Percent of Budget to Digital by Augustine Fou 2014

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The percent of all ad budgets allocated to digital has risen to 25% and is expected to reach a third of all budgets by 2017.

The percent of all ad budgets allocated to digital has risen to 25% and is expected to reach a third of all budgets by 2017.

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  • 1. Percent of Budget to Digital Dr. Augustine Fou http://linkd.in/augustinefou acfou @mktsci .com May 2014 24%
  • 2. 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
  • 3. In 2013 Digital marketing was $42B Broadcast TV was $40B Cable TV was $34B Network TV vs Cable TV Augustine Fou- 3 - Source: IAB Full Year 2013 report $175B total ad spending
  • 4. Digital is 25% of Ad Spend Augustine Fou- 4 -
  • 5. Digital is 25% of Ad Budgets Worldwide Source: Emarketer April 3, 2014 Worldwide digital is 25% of total ad spending Augustine Fou- 5 -
  • 6. 10% of revenues is allocated to marketing % of Revenues to Marketing Source: Gartner U.S. Digital Marketing Spending Survey, 2013 Augustine Fou- 6 -
  • 7. 2.5% of revenues is allocated to digital 10% of revenues is allocated to marketing % of Revenues to Digital Source: Gartner U.S. Digital Marketing Spending Survey, 2013 Augustine Fou- 7 -
  • 8. % of Marketing to Digital 31% 26% 25% 24% 24% 24% 23% 0% 5% 10% 15% 20% 25% 30% 35% Media/Entertainment Manufacturing High-Tech Total Healthcare Retail Financial/Insurance Augustine Fou- 8 -
  • 9. Digital Ad Spending by industry Source: eMarketer March 2014
  • 10. U.S. Ad Spend by Industry 2013 Augustine Fou- 10 -
  • 11. Dr. Augustine Fou – Digital Consigliere “I help clients evolve and innovate both their marketing and business processes to create sustainable 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- 11 -
  • 12. APPENDIX
  • 13. Digital vs Traditional Budget Allocation Augustine Fou- 13 -
  • 14. Marketing Budget / Digital Allocation Media – marketing budgets are 12.7% of revenues; digital is 3.9% Financial services – 10.6% marketing; 2.4% digital Manufacturing – 10.6% marketing; 2.8% digital Retail – 10.6% marketing; 2.5% digital Healthcare – 9.2% marketing; 2.2% digital High-Tech – 9.1% marketing; 2.3% digital Overall – 10.4% of revenues is used for marketing; 2.5% for digital (digital is 22.5% of total marketing spend on average across industries) Source: eMarketer March, 2013 Augustine Fou- 14 -