MEDIA, DIGITAL AND TECHNOLOGY: THE NEW NORM OF CONSUMER INTERACTION - - PowerPoint PPT Presentation

MEDIA, DIGITAL AND TECHNOLOGY: THE NEW NORM OF CONSUMER INTERACTION

16 JUNE 2020 INVESTOR SESSION

TODAY’S SPEAKERS

NICOLA LEWIS

CHIEF INVESTMENT OFFICER, GROUPM

TIM MATHESON

CHIEF TECHNOLOGY OFFICER

ROSE HERCEG

CHIEF STRATEGY OFFICER

JENS MONSEES

CHIEF EXECUTIVE OFFICER

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AGENDA

Introduction Market Trends across Communications, Experience, Technology and Commerce What does this mean for WPP AUNZ’s future? The Centre of Excellence Our competitive edge

01. 02. 03. 04. 05. 06.

Q&A

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MARKET TRENDS ACROSS COMMUNICATIONS, EXPERIENCE, COMMERCE AND TECHNOLOGY

NICOLA LEWIS

CHIEF INVESTMENT OFFICER, GROUPM

Source: 1 GroupM: e-marketer 2019, ZD net 2019, Statista 2019, Gartner Consulting 2018-2020 Note: the data is taken pre-COVID-19

COMMUNICATIONS EXPERIENCE COMMERCE TECHNOLOGY

• c. $17.2 billion market 1

Combined c.$1.9 bn market 1

DOUBLE DIGIT GROWTH

THE ENHANCED MARKET IN WHICH WE OPERATE

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• c. $7.37 billion market 1

CONSULTING

• c. 1.5 bn market 1

DOUBLE DIGIT GROWTH DOUBLE DIGIT GROWTH LOW GROWTH

COMMUNICATIONS EXPERIENCE COMMERCE TECHNOLOGY

THE NEW NORM ACROSS OUR MARKETS

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• Communications strategies focussed on optimising

efforts towards the consumer

• Many sectors are increasing spend to take

advantage of market opportunities, specifically to focus on building long-term brand equity

• Technology, Sport, Banking, In home

entertainment and Automotive

• Individual channel developments will be predicated
• n the achievement of cross category efficiencies
• The rapid growth of ecommerce (up ~50% in 2020), has expedited growth

in already growing market

• Australia at its highest ever level of online as a % of retail sales (10.4%)
• Key categories are exploring the impact of augmented reality (AR) and

virtual reality (VR) with solutions that make it easier and safer to shop, including;

• Contactless payments, virtual assistants, ‘Smart Mobile Onboarding’

and chat bots dedicated to a better consumer experience

• Australia is now the 7th fastest growing region (worldwide) for extended

reality patents The changes needed in Technology are strategic and will have a long lasting impact as we move

• ut of COVID.

Four principles for consideration:

• Cloud
• Anything-as-a-service
• Rapid Automation
• Agile Operating Models

OBSERVATIONS: COMMON TRENDS ON A GLOBAL SCALE

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TELCOM AND MEDIA

• SVOD Service increasing both subscribers and usage
• Telcom companies benefit from less churn, more stickiness
• Media companies reliant on at-home consumption and fee-based models are positioned to thrive, with SVOD services increasing both

subscribers and usage CPG

• CPG companies have benefitted from ‘pantry loading’ behaviour and a surge in e-commerce
• Many packaged goods companies are conveying plans to sustain spending over the course of the year

AUTOMOTIVE

• Global auto trends were weak for the first quarter
• Total Industry Volume (TIV) registered a -40% decline in March year-over-year
• Many auto manufacturers have focused their near-term marketing on digital media only in support of efforts to invest more aggressively in

digital executions including virtual showrooms FINANCE

• Fast adoption of digital tools among banks, including Smart Mobile Onboarding (SMO) for customers, and enhanced online banking capability
• During the most recent quarter Citi referenced international growth of +18% for digital and +30% for mobile

LUXURY

• Luxury products are highly dependent on public life and travel. Few or no events means fewer reasons to use/consume luxury products
• Early evidence from China suggests a rapid returns to growth in the luxury category when retail venues open

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WHAT THIS MEANS FOR OUR FUTURE

JENS MONSEES

CHIEF EXECUTIVE OFFICER

OUR TRANSFORMATION ROADMAP (ANNOUNCED FEBRUARY 2020)

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Clients Operating Model Talent Solutions Geographies Platform TRANSFORM STRENGTHEN GROW

A LEADING CREATIVE TECH COMPANY

2020 - 2022

PROGRESS - FEBRUARY TO MAY

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OPERATING MODEL CLIENT FIRST TALENT PLATFORM SOLUTIONS GEOGRAPHIC PRESENCE

• Reinvent our operating model
• Establish integrated Centre of Excellence
• Establish top client leads and sector

practice areas

• Roll out new agile leadership model
• New KPIs and REM model
• Begin to centralise our services with one CRM

system, one HR system and one Finance system

• Start to build an end to end data tech stack
• Invest in partnerships with tech platforms and

seek growth opportunities through attractive, strategic M&A

• Establish a campus in Perth, Brisbane, Adelaide,

Auckland and Wellington

• Restructure NZ
• Explore growth options in SE Asia

DONE ON TRACK ACCELERATED DONE ON TRACK ON TRACK ACCELERATED ACCELERATED ACCELERATED ON TRACK

2020 DELIVERABLES STATUS

DONE

EXPERIENCE

HOW THESE FIT ACROSS OUR SOLUTIONS PILLARS

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Strengthening the Core Growth Opportunities Operating Model Clients Talent Platform Solutions Geographies

