Wpp 28/01/2020

28/01/2020

WPP WAT JE WEL (EN VOORAL) NIET MOET DOEN MET AMAZON

WPP plc KOEN VAN DEN EEDEN NIKKI EIJPEN Marketplace Strategist Marketplace Consultant Greenhouse Wunderman Thompson Commerce

WPP

AMAZON HEEFT GEEN “FOCUS VOOR MIJ, WANT“ ZE ZIJN BEPERKT ACTIEF IN NEDERLAND WAAR ZOEKEN NEDERLANDSE ONLINE SHOPPERS NAAR PRODUCTEN? • 13% van de Nederlandse online consumenten zoekt producten op Amazon.

• 61% van de Nederlandse online consumenten zoekt producten via andere marketplaces 13% 61% (zoals bijvoorbeeld Bol.com).

Amazon Overige Marketplaces

Bron: Klant van de Toekomst Nederland 2019, Wunderman Thompson Commerce WPP WELK AANDEEL SPENDEERT DE NEDERLANDSE ONLINE SHOPPER OP MARKETPLACES? • 9% van de jaarlijkse online uitgaven wordt gespendeerd op Amazon.

• 45% van de jaarlijkse online uitgaven wordt gespendeerd op 9% 41% Amazon.

Amazon Overige Marketplaces

Bron: Klant van de Toekomst Nederland 2019, Wunderman Thompson Commerce WPP WELK AANDEEL NEDERLANDSE ONLINE KOPERS HEEFT EEN PRIME-ABONNEMENT? • 20% van de Nederlandse online shoppers heeft een Prime-abonnement. 20%

Bron: Klant van de Toekomst Nederland 2019, Wunderman Thompson Commerce WPP MIJN BUSINESS “ “KAN PRIMA ZONDER AMAZON

8 JE MOET DAAR ZIJN WAAR DE KLANT IS. WAT KOST HET OM AFWEZIG TE ZIJN?

WPP AMAZON IS MAKKELIJK: “ “PRODUCTEN LIVE ZETTEN EN KLAAR IS KEES

10 3%

Bron: https://www.digital-business-news.com/e-commerce/marketplaces/1198-amazon-marketplaces-dominated-by-chinese-sellers WPP plc AMAZON HELPT JE NIET…

WPP FAALFACTOREN 1. GEEN DOELSTELLINGEN & PLAN 2. GEEN AANSLUITING BINNEN DE ORGANISATIE 3. VERKEERDE PRIORITEITEN 4. PRODUCTSELECTIE – ‘ONE SIZE FITS ALL’ 5. INEFFICIËNTE CAMPAGNESTRATEGIE

WPP CUSTOMER CONTENT & SERVICE RETURNS VISUALS

BOUW- PRODUCTS PROMOTIONS PROMOTIONSLOGISTICS STRATEGY STENEN Voor succes op amazon

BUSINESS RATINGS & ORDER CUSTOMER CASE REVIEWS TEAM MANAGEMENT SERVICE

TOOLS & STOCK REPORTING & KPI’S TECHNOLOGY OFFER MANAGEMENT FINANCE

WPP FAALFACTOREN 1. GEEN DOELSTELLINGEN & PLAN 2. GEEN AANSLUITING BINNEN DE ORGANISATIE 3. VERKEERDE PRIORITEITEN 4. PRODUCTSELECTIE – ‘ONE SIZE FITS ALL’ 5. INEFFICIËNTE CAMPAGNESTRATEGIE

WPP GEEN OFFER & GEEN BUYBOX MARKETPLACES ZIJN ANDERS

No offer no BuyBox

GEEN OFFER & GEEN BUYBOX

DE CAMPAGNE STIMULEERT SALES VOOR CONCURRENTEN! GEEN OFFER & GEEN BUYBOX

WPP FAALFACTOREN 1. GEEN DOELSTELLINGEN & PLAN 2. GEEN AANSLUITING BINNEN DE ORGANISATIE 3. VERKEERDE PRIORITEITEN 4. PRODUCTSELECTIE – ‘ONE SIZE FITS ALL’ 5. INEFFICIËNTE CAMPAGNESTRATEGIE

WPP CONSUMENTEN KIJKEN VERDER DAN PRIJS 92%

En dus Amazon ook… 79%

67% 64% 61%

WPP GEEF JE POSITIE IN DE ZOEKRESULTATEN PRIORITEIT

63% v.d. clicks zijn op bovenste items (bereik 39-81%). >90% Aankopen TOP ITEMS begint met een zoek-opdracht

Additionele 17% blijft op eerste pagina. >80% Clicks blijven op REST VAN EERSTE PAGINA de eerste pagina

Maar 19% van de clicks wordt VOLGENDE PAGINA gedaan buiten de eerste pagina.

