Wpp Plc · LSE:WPP
Wpp — Investor Day (January 2020)
50 slides from Wpp's investor day presentation, Jan 15, 2020
Slide 1: Investor Day: Creativity powered by technology
INVESTOR DAY Creativity powered by technology 15 JANUARY 2020
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT In order to utilise the ‘safe harbour’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’), WPP plc is providing the following cautionary statement. This presentation contains certain forward-looking statements – that is, statements r
Slide 3: Today's Themes
TODAY’S THEMES What is WPP’s growth opportunity as marketing GROWTH and technology collide? How is WPP transforming its business for its clients TRANSFORMATION and for its growth? TECHNOLOGY STRATEGY What is WPP’s technology strategy and roadmap? CAPABILITIES What capabilities does WPP have today an
Slide 4: Marketing and technology are colliding – reshaping how clients must approach marketing
DIGITAL MEDIA LEADING MARKETING AND DEMOCRATISATION TECHNOLOGY ARE DATA TSUNAMI OF CONTENT CREATION AND COLLIDING – RESHAPING CEO CONSUMPTION CMO HOW CLIENTS MUST CIO APPROACH MARKETING GROWTH GROWTH IS IN OF BIG TECH ECOMMERCE COMPANIES WPP 4
Slide 5: Digital media is now leading
DIGITAL MEDIA IS NOW LEADING PROGRAMMATIC SHARE OF DIGITAL DISPLAY MARKET2 ADVERTISING SHARE BY MEDIUM1 Internet Newspapers Magazines TV Radio Outdoor + Cinema 100% Today 2012: 10% 90% 80% 2019: 65% 70% 60% 50% IMPACT 40% • Fragmentation of audience 30% • Personalisation of messaging 20% • Volume of
Slide 6: Content creation and consumption is democratising
CONTENT CREATION AND CONSUMPTION IS DEMOCRATISING GLOBAL “TRADITIONAL” TV NUMBER OF VIDEOS WATCHED SVOD SUBS1 VIEWING (18-34yo)2 ON YOUTUBE DAILY 1BN By 2024 -40% Since 2015 5BN TIKTOK INTERNET-BASED USERS WHO DISCOVER NEW REACHED VIDEO (18-34yo)2 PRODUCTS ON INSTAGRAM 1BN Users faster than any othe
Slide 7: Almost all retail sales growth now from ecommerce
ALMOST ALL RETAIL SALES GROWTH NOW FROM ECOMMERCE ECOMMERCE AS % OF RETAIL SALES, 2019 FORECASTS 40% 35% 30% 25% 20% 15% 10% 5% 0% Global China UK South Korea USA France Germany India YOY GROWTH +21% +27% +11% +18% +14% +12% +8% +32% Source: eMarketer 2019 forecasts WPP 7
Slide 8: Big tech companies are disrupting the world
BIG TECH COMPANIES ARE DISRUPTING THE WORLD 10 LARGEST GLOBAL COMPANIES BY MARKET CAP 1 Jan 2010 1 Jan 2020 RANK NAME MARKET CAP ($B) RANK NAME MARKET CAP ($B) 1 PetroChina Co Ltd 353 1 Apple Inc 1,305 2 Exxon Mobil Corp 324 2 Microsoft Corp 1,203 3 Microsoft Corp 271 3 Alphabet Inc 923 4 ICBC 269 4
Slide 9: Clients need help with the data tsunami
THE FORRESTER “WAVE”, CUSTOMER DATABASE AND ENGAGEMENT AGENCIES, CLIENTS NEED HELP Q2 2018 WITH THE DATA TSUNAMI WPP’s Data Strategy • Critical to drive data into marketing • Best results come from integrating data • Use of PII needs to respect consumers • Data integrators not data owners • Strategi
Slide 10: CEOs, CMOs and CIOs are asking questions that WPP is well equipped to answer
CEOS, CMOS AND CIOS ARE ASKING QUESTIONS THAT WPP IS WELL EQUIPPED TO ANSWER • How can I adopt technology faster to meet customer expectations? • How do I personalise my marketing in a way that’s not creepy? • How do I build my brand online and protect my reputation? How can I know that my messages
Slide 11: WPP is a creative transformation company
WPP is a CREATIVE TRANSFORMATION COMPANY
Slide 12: Offer to deliver to modern marketers and expand into faster growth markets
WITH AN OFFER TO DELIVER TO MODERN MARKETERS AND EXPAND INTO FASTER GROWTH MARKETS COMMUNICATIONS EXPERIENCE COMMERCE TECHNOLOGY c. $1 trillion market: 2-3% growth1 $600-900 billion market: 5-15% growth1 1. GroupM forecast WPP 12
Slide 13: WPP starts with significant strengths
WPP STARTS WITH SIGNIFICANT STRENGTHS
Slide 14: WPP's work increasingly transforms how our clients engage with consumers
WPP’S WORK INCREASINGLY TRANSFORMS HOW OUR CLIENTS ENGAGE WITH CONSUMERS RESULTS 6M 250K #1 Global New members Customer journey members each month (JD Power) WPP 14
Slide 15: We are reinventing creativity on a broader canvas
WE ARE REINVENTING CREATIVITY ON A BROADER CANVAS RESULTS +119% 1.5M +4.4% Mentions of Minutes Q3 19 same Winner, Wendy’s on watched restaurant sales Social & Influencer social media Grand Prix WPP 15
