPERTIES
Create your own
physical space. And
make sure that the
touch and feel is right
—it needs to express
your brand.
<
REDUCED SUPPLY
TO 3RD PARTY
RETAILERS
SMALLER &


MORE PERSONAL
STORES
#3 PUSH CUSTOMERS INTO YOUR PROPERTIES
Establish your own
digital environment.
SMALLER &


MORE PERSONAL
STORES
REDUCED SUPPLY
TO 3RD PARTY
RETAILERS
ENGAGEMENT
THROUGH APPS
BUILD


YOUR OWN
TECH STACK
STEP #4
D2C


PLAY


BOOK
<
<
Last, but not least:
your backend needs
to be up-to-date. We
have been looking at
Nike's tech stack using
the website "Built
with." To structure the
tech stack, we
clustered the tools into
three areas: Shoptech,
Mar(keting)Tech and
ContentTech.
<
<
<
<
<
SHOPTECH MARTECH CONTENT-
TECH
Our analysis of 40
D2C brands found
that these tools were
the most frequently
used. If you happen
to need some
guidance with tools,
check out OMR
Reviews—our software
reviews platform—and
profit from the know-
how and experience
of the OMR
community.
SUMMARY: DECONSTRUCTING D2C
#1 BUILD A
COMMUNITY
#3 PUSH
CUSTOMERS INTO
YOUR PROPERTIES
#4 BUILD YOUR
OWN TECH STACK
#2 SHARPEN YOUR
PRODUCT
CREATOR
ECONOMY
Influencer marketing was the talk of the town the
past few years. The next level is the creator
economy: People with audiences large enough to
create their own brands. Why? People tend to
follow people on social media and as such these
"creators" outscore brands on organic reach and
do not need to invest heavily in paid ads.
<<
<
<
<
236M 25.3M
SOLD TO
"COTY" FOR
€544M
The best example is
the Kardashian-Jenner
clan. A significant part
of Kyle Jenners 236M
followers followed
Kylie Cosmetics as
well. In 2019, it was
sold to US cosmetics
giant "Coty" for over
€500M. Safe to say,
there is money to be
made here.
The core competence of a creator does not
usually entail fulfillment or sourcing, meaning
there is a mutual benefit in finding a suitable
creator in your niche and building a common
brand. Worth keeping in mind: The creator
economy is not exclusively for fashion or
cosmetics.
MrBeast:
62 M


Subscribers
<
<
<
Jimmy Donaldson, aka
Mr Beast, has one of
the largest followings
on YouTube in the
world: 62M followers.
Late last year, Mr
Beast decided to
become Mr Beef…
<
<
<
<
... and opened a
massive number of
burger joints at once.
It’s hard for a creator
to do this on his or her
own. So he partnered
with Robert Earl,
founder of Planet
Hollywood. Earl's
company "Virtual
Dining Concepts"
launches new food
chains in
collaboration with
creators and music
stars. He supplies the
infrastructure, so-
called "ghost
kitchens," ...
300


RESTAURANTS
ROBERT EARL


FOUNDER PLANET
HOLLYWOOD
<
<
<
<
<
... while Mr Beast
brings the audience.
Just one video
generated 22M
views, pushed the
MrBeast Burger app
to the top of the App
Store and sold 2M
burgers—in less than
two months. Our
advice: Make creators
your business
partners, build
companies together
with them!
8-Year old Ryan Kaji is
the world’s top-earning
Youtube star
€164M


RETAIL


SALES
<
<
<
<
<
Another one? This is
YouTube's top earner
Ryan Kaji. He
basically unpacks toys
and reaches 30M
subscribers. Toy
company Bonkers saw
this opportunity and
launched a series of
best-selling toys with
him.
Ryans World:
29,8 M


Subscribers
<
<
<
And in Germany?
AboutYou is a pioneer
on co-creation, from
creator collections
and brands to
dedicated companies.
A prime example is
the cooperation with
Lena Gercke. A
winner of "Germany’s
Next Top Model," she
generated an
estimated €50M in
revenue for AboutYou
since they began their
co-op.
€50M


IN 3 YRS
<
<
<
<
<
<
<
But even smaller-scale
companies can get in
on the game.
Hamburg-based start-
up Goodlife Company
sells low-sugar,
healthy snacks called
"Hej Natural." They
partnered with
Germany's biggest
fitness influencer
Pamela Reif to co-
create "Naturally
Pam." The creator
brand outreaches the
mother brand by a
significant margin.
Naturally PAM:
228K


Subscribers
HEJ Natural:
80K


Subscribers
<
<
<
<
<
<
Even classic companies
can become part of the
creator economy. Family-
owned juice company
"Dietz" founded a spin-off
to launch new brands.
"BraTee," featuring
German rapper Capital
Bra, is their top release so
far.


So please note: Combining
creators reach with
traditional business know-
how is within reach for
quite some different
companies in terms of size,
location or product.
6M UNITS


SOLD IN 2 MONTHS
METAVERSE
THE
The term "Metaverse" was coined by US science
fiction author Neal Stephenson. In his book,
Snow Crash, he describes a virtual parallel world
with its own economic system, in which people
congregate. It inspired a lot of tech founders and
is one of the current hype buzzwords on the US
tech scene.
<
<
<
Sprawling games such
as Fortnite and Roblox
are probably closest
to reaching metaverse
status at the moment.
Massive numbers of
people meet and
spend chunks of time
here each day. So all
this attention and time
spent spurred on a
new development…
350M


