The document discusses trends in digital advertising spending and media consumption. Some key points:
- Global digital ad spending is expected to grow 14% annually from 2013 to 2018, reaching $327 billion.
- Digital media is growing as a percentage of total ad spending in many countries, including a projected 47% in the UK by 2018.
- Forces driving digital include the shift to mobile, growth of ecommerce, increasing data availability, social media, and importance of content.
- Mobile is becoming the primary way many consumers access media, with implications for advertising and content strategies.
5. Russia is well-advanced
Digital as a % of Total Ad Spend
60%
47%
29%
33%
32%
25%
30%
28%
24%
23%
2018
2014
24%
18%
8% 10% 6% 8%
UK
China
Germany
Source: GroupM, August 2013
@readmark
Russia
US
France
India
Brazil
6. A world dominated by TV and digital
% of total advertising spend by medium
12%
10%
12%
17%
23%
43%
27%
20%
3%
42%
45%
46%
2003
2014
2018
Source: GroupM,
August 2013
@readmark
TV
Digital
Print
Other
8. Structural shifts impact 2014
TV
8.0%
Radio
14.0%
National Newspapers (print) -1.0%
Magazine and Trade Press
-3.0%
Outdoor
10.0%
Cinema
Internet Display
9.0%
Internet Search
26.0%
21.0%
Interaction Total
@readmark
15.0%
8
9. Five forces driving digital media
1. Shift to mobile
2. Growth in eCommerce
3. Increasing volume of data
4. Increasing social/participatory nature of media
5. Growing importance of content
@readmark
9
10. A mobile world: beyond advertising
Marketing
Financial
services
Automotive
Healthcare
Today around 1.5 billion smartphones out of 5 billion
phones globally
@readmark
11. Strategic choices: mobile accelerates
fragmentation
MASS
PREMIUM
• Ad funded, limited ability to
charge
• Subscription funded – some
premium ads
•
Low production costs
• Highly differentiated content
•
Mass appeal
• Niche appeal
•
Ad tech and data critical
• Paywalls and rights
• Only largest have the scale to
generate meaningful ad revenues
@readmark
• Very few titles can compete here
11
15. A social world: in time and dollars
>1B
accounts
200M
active
users
@readmark
>1B monthly
unique
visitors
200M
members
400M users
110M
registered
users
360M active
users
100M users
50M users
16. The next 5 years
•
TV and Digital: growth across four screens
•
Mobile – the next 4 billion consumers
•
eCommerce and eShopper
•
Social – influence, reputation, branding & sales
•
Data and analytics (privacy)
•
Importance of technology
@readmark
17. WPP: The Digital Opportunity
Position
1
2
3
Company name
Google
China Mobile
Bloomberg
Sector
Search
Telco
Business information
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Reed Elsevier
Apple
Yahoo
WPP
Thomson Reuters
Tencent
Microsoft
Facebook
Sony
Pearson
Dentsu
Omnicom Group
China Telecom
Baidu
Publicis Groupe
Netflix
News Corp
Business information
Diversified
Diversified
Advertising
Business information
Diversified
Diversified
Social networks
Diversified
Business information
Advertising
Advertising
Telco
Search
Advertising
Video
Diversified
@readmark
Source: PaidContent (July 2012)
Digital Revenue
$36.4B
$7.6B
$7.0B
$5.9B
$5.4B
$5.0B
$4.7B
$4.7B
$4.5B
$3.9B
$3.7B
$3.7B
$3.1B
$2.9B
$2.8B
$2.7B
$2.3B
$2.2B
$2.0B
$1.9B
18. WPP’s Opportunity: beyond advertising
Digital Media
Audience Buying
Paid and Organic Search
Social Media -- Facebook, Twitter
Social Media
Social media campaigns, eg., Facebook
Social media analysis and monitoring
Content creation
Web Development
Web sites
Intranets
eCommerce
@readmark
Mobile
Mobile web development
Mobile and tablet applications
Mobile media, e.g., coupons, locations
Data and Analytics
Real-time data analysis
Tracking and targeting
Integration of multiple data sources
Digital Platforms
Web marketing platforms
Media buying platforms
Data management platforms
Offshore digital production
19. Implications
1. Be ready for mobile
2. Embrace e-commerce
3. Think social and community
4. Leverage your audience value yourself
5. Ideas plus technology = great digital marketing
@readmark
19
Editor's Notes
TYNY 2014 headline growth (published August 2013)
Source: TYNY UK summer 2013Out-of-home and Cinema in 2014 are recovering from tough comps in 2013 caused by the 2012 summer Olympics (which created a one-off 5% uplift for OOH) and for cinema the late-2012 release of Skyfall, the UK’s top-grossing film.
23 countries supplied e-commerce totals in our survey. Standardisation is a particular problem here. Some include travel ticketing, some not, and none is very well-defined. However, our dollarised total adds up to $917 billion for 2012 with a run-rate of growth of 18% to take us to a predicted $1,100 billion in 2013. Other opinions on the global total include eMarketer with $1,000 billion for 2012 and the UK's Interactive Media in Retail Group with €1,000 billion ($1,300 billion) for 2013. On our numbers, average e-commerce per user will stand at $859 in 2013, which would represent a compound annual growth rate of 9% since 2007 and a run rate of 12% into 2013. This average is much influenced by new entry-level spenders arriving each year. Meanwhile, the highest online spenders - the UK, Denmark, Finland and Australia - have doubled their spend since 2007. The US analyst Pivotal estimates that the typical e-commerce online ad/sales ratio is 4%. Thus if e-commerce is $1,000 billion, it generates $40 billion of online advertising - a substantial chunk of the circa $100-billion online advertising sector.