One Click Retail: Data is based on a weighted average of top 10 to 25 search terms for 22 CPG categories WPP VERGEET ADVERTISING NIET

WPP FAALFACTOREN 1. GEEN DOELSTELLINGEN & PLAN 2. GEEN AANSLUITING BINNEN DE ORGANISATIE 3. VERKEERDE PRIORITEITEN 4. PRODUCTSELECTIE – ‘ONE SIZE FITS ALL’ 5. INEFFICIËNTE CAMPAGNESTRATEGIE

WPP plc NIET ALLE PRODUCTEN ZIJN GESCHIKT VOOR VERKOOP OP AMAZON

• Eigen merk? • Concurrentie? • Marge? • Specialistisch/configuraties

WPP FAALFACTOREN 1. GEEN DOELSTELLINGEN & PLAN 2. GEEN AANSLUITING BINNEN DE ORGANISATIE 3. VERKEERDE PRIORITEITEN 4. PRODUCTSELECTIE – ‘ONE SIZE FITS ALL’ 5. INEFFICIËNTE CAMPAGNESTRATEGIE

WPP INEFFICIËNTE CAMPAGNESTRATEGIE

• Inefficiënte budgetallocatie – kanaalmix moet kloppen • Marketing inzet voor content optimalisaties • Sterke marketingmiddelen verkeerd gebruiken

WPP HOE DAN WEL? WPP ACE CREATING WINNING AMAZON BUSINESS

WPP INNOVATE

INNOVATION

ACCELERATE GROWTH MEDIA & TRADE FRAMEWORK ACTIVATION

PRODUCT & CONTENT CONVERT

OPERATIONAL EXCELLENCE LIST

BUSINESS STRATEGY & ORGANISATION

BUILD

WPP TIPS & TRICKS

1. Begin met een plan 2. Formeer een multidisciplinair team en/of zoek de juiste partner 3. Kies de juiste producten & besteed zorg aan de content (Amazon doet dit niet voor je!) 4. Organisch alleen is niet voldoende – maak gebruik van advertising 5. Gebruik & visualiseer data 6. Evalueer & Leer 7. Beschouw Amazon als sales- én marketingkanaal

WPP THANK YOU!

WPP 28/01/2020

WPP HELMUT RIEDER

CEO, WUNDERMAN THOMPSON COMMERCE LUX [email protected]

Helmut Rieder is EMEA CEO of WPP’s Centre of Excellence for Amazon.

Based in Luxembourg, Helmut has over 14 years’ experience working with brands and retailers such as Melitta, Columbia, Leitz and Lego in how to win on Amazon.

Helmut has spoken at many digital and commerce events across Europe and is considered one of the pre-eminent experts on not only Amazon strategies but also how to develop and execute localized content and promotions at scale that maximize sales across the Amazon European marketplaces.

WPP 30 HOW TO WIN THE DIGITAL SHELVE ON AMAZON

WPP 1. ABOUT US 2. CONTENT & LISTING 3. BRAND STORE 4. PAID SEARCH ADVERTISINGS 5. ORGANISATION 6. REPORTING

WPP THE 360°GLOBAL AMAZON SOLUTION • 150 brands

• 120 Amazon certified employees

• One sale every 2.3 seconds

• 750k ASINs managed

• 9 Amazon platforms – 8 languages

• Every month 30k new ASINs online

• Mix between personalisation and automatization

WPP 1. ABOUT US 2. CONTENT & LISTING 3. BRAND STORE 4. PAID SEARCH ADVERTISINGS 5. ORGANISATION 6. REPORTING

WPP CONTENT MORE THAN JUST A PRODUCT SHEET

PRODUCT PRODUCT ENHANCED REVIEWS / VISUALS DETAIL PAGE LISTING TITLE CONTENT RATING

ORGANIC ORGANIC Listing & Consumer oriented content attributes VISIBILITY CONVERSION PAID PAID Paid search Deals & advertising promotions

