Wpp Plc · LSE:WPP
Wpp — Olympic Congress 2009
49 slides from Wpp's conference presentation, Oct 5, 2009
Slide 1: The Digital Revolution
The Digital Revolution Presentation by Sir Martin Sorrell, WPP plc 05 October 2009
Slide 2: The themes I will aim to cover
The themes I will aim to cover • Introduction to WPP • What has changed since the last Olympic Congress in 1994? • The impact of the digital revolution on media • The implications for brand owners and sports bodies • The opportunity for the Olympic Movement 2
Slide 3: WPP: Who we are
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Slide 4: WPP has the leading global digital portfolio
WPP has the leading global digital portfolio ($3.9bn) Global Agencies 4
Slide 5: #1 in global media billings
#1 in global media billings Rank #1 $86.2bn Rank #1 $27.9bn Rank #1 Rank #2 $15.6bn Rank #1 $29.5bn $11.3bn +32% of global network spend #1 in offline #1 in digital #1 in pan-regional 5 Source: RECMA Global Billings Ranking 2008 – July 2009
Slide 6: Strength in research, insight and consultancy
Strength in research, insight and consultancy Revenue Rank 2007A ($m) 1 Nielsen 4,707 2 Kantar/TNS 4,030 3 IMS 2,193 4 GfK 1,593 5 Ipsos 1,271 6 Synovate 867 7 IRI 665 8 Westat 426 9 Arbitron 338 6
Slide 7: WPP Olympic credentials
WPP Olympic credentials • Advertising and Media Investment Management • Branding, Design and Identity • Direct and Digital • PR – Public Affairs • Research and Insight 7
Slide 8: Changes in the media landscape since the last Olympic Congress
Changes in the media landscape since the last Olympic Congress 1994 2009 Internet Population1: 16 million 1,500 million Mobile Phone Subscribers2: 55 million 4,000 million Online Advertising3: $0~ $55,176 million US Newspaper Circulation4: 62 million 49 million US Evening News 35 million 25 million
Slide 9: A new landscape of digital platforms
A new landscape of digital platforms Consumer Online Video Social Media Generated Media Search Marketing Widgets Web 2.0 Mobile Online Advertising Email Websites 9
Slide 10: Live sporting events continue to be must see television
Live sporting events continue to be must see television Ave. Global Audience Beijing Olympics Opening Ceremonies: 593 million World Cup Finals 2006 (average match): 411 million 2008 UEFA European Championship- 166 million Finals (average match): 2008 UEFA Champions League- Final: 145 million 2008 NF
Slide 11: Global sponsorship spend
Global sponsorship spend +3.1% +13.7% +10.5% 11 Source: IEG
Slide 12: Sports sponsorship increases brand value considerably
Sports sponsorship increases brand value considerably Budweiser is worth an additional $9 billion because of its sports sponsorships Sports fans Not Bonding: 11% 4% Advantage: 42% 28% Performance: 53% 44% Relevance: 56% 47% Presence: 83% 81% 12
Slide 13: Global economic impact of sports
Global economic impact of sports Direct GDP Impact of Olympics ($ Billions) 84% 10 7 5 2 1 Seoul Barcelona Atlanta Sydney Athens 13 Source: “The Economic Impact of London 2012” Nottingham University 2006
Slide 14: The impact of the digital revolution on media
The impact of the digital revolution on media
Slide 15: 1.6 billion out of 7 billion online today
1.6 billion out of 7 billion online today 15 Source: http://www.internetworldstats.com/stats.htm
Slide 16: An increasingly global audience
An increasingly global audience Broadband penetration by market 72% 27% 73% 35% 35% 22% 76% 13% 10% .3% 25% 7% 24% 22% 7% 11% 34% 81% Developed Countries BRIC & Next 11 Countries 16 Source: Digital %- GroupM TYNY 2008 Report Broadband- Internet World Stats
Slide 17: Mobile penetration even greater than broadband
Mobile penetration even greater than broadband 4 billion out of 7 billion have mobile phones 17 Source: International Telecommunications Union
Slide 18: Resonating with young people in particular
Resonating with young people in particular 18
Slide 19: A much more complex and interactive future
A much more complex and interactive future Broadcast Addressable Passive Interactive Devices Ecosystems 19
Slide 20: The future of media
The future of media Addressable Portable Searchable Social Interactive Transactional Ubiquitous 20
Slide 21: The implications for brand owners and sports bodies
The implications for brand owners and sports bodies
Slide 22: Attention is an increasingly scarce resource
Attention is an increasingly scarce resource… Melbourne 1956 Beijing 2008 22
Slide 23: Consumers are taking control
Consumers are taking control Users in control Users as producers and distributors of content What I want; where, when and how I want it. Democratization of the tools of production, distribution, consumption and personalization. 23