ACCOUNTS
202M


MONTHLY


ACTIVE USERS
<
<
<
… including virtual
currencies, creator
communities,
proprietary app
stores. These games
are becoming a
permanent virtual
environment, a place
where people meet to
do… well, just about
anything.
GAMES LEVEL UP TO
PLATFORMS
Take Fortnite's "Party
Mode." Players lay
down their weapons
and spend time
together, listening to
music, dancing,
chatting…
PARTY TIME
<
<
<
MOVIE TIME
… or watching movies
together. The trailer for
Christopher Nolan's
latest flick, "Tenet,"
was first shown
exclusively in Fortnite,
while Disney screened
an exclusive Star Wars
trailer and The Fortnite
Movie Theater showed
"Inception" in full.
Hollywood Studios
seem to prioritize the
metaverse.
< <
<
<
<
CONCERT TIME
Concerts, too, are a
thing here. Travis
Scott, one of the
biggest hiphop
superstars, played live
three nights in a row
as an avatar in
Fortnite, Lil Nas X
performed on Roblox.
33M people watched
the show (and no,
that's not a typo.
33,000,000 people
really watched the
show!).
<
<
These gamers, maybe
"gamers," are also
recreating their
favorite fashion pieces
for their avatars in the
metaverse as an in-
game expression of
their offline
personality. One such
way is by reverse
engineering their
favorite clothes pixel
by pixel as shown here
on Animal Crossing.
FASHION TIME
<
<
Finally, believe it or
not, people also tie the
knot inside the
metaverse. When
corona caused
weddings to be
cancelled en masse,
some couples said "I
do" in virtual events in
Animal Crossing.
TIME FOR LOVE
Ok, there is a lot going in the metaverse, which
leads us to the question: What does this all
means for us? How do we get into the game?
BREAKING INTO


THE METAVERSE
AS A BRAND
<
<
<
The most direct
method to personalize
avatars is with "skins"
and "virtual items." In
some games, this
happens through
costly brand
collaborations with
games, e.g. Nike
placing its "Air Jordan
Skin" in Fortnite. In
other games you still
can sneak in your
branded accessories.
Take, for example, this
Valentino dress.
#1 SKINS & VIRTUAL ITEMS
<
<
<
<
<
<
#1 SKINS & VIRTUAL ITEMS
Valentino worked with
an influencer to rebuild
this upscale fashion
dress for Animal
Crossing. She posted
the Valentino dress with
a special code on her
Instagram account so
that gamers could
wear that dress within
the game.
40K


INSTAGRAM


FOLLOWER
<
A second option is to
create microgames or
worlds within the
metaverse. This has
been done by Warner
Bros. to promote
"Wonder Woman 84."
Roblox users could
explore the "paradise
island of Themyscira,"
train alongside warriors
and collect Wonder
Woman-ish specific
items.
#2 GAME-IN-GAME EXPERIENCES
<
<
This micro world
generated
approximately 25M
visitors. Compared
with the reach of the
YouTube trailer,
Roblox was able to
deliver roughly 2/3 of
the reach.
#2 GAME-IN-GAME EXPERIENCES
25M


IMPRESSIONS
40M


VIEWS
<
<
<
<
<
A third option of
sneaking into the
metaverse is with
guerrilla tactics. This is
Stevenage FC, a small
fourth-division football
club sponsored by
Burger King. Why is
that?
#3 GUERILLA MARKETING
<
<
<
Since Stevenage can
be chosen as a team
on EA Sports' FIFA.
Basically, you can play
with Stevenage against
the biggest clubs or
even chose global star
players to be on the
team in the Burger
King jersey.
#3 GUERILLA MARKETING
Free kick, free Whopper meal! Score a free
kick with any @StevenageFC superstar,
share the video on here and win a free
Whopper meal! #stevenagechallenge
Burger King
@BurgerKingUK
<
<
<
<
<
<
#3 GUERILLA MARKETING
Probably nobody
would have noticed if it
didn’t come along with
a social media
campaign called the
"Stevenage
Challenge." Players
were asked to post
videos of their goals
with Stevenage FC
using a dedicated
hashtag to win free
burgers meals. The
campaign was quite
the hit.
1.2B


IMPRES-


SIONS
<
<
Players had fun
choosing Mbappé,
Ronaldo, Messi or
Neymar to take free-
kicks and score goals
for burgers—and they
did so with Burger King
on their otherwise
priceless chest. The
result: 1.2B (!)
impressions.


So much on the
potential of the
metaverse. Here's a
quick recap of three
ways to crack into it:
#3 GUERILLA MARKETING
BREAKING INTO THE METAVERSE AS A BRAND
#1 VIRTUAL SKINS


& ITEMS
#3 GUERILLA


MARKETING
#2 GAME-IN-GAME


EXPERIENCES
EFFECT
STREAMING
THE
There is a new social-media phenomenon that
we've dubbed the "streaming effect." Every year,
new shows launched on Netflix, Disney or
Amazon create a global buzz on specific topics.
This is a chance for brands to ride this pop-
cultural wave.
<
<
New shows create
global attention. These
numbers show the
views new original
content shows on
Netflix posted within
the first 28 days only.
76M
70M
65M
64M
82M
NETFLIX’S MOST-VIEWED ORIGINAL TV SHOWS
BIG BRANDS X STRANGER THINGS
Huge global brands
show that signing
license deals are one
means of surfing this
wave.
Source: dailymail.co.uk/
femail/article-9114935/
Bridgerton-inspired-surge-
sales-19th-century-style-
items.html
<
<
<
EBAY TRENDS
+39%
corset
+300%
wisteria plants
+42%
afternoon tea set
But again, this trend is
not limited to the
biggest players. The
streaming effect creates
hype around all kind of
things. We looked at
trends on ebay after the
launch of "Bridgerton"
and what we found was
items inspired by the
show blew up.


(If you asked yourself
what "wisteria" is: a
plant known in German
as „Japanischer
Blauregen“)
Source: Daily Mail
<
<
10,449 RESULTS
bridgerton
To understand how
you can piggyback off
such trends to build a
business, take a look
at Etsy, a marketplace
for handcrafted stuff
and smaller sellers.
The Bridgerton wave
hit these shores as
well.
<
<
<
<
<
<
<
One can find almost
any item related in
some way or another
to the show here.
Some small sellers or
solo entrepreneurs are
generating astonishing
amounts of sales.


