4. From Traditional to Digital
Television is 42%
Online is 38%
Source: IAB and Business
Insider Oct 2012
November 15, 2012. 4
5. From CPM to Performance
Source: IAB, PwC April 2011
November 15, 2012 5
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 Shows
November 15, 2012 6
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 magazines
November 15, 2012 7
8. Future of Advertising
“Soup and Soda” “Cars and Computers”
branding performance
2012 - $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. 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. 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 Fou
November 15, 2012 10
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/augustinefou
November 15, 2012 11
acfou@mktsci.com
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. Global Ad Spend Growth by
Sector
Source: Marketing Charts, Nov 2012
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