Slide 16: Our integrated agencies are well recognised
THE GARTNER MAGIC QUADRANT FOR GLOBAL MARKETING AGENCIES, 2019 OUR INTEGRATED AGENCIES ARE WELL RECOGNISED BY CONSULTANCIES WPP 16
Slide 17: Our modern offer is winning business with digital endemic clients
OUR MODERN OFFER IS WINNING BUSINESS WITH “DIGITAL ENDEMIC” CLIENTS ADVERTISING SPEND OF EIGHT "DIGITAL #2 client ENDEMIC" MARKETERS* ($BN) Creative, technology 26.3 Media Media 20.9 Media, creative 16.8 Creative, PR 13.6 Content, media 11.8 9.1 Content, media, PR Media, technology Top 20 client FY1
Slide 18: Continuation of WPP's decade-long strategy
CONTINUATION OF WPP’S DECADE-LONG STRATEGY Acquisition Integration Transformation 2010 – 2015 2016 – 2019 2020 – onwards Acquisition of specialist MarTech Integrating specialist businesses Transforming our technology and AdTech boutiques to fast- into the core offering of scaled offering through a c
Slide 19: Our strategy for transforming WPP builds on these strengths
OUR STRATEGY FOR TRANSFORMING WPP BUILDS ON THESE STRENGTHS Six key tasks 1 Provide clients with stronger transformational leadership 2 Re-invest in and re-invent creativity 3 Integrate “creative” and “digital” to make offer more client-centric 4 Implement a single technology strategy across the com
Slide 20: Break-out sessions
BREAK-OUT SESSIONS • Data strategy and differentiation; how data drives creativity; AI in practice; Xaxis and CoPilot DATA AND AI • Niel Bornman (Global Chief Technology Officer – Data & Product) • Nicolas Bidon (Global CEO, Xaxis) • Scale and expertise in MarTech; systems integration plus creativit
Slide 21: Technology strategy and progress update
TECHNOLOGY STRATEGY AND PROGRESS UPDATE STEPHAN PRETORIUS Group CTO
Slide 22: Our unique approach
SCALED GLOBAL OPEN PARTNERSHIPS PLATFORM OUR UNIQUE APPROACH DISTRIBUTED DEEP INNOVATION SPECIALISATION WPP 22
Slide 23: Key questions
KEY QUESTIONS 1. How do we deliver value and differentiation through our integrated partner strategy? 2. How do we capture the value of distributed innovation through our OPEN platform? 3. How do we empower our people with stronger technology skills and deep specialisation? 4. What is the future of
Slide 24: Partnering for growth
PARTNERING FOR GROWTH
Slide 25: Leveraging our tech partners to modernise our offer and drive growth
WE ARE LEVERAGING OUR TECH PARTNERS TO MODERNISE OUR OFFER AND DRIVE GROWTH MEDIA & COMMERCE PLATFORMS 1. Invest in WPP leads to run each of the major partnerships 2.Group-wide MSAs and JBPs, coordinated and managed by WPP 3.Joint Product & Solution Development 4.Preferential Access to Partner Data
Slide 26: For 2020, focused on strategic JBPs with key partners
FOR 2020, WE ARE FOCUSED ON STRATEGIC JBPS WITH 8 KEY PARTNERS JOINT PRODUCT & SOLUTION ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ DEVELOPMENT PREFERENTIAL ACCESS ✓ ✓ ✓ ✓ ✓ TO DATA & TECH JOINT GO-TO-MARKET ✓ ✓ ✓ ✓ ✓ ENABLEMENT PROGRAMMES ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ WPP 26
Slide 27: Differentiating our offer with major digital media platforms
DIFFERENTIATING OUR OFFER WITH MAJOR DIGITAL MEDIA PLATFORMS • Governance for • Governance for FB • Governance for • Governance for • Partnership around Google • Gamma Signals – Amazon Ads Bing AR with WPP • Bridge for Google, API for brand lift • DCO based on AMZ • Bridge for Immersive COE YT, DV36
Slide 28: Innovating for growth
INNOVATING FOR GROWTH
Slide 29: Distributed innovation across our operating companies
DISTRIBUTED INNOVATION ACROSS OUR OPERATING COMPANIES WPP 29
Slide 30: WPP OPEN common technology platform
WPP OPEN is our common technology platform that combines the leading solutions, applications and data from across WPP, supported by unique partnerships, to help us deliver creative transformation. SOLUTIONS APPLICATIONS DATA WPP 30
Slide 31: Products in WPP Open undergo strict industrialisation process
PRODUCTS INCLUDED IN WPP OPEN UNDERGO A STRICT INDUSTRIALISATION PROCESS LEGAL SECURITY MARKETING 30+ Industrialisation TECHNICAL OPERATIONS criteria COMMERCIAL Secure, Scalable, Accessible, Commercial WPP 31
