CEO the Américas and Australasia at the Store.

1. Gwen Morrison
ceo, the store wpp
the americas & australasia

2. The Store
 a Portal to WPP’s retail
expertise
 a Facilitator for Retail
Initiatives

3. The Store Shares Best Practice and Innovation in Retail
 Format development & retailer strategies
 The multi-model shopper
 Customer marketing best practice
 Brand visibility on shelf
 Future growth drivers
 Digital technology at retail
 Digital ‘s impact on Path to Purchase

4. Retailing in Emergent
Markets: Strategic
Foundations & Best
Practices
Coca-Cola Retailing Research Council, Latin
America, 2010

5. Recent Events – Fast Track Briefing, Seattle – June 2010
With the intersection of mobile marketing, social networking,
and shopping, the definition of cross-channel retail is exploding.
Please join us for a 90 minute discussion on where technology is
taking the retail experience.
Speakers include:
Mike Lundgren – VML
Shane Atchison – ZAAZ
Alex Norman - Schematic

6. BUSINESS MODEL CHANGES IN COMMUNICATION INDUSTRY
Trends and changes that WPP observes in the business model of media organizations,
How to obtain profits from the new experiences that recent technologies offer,
How do you follow behavioral changes,
STRATEGIES TO FACE CHANGES
Which are the organizational initiatives that WPP would encourage along the company,
What are you going to keep doing, to increase, to avoid and to introduce
LEADERSHIP
Which are your concerns and opportunities and as a leader of a business unit,
Capabilities that you think would be necessary to lead a creative team in the next years.
May 21, 2010

7. Two Sections:
WPP
Outlook for Growth: New
Media and Markets
GroupM
View of Future Media
Connected Consumer,
Connected Media

8. Highlights from Sir Martin

9. New Markets, New Media and Consumer Insight
Today
1Includes AKQA on pro forma full year basis
1: New Markets
Today 30%
UK & Western
Continental Europe
Media
North America
2: New Media
Today 33%1
Traditional
Traditional Media
New Media
3: Quantitative
Today 50%
Qualitative
Quantitative
UK & Western Continental Europe
Asia Pacific, Latin America, Africa & Middle East,
Central & Eastern Europe

10. 1: New Markets
Target 35-40%
UK & Western
Continental Europe
Media
North America
2: New Media
Target 35-40%
Traditional
Traditional Media
New Media
3: Quantitative
Target 50%
Qualitative
Quantitative
UK & Western Continental Europe
Asia Pacific, Latin America, Africa & Middle East,
Central & Eastern Europe
39
New Markets, New Media and Consumer Insight
Tomorrow

11. % Share of Global GDP
1.
2.
Prof Angus Maddison - The World Economy 1870 - 1998: OECD
Conference Board Global Economic Outlook 2011 - 2025: January 2012
30
1820 1870 1913 1950 1973 1998 2011 2025
India
China
20
10
0
New Markets
Back to the Future
60
50
Share of Global GDP 1870 - 2025
40

12. Revenue ($'bn)
4
New Markets
Revenues in Faster Growing Markets 2004-2012
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2004 2005 2006 2007 2008 2009 2010 2011 2012
WPP OMC PUB IPG
1.
2.
3.
WPP reportable US$’s per WPP results and peer $ revenues as shown in annual results presentations
Peer data sourced from annual results translated at average exchange rate for the year (IPG, Publicis and Omnicom)
OMC assumes “non-euro currency” Europe, ie Switzerland, Turkey, Norway, Denmark, Sweden and Eastern Europe are 3% of revenue and
Canada 1.5%

13. 0
2000 2011 2012 2000 2011 2012 2000 2011 2012 2000 2011 2012
Greater China (including
Hong Kong & Taiwan)
Brazil India Russia
New Markets
WPP’s Performance Strong in BRIC Markets
Revenue $'m
1,400
12 year CAGR 16%
1,200
Associates @ 100%
1,000
12 year CAGR 13%
800
600
12 year CAGR 12%
400
12 year CAGR 48%
200