WPP CONTENT - VISIBILITY OPTIMIZE YOUR PRESENCE AND DISCOVERABILITY ON AMAZON

PRODUCT LISTING CROSS CELLING REVIEWS / RATING

YOUR IMPORTANT MAIN & SUB CATEGORIES

CONSUMERS CLICK, THEY DO NOT TYPE IDEAL MIX TO GENERATE, TRAFFIC AND SALES

VISIBILITY STARTS DIRECT TRAFFIC FROM BEST-SELLERS NATURAL WITH PRODUCT LISTING TO THE LONG-TAIL ATTRIBUTES • Permanent merchandising • Use the available modules to boost for ‘virtual shelf’ sales across your entire catalogue • Filters/attributes replace keyword • Boost conversion to long-tail

WPP CONTENT - CONVERSION IN ORDER TO DETERMINE THE RETAIL READINESS, WE LOOK AT YOUR COMPLETE ASIN JOURNEY

ABOVE THE FOLD PRODUCT TITLE ABOVE THE FOLD A+ BECOMES A WEBSITE REVIEWS & RATINGS VISUALS BULLET POINTS

• Use maximum length • Images should tell the • 5 bullet points are • It's more relevant in • 15 reviews should be for the title entire story of your the magic number mobile the minimum number of product reviews an ASIN should • Will help your SEO • Should include the • Increase brand have positioning • Images alone should technical description awareness and sales convince the end of the product • Use VINE to increase • To be retail ready, the consumer to make the • Guide the user to choose and improve your reviews title and description purchase • 1st bullet point is the correct product and rating should: the most important - Accurately describe • Images should have • Explain in detail how • Use your reviews for the product. content of the bullet point • Listen to consumers. your product works data mining to improve in a graphic form Generate content your content. - Include key descriptive starting from their features such as size, • Image the most relevant reviews colour, and size packs. content in mobile

WPP MOBILE VS DESKTOP No icons for variations

Pictures are more relevant Variations ABOVE No bullet points THE Compare Bullet Points FOLD Reviews

BELOW +A content is more THE relevant in mobile FOLD A+ CONTENT IS FURTHER DOWN THE SCROLL

WPP A+ CONTENT | PART 1 EVERY A+ CONTENT BECOMES A WEBSITE ON ITS OWN

BANNER That shows your brand

WHAT Help the user selecting the COUNTS & USER CENTRIC correct product for his needs HIGHLIGHTS CONTENT

MOUSEOVER How to use the product

WPP A+ CONTENT | PART 2 EVERY A+ CONTENT BECOMES A WEBSITE ON ITS OWN

CONTENT WILL COMPARISON Give more options on TABLE the same category DEPEND ON THE PRODUCT AND ITS MOST RELEVANT FEATURES CROSS Cross-sell across SELLING range and brand TABLE

WPP IMPROVE THE LONG TAIL GROWTH THROUGH EACH A+ PAGE

SALES RANK JULY 2018 SALES RANK JULY 2019

17.743 57.256 93 303.459 18.687 EVOLUTION SHOWS REAL +93.3% +93.1% 23.7% 99% +83.9% GROWTH AFTER A+ CONTENT WAS CREATED

PRODUCT COMPARISON CROSS-SELL ACROSS RANGE AND BRAND CROSS 5.730 26 72.648 14.531 2.344 CELLING -74.5% +77% +11.3% +92.7% +37.2%

WPP 1. ABOUT US 2. CONTENT & LISTING 3. BRAND STORE 4. PAID SEARCH ADVERTISINGS 5. ORGANISATION 6. REPORTING

WPP AMAZON BRAND STORE INSPIRE, EDUCATE, AND HELP SHOPPERS DISCOVER YOUR PRODUCT SELECTION!

• AN EFFECTIVE TOOL TO FEATURE YOUR PRODUCT PORTFOLIO • DRIVES VISIBILITY, ENGAGEMENT, AND CONVERSION • DELIVER REAL, FULLY REPORTABLE RESULTS WHEN COMBINED WITH OPTIMAL CONTENT GENERATION AND AMAZON ADVERTISING

• Awareness generation & customer • Drive external promotion and link to/ engagement tool from entire brand ecosystem (social media, etc.) • Show customers your entire catalogue • Creating a shopping destination on • Maximize conversion with cross-selling Amazon that matches your brand’s look and feel. • Special reporting with traffic sources (pixel enabled) • Brand defence & continuity of brand message across channels

• SEO tool (indexed content) Leverage product launches and seasonality

WPP AMAZON BRAND STORE ANOTHER BRIDGE BETWEEN CONTENT AND ADVERTISING

VALUE PROPOSITION CONSISTENCY ENGAGEMENT FRESHNESS Make sure your Store reflects Make sure the messaging, tone Use rich and engaging content - Regularly refresh your content and visual identity of your Store is video, images and history - to your brand’s value proposition with new products or consistent with the look and feel showcase brand differentiators and tells your brand story. of your other media. and reasons to believe. imagery.