Slide 32: WPP Open components: data, apps, solutions, partners
• DATA – Data from across WPP and 3rd parties • APPS – Self-serve applications from across WPP and 3rd parties • SOLUTIONS – Technology solutions from across WPP that require more hands-on sales and implementation • FUTURE MAKERS – Communities, content and access to technology training and events to
Slide 33: A day in the life of a Mar-Tech exec
A DAY IN THE LIFE OF A MAR-TECH EXEC building based on custom HTML _ 2 © | ' iN — DAY IN THE LIFE COMMUNITY OF SOLUTIONS DESIGNERS READ automated variant Hoxton offers automat d on custom HTML building based on DAY IN THE LIFE: DATA Hoxton offers automated variant building based on custom HTML: READ
Slide 34: Skills for growth
SKILLS FOR GROWTH
Slide 35: Globally scaled enablement programmes focusing on high growth areas
GLOBALLY SCALED ENABLEMENT PROGRAMMES FOCUSING ON 3 HIGH GROWTH AREAS MODERN MARKETING TECH CREATIVE & PRODUCTION DIGITAL MEDIA PLATFORMS Hard technology skills and Technology skills and capabilities Technology-grounded but channel capabilities for our technology for our creative & production specif
Slide 36: Globally scaled enablement programmes: certifications and specialists
GLOBALLY SCALED ENABLEMENT PROGRAMMES FOCUSING ON 3 HIGH GROWTH AREAS MODERN MARKETING TECH CREATIVE & PRODUCTION DIGITAL MEDIA PLATFORMS Adobe Experience Cloud Adobe Creative Cloud Google Marketing Platform ✓ 2,400 specialists ✓ 47,300 creatives ✓ 27 GMP Accredited Companies ✓ 7 GMP Sales Partners
Slide 37: WPP
WPP
Slide 38: Future Maker programmes for key emerging capabilities
SUPPORTED WITH FUTURE MAKER PROGRAMMES FOR KEY EMERGING CAPABILITIES IMMERSIVE (AR/VR)* VOICE* GAMING/ESPORT** CREATIVE AI** * Launched Q2 2019 ** Launched Q4 2019 WPP 38
Slide 39: WPP AI is already widely adopted
WPP AI IS ALREADY WIDELY ADOPTED The Next Rembrandt Kantar AI AI-powered online shopping for Cognitive dress for Predictive Campaign dogs IBM Watson Performance Dress for respect Speedgate Theraflu AI Driven Effectiveness Content Intelligence Engine AI driven programmatic Agent Based Modelling AI Dr
Slide 40: But we want to go even faster in 2020
BUT WE WANT TO GO EVEN FASTER IN 2020 ENABLE ACCELERATE RESEARCH Fast-track our people’s AI Embed AI resources across Future focused AI research to capabilities through education product and creative teams create new value in marketing and collaboration to accelerate the value from AI and advertisin
Slide 41: Scaled enablement
SCALED ENABLEMENT ENABLE ACCELERATE RESEARCH THROUGH 2021 50 000 People enabled with a clear understanding and ability to articulate the power and value of AI to our clients. Online L&D journey crafted in close collaboration with the Chief People Officer's team. WPP 41
Slide 42: Scaled enablement
SCALED ENABLEMENT ENABLE ACCELERATE RESEARCH THROUGH 2021 5 000 Certified data scientists, engineers and creative technologists, trained through customised training programmes, collaborating, peer reviewing each other’s work and knowledge sharing to accelerate learning and value to our clients. WPP
Slide 43: Scaled enablement
SCALED ENABLEMENT ENABLE ACCELERATE RESEARCH THROUGH 2021 150 Graduate Diploma in AI for Marketing for senior executives. WPP 43
Slide 44: Accelerated product development
ACCELERATED PRODUCT DEVELOPMENT ENABLE ACCELERATE RESEARCH PHASE 1 Stage LAUNCHED PHASE 2 Stage Q1 2020 WPP Open products + AI Accelerate creative + AI Resources to enhance current or build Sustainable programme to maximise the new AI into the products that will potential of human creativity + AI. b
Slide 45: Original research
ORIGINAL RESEARCH ENABLE ACCELERATE RESEARCH A B ? SYNTHETIC MEDIA HYPERGRAPHS SOCIAL MODELLING CAUSALITY EXPLAINABILITY AI assisted video Staying at the cutting Understanding human Proving cause and Understanding AI and text edge of graph theory social context effect decisions WPP 45
Slide 46: The future of creativity
THE FUTURE OF CREATIVITY
Slide 47: Generative Deep Learning
O'REILLY Generative Deep Learning Teaching Machines to Paint, Write, Compose and Play Imagine. Create. Experience.
Slide 48: The future
\) My We 7 M4) - w 1 THE FUTURE Rhil 1! ¢ y . ay he oP EP “a a | . + = aa, vy ee
Slide 49: Q&A
Q&A
Slide 50: Thank you
THANK YOU