Ebiquity Plc · LSE:EBQ
Ebiquity — Investor Day (November 2020)
84 slides from Ebiquity's investor day presentation, Nov 10, 2020
Slide 1: Ebiquity Group Plc
Ebiquity Group Plc 10th November 2020 1
Slide 2: Today’s team
Today’s team Nick Waters Ruben Schreurs Federica Bowman Laetitia Zinetti Global Chief Executive Officer Group Chief Product Officer Chief Executive Officer, FirmDecisions Managing Director, Continental Europe Leela Nair Mike Campbell Jim Mason Managing Director, Asia Pacific Head of International Ma
Slide 3: Content
1. Market Context 2. Digital Product Strategy 3. Media Lifecycle Management 4. Effectiveness Content 5. Contract Compliance 6. US Market Opportunity 7. Asia Pacific Market Opportunity 8. Conclusion 3
Slide 4: Market Context
Market Context Nick Waters Chief Executive Officer 4
Slide 5: Nick Waters
Nick Waters Chief Executive Officer 1992 1998 2005 2010 2019 2020 Started in Managing Partner CEO Asia CEO Asia Pacific Chairman UK&I Group CEO Advertising Pacific 2001 2006 2013 CEO SEA CEO EMEA CEO Asia Pacific 5
Slide 6: Our business
Our business 17 offices ~550+ employees ■ Ebiquity local market presence ■ Ebiquity local affiliates 6
Slide 7: Revenue distribution - 2019
Revenue distribution - 2019 Revenue Share by Region 2019 Revenue Share by Service 2019 11% 8% 12% 13% 50% 11% 68% 26% UK and Ireland Continental Europe USA Asia Pacific Media Perf & Mgt Contract Compliance Analytics Tech 7
Slide 8: Management structure
Management structure Executive Leadership Team Products & Innovation Board Client & Revenue Board Global Client Solutions Centre Four internal promotions: Two new hires: Clients CEO FirmDecisions New Business and Marketing Product MD Asia Pacific Director Organisational structure Chief Product Offic
Slide 9: Advertising at a crossroads
MARKET CONTEXT Advertising at a crossroads Consumer Advertisers Companies questioning dynamics and Danger of short- Lack of impartial investing in investment in corporate termism to advice from pressures are data-driven, long-term achieve faster many media changing measurable brand-building results
Slide 10: CMO struggle to prove effectiveness and ROI
MARKET CONTEXT CMO struggle to prove effectiveness and ROI Source: e Consultancy, CMO.com, The Drum, Marketing Week 10
Slide 11: Falling impact of advertising investment
MARKET CONTEXT Falling impact of advertising investment Key business effects tied to marketing spend 2.0 1.9 1.8 Key Business Effects 1.7 1.6 1.5 1.4 1.3 1.2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: IPA Databank: study by Peter Field and Les Binet of 500 effectiv
Slide 12: Brand owner-agency trust problem
MARKET CONTEXT Brand owner-agency trust problem Source: The Drum, Adweek, Marketing Week 12
Slide 13: Rapid shift in marketing delivery structures
MARKET CONTEXT Rapid shift in marketing delivery structures 13
Slide 14: An active market - global media pitch volume
MARKET CONTEXT An active market - global media pitch volume $Bn media spend $9.4 Bn media dollars is currently bieng reviewed or is 9.4 planned for 2020 $10.4 Bn media dollars have been reviewed in H1 26.3 23.5 30.4 26.6 10.4 2016 2017 2018 2019 2020 Year Source: COMvergence H1 2020 14
Slide 15: Ebiquity – global specialist market leader
FULFILLING MARKET NEEDS Ebiquity – global specialist market leader Specialist National Global Media Consultants Marketing Consultants General Auditors Size of bubble represents approximate comparative revenue, except “generalist” auditors 15
Slide 16: Ebiquity well placed to meet market needs
FULFILLING MARKET NEEDS Ebiquity well placed to meet market needs Media Media Pool Media Contract Digital Adtech MMM Management Benchmarking Savings Tracking Compliance Consulting Consulting / ROI & Pitch Source:- Ebiquity assessment 16
Slide 17: Client revenue development
STRATEGY Client revenue development Revenue* 16 15 Multiple entry points 14 12 12 Add markets 10 10 8 Cross-sell services 6 6 5 Integrated service 4 offering 2 End to end solutions 0 Year 1 Year 2 Year 3 year 4 year 5 *The figures serve as an indicative revenue only 17
Slide 18: The biggest issue and opportunity
STRATEGY The biggest issue and opportunity Source: The Drum, Marketing Week 18
Slide 19: Sizing the market opportunity