1 2 3 4

WHY CONSIDER A STORE IN YOUR ADVERTISING STRATEGY?

With Stores, you can engage

and inspire high intent shoppers REACH NEW PROVIDE SHOPPERS SHOWCASE YOUR GET DAILY AND EXISTING WITH AN ALWAYS-ON in meaningful ways, by sharing BRAND STORY INSIGHTS your brand story and CUSTOMERS DESTINATION differentiators through rich content, like images and videos, alongside your Amazon catalog.

WPP 1. ABOUT US 2. CONTENT & LISTING 3. BRAND STORE 4. PAID SEARCH ADVERTISINGS 5. ORGANISATION 6. REPORTING

WPP LEVERAGE ALL CONSUMER JOURNEYS ON AMAZON THREE DIFFERENT CONSUMER HABITS…

CUSTOMERS SEARCH STRATEGY: ALWAYS ON! CUSTOMERS BROWSE A Customers who know what they are looking for… B Customers who browse and get inspired… No matter where the customer is KEYWORD BASED SEARCH looking, coupons are everywhere: Use the most important Paid Search Product to be visible at the first page on the search results: DETAIL PAGE Sponsored Products | Sponsored Brands SHOPPING CART YOUR SEARCH PRODUCT RESULTS

100% HOMEPAGE discoverability DISCOUNT SHOPPERS (DESKTOP & C Looking for special offers… MOBILE) COUPON PAGE BRAND … either they know where to find them or they work STORE with price tracking tools in a modern way.

70% of all coupon clicks come from outside the product detail page.

WPP PAGE 46 VOUCHER STRATEGY

B. CUSTOMERS BROWSE Customers who browse and get inspired… OBJECTIVES OFFER A DISCOUNT TO YOUR CONSUMER BASED WHAT ARE THEY? ON YOUR OBJECTIVES • Optional Price discounts which the customer can use • They can run up to max. 5 years. • Promotion type which you can use for different strategies (visibility & conversion)

VISIBILITY CONVERSION WHAT ARE THE CRITERIA? • Minimum 5% or 0.50 € discount off current site price • Lead time of 21 days

BENEFITS focus on brand focus on • High visibility – automated placements along the awareness increasing sales customer purchase path always on approach % will depend on • Great for pushing new products, increasing sales the approach on core products or getting rid of overstock • Long term effect on sales development • Definition of own budget and discounts per ASIN, NO MATTER WHERE THE CUSTOMER IS LOOKING, cancellation of a coupon possible at any time COUPONS ARE EVERYWHERE IN AMAZON

WPP FIND THE RIGHT MEDIA MIX FOR YOUR ASIN JOURNEY CASE STUDY: LEITZ SHREDDER

Start with #1 Best Deal. #2 Best Deal. Increased the Upload Advertising. SB + SP Stopped the Stopped the spending in Uploaded Coupons to SB | Target: Campaigns. Coupon but Coupon but Advertising SP & Deals for Black Product help improve Brand Increased the continue with continue with SB | Target: Fr. / Cyber Mo. Listing the Stock Awareness spending's Advertising Advertising ROAS

NOV. ‘18 DEC. ‘18 FEB. ‘19 MAR. ‘19 MAY ‘19 JUN. ‘19 JUL. ‘19 NOV. ‘19 6000 60000

5000 50000 Sales Rank: Sales Rank: Sales Rank: Sales Rank: 112.331 14.618 2.847 1.289 4000 40000

3000 30000 HOW OPTIMIZATION CAN CREATE A HERO PRODUCT OVER TIME: 2000 20000 • Phase 1: Listing and Content optimization 1000 10000 • Phase 2: Stock development • Phase 3: Generating traffic 0 0 • Phase 4: Participate within VSS by setting up deals to improve the ranking step by step • Phase 5: Convert! Advertising always on. Coupon - Cost Best Deal Cost Participate during the big Amazon events AMS-SP-COST AMS-SB-Cost such as Easter Deals, Prime Day, etc. Shipped COGS (´0) Sales Ranking SUCCESS STORY LEITZ SHREDDER

WPP 1. ABOUT US 2. CONTENT & LISTING 3. BRAND STORE 4. PAID SEARCH ADVERTISINGS 5. ORGANISATION 6. REPORTING

WPP ALL STAKEHOLDERS NEED TO BE ALIGNED ON THE END GOAL…

• Impressions MEDIA • Views

NO OUR ULTIMATELY OBJECTIVES ARE • Title COMMON CONTENT • Bullet points • Focus and work on the same KPIs • Pictures KPI • Improve revenue and ranking • Share of Search • ROAS/ACOS

SALES/ • Sales • ROAS TRADE • Ranking

WPP MODERN CONSUMER JOURNEY HAPPENS ACROSS MULTIPLE CHANNELS.

