Published on March 11, 2014
Augustine Fou- 1 - Left-side Right-side branding performance “Soup and Soda” “Cars and Computers” • Low cost • Low complexity • Low consideration • High cost • High complexity • High consideration
Augustine Fou- 2 - TVvs Digital Ad Spend 2013 - $108B (U.S. Only) 2017E - $131B branding performance “Soup and Soda” “Cars and Computers” Television 61% ($66B, 2013) Digital 39% ($42B, 2013) Display (Facebook) 22% Search (Google) 46% Other 32%55% 45% Broadcast Cable Television 53% ($70B, 2017E) Digital 47% ($61B, 2017E) 49% Other 9%49% 51% Broadcast Cable Branding (Facebook) Performance (Google) 42%
Augustine Fou- 3 - The Grand Digital Canyon Traditional • TV • Magazines • Newspapers • Radio Digital • Search • Social • Mobile • Video Metric: Size of Audience Metric: Actions of Users
Augustine Fou- 4 - The Evolution of Media One-way Media Two-way Media banner ads search ads Always on Always informed Always connected Many-Way Media branding performance
Augustine Fou- 5 - 1st screen 2nd screen 3rd screen • Television • Magazines • Newspaper • Radio • Display Ads • Search Ads • Search Optimization • Email • Social Media Marketing • Mobile Marketing awareness consideration choice purchase advocacy • In-store The Marketing Continuum branding performance
Augustine Fou- 6 - Role of the Channel 0% 20% 40% 60% 80% 100% Email Mobile App Direct Mail SMS Text Message Website Social Media (not paid) Search Radio Print Ads Online Display Ads Social Display Ads TV Greeter (Awareness) Influencer (Consideration) Closer (Decision) Source: Experian Marketing Services March 2014 Sorted by Awareness
Augustine Fou- 7 - Traditional Digital Metric: Size of Audience Metric: Actions of Users Pitching Catching+ Should be ... + Pitching AND Catching “Advertisers can do their “pitching” with offline, one-way channels like TV, print, and radio; but they should make sure they are doing enough “catching” in digital channels when users come online to research their purchases.”
Augustine Fou- 8 - Digital is Mainly a Performance Channel
Augustine Fou- 9 - “When users come online to research their purchases, advertisers should make sure they can find the info they need to move expeditiously down the purchase funnel to the purchase – and therefore do the „catching‟ and harvesting of ROI.” -- Dr. Augustine Fou
Augustine Fou- 10 - Digital is a Performance Channel Source: IAB 2012 Annual Report Retail is mostly direct reponse.
Augustine Fou- 11 - Within The Digital Channel Display and social (display) are for awareness Search (organic and paid) are most useful just before the decision to purchase. Source: Google Think Insights branding performance
Augustine Fou- 12 - Main Types of Digital Ads Impressions (CPM/CPV) Clicks (CPC) Leads (CPL) Sales (CPA) • Display ads • Video ads • Social display • Mobile display • Search ads • Mobile search • Affiliate revenue share • Completed lead forms sold on cost- per-lead basis Awareness Performance
Augustine Fou- 13 - Digital Ad Spend (IAB H1 2013) Impressions (CPM/CPV) Clicks (CPC) Leads (CPL) Sales (CPA) Search 43% $18.1B Video 7% $2.9B Lead Gen 4% $1.7B 11% Other $4.8B Source: IAB, 1H 2013 Digital Advertising Report, Oct 2013 $35.5B Display 19% $8.0B Mobile 15% $3.7B$2.8B NOTE: revenues annualized from actual 1H 2013 figures from IAB (assumes $42B annual ad spend) • classifieds • sponsorship • rich media • email $6.5B branding performance
Augustine Fou- 14 - Digital Ad Spend by Industry 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Direct Response Branding Direct response vs branding by industry Travel is heavily DR while entertainment is mainly branding branding performance
Augustine Fou- 15 - Context of my thinking ... Marketing and Advertising Chief Digital Officer, HCG (Omnicom) Business Strategy McKinsey Consultant Technology / Innovation PhD, MIT Mat’l Science Digital Augustine Fou- 15 -
Augustine Fou- 16 - Dr. Augustine Fou – Chief Digital Strategist “Facebook is for branding and has the reach to cannibalize revenues from TV; Google will remain performance oriented and better serve specific industries and sectors – like cars and computers.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT '95) AT AGE 23 Augustine Fou@acfou ClickZ Articles: http://bit.ly/augustine-fou-clickz Slideshares: http://bit.ly/augustine-fou-slideshares LinkedIn: http://linkd.in/augustinefou
Augustine Fou- 17 - Related Articles Trends in Advertising By: Augustine Fou, Nov 15, 2012 Branding Today: Why It’s Ineffective, Irrelevamt, Irritating, and Impotent By: Augustine Fou, June 21, 2012 Search Kicks Display in Effectiveness By Augustine Fou, April 2012 Display Ad Benchmarks By Augustine Fou, August 2013 Augustine Fou- 17 -
Augustine Fou- 18 - APPENDIX Data Pack
Augustine Fou- 19 - Combined Projections Mar 2014 eMarketer shows TV decreasing slightly as percentage of total ad spend Digital will continue to grow at the expense of print and other offline forms
Augustine Fou- 20 - U.S. Digital Ad Spend, by Format Data derived from IAB/PwC data
Augustine Fou- 21 - U.S. Digital Ad Spend, by Industry Data derived from IAB/PwC data
Augustine Fou- 22 - Combined Projections Aug 2013 Source: eMarketer, August 2013 eMarketer shows TV still growing strongly Digital will continue to grow at the expense of print and other offline forms
Augustine Fou- 23 - Global Ad Spend - ZenithOptimedia
Augustine Fou- 24 - ZenithOptimedia
Augustine Fou- 25 - ZenithOptimedia (2011)
Augustine Fou- 26 - eMarketer Aggregated Data
Augustine Fou- 27 - Change in Ad Spend Source: Kantar Media, December 2013
Augustine Fou- 28 - Change in Ad Spend Source: Kantar Media, December 2013
Augustine Fou- 29 - Power Shift to Consumers Augustine Fou- 29 - 92% trust “recommendations from people I know” 47% trust “ads on TV” 29% trust “text ads on mobile phones” 33% trust “online banner ads” Source: Nielsen, April 2012 Users trust peers the most, ads the least.
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