This development has
not been lost on
Netflix. Just a few
weeks ago, in June
2021, Netflix launched
their own shop to take
full advantage of the
streaming effect.
<
<
<
And then there is our
friend Flemming Pinck
from Hamburg. His
fashion label Inferno
Ragazzi showcases
how reactiveness to
pop-culture events can
generate revenue.
When everyone was
binge-watching the
Michael Jordan
documentary "The Last
Dance," Flemming
made a shirt.


While everyone was
talking "Tiger King,"
Flemming made a shirt.


Daft Punk broke up,
Flemming made a shirt
right away.




(Certainly, they are all
sold out by now—he
knows how to create
scarcity as well.)
CONTENT
EMBEDDED
This one is not quite as apparent at first.
Everybody knows content marketing. Look no
further than Red Bull on how you can win over
customers with content. This past year, however,
we witnessed a new level of escalation, content
marketing 3.0 so to say and named it: Embedded
Content.
<
<
<
<
If you happen to be in
a market with poor
differentiation and
strong competitive
pressure, acquiring
customers on Google
is really, really, REALLY
expensive. Take for
example a gambling
company. Suffice to
say these click prices
are not your best bet to
win new customers.
Source: Google Keyword Planner
sport bets
online casino
€37.99
€49.38
THE VALUE OF CUSTOMER ACCESS
<
<
<
<
So what can be done?
Penn National
Gaming, a US casino
operator, bought a
major stake in the
sports publisher
Barstool. They
launched a new sports
betting app and made
considerable revenue
from the start.
Source: Vox, Penn National Gaming
www.barstoolsports.com
€148M
ACQUIRED


36%


THE VALUE OF CUSTOMER ACCESS
€2.7M


REVENUE IN


FIRST 10 DAYS
<
<
<
<
<
<
<
Even more important
the acquisition:
included the 100M
unique monthly users
of Barstool, which
happen to be quite
attracted to sport bets.
So given the
acquisition price of
€148M we would
contend that they paid
€1.48 per lead
instead of almost €50
per click!
€37.99
€49.38
€1.48
€1.48
THE VALUE OF CUSTOMER ACCESS
sport bets
online casino
Source: Barstool Sports
2018 2019
2017 2020 2021
ACQUISITION OF


BARSTOOL SPORTS
The stock market liked
the deal. Penn
National stock moved
sideways for years,
but roughly tripled
since the embedded
content deal was
made public.
Source: Yahoo Finance
SHARE VALUE PENN NATIONAL GAMING
<
<
<
We see the same
game in the field of
business software:
high on competition,
low on differentiation.
If you happen to be
someone like HubSpot
you need deep
pockets to buy clicks
for software tools.
software email marketing €54.64
Source: Google Keyword Planner
THE VALUE OF CUSTOMER ACCESS
<
<
<
<
<
www.barstoolsports.com
€22.4M
So what did they do?
They bought the
business and
marketing newsletter
"The Hustle." Coming
along with the 22M
sticker price are the
roughly 1.5M
subscribers within a
highly relevant target
group.
Source: Hubspot
THE VALUE OF CUSTOMER ACCESS
<
<
<
<
<
In our eyes, the deal
enabled HubSpot to
buy a lead for €15
instead of a click for
€55.


To put in other words:
The trick is not to buy
a piece of pie, the
trick is to buy the
whole F***ING
bakery.
THE VALUE OF CUSTOMER ACCESS
software email marketing
€54.64
€14.39
<
<
<
<
Finally, a somewhat
different case of
embedded content.
This is Hans Thomann
Jr. out of Treppendorf
in Bavaria. He sells
music supplies online
and has the same
challenge as any other
online merchant:
Amazon.
<
<
<
<
So what did he do?
He bought a basket
full of highly
specialized publishers
and online community
hubs. The result:
against all odds
Thomann has fended
off Amazon and is
said to be the global
market leader within
its niche of music
aficionados.
Source: OMR, thomann
ATTENTION?
UNDERPRICED
Our last topic pertains to getting you some really
valuable content. Something, you can use right
away to boost your business. The question is:
where is your marketing money best spent. I
know, I know we are more than 100 slides in, but
look alive! There are immediate opportunities
ahead…
<
<
Attention is a costly
good. The average
price of reaching
1000 people on
Facebook / Instagram
in Germany has
grown steadily over
the last years. But
there is a place on the
Internet where you
can get more for less.
Source: ZweiDigital, Frankfurt
2019 2020 2021
€3.83 €4.07
€4.66
AVG CPM
These two guys are
into cast-iron frying
pans. To be able to
actually produce them,
they launched a
crowd-funding
campaign to raise the
capital needed. Then
they started
advertising.
<
<
<
To do so, they used
this ad on Facebook
and essentially the
same one on Reddit.
Within Reddit there
are thousands of
"subReddits" and one
of them with a
following of 250K
members is really just
about cast-iron frying
pans.
<
<
<
<
CPM:
€11.65 €0.21
Astonishingly, the price
to reach 1000 people
with almost the same
creative is more than
50x times higher on
Facebook than on
Reddit. In other words:
The price on Reddit is
less than 2% for
exactly the same
amount of attention.