14. New Markets
WPP in Faster Growing Markets
1Source RECMA 2011 overall billings as issued July 2012
2Year to 31 December 2012 including associates, people at 31 December 2012
3China, Hong Kong and Taiwan
4WPP estimate
5Africa is South Africa only
Region Market Billings1
$bn
% Share1 Rank1 12 month2
Rev $bn
People2
‘000
Asia Pacific: Greater China3
India
Thailand
6.7
2.4
0.9
33%
42%
40%
1
1
1
1.3
0.5
0.1
14
12
2
LatAm:
Other:
Brazil
Mexico
Argentina
Africa5/Middle East
Poland
Russia
n/a
0.6
0.4
2.2
1.0
1.8
n/a
22%
25%
29%
34%
23%
14
3
2
1
1
1
0.8
0.2
0.2
0.9
0.1
0.3
5
3
2
26
1
2

15. 40
35
30
25
20
15
10
5
0
Americas Europe Asia Pacific Worldwide
WPP Omnicom Publicis IPG Aegis Havas
New Markets
Media Billings by Geography
Worldwide Ranking by Group as % of the Six Groups
%
45
Source: RECMA July 2012 billings report, based on 2011 data

16. 7%
43%
26%
10%
25%
11%
42%
22%
10%
5%
0%
15%
15%
25%
20%
40%
35%
30%
50%
45%
Print Radio TV Internet Mobile
Time Spent Ad Spend
~$20bn
Opportunity
in USA
New Media
Media time spent vs. ad spend not aligned
Internet / Mobile (upside…) vs. Print (downside...)
% of Time Spent in Media vs. % of Advertising Spending, USA 2011
Source: (KPCB 2012)
Note: Print includes newspaper and magazine. $20bn opportunity calculated assuming Internet and Mobile ad spend share equal their respective time spent share. Source:arketer 12/11
1%
1%

17. 37
49
59
64
135
114
99
85
75
154
176
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Worldwide digital
advertising spend
(US$ billions)
CAGR
2006-2012: 18%
2012-2017: 14%
Source: GroupM December 2012
New Media
Little Slowdown Predicted in Growth of Digital Advertising Expenditure
194

18. 2006 2011
30%
Target in
5 years
21%
12%
40%
New Media
Revenue Share Continues to Increase
WPP Share of Digital Revenue
35%-
2012
33%¹
2000
1Including AKQA Pro Forma

19. 1. Digital
Everywhere
2. Specialist
Digital
Expertise
3. Data and
Technology
4. Partner
with digital
leaders
•
•
•
•
•
Invest in digital in all of our businesses through training,
recruitment, acquisitions, etc.
Develop new services beyond traditional advertising, e.g,
web development, DSPs, mobile, social, eCommerce and
eShopper, etc.
Establish a proprietary technology platform – based on
own and licensed technologies.
Invest in ability to control and use data for WPP and client
benefit.
Build strong partnerships with leaders such as Microsoft,
Google, Facebook, Apple, Twitter.
New Media
WPP’s Digital Strategy

20.  WPP’s proprietary platform integrates 24/7 Media’s core technology with best of breed
partner technologies to create unique digital marketing platform that provides a
competitive advantage to WPP advertising clients.
 Opportunities for enhanced collaboration with clients by leveraging data and technology.
 Peers reliance on Google’s technology enables Google’s disintermediation strategy; all
data and technology strategies must pass through competitor’s platform.
New Media
Proprietary Digital Technology Platform – WPP Advantage
49

21. In WPP Direct, Digital and Interactive Networks
$’m People
1,000
950
350
300
200
150
150
6,500
6,500
1,000
2,000
1,000
1,000
1,000
1
2In GroupM Digital
New Media
Two Major Global Networks – Supported by Strong Specialist Offer
WPPAdvantage
Revenue
1
1
1,2
1
1
1
1
(F)
(F)
(F)
(F)
(F) Forrester Digital Leader
Publicis Groupe Digitas/LBi $820m of revenue and 5,000 people

