Global online unit of OMD

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Global online unit of OMD
May 9, 2006
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OMD Digital
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Recent OMD Recognition

• Named ADWEEK Magazines 2005 Global Media Agency
  of the Year
• Named Advertising Ages 2005 Media Agency of the
  Year in the U.S. 
• Named Campaign Magazines Global Media Agency
  Network of the Year
• Ranked 1 in the Gunn Report for most industry
  awards
• Won more Cannes Lions and had more cases
  short-listed than any of our competitors
• Ranked 1 by RECMA for largest worldwide billings
  total

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Complete Full Service Offering
Portal Consulting Negotiations

• Database Services
• Data Mining
• Solutions Central (Extranet)

• Convergence/Multi-Platform
• Broadband/ iTV/PVR
• Wireless

Planning, Buying Optimization
Tracking/Analytics -All key metrics customized
to client need

• Search Services
• Paid Search
• SEO

• Email
• List Planning
• Buying
• Blasting
• Appending

Video Game Advertising -In game -Web
based -Promotional/ retail tie ins
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THE NEXT GENERATION
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Extraordinary Changes Over the Past Eight Months
October 12 Steve Jobs unveils the iPod Video
and announces that ABC shows, Desperate
Housewives, Lost, and Night Stalker would be
available for download at 1.99 per episode.
November 7 NBC announces a deal with DirecTV.
DirecTV DVR owners will be able to view on demand
Law Order SVU, Monk, Battlestar
Galactica
November 7 CBS announces that 4 shows CSI,
The Amazing Race, Survivor, and NCIS will
be available on Comcast On-Demand for .99.
November 13 AOL announces In2tv, several
broadband channels of classic WB TV programming
available for free on AOL broadband.
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Extraordinary Changes Over the Past Eight Months
November 23 Tivo announces upcoming technology
to allow programs recorded on Tivo be downloaded
on PSP and the video iPod
November 26 Tivo announces Ad Search product
that will allow users to select categories of ad
interests/ companies from whom they want to see
short /form advertising from. (permission
marketing)
December 1 Tivo announces ability to purchase
tickets via Fandango and listen to online radio
via Live 365.
January 6 Google announces Google video. Users
can purchase recent and classic CBS TV shows as
well as classic NBA games.
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Extraordinary Changes Over the Past Eight Months
March 17 NBC announces that they will film 10
new episodes of The Office which can only be
viewed on NBC.com.
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Extraordinary Changes Over the Past Eight Months
April 10 Disney-ABC announces that they are
going to make ABC and other channels available
anytime for free online. Advertising will be
embedded and cannot be skipped. Pods limited to 1
minute
April 21 Comcast announces launch of FEAR, an
ON-Demand and Broadband channel of classic Horror
Movies
April 26 Microsoft purchases Massive, a 3rd
Party Ad Server into Videogames.
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Dell 2006 March Madness ProgramCBS/Sportsline
Cross Media Streaming
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The NEXT Fund

• A database of Macro-Level Learning and Best
  Practices that go beyond what they would get from
  individual tests
• On-Going Dialogue with a group of non-competitive
  advertisers to understand the challenge of the
  evolving media marketplace
• A better understanding of the metrics of success
  in a Digital Media world.
• P.R. that positions companies on the leading edge
  of media (optional)
• On-going proprietary research from OMD

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Engaging with the Future

• RELEVANT ?
• Communicate in ways that makes sense to core
  consumer
• Understand their consumption behavior
• EDUCATE ?
• Provide true value to the consumer
• Customized benefits/tips
• ENGAGE ?
• Enhance the brands cultural relevance,
  authenticity and credibility
• Genuine connection through consumer involvement
• ENTERTAIN ?
• Generate buzz and infuse it with some fun
• Create or Grow Brand Influencers Brand
  Evangelists

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Projections for 2006 Media Spending???
Myers Group 6.1
Merrill Lynch 5.3
TNS 5.4
5.0
SP 5.0
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Radio spending, in billions
Source Radio Advertising Bureau, 2006
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Growth in Newspapers???
2
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Business-to-business print ad spending(in
billions)
5.4
3.8
Source American Business Media, 2006
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Broadcast network television advertising spending
in the U.S. (in billions)
-0.3
Source TNS, 2006
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70 of advertisers said thatDVRs and VOD will
reduce or destroy the effectivenessof 30
spots.
FURTHERMORE When DVRs enter 30 million HHs,60
of advertisers will cut back on TV, and one
quarter will slash spending by 25
P.S. 30 million happens in 2008 --eMarketer,
2006
P.P.S. 80 of (ANA) advertisers said they would
reallocate dollars by spending more on Web
advertising
Source ANA and Forrester Research, March 2006 (n
133)
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Online Advertising spending, in billions
Growth 24.7
Growth 30
And B2B online ad spending is targeted to grow at
about the same rate
Source eMarketer, 2006
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US online ad spending growth in 2006

