Your SlideShare is downloading. ×
0
From Traditional toDigital to Performance              Dr. Augustine Fou              http://linkd.in/augustinefou        ...
-2-   Augustine Fou
Context of my thinking ...               Marketing and Advertising              Chief Digital Officer, HCG (Omnicom)      ...
Background Stats-4-                Augustine Fou
Internet Adoption                On Average 78%                use internet                Source: Pew Internet, April 201...
Smartphone Ownership      34-66% use      smartphones      Source: Pew Internet, Jan 2012                                 ...
Use of Social Networks                  Source: Pew                  February 2012-7-                      Augustine Fou
Top Online Activities       Source: Pew Internet, April 2012-8-                                       Augustine Fou
-9-   Augustine Fou
Time Spent with Media- 10 -                  Augustine Fou
Newspaper Ads Declining     Classified ad revenue   Overall ad revenues fell     declining since 2000    off cliff (back t...
Newspaper Companies  Gannett Co., Inc. (GCI) - $3.4B market cap July 2012  New York Times (NYT) - $1.1B market cap July 20...
Magazine Ads Declining                  Circulation                  declining                  Ad prices                 ...
Magazine Companies  Meredith Corp (MDP) - $1.4B market cap July 2012  Martha Stewart (MSO) - $235M market cap July 2012   ...
Comparing Costs of MediaNormalizing (CPM) cost to reach 1,000 users or impressions     Elle Magazine      Superbowl 2013  ...
From Traditional to Digital                                Television is 42%                                Online is 38% ...
Audience CharacteristicsAre Also Changing- 17 -                Augustine Fou
Users watch what they want         Broadcast          Cable         Online Video         mass audience   niche audience   ...
When they want … Tivo Research (Sep 2012) Finds up to 72% ads skipped IPG/YuMe (May 2011) study found 63% of TV ads are av...
On whatever device …         Source: Google, August 2012 Multi-screen World- 20 -                                         ...
Users go where they want …     Content Portals     Major Blogs   Facebook                                        Twitter  ...
Users share more online …   HTML Coding                         Blogs            Social Networks     <!DOCTYPE html>     <...
Users search more often    Users rely on search even              Google reports more than 3    more frequently.          ...
Users search more savvy  Long tail terms imply users     • Users are searching longer terms  type longer phrases to get   ...
Search is more efficient...  Pay for impressions  CPM                                  CPC                           Pay f...
From CPM to Performance            Source: IAB, PwC April 2012- 26 -                            Augustine Fou
Consumers AreEmpowered and Savvy- 27 -           Augustine Fou
Users have instant and …                  “no, that isn‟t the „best                  price‟ for this HDTV                 ...
Users Avoid Display Ads                                                   Source: Banner                                  ...
Users Ignore/Delete Email                                                                                           “this ...
Users Revolt in SocialForces BofA to rescind $5 monthly debit card fee- 31 -                                      Augustin...
Feb 2013 – Tesla Owners RefuteFalsified NYTimes Report                     NYTimes reporter                     seemingly ...
Feb 2013 – Maker‟s Mark ReversesDecision to Water Down                      Whiskey drinkers didn‟t                      l...
Users Exert Their Power   • 200 million phone numbers in the     National Do Not Call Registry   • 1 in 1000 direct mail p...
People search for productsPeople search for the products they want, not the brand in most cases- 35 -                     ...
David Beckham vs H&M- 36 -              Augustine Fou
Adriana vs Teleflora- 37 -                  Augustine Fou
Users look for context …         378 reviews                       # of shares- 38 -                  Augustine Fou
Users trust peers most …                            92% trust                            “recommendations from            ...
From CPM to CPC to CPA                       $7 CPM means $70 ad spend on CPM basis                       $1 CPC means $10...
Beyond PerformanceAs “Affiliate”- 41 -          Augustine Fou
ConversationsOffline conversations now online- 42 -                             Augustine Fou
Likes / FansBrands now have direct access to users                                    14 million fans                     ...
User ReviewsReviews from others who bought and used- 44 -                                Augustine Fou
Selecting Optimal WordsHow do we ensure our content is findable          “baby bedding” is the way more users         sear...
Some visitors are more valuable Visitors from display ads Visitors from search          Source: Google Analytics Sample CP...
What words to use?How do we describe LinkedIn to small biz cardholders                         “Business Networking?” “Com...
Godaddy – Superbowl AdsSearch volume rises with Superbowl ads and NASCAR sponsorship         SuperBowl Ads                ...
Subway FootlongsLaunched in early 2008, but waning interest         TV Ads started- 49 -                                  ...
Study Cause and Effect                     Purell demand and                     search volume lifted         swine flu   ...
Demand PlanningSee when users search for which products   chocolate covered strawberries (Valentine‟s)              chocol...
Grandma with Harley    Harley would usually not advertise to her because     she is not in their typical demographic, but ...
Grandma with Harley   But .. when she comes online to search, our job as   marketers is to make sure she can find the info...
Marketing in a Digital World  Traditional Advertising    Marketing in Digital World  1. Who is our target       1. What in...
Traditional         Digital            Performance- 55 -              Augustine Fou
Performance is …- 56 -         Augustine Fou
Burberry – direct interactions                        14 million fans                       historic images               ...
A Direct Way to InteractBrands have more fans than top TV shows in viewership              Brands’ Facebook               ...
A Direct Way to InteractBrands have more fans than top magazines have circulation                 Brands’ Facebook        ...
Social Actions Are Free    Paid Advertising                     Social Actions         10k Impressions                  Pe...
Timex – real-time insights                    Which styles are being                    searched for                    Wh...
Starbucks – ideation/innovationLeveraged the community to source and prioritize ideas.- 62 -                              ...
Netflix (b2c)Leveraged their Facebook fan base (1.6M) to do continuous customer researchby asking questions and posting us...
B2B Enterprise                 Demo videos for                 IT                 Professionals, prop                 erly...
Act of Loyalty- 65 -           Augustine Fou
Integrating “Long Lasting”..         paid marketing campaigns   sustained organic traffic                         …digital...
Performance is …         •   A digital tactic (affiliate)         •   A business/pricing model         •   Speedy innovati...
Dr. Augustine Fou – Agency Czar  “I study trends and advise clients  on optimizing their marketing mix  as well as increas...
Upcoming SlideShare
Loading in...5
×