THE DIGITAL OPPORTUNITY Sizing the market opportunity Billions, % change, and % of total media ad spending $517.51 $479.20 $435.83 $384.96 $333.25 58.8% 60.5% $283.35 56.6% 53.6% Digital ad spending (Bn) 50.1% % of total media ad spending 45.9% % of change Note: Includes advertising that appears on
Slide 20: Sizing the market opportunity
Sizing the market opportunity Top 100 advertisers (primary target Total digital ad market market) over $400 Bn by 2021 US$50 Bn+ New products and services identifying Incremental mid term opportunity 15-30% waste in client digital spend 0.5% of primary target market spend US$7.5-15 Bn US$250m Source
Slide 21: Digital product strategy
Digital product strategy Ruben Schreurs Group Chief Product Officer 21
Slide 22: Ruben Schreurs
Ruben Schreurs Group Chief Product Officer 2010 2017 2020 Q1 2020 Q4 Started in Digital Advertising Launched Digital Decisions Acquired by Ebiquity Appointed as CPO 22
Slide 23: Large platform dominance
Large platform dominance Share of annual ad spend 45% 43% 40% 54% 50% 37% 40% 42% 28% 32% 18% 18% 18% 18% 18% 2018 2019 2020 2021 2022 Traditional media Source: eMarketer ‘Other’ digital media 23
Slide 24: The digital market
The digital market Key differences to address Saturated / Commoditized High-growth Static Dynamic Transparent Opaque Growth decline High growth Focus on output price Focus on value Traded as commodity High variance Guarantees & Quality, governance, Commitments brand-safety 24
Slide 25: Advertisers waste up to 60% of digital media investments
Advertisers waste up to 60% of digital media investments Transparency, ad fraud and brand safety are the primary issues 58% of FMCG digital media budget is wasted* $60 billion ad spend on digital “Cost of global ad fraud could top $30bn” advertising by FMCG in 2018 $27 billion had a negative ROI $8
Slide 26: 2020 | 9 months results
DIGITAL DECISIONS PERFORMANCE UPDATE 2020 | 9 months results Monthly Revenue 2020 performance highlights +26.2% Average MoM growth 11 new clients on-boarded Active in 80+ markets Over $4bn of spend in scope Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Monthly Revenue Linear (Monthly Reven
Slide 27: Creating and leading in a new market
Bifurcated commercial strategy Creating and leading in a new market ■ New Strategy ■ New Strategy ■ Core business High Growth (first-mover) Profitable & Scalable Anti-cyclical in nature (savings) ■ Core business Financial Continuity Network (clients & group) Strategically embedded 27
Slide 28: Group synergies
Group synergies Automation Data Management Delivery Upgrade Kickstart growth Increased Profit Short sales cycles New Strategy Core business Competitive edge Existing Demand Full lifecycle Strong Client Base Credibility Global Network 28
Slide 29: Changing our ambition: “From McKinsey to McDonald’s”
Changing our ambition: “From McKinsey to McDonald’s” People-heavy Globally consistent Central R&D Project-based Highly efficient (‘Speedee’) Global hero products Seniority-driven Consistent product/experience Recurring / Subscription Low entry barrier Robust quality standards Standardisation Profit
Slide 30: Key priorities
Key priorities Recurring Efficiency Data Profitability Sticky 30
Slide 31: Media Data Vault unique in market
EBIQUITY MEDIA DATA VAULT Media Data Vault unique in market Client Client Client Agency 1 Agency 2 Agency 3 Agency 1 Agency 2 Agency 3 Agency 1 Agency 2 Agency 3 Media Data Vault Media Data Vault Media Data Vault MASTER EBIQUITY DATA VAULT Benchmarks Research & Insights Rapid Product Development 31
Slide 32: Alpha tracking deployed in August
MEDIA DATA VAULT Alpha tracking deployed in August: > €200mio / 59bn impressions 32
Slide 33: Core services offered
DIGITAL MEDIA SUITE Core services offered Digital Media Suite Monthly Governance Commitments Digital Media Review Sourcing Monitoring & Productivity ‘mile wide – yard deep’ Structural Monthly Structural global Periodic validation of Robust review of selected digital advertising delivery for a Sourci
Slide 34: Development strategy
DIGITAL MEDIA SUITE Development strategy Digital Media Suite Monthly Governance Commitments Digital Media Review Sourcing Monitoring & Productivity ‘mile wide – yard deep’ Redesigned Service Structural Monthly Structural global Periodic validation of Robust review of selected digital advertising del
Slide 35: Real-time & forward looking
CLIENT DELIVERY DASHBOARDS Real-time & forward looking 35
Slide 36: First group product
MEDIA LEADERSHIP INDEX First group product 36
