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 Nicola Lewis Ch Chief ief Exec xecuti tive Offi fficer Ch Chief ief In Inve vestment Offic fficer WPP AUNZ Gro roupM
A LEADING CREATIVE TRANSFORMATION COMPANY Ope peratin ing acr across Aus ustralia ia, New Zea eala land an and Sou outh-East t Asia sia, WPP AUNZ (ASX:WPP) is the region’s leadin ing cr creativ ive tr trans ansformatio ion com ompany • Market capitalisation of ~$450 million WPP AUNZ Regional Footprint ― 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 4
RICH RICH PORT PORTFOL FOLIO IO ACR ACROSS OSS CLIENT CLIENT NEED NEEDS COMMERCE EXPERIENCE TECHNOLOGY COMMUNICATIONS Retail experience, UX, service design, Data management, Advertising, branding and direct-to-consumer websites, platforms marketing technology identity, content, media platforms and and applications, consulting and systems investment, public relations marketplaces voice and integration services and public affairs, healthcare augmented reality WPP AUNZ brands: selected examples 5
TRE TRENDS NDS DRIVING DRIVING THE THE INDUSTR INDUSTRY COMMERCE EXPERIENCE TECHNOLOGY COMMUNICATIONS SEGMENT TRENDS ▪ ▪ ▪ Machine-learned behavioural ▪ Augmented reality Display and video planning Addressable advertising psychology and buying ▪ ▪ Biometric technology Personalised content and influence ▪ Voice technology ▪ Retail media and ▪ ▪ Artificial intelligence Total audio strategy sponsored products ▪ Spatial design ▪ ▪ Dynamic content One to one communication ▪ Direct to consumer ▪ Virtual design 6
GROUP M: A MARKET LEADER Total Tot l Bil Billi lings 1,600 1,400 1,200 1,000 800 600 400 200 - 7 Source: COMvergence 2018
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% 8 SOURCE: CEASA & GroupM Forecast
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% 9 SOURCE: Standard Media Index Media Share – YTD Sept 2019 (Confidential – not for public release without SMI’s prior consent) A
CATE CATEGO GORIES RIES NORMAL NORMALISING ISING TO TO PRE PRE ‘MARKET EVENT’ LEVELS 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% 10 SOURCE: Standard Media Index Media Share – YTD Sept 2019 (Confidential – not for public release without SMI’s prior consent)
FORECASTS THAT ARE CLOSELY ALIGNED TO MEDIA MARKET REALITIES Full year PWC and GroupM demand forecasts VS SMI YTD Sept actuals 15.00% 10.00% 5.00% 0.00% TV Digital Cinema Print OOH -5.00% -10.00% -15.00% -20.00% PWC SMI GM 11 SOURCE: CEASA & GroupM Forecast: SMI YTD Sept 2019: PWC 2019f
MEDIA TRANSFORMATION DELIVERING INCREMENTAL GROWTH IN 2020 2020 market forecast +1.9% m science SOURCE: CEASA & GroupM Forecast: SMI YTD Sept 2019: PWC 2019f: e-marketer: ANZ Influencer, Millennials and Growth Market 2019
LEVERAGING MEDIA OWNER TRANSFORMATION 13
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