1. The Digital Opportunity Mark Read, CEO, WPP Digital @readmark November 2013

2. Two key trends: Geographic@readmark2 3. Two key trends: Digital@readmark3 4. Continued strong growth in ad spend Worldwide Digital Advertising Spend (US$ billions)184 162142CAGR 2008-2013: 15% 2013-2018: 14%124 108 95 83627247522008200920102011201220132014201520162017201810%12%14%15%17%19%20%22%24%25%27%@readmarkSource: GroupM, August 2013 5. Russia is well-advanced Digital as a % of Total Ad Spend 60% 47% 29%33%32%25%30% 28% 24% 23%2018 201424% 18% 8% 10% 6% 8%UKChinaGermanySource: GroupM, August 2013@readmarkRussiaUSFranceIndiaBrazil 6. A world dominated by TV and digital % of total advertising spend by medium 12%10%12%17%23%43% 27%20% 3%42%45%46%200320142018Source: GroupM, August 2013@readmarkTVDigitalPrintOther 7. Short-term driven by economics+10.0% @readmark7 8. Structural shifts impact 2014 TV8.0%Radio14.0%National Newspapers (print) -1.0% Magazine and Trade Press -3.0% Outdoor10.0%Cinema Internet Display9.0%Internet Search26.0% 21.0%Interaction Total@readmark15.0%8 9. Five forces driving digital media 1. Shift to mobile 2. Growth in eCommerce 3. Increasing volume of data 4. Increasing social/participatory nature of media 5. Growing importance of content@readmark9 10. A mobile world: beyond advertising MarketingFinancial servicesAutomotiveHealthcareToday around 1.5 billion smartphones out of 5 billion phones globally@readmark 11. Strategic choices: mobile accelerates fragmentation MASSPREMIUM Ad funded, limited ability to charge Subscription funded some premium adsLow production costs Highly differentiated contentMass appeal Niche appealAd tech and data critical Paywalls and rights Only largest have the scale to generate meaningful ad revenues@readmark Very few titles can compete here11 12. An eCommerce world: omni-channel marketing@readmark 13. An increasingly data-driven world@readmark 14. Content 1 billion users watching 6 billion hours of content monthly@readmark14 15. A social world: in time and dollars>1B accounts200M active users@readmark>1B monthly unique visitors200M members400M users110M registered users360M active users100M users50M users 16. The next 5 years TV and Digital: growth across four screensMobile the next 4 billion consumerseCommerce and eShopperSocial influence, reputation, branding & salesData and analytics (privacy)Importance of technology@readmark 17. WPP: The Digital Opportunity Position 1 2 3Company name Google China Mobile BloombergSector Search Telco Business information4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Reed Elsevier Apple Yahoo WPP Thomson Reuters Tencent Microsoft Facebook Sony Pearson Dentsu Omnicom Group China Telecom Baidu Publicis Groupe Netflix News CorpBusiness information Diversified Diversified Advertising Business information Diversified Diversified Social networks Diversified Business information Advertising Advertising Telco Search Advertising Video Diversified@readmarkSource: PaidContent (July 2012)Digital Revenue $36.4B $7.6B $7.0B$5.9B $5.4B $5.0B $4.7B $4.7B $4.5B $3.9B $3.7B $3.7B $3.1B $2.9B $2.8B $2.7B $2.3B $2.2B $2.0B $1.9B 18. WPPs Opportunity: beyond advertising Digital Media Audience Buying Paid and Organic Search Social Media -- Facebook, TwitterSocial Media Social media campaigns, eg., Facebook Social media analysis and monitoring Content creationWeb Development Web sites Intranets eCommerce@readmarkMobile Mobile web development Mobile and tablet applications Mobile media, e.g., coupons, locationsData and Analytics Real-time data analysis Tracking and targeting Integration of multiple data sourcesDigital Platforms Web marketing platforms Media buying platforms Data management platforms Offshore digital production 19. Implications 1. Be ready for mobile 2. Embrace e-commerce 3. Think social and community4. Leverage your audience value yourself 5. Ideas plus technology = great digital marketing @readmark19