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G lobal online unit of OMD

G lobal online unit of OMD. May 9, 2006. OMD Digital. Recent OMD Recognition. Named ADWEEK Magazine’s 2005 Global Media Agency of the Year Named Advertising Age’s 2005 Media Agency of the Year in the U.S.  Named Campaign Magazine’s Global Media Agency Network of the Year;

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G lobal online unit of OMD

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  1. Global online unit of OMD May 9, 2006

  2. OMD Digital

  3. Recent OMD Recognition • Named ADWEEK Magazine’s 2005 Global Media Agency of the Year • Named Advertising Age’s 2005 Media Agency of the Year in the U.S.  • NamedCampaign Magazine’s 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

  4. 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

  5. THENEXTGENERATION

  6. 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.

  7. 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.

  8. March 2006: 56 games of March Madness is streamed for free on Web. Over 19MM streams and 1.3MM registered viewers. March 29: E! stikes up a deal with You Tube to promote programming the network’s linear channel. March 30: CBS announces that 4 shows “CSI”, “The Amazing Race”, “Survivor”, and “NCIS” will be available on Comcast On-Demand for $.99. 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.

  9. 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.

  10. Dell 2006 March Madness ProgramCBS/Sportsline: Cross Media & Streaming

  11. 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

  12. 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 brand’s 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”

  13. Projections for 2006 Media Spending??? Myers Group 6.1% Merrill Lynch 5.3% TNS 5.4% 5.0% S&P 5.0%

  14. Radio spending, in billions Source: Radio Advertising Bureau, 2006

  15. Growth in Newspapers??? 2%

  16. Business-to-business print ad spending(in billions) +5.4% +3.8% Source: American Business Media, 2006

  17. Broadcast network television advertising spending in the U.S. (in billions) -0.3% Source: TNS, 2006

  18. 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)

  19. 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

  20. 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

  21. Online’s share of total media dollars will pass 5.0% this year! Source: eMarketer, March, 2006

  22. 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.

  23. % 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

  24. Marketer’s opinions regarding the effectiveness of media for providing measurable ROI Source: Millward Brown, Advertising.com, Sept, 2004

  25. Take advantage of theBroadband revolution!

  26. 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, 2005;*****Points North Group, 2005

  27. 4A’s: 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

  28. Methods which tech vendors plan to use in 2005 for generating B2B sales leads Source: Tech Target, Bitpipe, December, 2004

  29. The Internet can reach buyers all along the purchasing cycle 85% of businessexecs use search--Gartner, 2005 80% of onlineconsumers usesearch Customer Relationship Management Awareness/Branding INTERNET Attitudes, Interest Post-sales support Pre-purchase Information Gathering Fulfillment Sale/Purchase

  30. 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

  31. 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

  32. 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.

  33. 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

  34. 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

  35. Taming the Blog Hype Machine: Blog advertising = $16.6 millionin 2005

  36. Gallop Poll: Read frequently….. 9% Read occasionally…11% 31 Mil eMarketer: 14% of Internet usersread blogs on aregular basis Pew: Teens (12 – 17)….. 38% Gen Y (18 – 28)….. 41% • Under 50% are still getting posts 3 months after their creation • Under 10% (3 million) are updated at least weekly

  37. 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

  38. 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)

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