Mom: Family Group | Dad: Family Group | Mom: Can’t pick up Joe ☺ I Hey guys, do you think Thanks guys, but I will be have a meeting you have time to help us able to pick him up, I felt picking up Joe at 17? bad not keeping my Grandma: Sure, we are word. happy to ☺

08:00 10:00 12:00 15:00 16:30 17:00

During breakfast the Dad: Family Group | Grandma: family agrees that Also won’t make it on We are stuck in traffic, no Mom will pick Joe time. Let me ask the sure we will be on time grandparents.

OWNERSHIP • Multiple parties are involved (Mom, Dad and Grandparents) • Multiple channels (Instagram, WhatsApp, Facebook Messenger and SMS ) • Joe got pick up on time because someone felt responsible and took ownership

WPP AS THERE ARE MANY MOMENTS TO BREAK YOUR “ASIN JOURNEY”

EACH TEAM HAS ITS OWN BUDGET PRIORITIES – EACH TEAM STAYS IN ITS SILO

TRADE TRADE SUPPLY MARKETING Order Promotion MEDIA Product Basic AGENCY Compliance Writes processing Coupons Paid search Selection product Pictures and Legal content and logistics Sales DSP Pricing information animation

YOUR COMPAGNY

AMAZON STRATEGY

Content Implement trade Tittle promotions and Consulting price Catalogue Select Responsible Follow up and Bullet points manage budgets and range Management pictures for approval monitor KPIs A+ Content and run Keywords campaigns

ACE WILL RUN SMOOTHLY ACROSS DEPARTMENTS WE TAKE CARE OF THE TECHNICAL IMPLEMENTATION IN THE AMAZON SYSTEM

WPP THE PERILS OF NO OFFER NO BUYBOX DISCONNECTION: EXAMPLES

No offer no BuyBox

NO OFFER NO BUYBOX

THE CAMPAIGN CANNOT SUPPORT OUR SALES BUT SUPPORT SALES OF MARKETPLACE VENDORS NO OFFER NO BUYBOX

WPP SUCCESSFUL PAN EUROPEAN LAUNCH OF A NEW BRAND WITHIN SIX WEEKS

TRADE CONTENT MEDIA

Catalogue Catalogue Tittle, Bullet Points, Responsible for Follow up and Start manage Select Pictures management management A+, Keywords approval monitor KPIs budgets. Run campaigns and 350 Products Tittle, Bullet Points, Responsible for Follow up and promotions Select Pictures 5 Countries A+, Keywords approval monitor KPIs

KICKOFF WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5 WEEK 6

WPP PAGE 54 1. ABOUT US 2. CONTENT & LISTING 3. BRAND STORE 4. PAID SEARCH ADVERTISINGS 5. ORGANISATION 6. REPORTING

WPP CLOUD MONITORING SOLUTIONS

ADVERTISING REPORTING SALES REPORTING STOCK FORCAST Managed in several currencies several in Managed • 5 bullet points are the magic number

CAMPAIGN MANAGEMENT SALES REPORTING SALES REPORTING • Should include the • Analyse daily your pan European performance • Pan European overview and aggregation • Overview of the inventorytechnical that description Amazons • Compare campaigns and periods through • Daily reports orders (P.O.) of the product the database • Drill down to ASIN level • Check if you have enough stock for next • 1st bullet point is • Easy to share within your organization • Aggregate several reports into a call to three weeks according to Amazon’s forecast the most important • Change currency with one click ($, €, £, ¥) action (sales diagnostics, inventory health) report based on orders • All the data is downloadable as Excel reports • See your stock level on glance view. • Stock evolution through• Listen time. to consumers. • Daily update of your data (Paid Search – AMS) Generate content starting • Access historical advertising data from their reviews • Store the results of your keyword to improve future campaigns

