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Ulbe Jelluma @Printpower @Ulbe “EVERY DISADVANTAGE HAS AN ADVANTAGE” Thursday 12 October 17

ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

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Page 1: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

Ulbe Jelluma @Printpower @Ulbe

“EVERY DISADVANTAGE HAS AN ADVANTAGE”

Thursday 12 October 17

Page 2: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

PRINT POWERPromoting the use of print media and printed marketing materials

By demonstrating the effectiveness of advertising on paper

Addressing decision makers at media & advertising agencies and brand owners

Focus on three most important countries: France, Germany and UK

2

Thursday 12 October 17

Page 3: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

PRINT POWER

3

Internet37%

Outdoor7%

Cinema1%

Radio5%

TV32%

Mags7%

NP12%

Advertising expenditures $ 118 bn

(Europe - 2017)

Source: ZenithOptimedia

Labels & Pack48%

Graphics36%

Publication16%

Total graphic market est. € 170 bn

(Europe - 2016)

Source: Smithers Pira

Thursday 12 October 17

Page 4: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

Source: Zenith Optimedia June 2017

Germany $ 22.506 mio

Internet34%

Outdoor5%Radio

4%Cin0%

TV23%

Mags11%

NP22%

Print: 33%

Internet59%

Outdoor5%

Radio3%

Cin1%

TV21%

Mags3%

NP7%

UK $ 24.377 mio

Print: 10%

Web34%

Out12% Radio

7%Cin1%

TV32%

Mags9%

NP6%

France $ 11.508 mio

Print: 15%

PRINT POWER

Thursday 12 October 17

Page 5: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

5

Why a tipping point?

➤Agenciesre-evaluateprint

Brand owners question effectiveness

Reality check

Brand safety

Thursday 12 October 17

Page 6: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

6

“...we’re starting to see with traditional media, particularly newspapers, a bit of a pendulum swinging back because the market will realise that they are more powerful ...”.

“Some clients are looking at whether they have over-invested in some new media alternatives”.

SirMar3nSorrell,CEOWPP

Agencies re-evaluate print

“With an average age staff of 32-33 years, most of the Group M staff has not been brought up with print. Training and informing staff about print is therefore a key task of the agency and of the Print Summit.”

MathiasBrüll,CEOGroupMGermany

“...advertisers are abandoning a medium that has been proven to be effective. Tesco has cut its print adspend by 85% this year despite studies showing that the channel can almost triple the effectiveness of retail campaigns.”

MaisieMcCabe,deputyeditorinchiefCampaignUK

“We are being over-hyped and over-sold on a uniquely digital future. We need to get real and take a more evidence-based view of what really drives effectiveness.”

PeterField,effec3venessconsultantandauthor

Thursday 12 October 17

Page 7: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

7

“Barwise warned that the proportion of adspend going into short-term sales activities over the last years had increased “beyond the optimum” for building shareholder value.

Adspend is flowing away from the newsbrands because too many marketers are disregarding the available evidence and are instead following an emotional instinct to invest in the shiny and new”.

Patrick Barwise, Shift, March 3 2017

Thursday 12 October 17

Page 8: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

8

DOUBTS

Thursday 12 October 17

Page 9: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

9

Thursday 12 October 17

Page 10: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

10

Why a tipping point?

Agencies re-evaluate print

➤Brand owners question effectiveness

Reality check

Brand safety

Thursday 12 October 17

Page 11: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

11

Credibility metrics?

Who measures Google and Facebook effectiveness?

Thursday 12 October 17

Page 12: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

12

Credibility metrics?

“Due to the miscalculated data, marketers may have misjudged the performance of video advertising they have purchased from Facebook over the past two years. It also may have impacted their decisions about how much to spend on Facebook video versus other video ad sellers such as Google’s YouTube, Twitter , and even TV networks”.

TheWallStreetJournal

Thursday 12 October 17

Page 13: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

13

Credibility metrics?

“On Tuesday, Wieser issued a note pointing out that Facebook’s Adverts Manager tool promises a potential reach of 41 million 18-25 year-olds in the U.S., while recent census data said there only 31 million people living in the U.S. within that age range

CNN, September 2017

Thursday 12 October 17

Page 14: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

14

Thursday 12 October 17

Page 15: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

15

"We targeted too much, and we went too narrow. And now we're looking at: What is the best way to get the most reach but also the right precision."

MarcPritchard,P&G’schiefmarke3ngofficerP&G

Questioning effectiveness digital media

Thursday 12 October 17

Page 16: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

16

"Views attracted by each video in the series varied widely. One, which introduced Hayes as the new presenter, clocked up more than 750.000, while several more reached 6 figures. But many others received far less attention, with none of the nine films posted in 2016 managing 1.000 views”.

