Shift of Power to Consumers by Augustine Fou Chief Digital Strategist

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Consumers are empowered with information.

Consumers are empowered with information.

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  • 1. Shift of Powerto Consumers Dr. Augustine Fou March 11, 2013-1- Augustine Fou
  • 2. Users Avoid Display Ads Source: Banner Blindness “The ads to the right are only noticed by 23% of the respondents, and they spend only half a second on the ads.” Source: Mashable 12/29/2011-2- Augustine Fou
  • 3. 30-72% Skip Ads by DVR Tivo Research (Sep 2012) Finds up to 72% ads skipped IPG/YuMe (May 2011) study found 63% of TV ads are avoided or simply ignored. Nielsen (Dec 2010) estimates 44% of ads are not skipped – i.e. 56% of ads ARE SKIPPED-3- Augustine Fou
  • 4. Users Ignore/Delete Email “this is what gmail filters are made for!” Source: Feb 24, 2012 “2012 Digital Advertising Attitudes Report” via @eMarketer-4- Augustine Fou
  • 5. Users have instant and … “no, that isn‟t the „best price‟ for this HDTV and the reviews aren‟t even that good… ” • 43% smartphone owners used device in-store • 15% checked prices in-store and then bought from competitor Source: comScore 2012 …constant access to info-5- Augustine Fou
  • 6. Users trust peers most … 92% trust “recommendations from people I know” 47% trust “ads on TV” Source: Nielsen, April 2012 33% trust “online banner ads” 29% trust “text ads on mobile phones” November 26, 2012 … and ads the least. 6-6- Augustine Fou
  • 7. Users Revolt in SocialForces BofA to rescind $5 monthly debit card fee-7- Augustine Fou
  • 8. More User Power • 200 million phone numbers in the National Do Not Call Registry • 1 in 1000 direct mail pieces opened (estimated, ever wonder why they never publish actual results?) • FSIs (free standing inserts) – performance unknown or estimated-8- Augustine Fou
  • 9. Users search more savvy Long tail terms imply users • Users are searching longer terms type longer phrases to get • Average query word count is more accurate search results. greater than 4 words, in 2012 Source: Optify 2012 Source: Chitika, Jan 2012-9- Augustine Fou
  • 10. People search for productsPeople search for the products they want, not the brand in most cases- 10 - Augustine Fou
  • 11. Users look for context … 378 reviews # of shares November 26, 2012- 11 - 11 Augustine Fou
  • 12. Dr. Augustine Fou – Agency Czar “If the power has already shifted to users, what do advertisers need to do differently? Certainly shouting louder and more often through one- way push ads is not an answer.” 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: Slideshares: LinkedIn: 12 - Augustine Fou