Arguably, the Reddit
community has even a
better product market
fit.
<
<
<
Another example is
Erlich Textil. This a
label for sustainable
underwear from
Cologne. For a limited
lingerie collection, they
placed ads both on
Instagram and
Pinterest, again using
almost the exact same
creative.
<
<
<
Result: Reaching
1000 people on
Pinterest is about 1/3
the price than it is on
Instagram. And when
you factor in that the
Pinterest audience is
easier to convert into
sales, this attention is
quite a deal.
CPM: €8.09 CPM: €2.68
<
<
<
Same trick, different
sector. einfach.immo
is an investment
consultant firm from
Stuttgart. They
address younger
clients seeking to
invest long-term in
real estate to build
wealth for retirement.
They use lookalike
video ads on
Facebook and TikTok.
<
<
Same story here, too:
The price on TikTok to
reach 1000 people is
roughly 1/50 of the
price on Facebook.
70% of Tiktoks users
are under the age of
25 - which matches
perfectly with the
target group of
einfach.immo.
CPM: €30.76 CPM: €0.66
What you need to know: These examples show
that there is quite a great deal of underpriced
online attention to be found for almost any
product and often entails an additional benefit
regarding your target group.
SUMMARY
#1 #2 #3
DECONSTRUCTING
D2C CREATOR
ECONOMY
METAVERSE
THE
#4
#5 #6
STREAMING
EFFECT
THE
CONTENT
EMBEDDED
ATTENTION
UNDERPRICED
6 trends to inspire your marketing in 2021.
BIG THANK YOU
TO OUR PARTNERS
BIG THANK YOU
TO OUR CITY
THE STATE OF
THE GERMAN
INTERNET 2021
TEAM
MARTIN


GARDT
FRANCESCA


VEIT


NO AGENCY
ROLAND


EISENBRAND
TORBEN


LUX
SARAH


HEIMBURGER


NO AGENCY
FLEMING


PETER


FINANCEFWD
MICHAEL


WANKER
EIKE


DEHNING
CHRISTIAN


COHRS
NINA


SCHLIEFER


NO AGENCY
FLORIAN


HEIDE
SCOTT


PETERSON
PHILIPP


WESTERMEYER

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State of the German Internet 2021