22. New Media
Dominant position in BRIC Markets
WPP Advantage
Brazil
Revenue $200m
People ~ 1,400
India
Revenue $50m
People ~ 1,200
Russia
Revenue $60m
People ~ 600
China
Revenue $200m
People ~ 2,500

23. New Media
XAXIS – WPP Advantage









Billings of c. $270 million.
200 employees in 19 markets.
Over 318 billion impressions annually.
1,000+ clients.
5,000+ campaigns since inception.
30% revenue growth year over year.
5 channels: display, video, mobile, social, radio.
1 technology platform, 50 integrated partnerships.
1 Vision: Be the No. 1 Global Audience Buying
Company.

24. Consumer Insight and Quantitative Disciplines
The Data Explosion

25. Consumer Insight and Quantitative Disciplines
WPP Advantage
 Marketing becoming more data driven.
 Clients need simplified better utilisation of existing data and help in
managing explosion of new data.
 Digital campaigns driven by data analytics and feedback to shape
new activity.
 Ability to provide “continuous updated data ready for real time
decisions and actions”.
 WPP has unique combination of assets in research, audience
measurement, data management and digital media.

26. Horizontality
165,000 people in 3,000 offices in 110 countries1
1Including associates

27. Horizontality
30+ Account Teams – Over 35,000 WPP employees work on these clients

28. Horizontality
Current Country Managers – People, Clients, Acquisitions
Andina
Portugal
India
Greater
China
South
Korea
Vietnam
Indonesia
Australia
New Zealand
Italy
ME & N Africa
Mexico

29.  People, clients, acquisitions.
 Ensure our people work across our businesses and geographies to
deliver best resources to clients.
 Deliver specialist skills (eg digital, shopper, analytics, sustainability,
retailing, internal communications and “media and entertainment”) to
clients irrespective of lead agency.
 Focus on client needs and business issues.
 Recent Team wins - Bank of America, IHG, Team Chemistry (J&J),
MillerCoors, News Corp. and Team Pfizer.
Horizontality

30. Faster growing markets
30%
of revenue
Digital
32%
of revenue¹
Digital in faster growing markets
8%
of revenue
Digital and Faster Growing Markets
Two Key Long-Term Growth Drivers
 Overall 54% of 2012 FY Actual Revenues
133% including AKQA with minimal impact on overlap implying 55% combined

31. 3 Key Objectives
0

32. Key Objectives
We Continue to Focus on Our Key Objectives
 Improving operating margins.
 Increasing flexibility in the cost base.
 Using free cash flow to enhance share owner value and improve
return on capital employed.
 Developing the role of the parent company.
 Emphasising revenue growth more as margins improve.
 Improving the creative capabilities and reputation of all our
businesses.

33. 41?29! Media (Turkey)
Acceleration (S Africa, UK, USA)
ASTUS (HONG KONG)
Barrows (S Africa)
Cadem (Chile)
Carnation (Hungary)
Ace Metrix (USA)¹,²
ADGOOROO (USA)
Affectiva (USA)¹,²
Activeark Oy (Finland)
AKQA (WORLDWIDE)
BIENALTO (AUSTRALIA)
GIIR (S Korea)¹ CBC (China) ¹,² Corda (USA)² Press Index SA (France)
Raine (USA)¹,²
Video Egg (USA)¹,²
VIDEOLOGY (USA)²
Visible Technologies (USA)¹
ZEG (Germany)¹
IDEA (Jordan)
Istropolitana (Slovakia)
Manajans/JWT (Turkey)¹
PBN (Russia)¹
Today (Myanmar)
Union Media (Israel)
CIC Data (China)
Converge (Pakistan)
CROSSMEDIA (MEXICO)
FILMWORKS (CHINA)
Foster (Brazil)
GME (Dubai)
Grape (Russia)
Hungama (India)
Oasis Insights (Pakistan)
PT Magnivate (Indonesia)
Qais (Singapore)
Smollan (S Africa)¹
Core (Sweden)¹
DTDigital (Australia)
Enprecis (USA)²
EffectiveUI (USA)
EYE (AUSTRALIA)
First Loom (USA)
Fortune Cookie (UK)
Frey G2 (Germany)¹
Hogarth (UK)¹
IMAGINA (SPAIN)¹,²
KKLD* (Germany)
K102 (GERMANY)
Wisereach (China)
Faster Growing
Markets
ARTM (CHINA)
Quantitative &
Digital
MySupermarket.com (UK)²
Predictys (France)
Key Objectives
Acquisitions and Investments During 2012
¹ Step-ups in investments, associates and subsidiaries’ equity ² Investment CAPITALS ARE Q4 ACQUISITIONS

