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Branding vs Direct Response Budgets in Digital Augustine Fou 2014
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Branding vs Direct Response Budgets in Digital Augustine Fou 2014

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Some industries are more heavily weighted in the branding forms of digital marketing (e.g. display ads and video ads) while other industries spend more on the direct response forms of digital ...

Some industries are more heavily weighted in the branding forms of digital marketing (e.g. display ads and video ads) while other industries spend more on the direct response forms of digital marketing (e.g. search).

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Branding vs Direct Response Budgets in Digital Augustine Fou 2014 Branding vs Direct Response Budgets in Digital Augustine Fou 2014 Presentation Transcript

  • Branding vs Direct Response Budgets in Digital Dr. Augustine Fou http://linkd.in/augustinefou acfou @mktsci .com May 2014
  • TV is $69B Digital is $48B Digital is 24% of Total TV DigitalPrint Radio Out-of-Home $8 (5%) Other $2 (1%) $75 billion 42% $43 billion 24% $32 18% $17 10% Display $8 billion 19% Search $18 billion 43% Video $3 (7%) Mobile $4B$3B display search 17% Other $5 11% Lead Gen $2 (4%) • classifieds • sponsorship • rich media Source: IAB Full Year 2013 report Augustine Fou- 2 - branding performance $34B$40B broadcast cable $175B total ad spending
  • 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 65 51 46 44 44 40 38 30 26 41 Direct Response Branding Branding vs DR in Digital 2014 Direct response vs branding by industry Travel is heavily DR while entertainment is mainly branding branding direct response Augustine Fou- 3 -
  • Branding vs Direct Response Augustine Fou- 4 - Source: eMarketer via Marketing Charts 2014
  • How They Spend Within Digital 63.5 63.0 46.0 45.0 43.0 41.6 40.0 40.0 39.5 38.0 35.4 27.0 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 brandingbranding direct response Direct response (performance) vs Branding by Industry 2013
  • Branding vs Direct Response CPG and entertainment focused their digital ad spend on branding like tactics (display ads, video ads) while travel and retail focused their digital ad spend on direct response tactics like search and content.
  • Ad spending in the U.S. Source: IAB Full Year 2013 reportIn 2013 Performance 65% CPM/Impressions 33% Hybrid/Other 2% Digital is Performance Augustine Fou- 7 -
  • Dr. Augustine Fou – Digital Consigliere “I study trends and advise clients on staying on-trend or getting ahead of them to create competitive advantage.” 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 ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou Slideshares: http://www.slideshare.net/augustinefou LinkedIn: http://www.linkedin.com/in/augustinefou Augustine Fou- 8 -
  • APPENDIX
  • In 2013 Digital marketing was $42B Broadcast TV was $40B Cable TV was $34B Network TV vs Cable TV Augustine Fou- 10 - Source: IAB Full Year 2013 report $175B total ad spending
  • Digital is 25% of Ad Spend Augustine Fou- 11 -
  • Digital Ad Spending by industry Source: eMarketer March 2014