  • 2. MAY 20, 2020 JUNE 8, 2021 S u p p o r t e d b y 109 72 GIX +51% Let’s get right into it with a look at the GIX. Impressive 51% growth was driven by larger caps like Delivery Hero (+32%), Zalando (+52%) and HelloFresh (+120%), as well as some newcomers. Auto1, MyTheresa (both IPOed), trivago, zooplus (now valued >1B) offset the de-listing of AxelSpringer and Rocket Internet. MARKET CAPS IN €B Source: Google Finance / Yahoo Finance German Internet Index: Digital Core Business, valued >€1B, B2C
  • 3. EIX 397 279 +42% European Internet Index: Digital Core Business, valued >€1B, B2C S u p p o r t e d b y MARKET CAPS IN €B The same holds true for the EIX, as listed European digital companies had an excellent year. Key drivers include Spotify (+35%), Booking (+40%), Yandex (+60%), Farfetch and Kindred (+200%), plus newcomers Kahoot (Norway), The Hut Group (UK) and Global Fashion Group (Luxemburg). Source: Google Finance / Yahoo Finance MAY 20, 2020 JUNE 8, 2021
  • 4. BAT 1139 1052 +8% BAT: Baidu, Alibaba, Tencent In contrast, the major Chinese platforms had a rather poor year regarding growth. The reason: The Chinese government prioritized increasing their power and turned up regulatory pressure. If you recall: the cancelled IPO of Ant Financial and the temporary disappearance of its and Alibaba's CEO Jack Ma at the end of 2020. S u p p o r t e d b y MARKET CAPS IN €B Source: Google Finance / Yahoo Finance MAY 20, 2020 JUNE 8, 2021
  • 5. GAFA's total value is, again, overwhelming. Just the additional value created in roughly one year is in the range of €1400B. To put it another way, GAFA's growth in the past year alone is 3.5 times the total value of the EIX. GAFA +36% 5172 3810 S u p p o r t e d b y GAFA: Google, Apple, Facebook, Amazon MARKET CAPS IN €B Source: Google Finance / Yahoo Finance MAY 20, 2020 JUNE 8, 2021
  • 6. GIX 72 109 +51% EIX 279 397 +42% BAT 1052 1200 +8% GAFA +36% 3810 5172 The good news: While the absolute value of GAFA is beyond compare, Europe is catching up in terms of growth. We still fancy the idea of illustrating the dominance of the digital behemoths annually. Source: Google Finance / Yahoo Finance MARKET CAPS IN €B MAY 20, 2020 JUNE 8, 2021
  • 7. 12.9 2.5 2.1 €17.5B €19B Last year we compared revenue from AirPods with that of RedBull, Puma and Bose. We kind of liked the idea and found that this year AirPods revenue bested that of Snapchat, Twitter and Spotify— combined. Who knows, maybe next year Apple's AirTags will also be worth its own story. AIRPODS REVENUE VS TOP TECH COMPANIES 2020 Source: StatsPanda, OMR Research
  • 8. 2020: +€400M GMV EACH DAY €400M SALES EACH YEAR HAMBURG MÖNCKEBERGSTR. Source: Amazon Annual Report 2020, Handelskammer Hamburg, OMR Research Amazon's GMV (Gross Merchandise Value - the value of everything sold on Amazon) grew by €400M. Each and every single day of 2020. All this stuff will not be sold elsewhere. To put that into perspective, €400M is the total value of all goods sold on Hamburg's Möncke- bergstraße, our little Champs-Elysee, 5th Avenue or shopping mile—in an entire year.
  • 10. PAST 12 MONTHS* DIGITAL WINNERS *Early June 2021. All right then, so the listed digital companies are very much trending in the right direction. Now, let's take a look at the:
  • 11. We already spoke about the GAFA companies impressive growth. #5 +36% Source: Yahoo Finance (June 8th 2021)
  • 12. Even though ARK Innovation ETF and superstar investor Cathie Wood took quite a hit in early 2021, its total value almost doubled in the year. #4 +80% #5 Source: Yahoo Finance (June 8th 2021)
  • 13. A couple of single stocks, like Peloton or Tesla, clearly outperformed ARK ETF in the last 12 months, to come in third in our Digital Winners rankings. #3 +220% +140% #5 #4 Source: Yahoo Finance (June 8th 2021)
  • 14. Cryptocurrencies are kind of a rollercoaster asset, a nail-biting investment thriller. If you happened to have invested about a year ago, there's a good chance you're just fine with where things stand now. #2 DOGE: +12700% #5 #4 #3 BNB +1960% ETH +940% BTC +240% Source: CoinGecko (June 8th 2021)
  • 15. Our top spot goes to this guy from Wisconsin. He became the world's top living artist in the last 12 months. His name is Mike Winkelmann… #1 No. 1 Living Artist #5 #4 #3 #2
  • 16. …better known as Beeple. An NFT (Non- Fungible Token) of his piece “Everydays: The First 5000 Days" was sold for roughly 42,300 Ether at Christie's in February 2021. Given the growth of the Ether, this would convert to roughly €85M today and thus surpass Jeff Koons' "Rabbit" as the most expensive artwork by a living artist. Kudos! #1 No. 1 Living Artist #5 #4 #3 #2 Beeple Source: OMR Research, Christie’s, New York Times
  • 17. If there are winners, then there must be losers as well, right? Well, truth be told finding digital losers this year was difficult. Even travel or leisure companies, like Live Nation and trivago, considerably grew their market cap. Some smaller companies saw their value decline slightly, but overall we could not really find anyone that could be called "losers." This leads us to the basic question: PAST 12 MONTHS: NONE! DIGITAL LOSERS
  • 19. In our last State of the German Internet keynotes, we opined that value creation is accelerated by bundling when platforms are at work, customer access is under control, services are combined and flywheels are set into motion. This year, we want to focus on creating value by unbundling. In our eyes, this is the most relevant trend in the past year. The most compelling example for this is…
  • 20. … the unbundling of banks. A traditional bank might look like this.
  • 21. This lady might be busy with her checking account. This service is offered, for instance, by these new players.
  • 22. There are also a host of new players offering all kinds of payment services…
  • 25. The total value created through the unbundling of banks is already massive, but has still not materialized fully. It has disrupted entire industries and even applied pressure to digital platforms. Ebay feels competitive pressure with regard to second hand, as does Google when it comes to travel and shopping.
  • 26. Let's change gears now and focus on the applicable. What six trends might be worth keeping an eye on for your company in the near future?
  • 28. < < < < Two of the most frequently asked questions last year were, "What is D2C and how can I become a D2C brand?" To start, this is how traditional retail is set up. Items are offered in a third-party shop to customers. RETAIL
  • 29. This, by contrast, is D2C. D2C
  • 30. < < The most obvious advantages: Cutting out the middleman means higher margins, a deeper understanding of your customers and having full control over your brand image. PROFIT MARGINS BRAND IMAGE CONTROL DIRECT RELATIONSHIP 💎
  • 31. The best example of a global brand transforming into a D2C brand is Nike.
  • 32. 2017 2018 2020 2019 D2C ANNOUNCEMENT < < < In June 2017, Nike announced its plans to focus on D2C in the future. The performance of Nike stock underlines the value it has created since. NIKE SHARE VALUE Source: Nike, Yahoo Finance