34. Connected Consumers, Connected
Communications
The delivery & discovery of messaging in the media future

35. “Love,” “Treasure,” “Adore”
words you never thought would be used to describe
technology
A behavioral and psychological shift
fundamentally changing adoption of - and behaviors
with - technology and media platforms

36. …how we consume and experience media
(and brands) most certainly has…
Yesterday, this was confined to the
computer. Today, we see it extending to
multiple platforms. Tomorrow, it will
surround us

37. …how we consume and experience media
(and brands) most certainly has…
Passive Active Participating
Sharing,
curating
Creating

38. The next generation will be characterized by the
symbiotic relationship of the best of the traditional and
the best of the revolution in telling stories and sharing
brand experiences

39. Underwriting this evolution will be social, mobile,
search and data – acting as the infrastructure that
enables connected consumers (to devices & each other),
connected communications (content distributed &
connected across platforms), and driving a new balance
between the delivery & discovery of content

40. For today
New world meets
old world
Digital world
meets physical
world
Building (data)
bridges
4 big issues, 3
giants with an
agenda,
5 practical steps

41. New world meets old
world
The new digital infrastructure and
how it will underpin all media and
communications moving forward.

42. As the features &
benefits of technology
become untethered
from PC’s, we’re seeing
the beginning of the
end of the digital
distinction and a
change in consumer’s
expectations of media

43. From the ‘social web’ to social as a feature of all
communications. New world…
The whole web is social Fb is becoming the anchor Social is mobile
25% of all online
time spent
80% of US top 100
sites with social plugins
(2.5m+ globally)
eCommerce
experience is
becoming
socialized
80% of US internet
users accessing social
sites
~50% of US
population are
active users (~25%
log on daily)
No. 1 source of
traffic for portals,
growing for others
Fb is largest single
mobile property
Integrations
with devices and
apps
3rd most popular
downloaded apps

44. Mobile – the essence of technology
benefiting our lives. New world…
The irony of mobile
empowerment
Rapid growth in mobile
media consumption
Mobile is social

45. Mobile will empower the future of print and OOH
Must improve design
& storytelling
Must reconcile cost
models Location awareness NFC & visual
recognition
but… fueled by…
…meets old world. Helping empower
traditional media for the future

46. …meets old world – Disrupting traditional media
players across the board
In ‘radio’ In print In TV

47. MTV and the Grammy’s have both used social
conversation and visualization around their event
TV shows
And to transform programing itself

48. The biggest digital
trends and success
stories tend to be
modern versions of
old human
habits…social media,
IM and texting are no
different
Social media is the latest
participatory layer of TV
viewing.
The power of TV is
enhanced by social media,
and mobile devices are
the primary access point
to that
…meets old world – Social & TV – fuel for each other’s
fire

49. Social & TV – fuel for each other’s fire
• Grammy’s, Oscars, Super Bowl all received their highest ratings in decades in 2011.
• The MTV Video Music Awards generated 11m viewers and 2.3m tweets this year.
• When Fox airs Glee, Twitter traffic increases 30x and maintains that rate until the
show is over
Coincidence?