Questioning effectiveness digital media

Thursday 12 October 17

Page 17: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

17

Questioning effectiveness digital media

W&V, August 2017

Thursday 12 October 17

Page 18: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

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Questioning effectiveness digital media

Thursday 12 October 17

Page 19: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

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Questioning effectiveness digital media

Thursday 12 October 17

Page 20: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

20

TRUST

Thursday 12 October 17

Page 21: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

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Thursday 12 October 17

Page 22: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

22

Increase of budgets invested in

adtech (est. 16% of m

kt budget)

Thursday 12 October 17

Page 23: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

23

Programmatic value chain and ad fraud

Source: WFA/ISBA

Thursday 12 October 17

Page 24: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

24

Under control?

“In the final quarter of 2016, only 49% of banner ads served met the IAB and Media Ratings Council’s recommendation that 50% of the ad was in view for at least one second - 5% lower than at the beginning of 2016”.

MediatelNewsline,Jan192017

Thursday 12 October 17

Page 25: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

25

Under control?

“In March, JPMorgan Chase which handles its own programmatic buying in-house, began a time-consuming project in which an intern manually vetted 400.000 websites where the company’s ads were running in order to determine which ones were legitimate. Just 5.000 sites were eventually deemed safe, and Chase is working to whittle down the list even more”.

Adweek,September42017

Thursday 12 October 17

Page 26: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

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“We as leaders should not accept the byzantine, non-transparent, super-complex digital media supply chain. No one can understand it.”

Yet we keep feeding the beast by pouring incredible sums of money into this unproductive, unmanageable abyss. Remarkably, we keep doing so even though we know that only 25% of every dollar reaches the consumer.”

Bob Liodice, President/CEO ANA, October 2017

Under control?

Thursday 12 October 17

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“Maybe three or four years ago clients were starting to say ‘there is something going on, I don’t know what it is’. Now they know what it is, or they think they know what it is, that has created a larger degree of angst”.

Martin Cass, Advertising Week, September 2017

Angst is ruling

Thursday 12 October 17

Page 28: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

28

CONTROL

Thursday 12 October 17

Page 29: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

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Thursday 12 October 17

Page 30: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

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First magazine with AI cover

Thursday 12 October 17

Page 31: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

31

Why a tipping point?

Agencies re-evaluate print

Brand owners question effectiveness

Reality check

➤Brand safety

Thursday 12 October 17

Page 32: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

32

The growing boycott of YouTube by advertisers could cost its parent company Google as much as $750 million in revenue, according to one Wall Street investment firm.

Over the past few weeks, a wide range of major consumer brands have pulled their ads from the video-sharing site, including Johnson & Johnson, PepsiCo, and McDonald's. The companies are protesting the fact that their ads are appearing next to offensive content, including videos posted by terrorism-affiliated groups.

The Guardian

Thursday 12 October 17

Page 33: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

33

What’s real?

Thursday 12 October 17

Page 34: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

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What’s real?

“Google, Facebook and Microsoft continue to develop artificial intelligence platforms to help detect fake content, but Gartner predicts that by 2020, AI-driven creation of fake content will outpace the technology’s ability to detect it among consumers. It will create “digital distrust”, Gartner says”.

MediaPost, October 6 2017

Thursday 12 October 17

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QUALITY CONTEXT

Thursday 12 October 17

Page 36: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

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Thursday 12 October 17

Page 37: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

37

Why a tipping point?

Agencies re-evaluate print

Brand owners question effectiveness

➤Reality check

Brand safety

Thursday 12 October 17

Page 38: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

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Reality check

“I think with the measurement issues, with the fake news issues, and the fraud issues that the Internet faces, clients want to try and experiment”.

Sir Martin Sorrell, CNBC, Davos, Jan 19 2017

Thursday 12 October 17

Page 39: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

Test & Trial phase Digital First phaseRe-

evaluating phase

39

The three phases of digital channel adoption

Basis: advertising expenditures in digital media UK (source: ZenithOptimedia) www.printpower.eu

0

5000

10000

15000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$mio

Thursday 12 October 17

Page 40: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

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Food Brand Trust, Ipsos 2017

Remember

Thursday 12 October 17

Page 41: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

The marketing, advertising and media industry is confused and uncertain about the use and role of digital media

In this situation print media and printed advertising materials might find fertile ground with its tried and trusted channels

None of the issues of the digital world apply to print media

And print offers facts-based evidence of performance

Grab this opportunity

41

Opportunities for print?

Thursday 12 October 17

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Thursday 12 October 17

Page 43: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

Thursday 12 October 17

Page 44: ÒEVERY DISADVANTAGE HAS AN ADVANTAGEÓ · invested in some new media alternatives”. Sir Mar3n Sorrell, CEO WPP Agencies re-evaluate print “With an average age staff of 32-33

Thank you

Ulbe Jelluma@Ulbe @printpower

printpower.eu

Thursday 12 October 17