Conferencia Gwen Morrison 18-03-2013


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CEO the Américas and Australasia at the Store.

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Conferencia Gwen Morrison 18-03-2013

  1. 1. Gwen Morrisonceo, the store wppthe americas & australasia
  2. 2. The Store a Portal to WPP’s retailexpertise a Facilitator for RetailInitiatives
  3. 3. The Store Shares Best Practice and Innovation in Retail Format development & retailer strategies The multi-model shopper Customer marketing best practice Brand visibility on shelf Future growth drivers Digital technology at retail Digital ‘s impact on Path to Purchase
  4. 4. Retailing in EmergentMarkets: StrategicFoundations & BestPracticesCoca-Cola Retailing Research Council, LatinAmerica, 2010
  5. 5. Recent Events – Fast Track Briefing, Seattle – June 2010With the intersection of mobile marketing, social networking,and shopping, the definition of cross-channel retail is exploding.Please join us for a 90 minute discussion on where technology istaking the retail experience.Speakers include:Mike Lundgren – VMLShane Atchison – ZAAZAlex Norman - Schematic
  6. 6. BUSINESS MODEL CHANGES IN COMMUNICATION INDUSTRYTrends and changes that WPP observes in the business model of media organizations,How to obtain profits from the new experiences that recent technologies offer,How do you follow behavioral changes,STRATEGIES TO FACE CHANGESWhich are the organizational initiatives that WPP would encourage along the company,What are you going to keep doing, to increase, to avoid and to introduceLEADERSHIPWhich are your concerns and opportunities and as a leader of a business unit,Capabilities that you think would be necessary to lead a creative team in the next years.May 21, 2010
  7. 7. Two Sections:WPPOutlook for Growth: NewMedia and MarketsGroupMView of Future MediaConnected Consumer,Connected Media
  8. 8. Highlights from Sir Martin
  9. 9. New Markets, New Media and Consumer InsightToday1Includes AKQA on pro forma full year basis1: New MarketsToday 30%UK & WesternContinental EuropeMediaNorth America2: New MediaToday 33%1TraditionalTraditional MediaNew Media3: QuantitativeToday 50%QualitativeQuantitativeUK & Western Continental EuropeAsia Pacific, Latin America, Africa & Middle East,Central & Eastern Europe
  10. 10. 1: New MarketsTarget 35-40%UK & WesternContinental EuropeMediaNorth America2: New MediaTarget 35-40%TraditionalTraditional MediaNew Media3: QuantitativeTarget 50%QualitativeQuantitativeUK & Western Continental EuropeAsia Pacific, Latin America, Africa & Middle East,Central & Eastern Europe39New Markets, New Media and Consumer InsightTomorrow
  11. 11. % Share of Global GDP1.2.Prof Angus Maddison - The World Economy 1870 - 1998: OECDConference Board Global Economic Outlook 2011 - 2025: January 2012301820 1870 1913 1950 1973 1998 2011 2025IndiaChina20100New MarketsBack to the Future6050Share of Global GDP 1870 - 202540
  12. 12. Revenue ($bn)4New MarketsRevenues in Faster Growing Markets 2004-20125. 2005 2006 2007 2008 2009 2010 2011 2012WPP OMC PUB IPG1.2.3.WPP reportable US$’s per WPP results and peer $ revenues as shown in annual results presentationsPeer data sourced from annual results translated at average exchange rate for the year (IPG, Publicis and Omnicom)OMC assumes “non-euro currency” Europe, ie Switzerland, Turkey, Norway, Denmark, Sweden and Eastern Europe are 3% of revenue andCanada 1.5%
  13. 13. 02000 2011 2012 2000 2011 2012 2000 2011 2012 2000 2011 2012Greater China (includingHong Kong & Taiwan)Brazil India RussiaNew MarketsWPP’s Performance Strong in BRIC MarketsRevenue $m1,40012 year CAGR 16%1,200Associates @ 100%1,00012 year CAGR 13%80060012 year CAGR 12%40012 year CAGR 48%200
  14. 14. New MarketsWPP in Faster Growing Markets1Source RECMA 2011 overall billings as issued July 20122Year to 31 December 2012 including associates, people at 31 December 20123China, Hong Kong and Taiwan4WPP estimate5Africa is South Africa onlyRegion Market Billings1$bn% Share1 Rank1 12 month2Rev $bnPeople2‘000Asia Pacific: Greater China3IndiaThailand6.72.40.933%42%40%1111.30.50.114122LatAm:Other:BrazilMexicoArgentinaAfrica5/Middle EastPolandRussian/a0.