Slide 37: Metrics & KPIs
TRACKING SUCCESS Metrics & KPIs Clients on- boarded on new suite Value created for clients $ Spend Inefficiencies monitored identified New clients won -> digital suite primary 37
Slide 38: New opportunity
New opportunity 1 We are on the verge of creating a new market with the opportunity to lead 2 Our network is ready, we believe client demand is high 3 Ebiquity is market leader, the time to capitalise is now 4 We set course based on proven business success in <9 months 5 Our scale and data will give
Slide 39: Media lifecycle management
Media lifecycle management Laetitia Zinetti Managing Director, Continental Europe 39
Slide 40: Laetitia Zinetti
Laetitia Zinetti Managing Director, Continental Europe 1999 2006 2010 2014 June 2019 Communications Manager Media Director- Europe Managing Director Managing principal, Appointed Ebiquity France Media Management Continental Europe MD 40
Slide 41: Key media challenges for brand owners
Key media challenges for brand owners Setting the right Managing Ensuring organisation efficiency and transparency and technology effectiveness 41
Slide 42: Significant disruption means media could be managed very differently
Significant disruption this year now means that media could be managed very differently Media Consumption changing Fast evolving media consumption habits E-commerce and tech critical Increased investment in e-commerce and technology in short term Talent and specialisms key Access to agency talent an
Slide 43: Ebiquity services cover the full spectrum
Ebiquity services cover the full spectrum Contract Compliance Price Benchmarking > Flexible Approach Clients can enter at any point, then develop into the other areas. There is not a single- entry point to the cycle. TRANSPARENCY EFFICIENCY Partner Analytics EFFECTIVENESS Selection ORGANISATION < TE
Slide 44: Success story to replicate (Vodafone)
Success story to replicate (Vodafone) Marketing mix modelling Marketing mix Creative In housing modelling Consultancy Tech In housing Media In housing Consultancy Consultancy Marketing mix Tech Vendor Creative In housing modelling consultancy Consultancy Tech In housing Agency Financial Audit Consul
Slide 45: Leadership capabilities
Leadership capabilities 1 2 3 4 5 #1 #1 #1 “Award winning” One of the most in Performance in Agency Selection in Contract Compliance marketing analytics respected independent Measurement with with ~100 assignments with ~70% share with a world-class partners for ad ~60% share, more per year globally
Slide 46: The combination of Ebiquity assets make it unique
The combination of Ebiquity assets make it unique to tackle all brand owners' challenges Portfolio of clients, Geographic Proprietary Talent Independence references, and footprint data and tools case studies 46
Slide 47: Analytics
Analytics Mike Campbell Head of Advanced Analytics 47
Slide 48: Mike Campbell
Mike Campbell Head of Advanced Analytics 1990 1996 2003 2015 Account Director UK Analytics Head, UK and Managing Partner European Analytics Head European CEO Advanced Analytics 48
Slide 49: There is a shocking lack of science and math in media planning
There is a shocking lack of science and math in media planning In a data-rich Majority of Not world, there is media plans are effectiveness-led no reason for audience-led this 49
Slide 50: How to plan for media effectiveness
How to plan for media effectiveness MEASURE IMPLEMENT INSIGHT MEDIA STRATEGY PLAN STRAT PLAN 50
Slide 51: How to plan for media effectiveness
How to plan for media effectiveness Consistent framework but Right metrics, Business targets Long/short-term Brand versus customised avoid easy goals Short-term tactics (macro, measurement micro, nano) 51
Slide 52: MMM modelling typically increases ROI by over 20%
MMM modelling typically increases the ROI derived from media plans by over 20%. It is a major strategic advantage for Ebiquity against other media auditors/ advisors
Slide 53: Advanced Analytics Team recognised by the industry
Ebiquity’s Advanced Analytics Team has been Recognised by the industry Gold for Lidl Gold for DLG ‘18 Gold Award for best Silver for Weetabix ‘Trade body research’ for Silver for Yorkshire Tea Thinkbox study, ‘Profit Cannon Prize for Best New Ability: The business case Learning for DLG for advertisi
Slide 54: Extensive benchmarks of what works
