This was the first keynote speech of ad:tech London. Here are my brief notes:
A key focus for WPP at the moment is China and the Internet
WPP has more staff in China than in the UK
Digital ad spend will grow from 95bn today to 180bn in 2018, at which point digital will exceed traditional ad spending
Digital will take revenue from print and other channels, not from TV. In fact, TV ad revenue may still grow very slightly to 2018
Key trends from Mark:
- Mobile. Its beyond advertising. Mobile is a CRM tool rather than another channel for banner ads. E.g. the British Airways app provides branding on a phone, alerts and transactions
- E-commerce will become ever more important. The uk is already the second biggest market for ecommerce to South Korea. The question is how to handle Amazon
- Data driven. Every website you visit will leave a digital footprint. The question is how to join these footprints and cookies together into one story, or a single customer view.
- Social. Many WPP clients see Facebook equals mobile. Mobile usage = Facebook usage. The top mobile apps are Facebook and YouTube (each with over 1 billion installs), followed by WeChat (in China), Google Plus, Twitter and LinkedIn.
- YouTube. 1 billion users consumer over 6 billion hours of content per month. That’s 6 hours per month per person. Video equipment on the high street at affordable prices, not just for professionals. Brands are joining in by supporting user generated content with product placement (e.g. Ford supplying vehicles for travellers).
- The Gatekeepers of the internet. Google, Apple, Amazon, Facebook and Microsoft each have hundreds of millions, and some have billions of users. Working with them, or having a strategy of working alongside them, is key.
In the next 5 years digital will account for around 45% of WPP revenue, it’s currently in the mid-30s.
WPP have bought ecommerce provider Salmon who produce the sites for Argos and DFS.
WPP doesn’t want to be a an ad agency. It wants to become a full marketing implementation agency in the next 5 years, competing with the likes of Accenture and Deloitte Digital.
The summary was this:
Ideas + Technology = great digital marketing
You need strength in both areas.
And I couldn’t agree more.