  • 33. < < < < < It's by no means merely the global legacy players that can benefit from a DTC strategy. Several European brands created value by adopting the practice. So how exactly are they doing this? Let's break it down in our "D2C Playbook." EUROPEAN PLAYERS ≈ €1B VALUATION >€300M ACQUIRED FOR ≈ €1.2B VALUATION
  • 35. < < < < Each of these companies either grew out of or are firmly rooted in a niche community. The key pillars to successful community building are: Proximity to influencers and opinion leaders and strengthening the relationship. #1 BUILD A COMMUNITY PROXIMITY 
 TO COMMUNITY INFLUENCERS
  • 36. < < < Being a relevant and authentic content creator within the community. This can be straight forward, like with tutorials or simple tips on how to use your products. #1 BUILD A COMMUNITY PROXIMITY 
 TO COMMUNITY INFLUENCERS CONTENT 
 CREATION
  • 37. < < Creating and maintaining a thriving offline community. This could be travelling the world to engage with your community, like GymShark did, or opening up pop-up stores and organizing offline events. #1 BUILD A COMMUNITY PROXIMITY 
 TO COMMUNITY INFLUENCERS CONTENT 
 CREATION OFFLINE CONNECTION
  • 38. < Personally interacting with your community. Take the example of German hype brand 6PM. #1 BUILD A COMMUNITY PROXIMITY 
 TO COMMUNITY INFLUENCERS CONTENT 
 CREATION OFFLINE CONNECTION PERSONAL 
 INTERACTION
  • 39. < < INSTAGRAM @achraf: Here is your exclusive code to the 6PM Shop: XYHECZ 🔥 1m ago 6PM founder Achraf has reset the bar for creating both engagement and proximity. This post triggered over 24K comments—all because Achraf personally asked if anyone wants a code to buy his clothes a little earlier. And would you believe it: he still answers every single PM himself.
  • 40. < < PERSONAL 
 INTERACTION SUMMARY: BUILD A COMMUNITY PROXIMITY 
 TO COMMUNITY INFLUENCERS CONTENT 
 CREATION OFFLINE CONNECTION So, this is step one: Walk your talk! Live, breathe and be your community.
  • 42. < < < #2 SHARPEN YOUR PRODUCT If your product is hard to differentiate, try to stand out with a unique story. Sneaker brand Veja is a prime example with their spin on sustainability. UNIQUE NARRATIVE
  • 43. < < < #2 SHARPEN YOUR PRODUCT Part of your owned narrative can also be special editions. Nike attracts their community to their proprietary channels via exclusive offers and products. UNIQUE NARRATIVE SPECIAL EDITIONS
  • 44. < < < #2 SHARPEN YOUR PRODUCT Finally, the 101 of marketing: scarcity. Make sure that it's (sort of) hard to get your stuff. This creates hype and FOMO. UNIQUE NARRATIVE SPECIAL EDITIONS ARTIFICIAL SCARCITY
  • 46. #3 PUSH CUSTOMERS INTO YOUR PROPERTIES REDUCED SUPPLY TO 3RD PARTY RETAILERS Now that you got your community's attention: How to cut out the middleman? Starve the retailers.
  • 47. #3 PUSH CUSTOMERS INTO YOUR PROPERTIES Create your own physical space. And make sure that the touch and feel is right —it needs to express your brand. < REDUCED SUPPLY TO 3RD PARTY RETAILERS SMALLER & MORE PERSONAL STORES
  • 48. #3 PUSH CUSTOMERS INTO YOUR PROPERTIES Establish your own digital environment. SMALLER & MORE PERSONAL STORES REDUCED SUPPLY TO 3RD PARTY RETAILERS ENGAGEMENT THROUGH APPS
  • 49. BUILD YOUR OWN TECH STACK STEP #4 D2C PLAY BOOK
  • 50. < < Last, but not least: your backend needs to be up-to-date. We have been looking at Nike's tech stack using the website "Built with." To structure the tech stack, we clustered the tools into three areas: Shoptech, Mar(keting)Tech and ContentTech.
  • 51. < < < < < SHOPTECH MARTECH CONTENT- TECH Our analysis of 40 D2C brands found that these tools were the most frequently used. If you happen to need some guidance with tools, check out OMR Reviews—our software reviews platform—and profit from the know- how and experience of the OMR community.
  • 52. SUMMARY: DECONSTRUCTING D2C #1 BUILD A COMMUNITY #3 PUSH CUSTOMERS INTO YOUR PROPERTIES #4 BUILD YOUR OWN TECH STACK #2 SHARPEN YOUR PRODUCT
  • 54. Influencer marketing was the talk of the town the past few years. The next level is the creator economy: People with audiences large enough to create their own brands. Why? People tend to follow people on social media and as such these "creators" outscore brands on organic reach and do not need to invest heavily in paid ads.
  • 55. << < < < 236M 25.3M SOLD TO "COTY" FOR €544M The best example is the Kardashian-Jenner clan. A significant part of Kyle Jenners 236M followers followed Kylie Cosmetics as well. In 2019, it was sold to US cosmetics giant "Coty" for over €500M. Safe to say, there is money to be made here.
  • 56. The core competence of a creator does not usually entail fulfillment or sourcing, meaning there is a mutual benefit in finding a suitable creator in your niche and building a common brand. Worth keeping in mind: The creator economy is not exclusively for fashion or cosmetics.
  • 57. MrBeast: 62 M Subscribers < < < Jimmy Donaldson, aka Mr Beast, has one of the largest followings on YouTube in the world: 62M followers. Late last year, Mr Beast decided to become Mr Beef…
  • 58. < < < < ... and opened a massive number of burger joints at once. It’s hard for a creator to do this on his or her own. So he partnered with Robert Earl, founder of Planet Hollywood. Earl's company "Virtual Dining Concepts" launches new food chains in collaboration with creators and music stars. He supplies the infrastructure, so- called "ghost kitchens," ... 300 RESTAURANTS ROBERT EARL 
 FOUNDER PLANET HOLLYWOOD
  • 59. < < < < < ... while Mr Beast brings the audience. Just one video generated 22M views, pushed the MrBeast Burger app to the top of the App Store and sold 2M burgers—in less than two months. Our advice: Make creators your business partners, build companies together with them!
  • 60. 8-Year old Ryan Kaji is the world’s top-earning Youtube star €164M RETAIL SALES < < < < < Another one? This is YouTube's top earner Ryan Kaji. He basically unpacks toys and reaches 30M subscribers. Toy company Bonkers saw this opportunity and launched a series of best-selling toys with him. Ryans World: 29,8 M Subscribers
  • 61. < < < And in Germany? AboutYou is a pioneer on co-creation, from creator collections and brands to dedicated companies. A prime example is the cooperation with Lena Gercke. A winner of "Germany’s Next Top Model," she generated an estimated €50M in revenue for AboutYou since they began their co-op. €50M IN 3 YRS
  • 62. < < < < < < < But even smaller-scale companies can get in on the game. Hamburg-based start- up Goodlife Company sells low-sugar, healthy snacks called "Hej Natural." They partnered with Germany's biggest fitness influencer Pamela Reif to co- create "Naturally Pam." The creator brand outreaches the mother brand by a significant margin. Naturally PAM: 228K Subscribers HEJ Natural: 80K Subscribers
  • 63. < < < < < < Even classic companies can become part of the creator economy. Family- owned juice company "Dietz" founded a spin-off to launch new brands. "BraTee," featuring German rapper Capital Bra, is their top release so far. So please note: Combining creators reach with traditional business know- how is within reach for quite some different companies in terms of size, location or product. 6M UNITS SOLD IN 2 MONTHS