Slide 24: Premium live events will still command a premium
Premium live events will still command a premium Cost per thousand (CPM) of Superbowl spot 60 US$ CPM 50 40 30 20 10 0 1970 1980 1990 2000 2010 24 Source: Group M / MediaEdge:CIA
Slide 25: Sports brands remain some of the most powerful in the world
Sports brands remain some of the most powerful in the world Top 10 Most Valuable Beijing Global Brands Olympics Bonding 22% 19% Advantage 53% 63% Performance 60% 80% Relevance 68% 83% Presence 85% 86% 25 Source: BRANDZ 2006 Millward Brown Optimor
Slide 26: While broadcasters offer a lot of money, their audience is getting older
While broadcasters offer a lot of money, their audience is getting older Average Age of Viewers watching the Summer Olympics in Primetime on NBC 47 48 45 42 39 Barcelona Atlanta Sydney Athens Beijing 26 Source:http://www.sportsbusinessdaily.com/article/124050
Slide 27: Across demographics the Olympics perform better against women and older age groups
Across demographics the Olympics perform better against women and older age groups Males Females Superior: 24% 34% Preferable: 62% 72% OK: 87% 91% Relevant: 91% 93% Tangible: 98% 98% 18-34’s 35-65’s Superior: 25% 32% Preferable: 64% 69% OK: 87% 91% Relevant: 91% 93% Tangible: 98% 98% 27
Slide 28: Beijing was the first digital Olympics
Beijing was the first digital Olympics 28
Slide 29: 50% of London 2012's YouTube channel viewers are under 35
50% of London 2012’s YouTube channel viewers are under 35 YouTube's age profiles for London 2012 Olympics 13-17 18-24 25-34 35-44 45-54 55-64 65 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 29 Source: London 2012 Keynote speech to Mobile Entertainment Market 2009, Alex Balfour
Slide 30: People are talking about it online
People are talking about it online Topic of online conversation 30 Source: MEC Access, London 2012: Is it a golden opportunity? An investigation to help you decide
Slide 31: To engage top brands, you need to do more
To engage top brands, you need to do more $millions 1. $100,039 2. $76,249 3. $67,625 4. $66,622 5. $66,575 6. $63,113 7. $61,283 8. $59,793 9. $53,727 10. $49,460 31
Slide 32: The opportunity for the Olympic Movement: 5 points to think about
The opportunity for the Olympic Movement: 5 points to think about
Slide 33: 1. Think like your consumers
1. Think like your consumers 33
Slide 34: Recognize the breadth of your competition
Recognize the breadth of your competition 34
Slide 35: 2. Create the rights franchise of content
2. Create the rights franchise of content 35
Slide 36: Connecting with the average Olympian
Connecting with the average Olympian 36
Slide 37: 3. Engage with the young in the right environments
3. Engage with the young in the right environments 37
Slide 38: The young interact with media in different ways
The young interact with media in different ways Kids and Teens Watch TV on Other Devices 33% Internet 27% 25% 12% PSP/Handheld 13% Videogame System 12% 11% iPod/Mp3 Player 7% 4% 7% Cell Phone 4% 2% 0% 5% 10% 15% 20% 25% 30% 35% Ages 8-12 Ages 9-14 Ages 12-17 38 Source: MORe, Base = Youth who watch T
Slide 39: Their interactions are more social
Their interactions are more social 39
Slide 40: Get to know the new players
Get to know the new players Unique Visitors facebook.com youtube.com myspace.com twitter.com flickr.com 100M —_— ———_— > — _— o —® SOM —— —_-_@—___—___* <— a __.»——_——* — ——— ° ee —e- mn -_-_—o—. —~e— 2 3 ~ —3 o— —_— ° e > 2 ad > + ——— — 07/2008 03/2008 09/2003 10/2008 11/2008 12/2008 01/2009 02/200
Slide 41: 4. Understand the technology opportunity: Get social
4. Understand the technology opportunity i. Get social MLB Advanced Media is largest live event producer in the world. Ability for MLB to show games not broadcast on TV. Initial investment (2000) $1million per team, now valued between $2 – 2.5bn. 41 Source: WPP
Slide 42: And create communities
.... And create communities 42 WPP |
Slide 43: Leverage new screens technology
ii. Leverage new screens technology Community On Demand On Demand Linear network Linear network Linear network Past Present Future 43 Source: WPP
Slide 44: Add value through mobile
iii. Add value through mobile Android App for Wimbledon 2009 44
Slide 45: Add value through mobile
iii. Add value through mobile 45
Slide 46: 5. Think about what digital inventory you can offer sponsors and partners
5. Think about what digital inventory you can offer sponsors and partners 46
Slide 47: It's not just about screens
It’s not just about screens 47
Slide 48: In Summary
In Summary
Slide 49: Thank You
Thank You