Page 8 - Project Spring Teaser Document

AttraActtirvaectuivnedeurnlydienrglyminagrmkeatrdkyentadmynicasm...ics...
Attractive underlying market dynamics...
111
Global advertising market , 2015-19F ($bn)
3 33
UK advertising market expenditure , 2013-19F (£bn)
GlobaGl alodbvaelrtaisdivnegrtmisainrkgemt a, r2k0e1t5,-21091F5(-$1b9nF) ($bn)
UK adUvKertaisdivnegrtmisainrgkemt eaxrkpetnedxitpuerend,it2u0re13,-21091F3(-£1b9nF) (£bn)
+4.2% +4.2%
279 279 289 289 303
+3.1% +3.1%
314 314 322 322
303
252 90
282 95
282 95
262 93
20
20
22
22
252
262 93
86
86
89
89
90
173
173
179
179
188
188
195
195
199
199
2015 2015 2016 2016 2017 2017 2018F 2018F 2019F 2019F US EUS(excl. UEUK)(excl.UUKK) UK
+5.5% +5.5%
21.4 20.1 20.1
18.6 18.6 17.9 17.9
22.1
+5.3% +5.3%
24.5 24.5 23.5 23.5
2013 20210314
20210415 20210516
20210617
20210718F
2021081F9F
2019F
21.4
22.1
Key pKurecyhapsuirncghacsriitnegriacriteria
GrowthGtreonwdths trends ImpactImpact
Key purchasing criteria
Growth trends Impact
Growth Ginrobwratnhdinabctriavnadtioanct&iveaxtipoenr&ienetxiaplemrieanrktieatlinmga(rek.egt.ing (e.g. & reate
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ValueDigitalDigitalbutExperieEn epe
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Value for
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Digital
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esrtprarttengeirc partner
Relia
iliRtye/liabilRityed/
Reliability/
lity qualictyom
quality
“We were impressed with APS’ digital capabilities...as we offer our customers “We wer“eWiemwpreersesiemdpwreisthseAdPwS’itdhigAiPtaSl’cdaipgaitbailictiaepsa...bailsitiwese...ofafesrwoeurocffuesrtomurecrsustomers
SupplieSr u consolicdoa
ControlCo delive
Print mParik resilien
more online based communications” - Marketing Manager
more onmlinoerebaosnelidnecobmasmeudncicoamtimonusn”ications”
-Marketing-Maarkneatginegr Manager
We saw APS as a strategic partner and a digital native, they’ve introduced eBooks and microsites which was quite innovative” - Head of Communications Services
“We saw“WAPeSsaws AaPsStratsegaisctpratretgniecrpaanrdtnaedriagnitdalandaitgivitea,ltnhaetyiv’ve,itnhteryo’vdeucinetdroduced -Head of-MHeaarkdeotifnMg,aWrkWetiFng, WWF
eBookseaBnodomksicaronsditmesicwrohsicitheswawshiqcuhitweaisnnqouvitaetivnen”ovative”
-Head of C-HoemamduonficCaotimonmsuSneicravtiicoens Services
Our budgets remain under pressure, but I can’t see us not doing the high-
profile print jobs...it’s critical for us” - Senior Procurement Manager “Our bud“Ogeutrsbruedmgaeintsurnedmearinpruensdseurep,rbeusstuIrcea,nb’uttsIeceauns’tnsoeteduosingothdeoihnight-hperohfiigleh-profile
“APS does our secure scanning, creative work and studio including email and print jobpsr...intitj’osbcsr...itiicta’sl fcorrituicsa”l for us” -Senior Pr-oSceunreiomr ePnrot cMuarenmageenrt Manager
website HTML... we used to do scanning in-house and had 2 designers but we
found APS had higher end capabilities and was more cost effective”- Head of Marketing
“APS do“eAsPoSurdosescuoruer sceacnunreinsgc,acnrneiantgiv,ecwreoartkivaenwdosrtkudaniodisntculuddioinigncelumdaiinlganedmail and Source AA/WARC, GroupM, SmithersPira, DMA, IPA Bellwether, OBR, IMF, NIESR, Oxford Economics, Expert
Economic
Eco ok
cinRgeducing Com
-Senior P-SroecnuiroermPeronctuMreamnaegnetrM, BanBaCger, BBC
m