  15. 15. 4035302520151050Americas Europe Asia Pacific WorldwideWPP Omnicom Publicis IPG Aegis HavasNew MarketsMedia Billings by GeographyWorldwide Ranking by Group as % of the Six Groups%45Source: RECMA July 2012 billings report, based on 2011 data
  16. 16. 7%43%26%10%25%11%42%22%10%5%0%15%15%25%20%40%35%30%50%45%Print Radio TV Internet MobileTime Spent Ad Spend~$20bnOpportunityin USANew MediaMedia time spent vs. ad spend not alignedInternet / Mobile (upside…) vs. Print (downside...)% of Time Spent in Media vs. % of Advertising Spending, USA 2011Source: (KPCB 2012)Note: Print includes newspaper and magazine. $20bn opportunity calculated assuming Internet and Mobile ad spend share equal their respective time spent share. Source:arketer 12/111%1%
  17. 17. 374959641351149985751541762006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Worldwide digitaladvertising spend(US$ billions)CAGR2006-2012: 18%2012-2017: 14%Source: GroupM December 2012New MediaLittle Slowdown Predicted in Growth of Digital Advertising Expenditure194
  18. 18. 2006 201130%Target in5 years21%12%40%New MediaRevenue Share Continues to IncreaseWPP Share of Digital Revenue35%-201233%¹20001Including AKQA Pro Forma
  19. 19. 1. DigitalEverywhere2. SpecialistDigitalExpertise3. Data andTechnology4. Partnerwith digitalleaders•••••Invest in digital in all of our businesses through training,recruitment, acquisitions, etc.Develop new services beyond traditional advertising, e.g,web development, DSPs, mobile, social, eCommerce andeShopper, etc.Establish a proprietary technology platform – based onown and licensed technologies.Invest in ability to control and use data for WPP and clientbenefit.Build strong partnerships with leaders such as Microsoft,Google, Facebook, Apple, Twitter.New MediaWPP’s Digital Strategy
  20. 20.  WPP’s proprietary platform integrates 24/7 Media’s core technology with best of breedpartner technologies to create unique digital marketing platform that provides acompetitive advantage to WPP advertising clients. Opportunities for enhanced collaboration with clients by leveraging data and technology. Peers reliance on Google’s technology enables Google’s disintermediation strategy; alldata and technology strategies must pass through competitor’s platform.New MediaProprietary Digital Technology Platform – WPP Advantage49
  21. 21. In WPP Direct, Digital and Interactive Networks$’m People1,0009503503002001501506,5006,5001,0002,0001,0001,0001,00012In GroupM DigitalNew MediaTwo Major Global Networks – Supported by Strong Specialist OfferWPPAdvantageRevenue111,21111(F)(F)(F)(F)(F) Forrester Digital LeaderPublicis Groupe Digitas/LBi $820m of revenue and 5,000 people
  22. 22. New MediaDominant position in BRIC MarketsWPP AdvantageBrazilRevenue $200mPeople ~ 1,400IndiaRevenue $50mPeople ~ 1,200RussiaRevenue $60mPeople ~ 600ChinaRevenue $200mPeople ~ 2,500
  23. 23. New MediaXAXIS – WPP AdvantageBillings of c. $270 million.200 employees in 19 markets.Over 318 billion impressions annually.1,000+ clients.5,000+ campaigns since inception.30% revenue growth year over year.5 channels: display, video, mobile, social, radio.1 technology platform, 50 integrated partnerships.1 Vision: Be the No. 1 Global Audience BuyingCompany.
  24. 24. Consumer Insight and Quantitative DisciplinesThe Data Explosion
  25. 25. Consumer Insight and Quantitative DisciplinesWPP Advantage Marketing becoming more data driven. Clients need simplified better utilisation of existing data and help inmanaging explosion of new data. Digital campaigns driven by data analytics and feedback to shapenew activity. Ability to provide “continuous updated data ready for real timedecisions and actions”. WPP has unique combination of assets in research, audiencemeasurement, data management and digital media.