Simplification Connected solutions portfolio CoE (Data, MarTech, AdTech) New leadership team and reporting lines Cross-sell Foster Creativity Top Clients Consulting New Culture & Leadership Workflow efficiency Career paths KPI’s/ REM Digital talent Shared Services Integration of systems CRM system Content studio consolidation Selective M&A End to end data tech stack Thought leadership Tech Partnerships Hybrid campus Restructure NZ SEA Growth Strategy Offshoring Up-sell Industry Practice Automation Scalable APIs Active portfolio management Future fit program

WE ANNOUNCED THE CENTRE OF EXCELLENCE IN MAY

WHY?

• Our agencies need a depth of expertise

in the areas of technology and data analytics to support our client transformations

• Tech hub which will develop and

integrate solutions to be scaled across all brands

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DATA/AI CONSULTING MARTECH/AD TECH CENTRE OF EXCELLENCE

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CENTRE OF EXCELLENCE: MARTECH, DATA AND CONSULTING

TIM MATHESON

CHIEF TECHNOLOGY OFFICER

THE FUTURE OF THE CMO

“CMOs need to have a well-rounded balance of traditional marketing skills like branding and storytelling, as well as newer technical skills to harness data and technology to execute performance marketing”.

EMARKETER

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HIGH GROWTH IN MARTECH

1. Martech 5000. chiefmartec.com 15

EVOLUTION TO OPEN PLATFORMS

• Platforms evolving to open platforms. With app

marketplaces allowing the creation of even more apps.

• Hubspot open platform has over 350 app

partners.

• All major tech players have launched their app

exchanges:

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ADOPTION OF HEADLESS & APIS

Driving innovation with customer experience by making integration across technologies possible

• Headless CMS
• Headless Commerce
• APIs fuelling growth beyond webpages

1. Image source Contentful

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ADOPTION OF HEADLESS & APIS

1.

• Forrester. Accelerate Microservices Adoption 2020

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• Linkedin. 2020 Emerging Jobs Report

48% business intend to use microservice architecture in 2019 – Forrester Full stack engineers are #4 in LinkedIn emerging job (35% YOY growth)

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INCREASED VALUE OF OWNED DATA

• The growth of data marketing solutions, up

25% in 2019 is hitting challenges with privacy placing increased in value in brands owned

• data. Marketing teams need data to design,

deliver and optimise their activities.

• Marketing teams require increased amount of

data literacy to understand identities, manage single customer views and provide business performance data.

Brands feel just 47% of first party data value potential realised.

1. Martech 5000. chiefmartec.com 2. eMarketer

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DATA LITERACY NOW CRITICAL FOR MARKETERS

• Responsibility for generating trust falls

with marketing teams.

• Trust provides permission for

marketing teams to deliver richer experiences for customers using their data.

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• BCG. Responsible Marketing with First-Party Data

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THE CENTRE OF EXCELLENCE

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BUSINESS UNIT WITH FRONT DESK AND WHITE LABEL SERVICES EXPERT ECOSYSTEM ENGINEER DEVELOPMENT CENTRE

DATA/AI CONSULTING MARTECH/AD TECH CENTRE OF EXCELLENCE

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OUR INTEGRATED AGENCIES ARE WELL RECOGNISED BY CONSULTANCIES

THE GARTNER MAGIC QUADRANT FOR GLOBAL MARKETING AGENCIES, 2020

WPP AUNZ brands

COE PLAN FOR GROWTH

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GROW (2020 ONWARDS ) CONNECT (H2 2020) ESTABLISH (H1 2020)

• Establish strategic

partner program

• Certifications and

credentials

• Connectivity internally
• hub and spoke
• Training and

enablement program

• Identifying

specialisation and white space

• pportunities
• Joint partner go-to-

market and CRM programs

• Productising WPP

core technology

• ffer - white labelling

to all brands

• Consolidate offshore

development hubs

• Scaled enablement

and retention program

• CRM program to

drive organic and acquired growth

• Launch productised

solutions

• Selective

acquisitions to complete offer

• Grow capability
• nshore and
• ffshore

OUR COMPETITIVE EDGE

ROSE HERCEG

CHIEF STRATEGY OFFICER

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OUR COMPETITIVE EDGE

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1,500 ACTIVE CLIENTS DATA AND TECH AGNOSTIC A DEEP UNDERSTANDING OF CONSUMERS

• We reach 19 million Australians and 4 million New Zealand

consumers every day

• Data and intel about consumer behaviours, transactions, needs,

wants and ambitions

• 30,000 data points across 3,000 value sets every day, on every

demographic and socio-economic segment across both Australia and NZ.

• Proprietary research studies including our flagship study (in its third

year) Secrets & Lies speaking to 5000 Australians and 2500 New Zealanders - measuring the difference between what our people (consumers) really think and what they say out loud.

CLIENT EXAMPLES

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NOW FOR Q&A

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THANK YOU

A RECORDING OF THE PRESENTATION WILL BE AVAILABLE LATER TODAY. PLEASE GO TO WWW.WPPAUNZ.COM/INVESTORS

INVESTOR ENQUIRIES SUSIE REINHARDT | SREINHARDT@CANNINGSCOMMS.COM.AU