Traditional to Digital to Performance - How Advertising as we know it has Changed.

387

Published on

The 'Traditional to Digital to Performance' sessi

Published in: Education
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
387
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Traditional to Digital to Performance - How Advertising as we know it has Changed."

  1. 1. From Traditional toDigital to Performance Dr. Augustine Fou http://linkd.in/augustinefou March 12, 2013-1- Augustine Fou
  2. 2. -2- Augustine Fou
  3. 3. Context of my thinking ... Marketing and Advertising Chief Digital Officer, HCG (Omnicom) Digital Business Strategy Technology / Innovation McKinsey Consultant PhD, MIT Mat‟l Science-3- Augustine Fou
  4. 4. Background Stats-4- Augustine Fou
  5. 5. Internet Adoption On Average 78% use internet Source: Pew Internet, April 2012-5- Augustine Fou
  6. 6. Smartphone Ownership 34-66% use smartphones Source: Pew Internet, Jan 2012 Source: Pew January 2012-6- Augustine Fou
  7. 7. Use of Social Networks Source: Pew February 2012-7- Augustine Fou
  8. 8. Top Online Activities Source: Pew Internet, April 2012-8- Augustine Fou
  9. 9. -9- Augustine Fou
  10. 10. Time Spent with Media- 10 - Augustine Fou
  11. 11. Newspaper Ads Declining Classified ad revenue Overall ad revenues fell declining since 2000 off cliff (back to 1950‟s levels)- 11 - Augustine Fou
  12. 12. Newspaper Companies Gannett Co., Inc. (GCI) - $3.4B market cap July 2012 New York Times (NYT) - $1.1B market cap July 2012 Both off 70-80% since 2007 peak- 12 - Augustine Fou
  13. 13. Magazine Ads Declining Circulation declining Ad prices pressured by online alternatives Shift away from reach to performance- 13 - Augustine Fou
  14. 14. Magazine Companies Meredith Corp (MDP) - $1.4B market cap July 2012 Martha Stewart (MSO) - $235M market cap July 2012 Off 50% (MDP) and 80% (MSO) since 2007 peak- 14 - Augustine Fou
  15. 15. Comparing Costs of MediaNormalizing (CPM) cost to reach 1,000 users or impressions Elle Magazine Superbowl 2013 Websites/Digital Circulation 1.1M Audience 108M Target Audiences $156k /pg $4M /30s eCPM: $1‟s of dollars eCPM: $141 eCPM: $37 Source: AP March 10, 2013- 15 - Augustine Fou
  16. 16. From Traditional to Digital Television is 42% Online is 38% Source: IAB and Business Insider Oct 2012- 16 - Augustine Fou
  17. 17. Audience CharacteristicsAre Also Changing- 17 - Augustine Fou
  18. 18. Users watch what they want Broadcast Cable Online Video mass audience niche audience individuals ‟80s-‟98 ‟99-‟12 ‟05-pres- 18 - Augustine Fou
  19. 19. When they want … 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- 19 - Augustine Fou
  20. 20. On whatever device … Source: Google, August 2012 Multi-screen World- 20 - Augustine Fou
  21. 21. Users go where they want … Content Portals Major Blogs Facebook Twitter audience size- 21 - Augustine Fou