  • 65. The term "Metaverse" was coined by US science fiction author Neal Stephenson. In his book, Snow Crash, he describes a virtual parallel world with its own economic system, in which people congregate. It inspired a lot of tech founders and is one of the current hype buzzwords on the US tech scene.
  • 66. < < < Sprawling games such as Fortnite and Roblox are probably closest to reaching metaverse status at the moment. Massive numbers of people meet and spend chunks of time here each day. So all this attention and time spent spurred on a new development… 350M ACCOUNTS 202M MONTHLY ACTIVE USERS
  • 67. < < < … including virtual currencies, creator communities, proprietary app stores. These games are becoming a permanent virtual environment, a place where people meet to do… well, just about anything. GAMES LEVEL UP TO PLATFORMS
  • 68. Take Fortnite's "Party Mode." Players lay down their weapons and spend time together, listening to music, dancing, chatting… PARTY TIME
  • 69. < < < MOVIE TIME … or watching movies together. The trailer for Christopher Nolan's latest flick, "Tenet," was first shown exclusively in Fortnite, while Disney screened an exclusive Star Wars trailer and The Fortnite Movie Theater showed "Inception" in full. Hollywood Studios seem to prioritize the metaverse.
  • 70. < < < < < CONCERT TIME Concerts, too, are a thing here. Travis Scott, one of the biggest hiphop superstars, played live three nights in a row as an avatar in Fortnite, Lil Nas X performed on Roblox. 33M people watched the show (and no, that's not a typo. 33,000,000 people really watched the show!).
  • 71. < < These gamers, maybe "gamers," are also recreating their favorite fashion pieces for their avatars in the metaverse as an in- game expression of their offline personality. One such way is by reverse engineering their favorite clothes pixel by pixel as shown here on Animal Crossing. FASHION TIME
  • 72. < < Finally, believe it or not, people also tie the knot inside the metaverse. When corona caused weddings to be cancelled en masse, some couples said "I do" in virtual events in Animal Crossing. TIME FOR LOVE
  • 73. Ok, there is a lot going in the metaverse, which leads us to the question: What does this all means for us? How do we get into the game?
  • 75. < < < The most direct method to personalize avatars is with "skins" and "virtual items." In some games, this happens through costly brand collaborations with games, e.g. Nike placing its "Air Jordan Skin" in Fortnite. In other games you still can sneak in your branded accessories. Take, for example, this Valentino dress. #1 SKINS & VIRTUAL ITEMS
  • 76. < < < < < < #1 SKINS & VIRTUAL ITEMS Valentino worked with an influencer to rebuild this upscale fashion dress for Animal Crossing. She posted the Valentino dress with a special code on her Instagram account so that gamers could wear that dress within the game. 40K INSTAGRAM FOLLOWER
  • 77. < A second option is to create microgames or worlds within the metaverse. This has been done by Warner Bros. to promote "Wonder Woman 84." Roblox users could explore the "paradise island of Themyscira," train alongside warriors and collect Wonder Woman-ish specific items. #2 GAME-IN-GAME EXPERIENCES
  • 78. < < This micro world generated approximately 25M visitors. Compared with the reach of the YouTube trailer, Roblox was able to deliver roughly 2/3 of the reach. #2 GAME-IN-GAME EXPERIENCES 25M IMPRESSIONS 40M VIEWS
  • 79. < < < < < A third option of sneaking into the metaverse is with guerrilla tactics. This is Stevenage FC, a small fourth-division football club sponsored by Burger King. Why is that? #3 GUERILLA MARKETING
  • 80. < < < Since Stevenage can be chosen as a team on EA Sports' FIFA. Basically, you can play with Stevenage against the biggest clubs or even chose global star players to be on the team in the Burger King jersey. #3 GUERILLA MARKETING
  • 81. Free kick, free Whopper meal! Score a free kick with any @StevenageFC superstar, share the video on here and win a free Whopper meal! #stevenagechallenge Burger King @BurgerKingUK < < < < < < #3 GUERILLA MARKETING Probably nobody would have noticed if it didn’t come along with a social media campaign called the "Stevenage Challenge." Players were asked to post videos of their goals with Stevenage FC using a dedicated hashtag to win free burgers meals. The campaign was quite the hit.
  • 82. 1.2B IMPRES- SIONS < < Players had fun choosing Mbappé, Ronaldo, Messi or Neymar to take free- kicks and score goals for burgers—and they did so with Burger King on their otherwise priceless chest. The result: 1.2B (!) impressions. So much on the potential of the metaverse. Here's a quick recap of three ways to crack into it: #3 GUERILLA MARKETING
  • 83. BREAKING INTO THE METAVERSE AS A BRAND #1 VIRTUAL SKINS & ITEMS #3 GUERILLA MARKETING #2 GAME-IN-GAME EXPERIENCES
  • 85. There is a new social-media phenomenon that we've dubbed the "streaming effect." Every year, new shows launched on Netflix, Disney or Amazon create a global buzz on specific topics. This is a chance for brands to ride this pop- cultural wave.
  • 86. < < New shows create global attention. These numbers show the views new original content shows on Netflix posted within the first 28 days only. 76M 70M 65M 64M 82M NETFLIX’S MOST-VIEWED ORIGINAL TV SHOWS
  • 87. BIG BRANDS X STRANGER THINGS Huge global brands show that signing license deals are one means of surfing this wave.
  • 88. Source: dailymail.co.uk/ femail/article-9114935/ Bridgerton-inspired-surge- sales-19th-century-style- items.html < < < EBAY TRENDS +39% corset +300% wisteria plants +42% afternoon tea set But again, this trend is not limited to the biggest players. The streaming effect creates hype around all kind of things. We looked at trends on ebay after the launch of "Bridgerton" and what we found was items inspired by the show blew up. (If you asked yourself what "wisteria" is: a plant known in German as „Japanischer Blauregen“) Source: Daily Mail
  • 89. < < 10,449 RESULTS bridgerton To understand how you can piggyback off such trends to build a business, take a look at Etsy, a marketplace for handcrafted stuff and smaller sellers. The Bridgerton wave hit these shores as well.
  • 90. < < < < < < < One can find almost any item related in some way or another to the show here. Some small sellers or solo entrepreneurs are generating astonishing amounts of sales. This development has not been lost on Netflix. Just a few weeks ago, in June 2021, Netflix launched their own shop to take full advantage of the streaming effect.
  • 91. < < < And then there is our friend Flemming Pinck from Hamburg. His fashion label Inferno Ragazzi showcases how reactiveness to pop-culture events can generate revenue.
  • 92. When everyone was binge-watching the Michael Jordan documentary "The Last Dance," Flemming made a shirt. While everyone was talking "Tiger King," Flemming made a shirt. Daft Punk broke up, Flemming made a shirt right away. 
 