WPP CLOUD MONITORING SOLUTIONS

CONTENT ANALYTICS RANKTRACKER REVIEWS / RATING

CONTENT MONITORING • Scoring system based on proven know-how to monitor the quality of your content • Online control of uploaded contents including rating, pictures, bullet points, title, and A+ RANK REPORTS • See your A+ contents module by module. • Pan European overview of Amazon’s • Extract all the information from your product pages (bullet points, title, etc.) available offer and sales ranking • Access live and historical review rating information for your products (Separated by Vine reviews and Verified Purchases reviews) • Drill down to ASIN level • View your ASIN with one click • Compare rankings and periods • Quantitative and qualitative analysis. through the database

WPP SMOOTH CONTENT • The Customer Board is an APPROVAL IS KEY interactive interface on which you can review and comment on created content (A+, Bullet Points, Title, Pictures, etc.) which has been fully visualized as it would appear on Amazon.

• In this way, the Customer Board acts as a data base in which you have a full overview of all ongoing projects and can fully control content before it is uploaded on Amazon.

• You can easily approve all the changes through our system.

CONSUMER BOARD

WPP VISUALS MORE THAN PICTURE CHALLENGES A PRODUCT IMAGE • Rename & rework pictures according to their ASINs and order within picture gallery

• A+ picture dimensions & format

Picture • Key features to be Gallery integrated on product images

• Adapt SWCH pictures in variations

• Alt+text keywords to be worked and added in A+ Content for voice CONSUMER BOARD optimization

• Awards

WPP 59 THANK YOU!

WPP SHORT INTRO OF SPEAKER

Yulia Livne, eCom Lead, Mindshare UK. Thanks to my previous roles in-house, leading eCommerce for luxury and consumer brands, I gained first-hand experience in end-to-end eCommerce service from product portfolio, content optimisation and paid media to payment systems and fulfilment. Currently, in addition to leading Mindhshare UK eCommerce, I am developing the agency’s offering and capabilities for Amazon media consulting.

WPP A RISING TIDE LIFTS ALL BOATS

Amazon’s entry impact on new markets

WPP plc THE ‘AMAZON EFFECT’

• Ongoing evolution and disruption of the retail market • Fundamental impact on shifting consumer expectation both on- and offline, for frictionless shopping process, with near-immediate results • Continuous innovation in omni-channel retail and services • ’Day 1’ approach – start-up like culture, identifying opportunities, speed to market, learning fast and scaling (or killing)

WPP LEARNING FROM AMAZON’S TRAJECTORY IN MATURE MARKETS TO PREPARE FOR IMPACT IN THE NETHERLANDS

WPP AGENDA 1. WHAT MOTIVATES SHOPPERS 2. EVERYTHING STORE 3. AMAZON’S ECOSYSTEM 4. OUTLOOK FOR THE NETHERLANDS

WPP AMAZON IS THE MOST POPULAR ONLINE RETAILER IN THE UK 9/10

UK 14.5Bn $

Source: Mintell 2019 WPP MAJORITY START THEIR SHOPPING JOURNEY ON AMAZON

70%

UK 14.5Bn $

Source: Mintell 2019 WPP AMAZON IS THE MOST Consumer attitudes towards grocers TRUSTED 80 Amazon 70

RETAILER 60

50 Waitrose 40 Asda 30 Ocado Tesco 20 Sainsbury’s 10 Morrisons

10 20 30 40 50

Differentiation % Trust %

91% 32% would excellent recommend experience Source: Lightspeed/Mintel, 2018 WPP SHOPPER BEHAVIOUR ONLINE IS MOTIVATED BY THE QUALITY OF THE EXPERIENCE

• Large choice • Easy checkout across PRODUCT • Fast deliveries categories CONVENIENCE CHOICE • Heavy items • Easy to find at your door product relevant to your needs EXPERIENCE

• Compare prices • Easy refund • Free deliveries • Reviews influence VALUE TRUST • Deals & discounts 76% of online • Subscribe & Save purchases

WPP SHOPPER BEHAVIOUR ONLINE IS MOTIVATED BY THE QUALITY OF THE EXPERIENCE

• Limitless choice • Easy checkout 1-click across categories PRODUCT • Fast deliveries next day • Easy to find CONVENIENCE CHOICE • Heavy items at your door product relevant to your needs

• Compare prices • Easy refund immediate • Free deliveries • Reviews - part of VALUE TRUST • Deals & discounts algorithm • Subscribe & Save

