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 n ments to with , p ml s t end- v i nd ValueDigitalDigitalbutExperieEn epe foVr alue for strat Value for montnaperemarketmingarg ey money par money Digital gicstrategic qu 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