At Ebiquity we have extensive benchmarks of ‘what works’ which is often at odds with the level of acceleration into digital media 100 100 80 80 Marketing Mix Modelling provides clients with the RETAIL AUTO 60 60 understanding of what the ROIs for their business are 40 40 20 20 0 0 TV Radio Press OOH
Slide 55: Sales/Profit Return
We can use this knowledge to change plans with either the minimum harm or the maximum benefit Spend on Media channels A, B and C can be optimised by reducing spend on channel C and reallocating to channel A to generate more sales and profit A corresponding increase in spend allocation to channel A w
Slide 56: State of the art Optimisation portals
We have developed state of the art Optimisation portals* which allows clients and agency partners to optimise by brand, product, media line and weekly phasing *allows scenario planning and forecasting functionality 56
Slide 57: VW group pitch: relationship between investment and return
In 2018 we pitched to the European marketing meeting for VW group Marketing: “scientifically establish the relationship between investment and return” KEY OUTCOMES: Optimised investment ROI improvement opportunity across the carlines +18% Compiled Engaging with database local & central across market
Slide 58: Contract Compliance
Contract Compliance Federica Bowman CEO FirmDecisions 58
Slide 59: Federica Bowman
Federica Bowman CEO FirmDecisions 2000 2010 2015 Q4 2020 Q3 Started in Digital Joined as Moved back to London Promoted to CEO Media International Head as MD Digital Of FirmDecisions of Digital (IHoD) 2013 Q1 Moved to NY as Head of Digital NA 59
Slide 60: Our business
Our business 85 333 75 87% $79B Brands we worked Average no. of Markets we have Audits in the last 4 Client spend we with in 2019 audits we audited years that have audited in 2019 complete a year been of media vs. non media agencies 60
Slide 61: The global marketing sector was worth $1.7 trillion
The global marketing sector in 2019 was worth $1.7 trillion* and we audited only $40bn of that, leaving plenty of room for growth Working more Broadening innovatively with our services other parts of the business Marketing** Automation *https://www.forbes.com/sites/zarkodimitrioski/2019/02/13/how-mu
Slide 62: US Market Opportunity
US Market Opportunity Jim Mason Managing Director, Client Services, NA 62
Slide 63: Jim Mason
Jim Mason Managing Director 1997 2004 2010 2016 2018 Technology Strategy Digital Digital Managing Director, Consulting Consulting Marketing Transformation Client Services 63
Slide 64: USA largest media market, but media auditing less commonplace
Although the USA is the largest media market globally, media auditing is not as commonplace as in Europe Top 10 Countries, Ranked by Media Spend Higher historical levels of trust in the US may (2020, in $ billions) contribute to a legacy of limited auditing USA, $226b Average trust in institutions,
Slide 65: US market factors increasing need for independent advisory
US market factors are increasing the need for independent advisory services Digital market changes, complexity, Increased use of performance and information asymmetry incentives in agency compensation % of brands with incentive comp by budget • Agencies / technologies hold the power > 500 million 75
Slide 66: Client asks extend beyond traditional media benchmarking
The nature of client asks extends well beyond traditional media benchmarking and into deeper digital analysis and strategy Digital governance Operational reviews Digital advisory Source Data Monitoring Paid Search Assessment Brand Safety Review, Programmatic Health Check Agency selection Contract co
Slide 67: Building momentum in the US market
Ebiquity is building momentum in the US market with revenue holding steady despite the challenges of 2020 Success replacing Accenture Other notable wins Notable new clients Top 5 US retailer / Top 5 US retailer Retail Retail Top 5 US advertiser TELECOM Top 10 US advertiser FOOD & BEVERAGE Top 150 ad
Slide 68: Significant US agency selection activity expected in 2021
The US market should expect significant agency selection activity in 2021, which we anticipate leading to new opportunities USA Agency Selection Activity (in $ millions of media spend in review) 2018 saw a peak in agency reviews. $15,000 Media contracts tend to have a 3- 2021 projection year period,
Slide 69: Capitalizing on the US growth opportunity