 (Certainly, they are all sold out by now—he knows how to create scarcity as well.)
  • 94. This one is not quite as apparent at first. Everybody knows content marketing. Look no further than Red Bull on how you can win over customers with content. This past year, however, we witnessed a new level of escalation, content marketing 3.0 so to say and named it: Embedded Content.
  • 95. < < < < If you happen to be in a market with poor differentiation and strong competitive pressure, acquiring customers on Google is really, really, REALLY expensive. Take for example a gambling company. Suffice to say these click prices are not your best bet to win new customers. Source: Google Keyword Planner sport bets online casino €37.99 €49.38 THE VALUE OF CUSTOMER ACCESS
  • 96. < < < < So what can be done? Penn National Gaming, a US casino operator, bought a major stake in the sports publisher Barstool. They launched a new sports betting app and made considerable revenue from the start. Source: Vox, Penn National Gaming www.barstoolsports.com €148M ACQUIRED 36% THE VALUE OF CUSTOMER ACCESS €2.7M REVENUE IN 
 FIRST 10 DAYS
  • 97. < < < < < < < Even more important the acquisition: included the 100M unique monthly users of Barstool, which happen to be quite attracted to sport bets. So given the acquisition price of €148M we would contend that they paid €1.48 per lead instead of almost €50 per click! €37.99 €49.38 €1.48 €1.48 THE VALUE OF CUSTOMER ACCESS sport bets online casino Source: Barstool Sports
  • 98. 2018 2019 2017 2020 2021 ACQUISITION OF BARSTOOL SPORTS The stock market liked the deal. Penn National stock moved sideways for years, but roughly tripled since the embedded content deal was made public. Source: Yahoo Finance SHARE VALUE PENN NATIONAL GAMING
  • 99. < < < We see the same game in the field of business software: high on competition, low on differentiation. If you happen to be someone like HubSpot you need deep pockets to buy clicks for software tools. software email marketing €54.64 Source: Google Keyword Planner THE VALUE OF CUSTOMER ACCESS
  • 100. < < < < < www.barstoolsports.com €22.4M So what did they do? They bought the business and marketing newsletter "The Hustle." Coming along with the 22M sticker price are the roughly 1.5M subscribers within a highly relevant target group. Source: Hubspot THE VALUE OF CUSTOMER ACCESS
  • 101. < < < < < In our eyes, the deal enabled HubSpot to buy a lead for €15 instead of a click for €55. To put in other words: The trick is not to buy a piece of pie, the trick is to buy the whole F***ING bakery. THE VALUE OF CUSTOMER ACCESS software email marketing €54.64 €14.39
  • 102. < < < < Finally, a somewhat different case of embedded content. This is Hans Thomann Jr. out of Treppendorf in Bavaria. He sells music supplies online and has the same challenge as any other online merchant: Amazon.
  • 103. < < < < So what did he do? He bought a basket full of highly specialized publishers and online community hubs. The result: against all odds Thomann has fended off Amazon and is said to be the global market leader within its niche of music aficionados. Source: OMR, thomann
  • 105. Our last topic pertains to getting you some really valuable content. Something, you can use right away to boost your business. The question is: where is your marketing money best spent. I know, I know we are more than 100 slides in, but look alive! There are immediate opportunities ahead…
  • 106. < < Attention is a costly good. The average price of reaching 1000 people on Facebook / Instagram in Germany has grown steadily over the last years. But there is a place on the Internet where you can get more for less. Source: ZweiDigital, Frankfurt 2019 2020 2021 €3.83 €4.07 €4.66 AVG CPM
  • 107. These two guys are into cast-iron frying pans. To be able to actually produce them, they launched a crowd-funding campaign to raise the capital needed. Then they started advertising.
  • 108. < < < To do so, they used this ad on Facebook and essentially the same one on Reddit. Within Reddit there are thousands of "subReddits" and one of them with a following of 250K members is really just about cast-iron frying pans.
  • 109. < < < < CPM: €11.65 €0.21 Astonishingly, the price to reach 1000 people with almost the same creative is more than 50x times higher on Facebook than on Reddit. In other words: The price on Reddit is less than 2% for exactly the same amount of attention. Arguably, the Reddit community has even a better product market fit.
  • 110. < < < Another example is Erlich Textil. This a label for sustainable underwear from Cologne. For a limited lingerie collection, they placed ads both on Instagram and Pinterest, again using almost the exact same creative.
  • 111. < < < Result: Reaching 1000 people on Pinterest is about 1/3 the price than it is on Instagram. And when you factor in that the Pinterest audience is easier to convert into sales, this attention is quite a deal. CPM: €8.09 CPM: €2.68
  • 112. < < < Same trick, different sector. einfach.immo is an investment consultant firm from Stuttgart. They address younger clients seeking to invest long-term in real estate to build wealth for retirement. They use lookalike video ads on Facebook and TikTok.
  • 113. < < Same story here, too: The price on TikTok to reach 1000 people is roughly 1/50 of the price on Facebook. 70% of Tiktoks users are under the age of 25 - which matches perfectly with the target group of einfach.immo. CPM: €30.76 CPM: €0.66
  • 114. What you need to know: These examples show that there is quite a great deal of underpriced online attention to be found for almost any product and often entails an additional benefit regarding your target group.
  • 115. SUMMARY #1 #2 #3 DECONSTRUCTING D2C CREATOR ECONOMY METAVERSE THE #4 #5 #6 STREAMING EFFECT THE CONTENT EMBEDDED ATTENTION UNDERPRICED 6 trends to inspire your marketing in 2021.
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  • 118. THE STATE OF THE GERMAN INTERNET 2021 TEAM MARTIN GARDT FRANCESCA VEIT NO AGENCY ROLAND EISENBRAND TORBEN LUX SARAH HEIMBURGER NO AGENCY FLEMING PETER FINANCEFWD MICHAEL WANKER EIKE DEHNING CHRISTIAN COHRS NINA SCHLIEFER NO AGENCY FLORIAN HEIDE SCOTT PETERSON PHILIPP WESTERMEYER