private apnridvaptuebalincdspeuctbolircfisrmecstor firms
er of obal
websitewHeTbMsiLte...HwTeMuLs...edwtoe duosesdcatonndiongscina-nhnoinugseina-nhdouhsaeda2ndehsaigdn2erdsebsuigtnweers but we
interviews, Mana-Hgemaedntoinf-fDoHromecaudtiomonef nDtoMcuamnaegnetmMeanta&ge-LMmoagerinksteti&tcins-L,MgoCaMgrioakswentitcaninsgC,geCorM,mrRoamwnoanyeagrCcleioLra,mol RSnmdoeoyervanriclciLaeolsSndeorvnices & busin& business t
found ANoPfotSeusnhdadAhPiSghheardehnidghcearpaebnidlitcieaspabnidlitwieassamndorweacsomstoerfefecotisvtee”ffe-Hcteiavde”of M-HaerkaedtionfgMarketing
1 Includes creative, digital, radio, newspaper, magazines, cinema and outdoor
2 Values and growth in 2015-16 not comparable to 2017 onwards given decline in GBP/USD
Source AAS/oWurAcReCA,AG/WrouApRMC,,SGmroituhpeMrs,PSirma,itDheMrsAP, iIrPaA, DBMeAllw, eIPthAerB,eOllBwRet,hIeMr,FO, NBIRE,SIRM,FO, NxfIoErSdRE,cOonxofomrdicEs,cEonxpoemritcisn,teErxvpiewrtsi,nMtearvniaegwesm, Menatniangfoermeantitoinformation
Notes Notes
- 7 -
3 Includes creative, digital, direct mail, promotional leaflets and brochures, inserts, marketing collateral,
POS signage and displays
1 Includ1es cIrnecalutivde,sdcigreitatli,vrea,ddioig,itnael,wrsapdaiop,enr,emwsapgapzeinr,esm, acginaezminaesa,ncdinoeumtdaoaonr d outdoor
2 Value2s anVdagluroewsthanidn 2g0ro1w5t-h16inn2o0t1c5o-m16panroatbcleomtop2a0ra1b7leontowa2r0d1s7goivnewnarddesclginiveeindGeBcPlin/UeSinDGBP/USD
77
omeCrustomer
Reducing
lexcitoymplexity
complexity
Cus liaCnocme plianc exp
Compliance
Customer
ienecxeperienc
experience
xtipael riential Experiential POS
kreotwintgh growth differe
marketing growth
Growth in brand activation & experiential marketing (e.g.
sPeOmSi - &p esr emma in- pe en rt mP aOnSe)nat sP Or eSt a) i laesr sr el ot ao ikl etros cl or eoak t et o c
POS & semi-permanent POS) as retailers look to create
tdiaiftfedreonftfilaintedeoxfpfleinrienecxepseraienndcrestailnednrveitraoinl menevnirtson
differentiated offline experiences and retail environments
bpapsleier baseLikely
Supplier base
consolidation
ntisoonlidationdigital
Control over Custo ovnetrol over
delivery acros rydelivery to-end
Lbikenlyeftiot ibnetengerfaitteindte, mgrualttei-ds,emrvuicltei-sperorvicderpsrowviitdhers
Likely to benefit integrated, multi-service providers with
digital, print and fulfilment capabilities
drignitaln, dprfiunltfialmndenfut lcfialmpaebnitlictiaepsabilities
CeCrussptormemferrsssppurerpfepfrleiserurspsuptlphieparlstiecthrasantthcparnotvpciradonveidpcerocnvotirndoterloclontro across the whole marketing services spectrum and end-
ahcerowshsotlheemwahrkoeletinmgasrkeervtincgesesrpveicetrsumspaencdtruemnda-nd
to-end value chain
taol-ueendchvailnue chain
Print marketing
Digital nertetsminiligaenrkceting
rcesilience custo
Digital is growing; print remains a vital marketing and
sDgigriotawliinsgg; rporwinitnrge;mprainintsreamvaitainlsmaavrkiteatlinmgaarknedting a
customer experience component for a large number of
ecruesxtopmereier necxepecroiemnpcoenceonmt fpoornaelnatrfgoer naulamrbgernoufmb
private and public sector firms
Economic growth & business
gnromwitch growOtuhtlo ess marke
Outlook for GDP growth supports an increase in global marketing spend in the medium term
OfourtlGooDkPfogrroGwDtPh sguropwpothrtsuapnpionrctsreanseinicnregalosbeailn gl inmgasrkpetnindginsptheendmiendtihuemmterdmium term