Media, technology and the future of marketing - Workshop by Toby Roberts, Global Head of Strategy of PHD Media at the NOAH 2015 Conference in Berlin, Tempodrom on the 9th of June 2015.

1. THE NEXT WAVE
ARTIFICIAL INTELLIGENCE & THE IMPLICATIONS
FOR MARKETINGMedia, technology
& the future of marketing
NOAH15 Berlin
9th June

2. 2
Let’s start with
what we (all) know

3. 3
Consumer digital media usage is forecast to grow, reaching
9.6 hours per week in 2018
We are spending more time in digital worlds
2014 2018
Source: http://www.pqmedia.com/about-press-20141120.html “Global Consumer Media Usage & Exposure Forecast 2014-18.”
9.6h
6.5h

4. 4
The number of internet users in Brazil, India, USA 2013-2018
With some countries experiencing dramatic change
99.2 107.7 113.7 119.8 123.3 125.9
167.2
215.6
252.3
283.8
313.8
346.3
246 252.9
259.3
264.9
269.7 274.1
2013 2014 2015 2016 2017 2018
Brazil India USA
Millions
Source: Statista, 2015

5. 5
Remarkably, almost 4 out of every 10 people alive set to have one by 2019
Driven by smartphone growth
Source: e-Marketer/IM, December 2014
15%
20%
24%
28%
31%
34%
36%
22%
39%
67%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2012 2013 2014 2015 2016 2017 2018
Shareofpopulationthatuseasmartphone

6. 6
By 2018 the number of social network users worldwide is predicted
to increase by 152% to 2.4 Billion
And within mobile, social
0.97
1.22
1.4
1.59
1.79
1.96
2.13
2.29
2.44
2010 2011 2012 2013 2014 2015 2016 2017 2018
BillionsofUsersworldwide
Source: Statista http://www.statista.com/statistics/278414/number-of-worldwide-social-network-users/
26%
15%
14%
13%
9%
9%
8%
7%

7. 7
Time is fragmented across different environments places more emphasis
on planning to reach audience, with limited frequency, and in ways that
are cost-efficient and impactful
Leading to audience and ad-product atomisation
Source: GlobalWebIndex, Q1-Q3 2014, based on 32 markets
Online
54%
TV
23%
Radio
10%
Gaming
via
consoles
7%
Press
6%
Online TV
11%
Online Radio
10%
Online Press
12%
Other
17%Global time spend by medium
Global Digital time spend by medium
Reading/writing
blogs 9%
Micro
blogging
13%
Social
networking 28%

8. 8
Global digital spend is showing unabated growth
Money is pouring into this new space
23.2%
26.2%
28.8%
31.3%
33.5%
35.5%
0.0% 10.0% 20.0% 30.0% 40.0%
2013
2014
2015
2016
2017
2018
E-Marketer sources predicts the Global Digital Ad
spend to increase to 35.5% by 2018
Source: http://www.statista.com/statistics/265717/distribution-of-advertising-spending-worldwide-by-medium/E-Marketer, December 2014
31%
25%
14%
6%
6%
5%
12%
32%
33%
10%
6%
4%
4%
10%
TV (Excluding online and mobile)
Digital
Newspapers (print)
Radio
Magazines
Out of Home
Other
PwC forecast the Global Digital spend to increase to 33% in 2018
2018
2013

9. 9
Huge Implication for
Marketing Investment
Different channels, ad-units, buying-events, target
potential and budget implications.
Elevated chance for inefficient payback

10. 10
Hidden within this, a change
that has bigger implications

11. 11
The rise of programmatic
For developed markets this is set
to be close to 70% over next 2-3
years – driven by PMP (eMarketer).

12. 12
1980s = The Big Bang

13. 13
2010s
Algo-
trading
AI (Artificial
Intelligence)Drive
n Trading

14. 14

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AI – A NEW UTILITY
CHEAP, INDUSTRIAL-GRADE DIGITAL SMARTNESS RUNNING EVERYTHING

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Source:
MarketReportsOnline, 2013, Artificial intelligence in Big Data, Commercial Apps, Mobility and Search Global Industries Analytics inc., 2009, Artificial
Intelligence – A Global Strategic Business Report
Source:
MarketReportsOnline, 2013, Artificial intelligence in Big Data, Commercial Apps, Mobility and Search Global Industries Analytics inc., 2009, Artificial
Intelligence – A Global Strategic Business Report

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THIS AI TRAIN IS GOING TO PASS
RIGHT THROUGH OUR BACKYARD

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Over the next 5 years, they will become one

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ADAPTIVE
MARKETING
TERMED BY FORRESTER RESEARCH,
AM IS MARKET-LEVEL MODELLING
(OFF-LINE AND EXTERNAL FACTORS)
IS BEING INTEGRATED WITH
CONSUMER LEVEL ATTRIBUTION
(DIGITAL) INTO A SINGLE VIEW THAT
TAKES ACCOUNT OF LONG-TERM AND
SHORT-TERM EFFECTS.

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THE IMPLICATIONS • CRM and Media will Merge
• Creative routes will Emerge
• Human decisioning be Purged

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‘The Marketing community is clear that the pillars for
future success reside in the smarter application of data
and marketing technology to deliver engagement,
personalisation and improved customer experience
leveraging new devices’
Economist Marketing Survey
February 2015

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Closing the gap between us and our…
entertainment
information
communication

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Biddable serendipity

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Pre-emptive marketing

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Outsourced decisioning

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Broadcast
communications
as pure entertainment

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CHANGE IS UPON US