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The Digital Opportunity
Mark Read, CEO, WPP Digital
@readmark
November 2013
Two key trends: Geographic

@readmark

2
Two key trends: Digital

@readmark

3
Continued strong growth in ad spend
Worldwide Digital Advertising Spend
(US$ billions)

184
162

142

CAGR
2008-2013: 15%
...
Russia is well-advanced
Digital as a % of Total Ad Spend
60%
47%
29%

33%

32%

25%

30%
28%
24%
23%

2018
2014

24%
18%
8...
A world dominated by TV and digital
% of total advertising spend by medium
12%

10%

12%

17%

23%

43%
27%

20%
3%

42%

...
Short-term driven by economics

+10.0%
@readmark

7
Structural shifts impact 2014
TV

8.0%

Radio

14.0%

National Newspapers (print) -1.0%
Magazine and Trade Press
-3.0%
Out...
Five forces driving digital media
1. Shift to mobile
2. Growth in eCommerce
3. Increasing volume of data
4. Increasing soc...
A mobile world: beyond advertising
Marketing

Financial
services

Automotive

Healthcare

Today around 1.5 billion smartph...
Strategic choices: mobile accelerates
fragmentation
MASS

PREMIUM

• Ad funded, limited ability to
charge

• Subscription ...
An eCommerce world: omni-channel
marketing

@readmark
An increasingly data-driven world

@readmark
Content – 1 billion users watching 6
billion hours of content monthly

@readmark

14
A social world: in time and dollars

>1B
accounts

200M
active
users

@readmark

>1B monthly
unique
visitors

200M
members...
The next 5 years
•

TV and Digital: growth across four screens

•

Mobile – the next 4 billion consumers

•

eCommerce and...
WPP: The Digital Opportunity
Position
1
2
3

Company name
Google
China Mobile
Bloomberg

Sector
Search
Telco
Business info...
WPP’s Opportunity: beyond advertising
Digital Media
Audience Buying
Paid and Organic Search
Social Media -- Facebook, Twit...
Implications
1. Be ready for mobile
2. Embrace e-commerce
3. Think social and community

4. Leverage your audience value y...
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DMC 2013. Mark Read. Как изменится digital-ландшафт в ближайшие 5-10 лет, и как использовать это в своих интересах

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Как изменится digital-ландшафт в ближайшие 5-10 лет, и как использовать это в своих интересах.

Автор: Mark Read, CEO, WPP Digital

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DMC 2013. Mark Read. Как изменится digital-ландшафт в ближайшие 5-10 лет, и как использовать это в своих интересах

  1. 1. The Digital Opportunity Mark Read, CEO, WPP Digital @readmark November 2013
  2. 2. Two key trends: Geographic @readmark 2
  3. 3. Two key trends: Digital @readmark 3
  4. 4. Continued strong growth in ad spend Worldwide Digital Advertising Spend (US$ billions) 184 162 142 CAGR 2008-2013: 15% 2013-2018: 14% 124 108 95 83 62 72 47 52 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 10% 12% 14% 15% 17% 19% 20% 22% 24% 25% 27% @readmark Source: GroupM, August 2013
  5. 5. Russia is well-advanced Digital as a % of Total Ad Spend 60% 47% 29% 33% 32% 25% 30% 28% 24% 23% 2018 2014 24% 18% 8% 10% 6% 8% UK China Germany Source: GroupM, August 2013 @readmark Russia US France India Brazil
  6. 6. A world dominated by TV and digital % of total advertising spend by medium 12% 10% 12% 17% 23% 43% 27% 20% 3% 42% 45% 46% 2003 2014 2018 Source: GroupM, August 2013 @readmark TV Digital Print Other
  7. 7. Short-term driven by economics +10.0% @readmark 7
  8. 8. Structural shifts impact 2014 TV 8.0% Radio 14.0% National Newspapers (print) -1.0% Magazine and Trade Press -3.0% Outdoor 10.0% Cinema Internet Display 9.0% Internet Search 26.0% 21.0% Interaction Total @readmark 15.0% 8
  9. 9. Five forces driving digital media 1. Shift to mobile 2. Growth in eCommerce 3. Increasing volume of data 4. Increasing social/participatory nature of media 5. Growing importance of content @readmark 9
  10. 10. A mobile world: beyond advertising Marketing Financial services Automotive Healthcare Today around 1.5 billion smartphones out of 5 billion phones globally @readmark
  11. 11. Strategic choices: mobile accelerates fragmentation MASS PREMIUM • Ad funded, limited ability to charge • Subscription funded – some premium ads • Low production costs • Highly differentiated content • Mass appeal • Niche appeal • Ad tech and data critical • Paywalls and rights • Only largest have the scale to generate meaningful ad revenues @readmark • Very few titles can compete here 11
  12. 12. An eCommerce world: omni-channel marketing @readmark
  13. 13. An increasingly data-driven world @readmark
  14. 14. Content – 1 billion users watching 6 billion hours of content monthly @readmark 14
  15. 15. A social world: in time and dollars >1B accounts 200M active users @readmark >1B monthly unique visitors 200M members 400M users 110M registered users 360M active users 100M users 50M users
  16. 16. The next 5 years • TV and Digital: growth across four screens • Mobile – the next 4 billion consumers • eCommerce and eShopper • Social – influence, reputation, branding & sales • Data and analytics (privacy) • Importance of technology @readmark
  17. 17. WPP: The Digital Opportunity Position 1 2 3 Company name Google China Mobile Bloomberg Sector Search Telco Business information 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Reed Elsevier Apple Yahoo WPP Thomson Reuters Tencent Microsoft Facebook Sony Pearson Dentsu Omnicom Group China Telecom Baidu Publicis Groupe Netflix News Corp Business information Diversified Diversified Advertising Business information Diversified Diversified Social networks Diversified Business information Advertising Advertising Telco Search Advertising Video Diversified @readmark Source: PaidContent (July 2012) Digital Revenue $36.4B $7.6B $7.0B $5.9B $5.4B $5.0B $4.7B $4.7B $4.5B $3.9B $3.7B $3.7B $3.1B $2.9B $2.8B $2.7B $2.3B $2.2B $2.0B $1.9B
  18. 18. WPP’s Opportunity: beyond advertising Digital Media Audience Buying Paid and Organic Search Social Media -- Facebook, Twitter Social Media Social media campaigns, eg., Facebook Social media analysis and monitoring Content creation Web Development Web sites Intranets eCommerce @readmark Mobile Mobile web development Mobile and tablet applications Mobile media, e.g., coupons, locations Data and Analytics Real-time data analysis Tracking and targeting Integration of multiple data sources Digital Platforms Web marketing platforms Media buying platforms Data management platforms Offshore digital production
  19. 19. Implications 1. Be ready for mobile 2. Embrace e-commerce 3. Think social and community 4. Leverage your audience value yourself 5. Ideas plus technology = great digital marketing @readmark 19

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