  26. 26. Horizontality165,000 people in 3,000 offices in 110 countries11Including associates
  27. 27. Horizontality30+ Account Teams – Over 35,000 WPP employees work on these clients
  28. 28. HorizontalityCurrent Country Managers – People, Clients, AcquisitionsAndinaPortugalIndiaGreaterChinaSouthKoreaVietnamIndonesiaAustraliaNew ZealandItalyME & N AfricaMexico
  29. 29.  People, clients, acquisitions. Ensure our people work across our businesses and geographies todeliver best resources to clients. Deliver specialist skills (eg digital, shopper, analytics, sustainability,retailing, internal communications and “media and entertainment”) toclients irrespective of lead agency. Focus on client needs and business issues. Recent Team wins - Bank of America, IHG, Team Chemistry (J&J),MillerCoors, News Corp. and Team Pfizer.Horizontality
  30. 30. Faster growing markets30%of revenueDigital32%of revenue¹Digital in faster growing markets8%of revenueDigital and Faster Growing MarketsTwo Key Long-Term Growth Drivers Overall 54% of 2012 FY Actual Revenues133% including AKQA with minimal impact on overlap implying 55% combined
  31. 31. 3 Key Objectives0
  32. 32. Key ObjectivesWe Continue to Focus on Our Key Objectives Improving operating margins. Increasing flexibility in the cost base. Using free cash flow to enhance share owner value and improvereturn on capital employed. Developing the role of the parent company. Emphasising revenue growth more as margins improve. Improving the creative capabilities and reputation of all ourbusinesses.
  33. 33. 41?29! Media (Turkey)Acceleration (S Africa, UK, USA)ASTUS (HONG KONG)Barrows (S Africa)Cadem (Chile)Carnation (Hungary)Ace Metrix (USA)¹,²ADGOOROO (USA)Affectiva (USA)¹,²Activeark Oy (Finland)AKQA (WORLDWIDE)BIENALTO (AUSTRALIA)GIIR (S Korea)¹ CBC (China) ¹,² Corda (USA)² Press Index SA (France)Raine (USA)¹,²Video Egg (USA)¹,²VIDEOLOGY (USA)²Visible Technologies (USA)¹ZEG (Germany)¹IDEA (Jordan)Istropolitana (Slovakia)Manajans/JWT (Turkey)¹PBN (Russia)¹Today (Myanmar)Union Media (Israel)CIC Data (China)Converge (Pakistan)CROSSMEDIA (MEXICO)FILMWORKS (CHINA)Foster (Brazil)GME (Dubai)Grape (Russia)Hungama (India)Oasis Insights (Pakistan)PT Magnivate (Indonesia)Qais (Singapore)Smollan (S Africa)¹Core (Sweden)¹DTDigital (Australia)Enprecis (USA)²EffectiveUI (USA)EYE (AUSTRALIA)First Loom (USA)Fortune Cookie (UK)Frey G2 (Germany)¹Hogarth (UK)¹IMAGINA (SPAIN)¹,²KKLD* (Germany)K102 (GERMANY)Wisereach (China)Faster GrowingMarketsARTM (CHINA)Quantitative & (UK)²Predictys (France)Key ObjectivesAcquisitions and Investments During 2012¹ Step-ups in investments, associates and subsidiaries’ equity ² Investment CAPITALS ARE Q4 ACQUISITIONS
  34. 34. Connected Consumers, ConnectedCommunicationsThe delivery & discovery of messaging in the media future
  35. 35. “Love,” “Treasure,” “Adore”words you never thought would be used to describetechnologyA behavioral and psychological shiftfundamentally changing adoption of - and behaviorswith - technology and media platforms
  36. 36. …how we consume and experience media(and brands) most certainly has…Yesterday, this was confined to thecomputer. Today, we see it extending tomultiple platforms. Tomorrow, it willsurround us
  37. 37. …how we consume and experience media(and brands) most certainly has…Passive Active ParticipatingSharing,curatingCreating
  38. 38. The next generation will be characterized by thesymbiotic relationship of the best of the traditional andthe best of the revolution in telling stories and sharingbrand experiences
  39. 39. Underwriting this evolution will be social, mobile,search and data – acting as the infrastructure thatenables connected consumers (to devices & each other),connected communications (content distributed &connected across platforms), and driving a new balancebetween the delivery & discovery of content
  40. 40. For todayNew world meetsold worldDigital worldmeets physicalworldBuilding (data)bridges4 big issues, 3giants with anagenda,5 practical steps
  41. 41. New world meets oldworldThe new digital infrastructure andhow it will underpin all media andcommunications moving forward.
