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Future of Advertising Facebook is For Branding by Augustine Fou
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Future of Advertising Facebook is For Branding by Augustine Fou

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Facebook is for branding and has the enormous reach that brand advertisers are looking for. So it will start to erode branding dollars that used to go towards TV.

Facebook is for branding and has the enormous reach that brand advertisers are looking for. So it will start to erode branding dollars that used to go towards TV.

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Future of Advertising Facebook is For Branding by Augustine Fou Future of Advertising Facebook is For Branding by Augustine Fou Presentation Transcript

  • Augustine Fou- 1 - Future of Advertising 2014 - $117B 2017E - $136B branding performance “Soup and Soda” “Cars and Computers” Television ($69B, 2014) Digital ($48B, 2014) Display (Facebook) 22% Search (Google) 46% Other 32%55% 45% Broadcast Cable Television ($75B, 2017E) Digital ($61B, 2017E) 49% Other 9%49% 51% Broadcast Cable Branding (Facebook) Performance (Google) 42%
  • Augustine Fou- 2 - Key Points • Overall advertising industry “pie” will still grow -- $108B (2013) to $131B (2017E); digital grows fastest • Traditional dollars will continue to flow to digital, primarily from print and radio channels • Within “traditional” ad spend will continue to flow from broadcast TV to cable TV for more targeted audiences. • Digital branding (e.g. Facebook) will absorb most of this new flow, rather than “performance” (e.g. search) • Other tactics that are neither “performance” (e.g. digital video) nor has the reach of Facebook will “shake out” Augustine Fou- 2 -
  • Augustine Fou- 3 - Digital is a Performance Channel Source: IAB 2013 1H Report
  • Augustine Fou- 4 - 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
  • Augustine Fou- 5 - Digital Ad Spending Spectrum 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Direct Response Branding
  • Augustine Fou- 6 - UPDATE: January 2014 Source: Nielsen via Marketing Charts, January 23, 2014 This includes mobile display and social display
  • Augustine Fou- 7 - 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- 8 - UPDATE: July 2013 Source: The Creative Group via MarketingCharts July 2013
  • Augustine Fou- 9 - UPDATE: April 18, 2013 Source: PwC/IAB via Marketing Charts April 18, 2013
  • Augustine Fou- 10 - Cable TV vs Broadcast TV Augustine Fou- 10 - Source: Kantar Media September 2013 H1 2013 Cable TV +10.1% Spanish TV +9.4% Network TV -0.6% Digital Display +5.3%
  • Augustine Fou- 11 - Facebook is for Awareness Augustine Fou- 11 - Source: AdAge RBC Capital Survey September 2013
  • Augustine Fou- 12 - ZenithOptimedia Projections Source: Zenith Optimedia via Marketing Charts April 29, 2013
  • Augustine Fou- 13 - Related Articles http://www.slideshare.net/augustinefou/grand-unified-theory-of-marketing-by- augustine-fou-2014-update http://www.slideshare.net/augustinefou/what-influences-consumers-purchase-decisions- most-corroborated-by-augustine-fou 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- 13 -
  • Augustine Fou- 14 - 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- 15 - APPENDIX Augustine Fou- 15 -
  • Augustine Fou- 16 - U.S. Media Spending 2014 TV Digital Print Radio Outdoor $7 (4%) Directories $6 (3%) $69 billion 39% $48 billion 27% $32 18% $16 9% Display $8 billion 19% Search $18 billion 43% Video $3 (7%) Mobile $4B$3B display search 16% Other $5 11% Lead Gen $2 (4%) • classifieds • sponsorship • rich media • email Source: Emarketer Aug 2013 Source: IAB October 2013
  • Augustine Fou- 17 - Source Data eMarketer Aug 2013
  • Augustine Fou- 18 - Source Data IAB October 2013
  • Augustine Fou- 19 - Future of Advertising 2012 - $107B 2016E - $104B branding performance “Soup and Soda” “Cars and Computers” Television 65% ($70B, 2012) Digital 35% ($37B, 2012) Display (Facebook) 22% Search (Google) 46% Other 32%55% 45% Broadcast Cable Television 58% ($61B, 2016E) Digital 42% ($43B, 2016E) 42% 49% Other 9%51% 49% Broadcast Cable Branding (Facebook) Performance (Google)
  • Augustine Fou- 20 - 22% 46% 32% 57% 43% Future of Advertising 42% 49% 9% 51% 49% Facebook (display) Google (search) Other Broadcast TV Cable TV 2012 (outer ring) 2016 (inner ring) • Overall advertising pie will shrink as greater efficiencies are realized via digital • Digital will grow at the expense of traditional • Facebook (display) will cannibalize branding dollars from traditional and from other smaller- reach types of digital
  • Augustine Fou- 21 - Online Ad Revenue Growth UK numbers
  • Augustine Fou- 22 - 1st screen 2nd screen 3rd screen • Television • Print • Radio • Display Ads • Search Ads • Search Optimization • Email • Social Media Marketing • Mobile Marketing awareness consideration choice purchase advocacy • In-store … all tactics have their place The Marketing Continuum
  • Augustine Fou- 23 - Even Mix of Brand and DR Source: Vizu/CMO Council 2013
  • Augustine Fou- 24 - Internet Revenues Catching TV Source: IAB/PwC FY 2011 Report, April 2012
  • Augustine Fou- 25 - From CPM to Performance Source: IAB 2012 Annual Report