50. Nielsen Media-sync IntoNow (Yahoo) Shazam
While currently 3+ companies are offering audio syncing technology between TV and
mobile devices
And finally making TV interactive with new ways of
synchronizing the experience…

51. Yahoo Into Now – across every platform

52. Content strategy crucial
for SEO and discovery
And of course, the more media becomes digitized and
fragmented, the greater the need for quality search
engines…New world meets old world
Search & TV content
discovery
Indexing social
preferences to influence
decision making

53. Digital world meets
physical world
At the same time the media we
consume is becoming digitized, so
too is so much of the physical world
we inhabit – bringing with it new
opportunities for incredible
consumer experiences and seamless
integration with media platforms.

54. Mobile – the connecting point of the coming
together of our digital and physical worlds
Mobility’s fundamental future role in shopping & retail
Macy’s mobile backstage
pass
Home Depot Scan life SK Telecom Q-store

55. ‘Socializing’ the event and retail experience
Nike’s interactive store window Coca Cola Israel Yahoo’s Bus Stop Derby

56. Mobile – all the way from communication to transaction
Mobility’s fundamental future role in shopping & retail
Shopping & buying on device Buying with device
Enabling a seamless connection from media to retail

57. Best Buy’s Twelpforce Diesel’s Fb Connect fitting
rooms
Baker tweet
And of course…Check In’s
‘Socializing’ the Customer Service Experience

58. Mobile search is
significant now and will
continue to grow in
influence – more local
and more immediate
Search and Discovery remain a key but changing
connector in this ecosystem…effected by social behavior &
mobile technology
Voice and visual search
on mobile to become
commonplace
Information &
Affirmation

59. Building (data) bridges
As all media (and retail) becomes
connected, we will increasingly be
able to connect the dots between
channels/devices to deliver &
measure a coherent brand story.

60. Proliferation of addressable media
platforms
The increasing availability and importance of data sources in
connecting the dots between channels/devices to deliver &
measure a coherent brand story
To micro-
geography
With media and messages delivered
with relevance at scale
To the home
To the
individual

61. 4 big issues
3 giants with an agenda
5 practical steps
As we face this evolving media future,
there are some clear and immediate
steps we can take to address what’s
coming.

62. A confluence of interesting events
SOCIAL
DATA
DIGITAL
EVERYWHERE
CONTENT
ANYWHERE MEDIA

63. FACTS
• 1B+ Users
• Facebook
• LinkedIn
• QQ
• Social plug-ins everywhere
Implications
• Empowered consumers
• Amplified opinions
• Content by discovery
Actions
• Learn to listen
• Separate signal from noise
• Embrace the reality of liquid content
• MIXI
• Google+

64. 6
4
FACTS
• Big data everywhere
• Capturable and actionable
• Algorithms determine visibility
Implications
• New sources of insight
• New mechanisms to value inventory
• Measures delivery in real time
Actions
• Build a warehouse
• Unify collection
• Our data and your data
• Apply to models and media execution
on and offline

65. FACTS
• 2B+ Broadband users
• 4B+ Mobile users
• Old media, new devices
• New services, new devices
Implications
• Explosion of touch points
• Implosion of simultaneous reach
• Always-on
• Merging of marketing channels, channels
to market and
customer service
Actions
• Create assets to watch,
use and share
• Across device, time and place
• Focus equally on delivery and discovery

66. FACTS
• Unlimited supply
• Unlimited suppliers
• Old pros, new pros,
non-pros with a voice
Implications
• Can premium still be defined?
• Follow the content or follow the
audience?
• Can you create?
• Can you curate?
Actions
• Data rights as well as exposure
guarantees
• Find influence and make it popular
rather than find popular and hope
for influence

67. Central to this are 3 powerhouses of the digital
world - all with big ambitions and all with
different approaches to achieving them

68. Not so long ago, you could sum up each company
quite easily
Apple made consumer
electronics
Facebook was a social
network
Google ran a search
engine
Now it’s not quite so clear

69. What Facebook says it wants, and what we think they
really want
Facebook’s mission is to give
people the power to share
and make the world more
open and connected.
Facebook’s mission is to
become a social monopoly
and monetize peer to peer
recommendation through
the sale of advertising,
and a share of transactions
through the development of
social currency.