WPP ‘EVERYTHING STORE’ 1P, 3P AND MORE…

WPP 1P WHOLE- SALE

Price matching

WPP 1P 3P WHOLE- MARKET SALE PLACE

Price matching Price Control

WPP 1P 3P OWN WHOLE- MARKET BRANDS SALE PLACE

Price matching Price Control Best Price

WPP 1P WHOLE- SALE

WPP AMAZON EXCLUSIVES: COSMETIC LINE BY LADY GAGA AMAZON EXCLUSIVES - HOUSE BY LADY GAGA

13/02/2020 WPP 78 3P MARKET PLACE

TAKEMORE

WPP “THIRD-PARTY SELLERS ARE KICKING OUR FIRST- PARTY BUTT. BADLY.” Jeff Bezos, annual shareholders letter

100

35.2

75 30.7

26 63 50 22.3 54.2

18.5 44 25 GMV SOLD IN BILLION U.S.D. GMVSOLD BILLION IN 14.9 33.4 1P sales

24.2 16.1 2P sales 0

2011 2012 2013 2014 2015 2016 Source: Statista GROSS MERCHANDISING VOLUME, BN $US AMAZON BRANDS: FROM BATTERY TO 100 PRIVATE LABELS 2009

2012

30% SHARE BATTERY MARKET

WPP AFTER SUCCESS IN HOME MARKET, AMAZON BASICS TARGET EU WITH 10K PRODUCTS

ASIN Search

DE 10K 17K

USA 3K 123K

WPP … AND NOT JUST BASICS

WPP WHATEVER RETAIL MODEL IS, AMAZON DOMINATES ACROSS CATEGORIES …Even becoming 2nd biggest fashion seller in the USA

Source: Bloomberg / Euromonitor 2018/ USA Source: Bloomberg, 2019

Presentation info in footer WPP FOR CUSTOMER IT MEANS INFINITE SHELF WITH UNPRECEDENTED CHOICE, MAKING JEFF BEZOS’ VISION OF ‘EVERYTHING STORE’ A REALITY

Source: Bloomberg, 2019 Source: Bloomberg / Euromonitor 2018/ USA

Presentation info in footer 13/02/2020 WPP 85 TOO MUCH CHOICE?

Source: Bloomberg, 2019 Source: Bloomberg / Euromonitor 2018/ USA

Presentation info in footer 13/02/2020 WPP 86 SERENA’S NUTRITION PICKS

WPP AMAZON’S ‘EVERYTHING STORE’ THREAT TO LOCAL RETAILERS AND BRANDS

• Unlimited product choice across all categories allows Amazon to steal share from local retailers

• Tough price competition through price matching

• Aggressively growing competition from Amazon own brands

• 1st party data

• Service excellence BEWARE INCOMING TIDES

WPP AMAZON ECOSYSTEM

WPP THE AMAZON ECOSYSTEM REVOLVES AROUND THE CUSTOMER,ASSISTANCE WITHIN 4 FOCUS AREAS RETAIL

CONTENT CONTENT

ASSISTANCE

DEVICES

DEVICES WPP RETAIL

CONTENTCONTENT care ASSISTANCE

ASSISTANCE

Presentation info in footer 13/02/2020 91

DEVICESDEVICES WPP 1P DATA

1P DATA

1P1P DTADATA

1P DATA 1P DATA care ASSISTANCE1P DATA

1P DATA Presentation info in footer 13/02/2020 92 1P DATA

1PDEVICES1P DATA DATA WPP OVER 150 MILLION PRIME MEMBERS WORLDWIDE

Presentation info in footer 13/02/2020 WPP 93 PRIME MEMEBRSHIP IS A GATE TO AMAZON’S ECOSYSTEM, AND IS A KEY DRIVER OF GROWTH AND LOYALTY.

$x2 START YOUR 30-DAY PRIME FREE TRIAL It’s also a launchpad for testing new services €7.99 per month

WPP 94 THE PENETRATION STRATEGY FOR PRIME MEMBERSHIP IN THE NEW MARKETS IS THROUGH RETAIL OR ENTERTAINMENT, SUBJECT TO MARKET MATURITY

CONTENT RETAIL

WPP 95 AMAZON GROWTH STRATEGY: USE CONTENT TO ‘LURE IN’ THE NEW VIEWERS, THEN CONVERT THEM INTO SHOPPERS

WPP Cost per first stream, $ in UK, Germany, Austria, Japan 2017 THE PRICE TO HOOK THE CUSTOMER $72 ‘Cost per first stream’ vs $99 yearly membership ON PRIME: ‘COST PER FIRST STREAM’

