Section image

Penny Machines

Cherries
oil on canvas
22 x 20 in
1981

Penny Machines
oil on canvas
23¾ x 29¾ in
1961

Stack of Books
oil on canvas
30 x 24 in
n.d.

Seven Suckers
oil on canvas
19 x 23 in
1970

Twin Jackpots
oil on canvas
30 x 46 in
1962

Ties
oil on canvas
20 x 26 in
1980

Cake Slices
oil on canvas
20 x 16 in
n.d.

WPP Digital

Report by Mark Read (below)
Chief executive officer

Mark Read

WPP Digital exists to accelerate WPP’s development of world-class capabilities in digital marketing and media. Our record performance in 2009 was proof, if it were needed, that marketing is going digital at an increasing rate, regardless of any economic downturn. We achieved significant growth in both revenues and profits. We won prestigious new clients and important industry awards. We expanded geographically, opening new offices in Africa, Asia and the Middle East. And we continued to extend the reach of our technologies across WPP and the wider industry consistent with our belief that technology will be increasingly critical to our business and to our clients and can create competitive advantage for WPP.

24/7 Real Media

Jonathan Hsu (below left)
Chief executive officer
24/7 Real Media
David Moore (below right)
Chairman
24/7 Real Media

Johnatan Hsu and David Moore

24/7 Real Media is at the centre of our strategy to invest in proprietary technologies where critical and to partner with industry leaders when possible; the ultimate aim being to develop an integrated technology platform, which allows our clients to reach their customers more effectively.

Over the course of 2009, 24/7 Real Media continued to execute against this strategy with considerable success, both in its own business, where it operates in 12 countries through 18 offices and in partnership with other WPP companies.

24/7 Real Media significantly extended the reach of its proprietary technologies. Its market-leading ad management platform, Open AdStream, delivered 780 billion ads across thousands of websites in 2009 – equivalent to more than one ad per day for every internet user. Its award-winning search technology, Decide DNA, has achieved widespread adoption across WPP and is currently used by more than 700 clients, running campaigns across 50 countries and 15 languages in 37 different currencies. Connecting to 100+ search engines and feed publishers, the technology bids and reports on 60 million keywords every day.

Having our own platform enables us to partner more effectively with other technology companies through closer co-operation, technology integrations and product alignments. A good example of this has been our partnership with Omniture, announced in January 2009, through which more than 500 people across WPP have been trained in Omniture’s analytics solutions. At the same time, we have successfully integrated Omniture into Open AdStream to enhance its value and performance for publishers and advertisers. Our partnership continues to expand on both the service and technology front following Adobe’s acquisition of Omniture in October 2009.

In addition, 24/7 Real Media’s own media network grew substantially in 2009, reaching more than 200 million individual consumers each month. In the US, its media network was ranked a Top 5 US ad network by comScore (March 2009), growing its reach by 80% in the past two years. A similarly strong performance was seen in France.

Perhaps most importantly, the Media Innovation Group (MIG) was established, in partnership with GroupM, to formalise our joint initiatives to apply digital technology to the media investment management business. MIG launched the Zeus Advertising Platform (ZAP) for display advertising. Decide DNA is also being integrated into ZAP allowing closer integration of display and search campaigns. MIG’s technology offerings enable our clients to target, deliver and optimise messaging to audiences across any reserve or exchange-traded digital media. In its first full year of operation, MIG managed over 400 campaigns for 85 advertisers across 120 networks and 2,000 websites. Serving over 20 billion targeted impressions, MIG grew billings under management five-fold in 2009.

BLUE

BLUE celebrated its 10th anniversary in 2009 with a strong year of growth and the Marketing magazine Agency of the Year Award for Singapore. We were particularly proud as this is the first time this coveted award, voted on by clients, has been given to a digital agency. While this was the highlight of a long list of awards, BLUE won other industry accolades in 2009, including client and peer awards in search marketing, email marketing, online advertising and web design.

BLUE continued to grow its client roster, adding leading brands such as Air China, Adobe, Danone and Standard Chartered Bank to its existing list of blue-chip clients. It also opened up a new regional hub in Dubai to better serve the needs of its clients in the GCC countries and the Middle East.