  42. 42. As the features &benefits of technologybecome untetheredfrom PC’s, we’re seeingthe beginning of theend of the digitaldistinction and achange in consumer’sexpectations of media
  43. 43. From the ‘social web’ to social as a feature of allcommunications. New world…The whole web is social Fb is becoming the anchor Social is mobile25% of all onlinetime spent80% of US top 100sites with social plugins(2.5m+ globally)eCommerceexperience isbecomingsocialized80% of US internetusers accessing socialsites~50% of USpopulation areactive users (~25%log on daily)No. 1 source oftraffic for portals,growing for othersFb is largest singlemobile propertyIntegrationswith devices andapps3rd most populardownloaded apps
  44. 44. Mobile – the essence of technologybenefiting our lives. New world…The irony of mobileempowermentRapid growth in mobilemedia consumptionMobile is social
  45. 45. Mobile will empower the future of print and OOHMust improve design& storytellingMust reconcile costmodels Location awareness NFC & visualrecognitionbut… fueled by……meets old world. Helping empowertraditional media for the future
  46. 46. …meets old world – Disrupting traditional mediaplayers across the boardIn ‘radio’ In print In TV
  47. 47. MTV and the Grammy’s have both used socialconversation and visualization around their eventTV showsAnd to transform programing itself
  48. 48. The biggest digitaltrends and successstories tend to bemodern versions ofold humanhabits…social media,IM and texting are nodifferentSocial media is the latestparticipatory layer of TVviewing.The power of TV isenhanced by social media,and mobile devices arethe primary access pointto that…meets old world – Social & TV – fuel for each other’sfire
  49. 49. Social & TV – fuel for each other’s fire• Grammy’s, Oscars, Super Bowl all received their highest ratings in decades in 2011.• The MTV Video Music Awards generated 11m viewers and 2.3m tweets this year.• When Fox airs Glee, Twitter traffic increases 30x and maintains that rate until theshow is overCoincidence?
  50. 50. Nielsen Media-sync IntoNow (Yahoo) ShazamWhile currently 3+ companies are offering audio syncing technology between TV andmobile devicesAnd finally making TV interactive with new ways ofsynchronizing the experience…
  51. 51. Yahoo Into Now – across every platform
  52. 52. Content strategy crucialfor SEO and discoveryAnd of course, the more media becomes digitized andfragmented, the greater the need for quality searchengines…New world meets old worldSearch & TV contentdiscoveryIndexing socialpreferences to influencedecision making
  53. 53. Digital world meetsphysical worldAt the same time the media weconsume is becoming digitized, sotoo is so much of the physical worldwe inhabit – bringing with it newopportunities for incredibleconsumer experiences and seamlessintegration with media platforms.
  54. 54. Mobile – the connecting point of the comingtogether of our digital and physical worldsMobility’s fundamental future role in shopping & retailMacy’s mobile backstagepassHome Depot Scan life SK Telecom Q-store
  55. 55. ‘Socializing’ the event and retail experienceNike’s interactive store window Coca Cola Israel Yahoo’s Bus Stop Derby
  56. 56. Mobile – all the way from communication to transactionMobility’s fundamental future role in shopping & retailShopping & buying on device Buying with deviceEnabling a seamless connection from media to retail
  57. 57. Best Buy’s Twelpforce Diesel’s Fb Connect fittingroomsBaker tweetAnd of course…Check In’s‘Socializing’ the Customer Service Experience
  58. 58. Mobile search issignificant now and willcontinue to grow ininfluence – more localand more immediateSearch and Discovery remain a key but changingconnector in this ecosystem…effected by social behavior &mobile technologyVoice and visual searchon mobile to becomecommonplaceInformation &Affirmation
  59. 59. Building (data) bridgesAs all media (and retail) becomesconnected, we will increasingly beable to connect the dots betweenchannels/devices to deliver &measure a coherent brand story.
  60. 60. Proliferation of addressable mediaplatformsThe increasing availability and importance of data sources inconnecting the dots between channels/devices to deliver &measure a coherent brand storyTo micro-geographyWith media and messages deliveredwith relevance at scaleTo the homeTo theindividual
  61. 61. 4 big issues3 giants with an agenda5 practical stepsAs we face this evolving media future,there are some clear and immediatesteps we can take to address what’scoming.
