TRENDS OF TODAY AND TOMORROW Presentation to Investors Hosted by - - PowerPoint PPT Presentation

MEDIA & ADVERTISING TRENDS OF TODAY AND TOMORROW

Presentation to Investors Hosted by Bank of America Merrill Lynch 25 NOVEMBER 2019

https://www.linkedin.com/in/jens-monsees-0024538/

INTRODUCTION

Jens Monsees Ch Chief ief Exec xecuti tive Offi fficer WPP AUNZ Nicola Lewis Ch Chief ief In Inve vestment Offic fficer Gro roupM

A LEADING CREATIVE TRANSFORMATION COMPANY

• Market capitalisation of ~$450 million

― WPP plc is a majority shareholder at 61%

• Breadth of capability across communications, e-

commerce, experience and technology, which together, generate combined revenues of $857 million (FY18)

• High quality customer base comprising blue-chip

corporates, not-for profits and global companies, built on long-term relationships

• Focussed on transformation – our new strategy

will be announced early in 2020

Ope peratin ing acr across Aus ustralia ia, New Zea eala land an and Sou

• uth-East

t Asia sia, WPP AUNZ (ASX:WPP) is the region’s leadin ing cr creativ ive tr trans ansformatio ion com

• mpany

4

WPP AUNZ Regional Footprint

5

RICH RICH PORT PORTFOL FOLIO IO ACR ACROSS OSS CLIENT CLIENT NEED NEEDS

COMMUNICATIONS

Advertising, branding and identity, content, media investment, public relations and public affairs, healthcare

TECHNOLOGY

Data management, marketing technology consulting and systems integration services

EXPERIENCE

UX, service design, websites, platforms and applications, voice and augmented reality

COMMERCE

Retail experience, direct-to-consumer platforms and marketplaces

WPP AUNZ brands: selected examples

6

TRE TRENDS NDS DRIVING DRIVING THE THE INDUSTR INDUSTRY

COMMUNICATIONS TECHNOLOGY EXPERIENCE COMMERCE

▪ Addressable advertising ▪ Personalised content and influence ▪ Total audio strategy ▪ One to one communication

SEGMENT TRENDS

▪ Augmented reality ▪ Biometric technology ▪ Artificial intelligence ▪ Dynamic content ▪ Machine-learned behavioural psychology ▪ Voice technology ▪ Spatial design ▪ Virtual design ▪ Display and video planning and buying ▪ Retail media and sponsored products ▪ Direct to consumer

7

GROUP M: A MARKET LEADER

• 200

400 600 800 1,000 1,200 1,400 1,600 Source: COMvergence 2018

Tot Total l Bil Billi lings

8

MEDIA MARKET DEEP DIVE

DEMAND OUTLOOK – TOTAL MEDIA MARKET

MEDIA TYPE 2018 2019F 2020F

Television

• 2.5%
• 3.9%
• 1.0%

Digital +11.6% +4.0% +5.0% Outdoor +10.8% +1.9% +2.7% Radio +3.6%

• 2.3%
• 0.7%

Print

• 5.9%
• 8.4%
• 7.2%

Cinema +0.2%

• 6.5%

+0.9% Market +5.3% +0.2% +1.9%

SOURCE: CEASA & GroupM Forecast

9 SOURCE: Standard Media Index Media Share – YTD Sept 2019 (Confidential – not for public release without SMI’s prior consent) A

MARKET DEMAND BY CATEGORY

CATEGORY YTD SEPT 2019

Automotive Brand

• 4.5%

Banks/Insurance

• 0.9%

Retail

• 0.5%

Travel +9.2% Food /Produce/Dairy

• 11.3%

Restaurants +0.9% Home Furnishing/Appliances +4.3% Gambling

• 14.7%

Communications +6.0% Other Financial Services

• 14.6%

TOP 10 CATEGORIES

• 2.6%

CATE CATEGO GORIES RIES NORMAL

NORMALISING ISING TO TO PRE PRE ‘MARKET EVENT’ LEVELS

10

SOURCE: Standard Media Index Media Share – YTD Sept 2019 (Confidential – not for public release without SMI’s prior consent)

CATEGORY YTD SEPT 2019 VS 2017

Automotive Brand

• 0.2%

Banks/Insurance +8.2% Retail +7.3% Travel +7.3% Food /Produce/Dairy

• 6.2%

Restaurants +3.4% Home Furnishing/Appliances +1.6% Gambling +0.5% Communications

• 1.2%

Other Financial Services 0.2% TOP 10 CATEGORIES +2.9%

11

FORECASTS THAT ARE CLOSELY ALIGNED TO MEDIA MARKET REALITIES

• 20.00%
• 15.00%
• 10.00%
• 5.00%

0.00% 5.00% 10.00% 15.00% TV Digital Cinema Print OOH

Full year PWC and GroupM demand forecasts VS SMI YTD Sept actuals

PWC SMI GM

SOURCE: CEASA & GroupM Forecast: SMI YTD Sept 2019: PWC 2019f

MEDIA TRANSFORMATION DELIVERING INCREMENTAL GROWTH IN 2020

m science

SOURCE: CEASA & GroupM Forecast: SMI YTD Sept 2019: PWC 2019f: e-marketer: ANZ Influencer, Millennials and Growth Market 2019

2020 market forecast +1.9%

13

LEVERAGING MEDIA OWNER TRANSFORMATION