Trends inAdvertising      Dr. Augustine Fou      http://www.linkedin.com/in/augustinefou      November 15, 2012.
UPDATE: April 16, 2013                     Source: IAB 2012 Advertising ReportNovember 15, 2012.                          ...
Time Spent with Media
From Traditional to Digital                                 Television is 42%                                 Online is 38...
From CPM to Performance                    Source: IAB, PwC April 2011November 15, 2012                                 5
Facebook reach already larger          Burberry                            12.6M    8.4M                    Once Upon A Ti...
Facebook reach already larger            Burberry                           12.6M   1.0M                      Marie Claire...
Future of Advertising “Soup and Soda”                         “Cars and Computers”       branding                         ...
Trend Commentary   • Overall ad market will shrink because digital introduces     new efficiencies into the system, so few...
So What?     “Even awareness ad dollars will shift     online to places like Facebook where     performance can be better ...
Dr. Augustine Fou – Chief Digital Strategist  “I show clients how they need to  evolve their advertising and  marketing in...
APPENDIXNovember 15, 2012.   12
Percent of Budgets in Digital                     Source: eMarketer Feb 2012November 15, 2012.                            ...
Total Ad Spending by Share         Source: eMarketer, Dec 2012
Top Spending by Industry        Top U.S. Advertising Verticals        Automotive        Fast Food / QSR Restaurants       ...
Global Ad Spend Growth bySector          Source: Marketing Charts, Nov 2012
Marketers to DECREASE                    Source:                    http://www.marketingcharts.com/wp/television/marketer ...
U.S. Online Exceeds PrintNovember 15, 2012           18
Omnicom (NYSE:OMC)November 15, 2012    19
MDC Partners (NASD:MDCA)November 15, 2012          20
WPP (NASD:WPPGY)November 15, 2012   21
Publicis (PINK:PUBGY)November 15, 2012       22
Interpublic (NYSE:IPG)November 15, 2012        23
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Trends in Advertising by Augustine Fou Chief Digital Strategist

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Even awareness ad dollars will shift online to places like Facebook (which has massive reach).

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Trends in Advertising by Augustine Fou Chief Digital Strategist

  1. 1. Trends inAdvertising Dr. Augustine Fou http://www.linkedin.com/in/augustinefou November 15, 2012.
  2. 2. UPDATE: April 16, 2013 Source: IAB 2012 Advertising ReportNovember 15, 2012. 2
  3. 3. Time Spent with Media
  4. 4. From Traditional to Digital Television is 42% Online is 38% Source: IAB and Business Insider Oct 2012November 15, 2012. 4
  5. 5. From CPM to Performance Source: IAB, PwC April 2011November 15, 2012 5
  6. 6. Facebook reach already larger Burberry 12.6M 8.4M Once Upon A Time Dior 7.8M 8.5M Desperate Housewives Gucci 7.6M 8.6M Rules of Engagement Louis Vuitton 7.3M 8.9M Touch Chanel 6.5M 9.5M CSI: NY Dolce & Gabbana 5.3M 9.7M Body Of Proof Ralph Lauren 4.9M 10.0M SURVIVOR: ONE WORLD Calvin Klein 4.0M 10.1M 60 Minutes Coach 3.3M 10.5M Unforgettable Armani 3.1M 10.7M Blue Bloods Prada 1.7M 12.0M The Voice Fendi 1.6M 14.0M Big Bang Theory Versace 0.8M 14.6M Person Of Interest Cartier 0.7M 18.0M Dancing with the Stars Hermes 0.6M 18.6M NCIS Source: Facebook, April 2012 Source: TVByTheNumbers, April 2012… than many top TV ShowsNovember 15, 2012 6
  7. 7. Facebook reach already larger Burberry 12.6M 1.0M Marie Claire Dior 7.8M 1.0M GQ Gucci 7.6M 1.1M Lucky Louis Vuitton 7.3M 1.1M Elle Chanel 6.5M 1.2M Vanity Fair Dolce & Gabbana 5.3M 1.3M Vogue Ralph Lauren 4.9M 1.5M Self Calvin Klein 4.0M 1.5M Fitness Coach 3.3M 1.6M Shape Armani 3.1M 1.7M InStyle Prada 1.7M 2.0M Real Simple Fendi 1.6M 2.0M Seventeen Versace 0.8M 2.4M Glamour Cartier 0.7M 3.0M Cosmopolitan Hermes 0.6M 3.6M People Source: Facebook, April 2012 Source: Wikipedia, 2H 2011 … than all top magazinesNovember 15, 2012 7
  8. 8. Future of Advertising “Soup and Soda” “Cars and Computers” branding performance2012 - $107B Television ($70B, 2012) Digital ($37B, 2012) 55% 45% 22% 46% 32% Broadcast Cable Display Search Other (Facebook) (Google) 2016E - $104B Television ($61B, 2016E) Digital ($43B, 2016E) 51% 49% 42% 49% 9% Broadcast Cable Branding Performance Other (Facebook) (Google)
  9. 9. Trend Commentary • Overall ad market will shrink because digital introduces new efficiencies into the system, so fewer dollars are need to achieve the same effect • Awareness ad dollars will always exist, but awareness spending will shift to digital channels – e.g. Facebook, because of its massive reach and better targeting (than TV, print, etc.) • The general trend is from impression based advertising towards performance; small-ticket, low consideration products (e.g. soda, cpg) will remain on the left side (awareness) while big-ticket, high consideration products will tend towards the right (performance)November 15, 2012. 9
  10. 10. So What? “Even awareness ad dollars will shift online to places like Facebook where performance can be better measured; the rest of digital will continue trend towards performance and pay per action – e.g. search.” - Dr. Augustine FouNovember 15, 2012 10
  11. 11. Dr. Augustine Fou – Chief Digital Strategist “I show clients how they need to evolve their advertising and marketing in the new digital world.” 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/augustinefouNovember 15, 2012 11 acfou@mktsci.com
  12. 12. APPENDIXNovember 15, 2012. 12
  13. 13. Percent of Budgets in Digital Source: eMarketer Feb 2012November 15, 2012. 13
  14. 14. Total Ad Spending by Share Source: eMarketer, Dec 2012
  15. 15. Top Spending by Industry Top U.S. Advertising Verticals Automotive Fast Food / QSR Restaurants Automotive Dealership Wireless / Telecommunications Retail Motion Picture / Movies Pharmaceuticals Source: Marketing Charts, Dec 2012
  16. 16. Global Ad Spend Growth bySector Source: Marketing Charts, Nov 2012
  17. 17. Marketers to DECREASE Source: http://www.marketingcharts.com/wp/television/marketer s-say-theyre-shifting-focus-away-from-traditional- media-26578/November 15, 2012 17
  18. 18. U.S. Online Exceeds PrintNovember 15, 2012 18
  19. 19. Omnicom (NYSE:OMC)November 15, 2012 19
  20. 20. MDC Partners (NASD:MDCA)November 15, 2012 20
  21. 21. WPP (NASD:WPPGY)November 15, 2012 21
  22. 22. Publicis (PINK:PUBGY)November 15, 2012 22
  23. 23. Interpublic (NYSE:IPG)November 15, 2012 23

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