Augustine Fou- 1 -
Future of Advertising
2014 - $117B
2017E - $136B
branding performance
“Soup and Soda” “Cars and Compute...
Augustine Fou- 2 -
Key Points
• Overall advertising industry “pie” will still grow -- $108B
(2013) to $131B (2017E); digit...
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...
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 displa...
Augustine Fou- 7 -
Combined Projections Aug 2013
Source: eMarketer, August 2013
eMarketer shows
TV still growing
strongly
...
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....
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-
augustin...
Augustine Fou- 14 -
Dr. Augustine Fou – Chief Digital Strategist
“Facebook is for branding and has the
reach to cannibaliz...
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%
$4...
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 Comput...
Augustine Fou- 20 -
22%
46%
32%
57%
43%
Future of Advertising
42%
49%
9%
51%
49%
Facebook (display)
Google (search)
Other
...
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 Opti...
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
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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.

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Future of Advertising Facebook is For Branding by Augustine Fou

  1. 1. 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%
  2. 2. 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 -
  3. 3. Augustine Fou- 3 - Digital is a Performance Channel Source: IAB 2013 1H Report
  4. 4. 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
  5. 5. Augustine Fou- 5 - Digital Ad Spending Spectrum 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Direct Response Branding
  6. 6. Augustine Fou- 6 - UPDATE: January 2014 Source: Nielsen via Marketing Charts, January 23, 2014 This includes mobile display and social display
  7. 7. 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
  8. 8. Augustine Fou- 8 - UPDATE: July 2013 Source: The Creative Group via MarketingCharts July 2013
  9. 9. Augustine Fou- 9 - UPDATE: April 18, 2013 Source: PwC/IAB via Marketing Charts April 18, 2013
  10. 10. 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%
  11. 11. Augustine Fou- 11 - Facebook is for Awareness Augustine Fou- 11 - Source: AdAge RBC Capital Survey September 2013
  12. 12. Augustine Fou- 12 - ZenithOptimedia Projections Source: Zenith Optimedia via Marketing Charts April 29, 2013
  13. 13. 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 -
  14. 14. 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
  15. 15. Augustine Fou- 15 - APPENDIX Augustine Fou- 15 -
  16. 16. 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
  17. 17. Augustine Fou- 17 - Source Data eMarketer Aug 2013
  18. 18. Augustine Fou- 18 - Source Data IAB October 2013
  19. 19. 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)
  20. 20. 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
  21. 21. Augustine Fou- 21 - Online Ad Revenue Growth UK numbers
  22. 22. 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
  23. 23. Augustine Fou- 23 - Even Mix of Brand and DR Source: Vizu/CMO Council 2013
  24. 24. Augustine Fou- 24 - Internet Revenues Catching TV Source: IAB/PwC FY 2011 Report, April 2012
  25. 25. Augustine Fou- 25 - From CPM to Performance Source: IAB 2012 Annual Report

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