• BtoB 72 of marketing execs worldwide plan to
  increase their spending online in 2006
• WebTrends 83 of marketers (B2B and B2C) will
  increase their Web marketing spend
• Forrester 49 of B2B marketers were using online
  marketing in 05, and more will in 2006

Source BtoB Mag. Survey, Dec. 2005
WebTrends 2006 CMO WebSmart Report (n 250)
Forrester Research, 2005
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Onlines share of total media dollars will pass
5.0 this year!
Source eMarketer, March, 2006
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The Internet audience is still under-monetized
The Internet accounts for 20 of time spent
consuming media Advertising dollars will continue
to close the gap of dollars to audience
Source Goldman Sachs Research estimates,
Synovate.
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of marketers ranking the Internet as equal to
or better than traditional media for creating
brand awareness
40 of B2B marketers consider online marketing to
be very/extremely effective for building a brand
image--Forrester Research/ABM, 2005
58 consider the Internet to be the Most
Important source of information on business, vs.
18 for newspapers and 11 for industry trade
pubs --Gartner Group
Source Forrester Research, May, 2005
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Marketers opinions regarding the effectiveness
of media for providing measurable ROI
Source Millward Brown, Advertising.com, Sept,
2004
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Take advantage of theBroadband revolution!
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Within the universe of 74.1 M Internet
households in 2006
69 are on Broadband
HEADS UP!98 of at work Internet users are on
broadband, and theyspend between 116
-132minutes per day online. Source Gartner,
Harris Interactive, 2005
59 view streaming video each month
24 watch online video weekly
16 download a full-length movie or TV
show in a two-month period
12- 13 watch TV shows movie previews
online weekly
Sources eMarketer, for year-end 2006
comScore, 2005 OPA, 2006 Solutions
Research Group, 2005Points North Group, 2005
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4As form of New Media that will show the
greatest growth in 2006
Blogs 20.2
Broadband video ads allow forgreater
measurability,target-ability and interaction!
Podcasting 29.6
Internet Video 50.2
Source eMarketer, November 2005
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Methods which tech vendors plan to use in 2005
for generating B2B sales leads
Source Tech Target, Bitpipe, December, 2004
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The Internet can reach buyers all along the
purchasing cycle
85 of businessexecs use search--Gartner, 2005
80 of onlineconsumers usesearch
Awareness/Branding
Customer Relationship Management
INTERNET
Attitudes, Interest
Post-sales support
Pre-purchase Information Gathering
Fulfillment
Sale/Purchase
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Future of Search?
55 of Internet users usesearch engines to find
infoabout LOCAL firms --Kelsey Group, 2005

• Richer (with video)
• Mobile (anywhere)
• Smarter (more intuitive)
• Vertically focused

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• Google Sales 2500 strong (largest in all
  media)
• Launching old media tentacles
• Magazine and Newspaper ad space
• Radio and TV ad placement
• Net ad revenues estimated to be 6.5 billion for
  2006, (up from just 2 billion in 2004)
• Popularity is based on cost accountability
• AdWords, enables marketers to count how many
  click from a Google text ad to their web site

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Users typically visit two search engines on
average, but Google is used most often
Respondents use a search engine to find a site
55 of the time vs. direct
45 of respondents cited Google as the search
engine they use the most
Source Goldman Sachs Research estimates,
Synovate.
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US paid search Advertising Spending, 2001 2008
(in billions)
Growth 15
Displayads alsogrew over 30
Growth 31
Source eMarketer, 2006, with IAB/PwC as
baselines for 2001 2004
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Share of total time spent online by US Internet
users, by site category
So, if you only do search, you are missing 95 of
your market opportunity to connect with potential
customers
Source OPA, Nielsen//NetRatings, January 2005
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Taming the Blog Hype Machine
Blog advertising 16.6 million in 2005
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Gallop Poll Read frequently.. 9 Read
occasionally11
31 Mil
eMarketer 14 of Internet usersread blogs on
aregular basis
Pew Teens (12 17).. 38 Gen Y (18 28)..
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• Under 50 are still getting posts 3 months
  after their creation
• Under 10 (3 million) are updated at least
  weekly

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The trust factor
Princeton Survey Research Associates 12 trust
accuracy in blogs always/most of the time
Over 50 ofblog attacks aresponsored bya
business rival
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So, advertisers SHOULD explore creative ways to
leverage the power of blogs

• Monitor the blogosphere!
• Work with existing bloggers, in ways that will
  encourage them to link to your site
• Create your own blogs to
• Obtain free market research from readers
• Create a community of interest around your
  product or service
• Allow you to connect with your audiences on a
  deeper, personal level (with two-way interaction)