nomura european media field trip - investis...
TRANSCRIPT
Nomura European Media Field Trip
Jerry Buhlmann - CEO, Aegis MediaNigel Morris - CEO, Aegis Media North America9 June 2009
Agenda
� A transforming marketplace: Jerry Buhlmann� Social, mobile, transactional, sustainable: Nigel Morris� Q&A
Aegis at a glance
£823.8m£518.2m
Revenue split, 2008
Aegis at a glance
23.3%total revenue
Americas
62.3%total revenue
EMEA
14.4%total revenueAsia-Pacific
16,000+ AEGIS EMPLOYEES WORLDWIDE
62countries 70countries 43countries 21countries 38countriesRevenue split, 2008
Aegis Group plc| Page 5
Excellent track record in organic growth
4.3 4.46.4
7.9
-5.0
0.0
3.4
6.75.2 5.9
4.6
1.0
9.010.5
12.4
15.6
4.73.4
4.4
8.4 7.5 7.79.8
4.6
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Market, % Aegis, %
ORGANIC REVENUE GROWTH
Q1 2009: tough market, challenging comps
� Revenue down 11.6% organically� Difficult 2008 comparatives� Q1 traditionally the lowest volume quarter� Impact of recent new business wins yet to come
Q1 2009: over $1bn net new business
Europe Europe Global UKIreland, Turkey
China Russia
Russia
Italy Germany
New Zealand Portugal Germany, Austria,Switzerland
UK
Belgium
New business: international
� A significant global opportunity� $13.9bn pitched globally 2006 - 08� Aegis Media participated in $9.2bn� And won $4.3bn
Source: RECMA
International new business success
National business also fundamental to success
� Strong local agencies critical to global offer� Expertise and quality
� Diversification of client base
� Excellent local media owner relationships
� Internal focus on excellence in all markets
Focusing on excellence in all markets
� Drivers of success� Strong leadership
� Entrepreneurial spirit and vision
� One company structure
� Rigorous on implementation
� Tools and training
� Continually upgrading talent: development and hires
� Making the most of global network and resources
� High performance required of every market
Three phases of market development
4Phase one - Recession
4Phase two - Discontinuity
4Phase three - Convergence
Phase One - Recession
Adspend forecasts
Year on year growth, % 2008 2009 2010
USA -1.8 -9.8 -2.7Canada 2.0 -2.5 0.7
WESTERN EUROPE -2.9 -6.6 0.1UK -5.5 -7.1 2.0
Germany 0.0 -2.2 -1.1France -2.6 -5.0 0.5
Italy -1.9 -6.5 0.6Spain -12.7 -16.5 -4.0
Nordics -0.2 -5.6 -2.7Central and Eastern Europe 12.2 -8.2 -1.0
Russia 16.6 -8.6 -1.5ASIA PACIFIC 5.0 -0.8 4.3
Japan -4.2 -5.5 0.0China 18.9 4.6 7.2
Australia 4.2 -1.9 1.8Global 1.0 -5.8 0.7
Source: Carat ad spend forecasts, March 2009
Impact of recession
� Advertisers... accountability, value, innovation… for less
� Agencies… cost and quality control, new business… more energy
China - the first to recover
China will be the fastest growing market in $$$’s now – 201...
Phase Two - Discontinuity
Market development
� Market growth returns� Expectation of a discontinuity
� Focus on accountability and path to transaction
� Media and digital integration a hygiene issue
� Legacy relationships count for less…
Media
Implications for brands
� The brand as a service� The brand as a utility� The brand as content
Brand and business behaviour is becoming the key determinant of image
Creating Time…
Phase Three - Convergence
There is a Past
But there is no Future
Only a number of Possible Futures
Key Trends: Changing Business Dynamics for Consumer Facing Clients
New ModelGlobalisation Sustainability
DemandingActivist
ConsumersDigital
Technologies
A New Business World: A New Communication World
New ModelGlobalisation Sustainability
DemandingActivist
ConsumersDigital
TechnologiesInterconnectednessInterdependence
Transparency
Time and Effect Exponentially Increases
Earned Media
BoughtMedia
OwnedMedia
“The deer now have guns”
Transparency andConsumer Power
The Digital Communication and Business World -
Social, ‘Mobile’, Transactional, Sustainable
Facebook is a global phenomenon
0
50
100
150
200
1Q'07 2Q'07 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09
US Intl
Source: Internal 30 Day Active User
There is not just growth–It is a violent transformation to
the internet ecosystem
and the interconnectedness is just getting started...
iProspect Study Offline Channel Influence on Online Search Behavior, August 2007
2/3 of Online Search Users Are Driven to Perform Searches as a Result of Exposure to Some Offline Channel.
Internet users were asked: "Within the last six months, which of the following prompted you to go to a search engine and look for information on a particular company, product, service or slogan? (Select all that apply).”
iProspect Study Offline Channel Influence on Online Search Behavior, August 2007
39% of Online Search Users Make a Purchase After Being Driven to Search As a Result of Exposure to Some Offline Channel.
When online search users who were driven to search from exposure to an offline channel influence were asked: "Which of the following sources (that you mentioned previously had prompted you to use an Internet search engine) eventually led you to make a purchase from that company/product/service? (Select all that apply)”
Brand Vision
Corporate Reputation
Corporate Reputation= BrandReality
Leveraged in a BOE Media World
The role of media
100% of contacts bought
Bought&Ownedcontacts are
leveragedintoearnedmedia
Create brand «ecosystems» that engage consumers and pull them into an active relationship with the brand
…it needs a different mindset
In addition to new capabilities and skillsets…
Dining RoomKitchen
Living Room
Thinking Framework…The Three Rooms
FIRSTRoom
The First Room
THIRDRoom
SECONDRoom
Brand driven
• Controlled Image• Managed Environment
• Low reach • Information rich
FIRSTRoom
The Second Room
THIRDRoom
SECONDRoom Distribution driven
Controlled ImageChoice of Environment
High ReachContent Rich
The Third Room…
FIRSTRoom
THIRDRoom
SECONDRoom
Consumer driven
No ControlImage, distribution
High FragmentationHigh potential reach
Influential
Making the Three Rooms Actionable
OwnMedia
Earned Media
BoughtMedia
OwnMedia
Enabling a new way of thinking about media
EarnedMedia
Bought Media
• Brand Content• Proprietary websites• Own Retail• Mobile sites• Merchandise• Brand Hosted Events
• Social networks• Blogs• User Generated
Content• SEO• ePR• Influencer
Marketing• Viral
• Television Advertising
• OOH• Experiential• Sponsored
Events• Paid Search• Portals• Online
advertising• SMS
SECOND Room
THIRD Room
FIRSTRoom
Data
Bringing it all together…
Our brief: help develop Coca-Cola’s global sustainability strategy
The result: A global strategic framework for engaging stakeholders with Coca-Cola’s Live Positively vision
A toolkit to enable local enterprises to execute this vision across all levels of the organisation
The ultimate goal is to place sustainability at the core of the Coca-Cola brand and communications strategy
The Digital Communication and Business World -
Social, ‘Mobile’, Transactional, Sustainable
Summary
Summary
� Three phase future…� Discontinuity as recession ends…� New world communication model� Strong competitive performance� One company approach� Structured for the future
Q&A