Capitalizing on the US growth opportunity Ebiquity revenue by client (Representative chart) 1 Adding client partners to grow existing accounts 1 2 Proactive outreach to capture new clients • Remaining Accenture clients Engagement Revenue • Announced agency reviews • Industry synergies • Prior lapsed
Slide 70: The Asia Pacific Opportunity
The Asia Pacific Opportunity Leela Nair Managing Director Asia Pacific 70
Slide 71: Leela Nair
Leela Nair Managing Director Asia Pacific Former Mindshare MD Leela Nair launches Ebiquity SEA 1994 1997 1999 2005 2010 2014 2020 Q4 Managing Client Services National Managing Head of Trading/ Managing Appointed as Director Director Trading Director Managing Director Director Managing Australia Aust
Slide 72: 5 of the 10 most populated countries are in Asia
5 out of 10 of the most populated countries in the world are in Asia China 1,439,324,000 2020 World’s Population India 1,380,004,000 USA 331,003,000 Rest of the Asia Indonesia 273,524,000 world Pakistan 220,892,000 Brazil 212,559,000 Nigeria 206,140,000 Bangladesh 164,689,000 Russia 145,934,000 Mexi
Slide 73: 3 of the 5 largest economies and fastest growth rates
It also has 3 of the 5 largest economies in the world and the fastest growth rates 2019 Annual GDP GDP Annual Growth Rate (US Trillion) (%) 20 United China Indonesia Vietnam Euro Area States 21.40 15 10 China 14.30 5 0 Japan 5.21 -5 -10 Germany 4.00 -15 Jan 2018 Jan 2020 Jan 2021 India 3.00 -20 Sour
Slide 74: Asia Pacific second largest ad spend region
Asia Pacific is already the second largest ad spend region and future prospects are strong Annual Advertising Spend (US Million) $250,000 $200,000 $150,000 $100,000 $50,000 $0 Asia Pacific North America Europe Latin America Middle East Africa 2017 2018 2019 2020 Source: WARC 74
Slide 75: Digital >50% of the market
2019 SHARE OF AD SPEND Digital >50% of the market 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Asia Pacific Africa Europe Latin America Middle East North America Global Television Online Newspapers Magazines Radio Cinema Outdoor Source : WARC 75
Slide 76: Local advertisers represent a significant segment
Local advertisers represent a significant segment of the market and are more insulated from global influences Top 20 Advertisers in Indonesia Top 20 Advertisers in Vietnam 1 UNILEVER 1 UNILEVER VIETNAM 2 WINGSFOOD 2 VINAMILK CORPORATION 3 INDOFOODS 3 P&G VIETNAM 4 PROCTER & GAMBLE 4 NESTLE 5 MAYORA
Slide 77: Globally……….
Globally……….. Specialist National Global Media Consultants Marketing Consultants General Auditors Size of bubble represents approximate comparative revenue, except “generalist” auditors 77
Slide 78: In Asia, the downside risk is limited
In Asia, the downside risk is limited Specialist National Global Media Consultants Marketing Consultants General Auditors Size of bubble represents approximate comparative revenue, except “generalist” auditors 78
Slide 79: Opportunity to deliver greater transparency in Asia is high
The opportunity to deliver greater transparency in Asia is high Asia France Canada Australia US UK Malaysia India Japan China Level of AVBs 28 44 55 37 93 144 111 155 155 Level of agency income derived from media owners 47 47 35 59 89 141 141 117 164 Number of intermediaries between advertiser and m
Slide 80: Asia Pacific dominates eCommerce sales
Asia Pacific dominates eCommerce sales….another growth opportunity Retail Ecommerce Sales, 2020 (in billions) Asia-Pacific $2,448.33 North America $749.00 Total retail eCommerce Western Europe $498.32 spending worldwide = $3.914 trillion Central & Eastern Europe $92.91 Latin America $83.63 Middle Ea
Slide 81: Conclusion
Conclusion Nick Waters Chief Executive Officer 81
Slide 82: Summary
Media market in turmoil - $ billions wasted New digital product strategy – eliminate wastage Integrated solutions – strategic client development Summary Effectiveness – value creation Contract compliance – leadership in a growing market Geographic growth opportunity – US, Asia Pacific Strong managem
Slide 83: Charting our journey – new KPIs
Charting our journey – new KPIs Strategic Number of client clients Client satisfaction Efficiencyhours Productive gains Client satisfaction development - revenue billing £500k+ fee scores served by media income operations centre 400k 300k 500k 200k Revenue per Median revenue Digital growth % revenue
Slide 84: Q&A
Q&A 84