Mark Read, CEO WPP Digital on WPP’s digital future

WPP expect digital revenues to increase at the expense of print
WPP expect digital revenues to increase at the expense of print

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

WPP will be concentrating on this [shopping] list for the next 5 years
WPP will be concentrating on this [shopping] list for the next 5 years
Key trends from Mark:

      1. 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
      2. 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
      3. 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.
      4. 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.
      5. 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).
      6. 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.
WPP feel technology is central to their clients' digital strategy
WPP said that technology is central to their clients’ digital strategy

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.

See the other presentation notes from ad:tech.

1 thought on “Mark Read, CEO WPP Digital on WPP’s digital future

Leave a Reply

Your email address will not be published.