Quasar

Quasar continues to be India’s leading digital marketing services company. Along with a strong domestic presence in India, Quasar has now created a digital production hub for WPP agencies and international clients, a key part of Deliver (see below). Nokia, through Wunderman, is already one of the clients for this hub. Quasar’s leading clients include Microsoft, Chevrolet, Monster, Plan, MakeMyTrip and Skoda. During 2009, Quasar also started operations in Kenya under the brand Squad Digital, through a joint venture with WPP and Scangroup.

Schematic

Schematic had a successful 2009 adding prestigious clients including Best Buy, Orange, Bank of America, Logitech, Johnson & Johnson and Universal Music Group to its roster and continuing to grow existing relationships with Microsoft, Nokia, Dell, Target and Comcast among others.

In June, Schematic received international acclaim for the launch of its interactive Touchwall at the Cannes Lions Advertising Festival, garnering 25 million media impressions and resulting in the launch of a new digital out of home division, Schematic Touch. The firm’s pro bono work on the Interactive Advertising Bureau’s ‘Privacy Matters’ campaign has generated over 20 million impressions to date, along with a full-page article in The New York Times. Notable client milestones include the launch of Nokia’s OVI app store (now with over one million downloads a day) and Universal Music Group’s VEVO.com, which attracted over 35 million registered users in its first three weeks.

We were delighted that industry-leading work like this was recognized by Advertising Age again including Schematic in the 2009 Digital A-List issue, and Target honouring Schematic with its coveted Best of the Bullseye Award for Top Partner.

Deliver

In 2008, in recognition of clients’ needs to produce quality digital work more cost-effectively, we took the decision to invest in high-quality, low-cost production with the establishment of Deliver. In its first full year, Deliver won significant production work from Dell and Nokia, its founding clients, and new work from AstraZeneca as well as clients from sister WPP agencies, including AT&T, HSBC, Colgate, Campbell Soup and Smuckers. Deliver also launched DEPP, the Deliver Efficient Production Platform, which provides world-class briefing, workflow and reporting management for its more than 1,000 people who operate from seven locations across the globe.

Johannes Leonardo

Creative hotshop Johannes Leonardo was recognized by Advertising Age with one of the first-ever Small Agency of the Year Awards. Based in New York, Johannes Leonardo continues to create breakthrough ideas that harness the potential of our consumer-driven digital landscape for leading companies including Google, Unilever, Daffy’s, Nestlé, Clarins, Pele Sports and Chanel. Most recently, the agency launched the global digital platform Womanity.com for Thierry Mugler.

iconmobile

For iconmobile, the year 2009 was its most successful yet on the back of strong interest in mobile as a marketing channel, driven by the success of the iPhone and the launch of new mobile platforms such as Android by Google. Much of its work was in the software, financial services, luxury goods and automotive sectors. It built the first smart phone-enabled mobile payment service for Barclaycard, a new application concept showing the possibilities for virtual instrumentation in the automobile of the future for Fujitsu and supported North Face in launching the Red Flag Campaign in China, that used the mobile channel to integrate digital, event, field marketing, media, PR and in-store marketing activities.

Syzygy

Syzygy had a good year despite the challenging economic environment. Two creative highlights were the launch of the global brand platform for Jägermeister by Syzygy and sister agency High-ReS! and the online support for the global launch of the prestigious Chanel No.5 advertising film, which for the first time premiered on the internet rather than through traditional media.

Other developments

In January 2009, we made a $25 million investment in Omniture which was acquired by Adobe in October 2009. The Group benefitted from a $36 million gain on this investment and we continue to develop a strong partnership with the broader group.

Elsewhere in the technology area, we announced the results of the first Google WPP Marketing Research Awards at a joint conference in New York in November, attended by both companies and our clients. We were very pleased with the initial findings and the program is being continued this year with a further set of grants to 11 academic teams.

The future

Across WPP Digital we possess a unique group of companies with a breadth of skills that span the digital marketing industry: analytics, mobile, search marketing, social media, user experience. Our companies share a common belief in digital marketing and in the importance of technology and innovation, of data and analytics and of delivering results to clients. Each of these factors is becoming increasingly important to WPP’s clients. Indeed, one of the strengths of our business is that the market is heading in our direction. Another is the group of bright, talented, innovative people who are excited by what they do. They worked hard in a difficult environment and we would like to thank them for all their contributions over the past year.

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