70. What Apple says it wants, and what we think they
really want
Apple is committed to
bringing the best personal
computing experience to
students, educators, creative
professionals and consumers
around the world through its
innovative hardware,
software and Internet
offerings.
Apple wants to achieve a
massive market share of
desirable & interconnected
premium devices and a large
financial share as the
distributor of the world’s
premium content

71. What Google says it wants, and what we think they
really want
Google’s mission is to
organize the world‘s
information and make
it universally
accessible and useful.
Google’s mission is to
collect data from every
digital touch point and
from every screen to
optimize the price and
value of connecting
consumers to transactions

72. And at the heart of winning the discovery
revolution is an algorithmic struggle
Google Page Rank and Facebook Edge Rank may
be the two most significant pieces of code that
marketers have to outsmart

73. What should we be aiming for?
As an innovators, leaders and visionaries, we should push
the boundaries of what is possible, whilst pulling the old
world into the future at the same time.
A completely connected brand and retail
experience – digitized communications and
commerce capabilities across platforms and in-
store

74. Step 1
Focus on immersive,
interactive
communications with
publishers (new & old)
who are leading their
industry – esp.
increased mobile, tablet
and DOOH

75. Step 2
Make every asset
socially enabled in its
own way + prioritize
media programs that
have high social value
(be present in the
conversation as well
as the program)

76. Step 3
Further development of
audience-based buying
across connected
platforms – adding in
TV and mobile when
ready
Molson.com
data

77. Step 4
Maximize presence
during digital research
process (ZMOT) and
implement broad
mobile strategy to
capture intent and win
locally

78. Step 5
Facilitate incredible
consumer connections to
premier partnerships
utilizing the digital
infrastructure we’ve
outlined and across
platforms (incl. TV)

79. Never has the need to balance the art and science of Marketing
been more pronounced than it is today. Having the right infrastructure
in place is of course crucial…

80. …but what you build on top of that infrastructure and how it
works seamlessly together is what sets it apart and what people
remember

81. In the future, great marketing communications will be built on this
digital infrastructure and layered with incredible brand stories &
content that fully integrate those features

82. Middle
Class
Thinking
Gender
Shift
Relocating
Labor
Consumption
Seaboard
Inland
Penetration
Marketing to
Androids
The Six to Watch: Bigger Data
82
Bigger Data
Bigger Answers
Big Data has been making news around the world but often confused as
Big Storage
The real uses of the bigger data and complex business intelligence is to
create Bigger Answers for use in unexpected ways
This is changing the landscape of all activities that touch information
which in the 21st Century really is All

83. Very Large Data is What we Know
Big Data is Trying to Use the Changing Unknown
83
Data Storage
Data Sources
Data Use and
Interactions
Source: KantarRetailiQ research
Data Sources
Data Storage
Data Use and
Interactions

84. A Big Data Look at Social Media
Picture are needed for a Billion Words
Source: LinkeInLabs, Kantar Retail Research
84
You are here
A Process related to Big
Data thinking

85. Digital makes Big Data Happen
The Global Movement and Storage of data
85
Movement
Global
Fiber
Network
Generation
and Storage
Source: Slate.com, Google Corperate, KantarRetailiQ reserach
Win
Digital
with
Internet
Wireless
Social
Media
Games
eCommerce
Multi-
Channel
Fulfillment
Big Data

86. Thank You
@gmorrison5

87. Thank you