COST Production + Marketing cost PER FIRST = STREAM n. of new members

Source: Amazon documents, 2017 Who streamed it after signingWPP up PRIME DAY - A KEY EVENT BOLSTERING Units THE ECOSYSTEM: 175M • Fueling Prime membership • Pushing own devices and brands • Sales volume (+ scale) Traffic • Media revenues (CPG, electronics) 48%

Conversion 43%

Source: SimilarWeb, amazon.com WPP AMAZON OWN BRANDS DOMINATE BESTSELLERS ON PRIME DAY

14 of top 20 products were Amazon devices with jump of 25 to 550 times • Echo dot products - more than 50% off • Fire TV stick - 40% off • Alexa voice remote

Source: Jumpshot Presentation info in footer 13/02/2020 WPP 99 RETAILERS COMPETE HEAD-ON, ENJOYING OVER 22% TRAFFIC AND CONVERSION LIFT

Source: Jumpshot WPP OUTLOOK FOR NETHERLANDS

WPP ONLINE MARKET

MATURITY 25 20% ECOM GROWTH IN NL

18%

20 16%

• 90% online penetration, higher than 14% average EU 82.5% 15 12%

10% • Marginal growth in digital shoppers

10 8% Growth % Growth

over the next 5 years (~400k) € Revenue 6% • Positive outlook for growth with online 5 4% retailing sector projected to grow to 2% 22bn in 2022, mostly driven by 0 0% growing spent per shopper. 2018 2019 2020 2021 2022

Revenue Growth

Online Retailing in The Netherlands (EU Millions)

Source:Presentation Statista 2018, info Euromonitor in footer 2019 13/02/2020 WPP Market Share

RETAIL LANDSCAPE 10. Nextail (Blokker Holding) 4% 9. Media Markt 5% 8. Van Dijk Educatie 1. Bol.com 5% 24% • Little fragmentation: the top three 7. H&M retailers generate +50% of market 5%

share. 6. Amazon 6% • This strong players are responding to 5. Albert Heijn Online changing consumer preferences with 10% 2. Coolblue 15% innovations, free and next-day delivery.

• Experience is an area for improvement. 4. Zalando 13% 3. Wehkamp 13% • Benefited in part by the Geographical scope of the market. 1. Bol.com 2. Coolblue 3. Wehkamp 4. Zalando 5. Albert Heijn Online 6. Amazon 7. H&M 8. Van Dijk Educatie 9. Media Markt 10. Nextail (Blokker Holding)

Source:Presentation Euromonitor info 2018 in footer 13/02/2020 WPP AMAZON AWARENESS USA 160BN $

TURKEY NETHERLANDS POLAND SWITZERLAND GERMANY PORTUGAL AUSTRIA 20BN $ HUNGARY BELGIUM

UK 14.5BN $

Source: Statista 2020 WPP HAVING AN AMAZON STRATEGY IS ESSENTIAL FOR BRANDS AND RETAILERS

Deciding what not to do is as important as deciding what to do

WPP QUESTIONS THE BRANDS MUST ASK BEFORE ONBOARDING AMAZON:

• What is your distribution set-up in this market? Will Amazon sales deliver incremental sales for your brand?

• How strong is your brand awareness in this market?

• Is your product priced competitively and is it profitable enough?

• Are you products already sold on Amazon by 3P sellers and what is the quality of brand experience?

• How good are your logistics and customer service in this market? BEWARE INCOMING TIDES • Other concerns: local stock availability, IP, fakes.

Source: eMarketer 2018 WPP INSPIRATIONAL BRANDS MUST CHOOSE THE PARTNER MOST ALIGNED WITH THEIR VISION

Nike + Zalando

WPP INSPIRATIONAL BRANDS MUST CHOOSE THE PARTNER MOST ALIGNED WITH THEIR VISION

Adidas + Amazon

WPP INSPIRATIONAL BRANDS MUST CHOOSE THE PARTNER MOST ALIGNED WITH THEIR VISION

Apple + Amazon

WPP RETAILERS & BRANDS:

• Cover fundamentals to ensure seamless experience.

• Create opportunities to keep customers locked into your brand ecosystem, e.g. loyalty programs, trading value for future benefits.

• Ensure enough breadth, help your brands to scale.

• Utilize your 1st party data for deeper insights, fast adapting to changing expectations and preferences and fuelling innovation.

• Utilize local knowledge to gain competitive advantage. BEWARE INCOMING TIDES • Don’t get ambushed by trends- lead them!

WPP INNOVATION UTILIZING LOCAL KNOWLEDGE ADVANTAGE:

Sustainable product range by Bol

Bol.com WPP THANK YOU!

WPP