The Future of Media

1. The Future of Media Please note the video has been removed from this presentation

2. “For tomorrow belongs to the people who prepare for it today” African Proverb

3. There’s been a Revolution?

4. Not just internet but high capacity internet In 2010…. 20 4MB/s homes are capable of receiving the entire internet in 1995

5. Video viewing is now embedded within the media landscape

6. Which means we can watch video online Source: Television in Transition accenture (survey of 1000 demographically representative adults across 8 countries

7. There’s been a Social Media explosion

8. Mobile is the greatest source of new social connections

9. Within two years, Social will be a mobile medium 30,000 25,000 20,000 15,000 10,000 5,000 0 Mixi’s Monthly Page Views - CQ2:06 – CQ3:10 Mobile Page Views Desktop Page Views Monthly Page Views (Min) 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 Note: Mixi is one of Japan’s leading social networking sites on PC and mobile with 22MM registered users as of 10/31/10. It monetizes mobile usage via sales of avatars, customized homepages and other premium services. Source: Company reports, Morgan Stanley Research

10. Brand Experience in Beer

11. Technology Norms – Paid Owned Earned Source: ZenithOptimedia Touchpoints - Technology category 2011

12. Not just user generated content but user controlled content

13. “Any time, any place, anywhere”

14. These new media players will define the future Content Distributors Content Producers & Distributors Source: Google Finance

15. Driving a shift to personalised effectiveness model Old value system New value system Personal data Scheduled Mass access Customised content Always On Reach Clicks Audience Customers Efficiency Effectiveness

16. We’ve been optimising Direct Communication Spots Insertions Mailouts Impressions Conversions Sales Performance Marketing model is characterised by constant observation and optimisation Clicks Calls Coupons Surveys Optimisation Email Registrations Telephone numbers Address

17. The future will see us optimising indirect communications Buzz volume Buzz sentiment Influencer volume Search trends Networked media model is characterised by constant listening and engagement Fan Pages Groups Blogs Forum posts REAL-TIME Viral Mash ups / parodies Uploads Q&A Respond to posts Comments

18. The aim is to understand the effect of indirect on direct and vice versa on one dashboard Live ROI Live ROI enables us to look at performance marketing and networked media measures to allow us to make real time optimisation decisions

19. Integrate your data into one Dashboard

20. Location based marketing has arrived • Location based marketing: messaging customers when entering a targeted geo-fence Location specific message

21. Proximity marketing – in a nutshell • 02 media harnesses the mobile numbers from customers who have opted in to receive updates on offers from retail and entertainment partners • There are currently 1.9m users registered in the UK, which has grown by 50% in the past few months • Geo targeting allows these offers to be sent directly to users mobile handsets when they are within a specified distance from a retail outlet • Offers are limited to 1 per week to ensure customers are not over whelmed • It is also possible to target the age, gender and interest

22. L’Oreal reaching customers at the right time and place • Zenith married O2, L’Oreal and retail partner Superdrug • Offers have been sent out every 2 weeks since October, with the trial ending in April ‘11

23. Schedule of activity

24. O2 ZenithOptimedia UK

25. Report our successes in real-time • Identify inactive bloggers and contact them through social outreach • Future budget set by measuring the sentiment around band pre-sales

26. The Future of Media