  63. 63. FACTS• 1B+ Users• Facebook• LinkedIn• QQ• Social plug-ins everywhereImplications• Empowered consumers• Amplified opinions• Content by discoveryActions• Learn to listen• Separate signal from noise• Embrace the reality of liquid content• MIXI• Google+
  64. 64. 64FACTS• Big data everywhere• Capturable and actionable• Algorithms determine visibilityImplications• New sources of insight• New mechanisms to value inventory• Measures delivery in real timeActions• Build a warehouse• Unify collection• Our data and your data• Apply to models and media executionon and offline
  65. 65. FACTS• 2B+ Broadband users• 4B+ Mobile users• Old media, new devices• New services, new devicesImplications• Explosion of touch points• Implosion of simultaneous reach• Always-on• Merging of marketing channels, channelsto market andcustomer serviceActions• Create assets to watch,use and share• Across device, time and place• Focus equally on delivery and discovery
  66. 66. FACTS• Unlimited supply• Unlimited suppliers• Old pros, new pros,non-pros with a voiceImplications• Can premium still be defined?• Follow the content or follow theaudience?• Can you create?• Can you curate?Actions• Data rights as well as exposureguarantees• Find influence and make it popularrather than find popular and hopefor influence
  67. 67. Central to this are 3 powerhouses of the digitalworld - all with big ambitions and all withdifferent approaches to achieving them
  68. 68. Not so long ago, you could sum up each companyquite easilyApple made consumerelectronicsFacebook was a socialnetworkGoogle ran a searchengineNow it’s not quite so clear
  69. 69. What Facebook says it wants, and what we think theyreally wantFacebook’s mission is to givepeople the power to shareand make the world moreopen and connected.Facebook’s mission is tobecome a social monopolyand monetize peer to peerrecommendation throughthe sale of advertising,and a share of transactionsthrough the development ofsocial currency.
  70. 70. What Apple says it wants, and what we think theyreally wantApple is committed tobringing the best personalcomputing experience tostudents, educators, creativeprofessionals and consumersaround the world through itsinnovative hardware,software and Internetofferings.Apple wants to achieve amassive market share ofdesirable & interconnectedpremium devices and a largefinancial share as thedistributor of the world’spremium content
  71. 71. What Google says it wants, and what we think theyreally wantGoogle’s mission is toorganize the world‘sinformation and makeit universallyaccessible and useful.Google’s mission is tocollect data from everydigital touch point andfrom every screen tooptimize the price andvalue of connectingconsumers to transactions
  72. 72. And at the heart of winning the discoveryrevolution is an algorithmic struggleGoogle Page Rank and Facebook Edge Rank maybe the two most significant pieces of code thatmarketers have to outsmart
  73. 73. What should we be aiming for?As an innovators, leaders and visionaries, we should pushthe boundaries of what is possible, whilst pulling the oldworld into the future at the same time.A completely connected brand and retailexperience – digitized communications andcommerce capabilities across platforms and in-store
  74. 74. Step 1Focus on immersive,interactivecommunications withpublishers (new & old)who are leading theirindustry – esp.increased mobile, tabletand DOOH
  75. 75. Step 2Make every assetsocially enabled in itsown way + prioritizemedia programs thathave high social value(be present in theconversation as wellas the program)
  76. 76. Step 3Further development ofaudience-based buyingacross connectedplatforms – adding inTV and mobile whenreadyMolson.comdata
  77. 77. Step 4Maximize presenceduring digital researchprocess (ZMOT) andimplement broadmobile strategy tocapture intent and winlocally
  78. 78. Step 5Facilitate incredibleconsumer connections topremier partnershipsutilizing the digitalinfrastructure we’veoutlined and acrossplatforms (incl. TV)
  79. 79. Never has the need to balance the art and science of Marketingbeen more pronounced than it is today. Having the right infrastructurein place is of course crucial…
  80. 80. …but what you build on top of that infrastructure and how itworks seamlessly together is what sets it apart and what peopleremember
  81. 81. In the future, great marketing communications will be built on thisdigital infrastructure and layered with incredible brand stories &content that fully integrate those features
  82. 82. MiddleClassThinkingGenderShiftRelocatingLaborConsumptionSeaboardInlandPenetrationMarketing toAndroidsThe Six to Watch: Bigger Data82Bigger DataBigger AnswersBig Data has been making news around the world but often confused asBig StorageThe real uses of the bigger data and complex business intelligence is tocreate Bigger Answers for use in unexpected waysThis is changing the landscape of all activities that touch informationwhich in the 21st Century really is All
  83. 83. Very Large Data is What we KnowBig Data is Trying to Use the Changing Unknown83Data StorageData SourcesData Use andInteractionsSource: KantarRetailiQ researchData SourcesData StorageData Use andInteractions
  84. 84. A Big Data Look at Social MediaPicture are needed for a Billion WordsSource: LinkeInLabs, Kantar Retail Research84You are hereA Process related to BigData thinking
  85. 85. Digital makes Big Data HappenThe Global Movement and Storage of data85MovementGlobalFiberNetworkGenerationand StorageSource:, Google Corperate, KantarRetailiQ reserachWinDigitalwithInternetWirelessSocialMediaGameseCommerceMulti-ChannelFulfillmentBig Data
  86. 86. Thank You@gmorrison5
  87. 87. Thank you