  22. 22. Users share more online … HTML Coding Blogs Social Networks <!DOCTYPE html> <html> <body> <h1>My First Heading</h1> <p>My first paragraph.</p> </body> </html> only developers writers/individuals everyone „90s 2000s ‟05-pres- 22 - Augustine Fou
  23. 23. Users search more often Users rely on search even Google reports more than 3 more frequently. billion searches per day Source: Pew Internet March 2012 Source: Business Insider 2012- 23 - Augustine Fou
  24. 24. 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- 24 - Augustine Fou
  25. 25. Search is more efficient... Pay for impressions CPM CPC Pay for clicks … pay only for results (clicks).- 25 - Augustine Fou
  26. 26. From CPM to Performance Source: IAB, PwC April 2012- 26 - Augustine Fou
  27. 27. Consumers AreEmpowered and Savvy- 27 - Augustine Fou
  28. 28. 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- 28 - Augustine Fou
  29. 29. 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- 29 - Augustine Fou
  30. 30. Users Ignore/Delete Email “this is what gmail filters are made for!” Source: Feb 24, 2012 “2012 Digital Advertising Attitudes Report” via @eMarketer- 30 - Augustine Fou
  31. 31. Users Revolt in SocialForces BofA to rescind $5 monthly debit card fee- 31 - Augustine Fou
  32. 32. Feb 2013 – Tesla Owners RefuteFalsified NYTimes Report NYTimes reporter seemingly deliberately ran down the battery and reported negatively on the Tesla S. Now owners set out to publicly refute the report. Source: Gizmodo Feb 18, 2013- 32 - Augustine Fou
  33. 33. Feb 2013 – Maker‟s Mark ReversesDecision to Water Down Whiskey drinkers didn‟t like the idea of their drink being diluted yet still cost the same price. Source: Business Insider, Feb 17, 2013- 33 - Augustine Fou
  34. 34. Users Exert Their 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- 34 - Augustine Fou
  35. 35. People search for productsPeople search for the products they want, not the brand in most cases- 35 - Augustine Fou
  36. 36. David Beckham vs H&M- 36 - Augustine Fou
  37. 37. Adriana vs Teleflora- 37 - Augustine Fou
  38. 38. Users look for context … 378 reviews # of shares- 38 - Augustine Fou
  39. 39. 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” … and ads the least.- 39 - 26, 2012 November 39 Augustine Fou
  40. 40. From CPM to CPC to CPA $7 CPM means $70 ad spend on CPM basis $1 CPC means $100 ad spend on CPC basis CPA is lowest risk and most cost effective 1% CTR 1% conversion $20 avg ticket, 5% 10,000 impressions 100 clicks 1 purchase $1 rev share (CPM) (CPC) (CPA)- 40 - Augustine Fou
  41. 41. Beyond PerformanceAs “Affiliate”- 41 - Augustine Fou
  42. 42. ConversationsOffline conversations now online- 42 - Augustine Fou
  43. 43. Likes / FansBrands now have direct access to users 14 million fans historic images 25,495 like the item 1,168 comments- 43 - Augustine Fou
  44. 44. User ReviewsReviews from others who bought and used- 44 - Augustine Fou
  45. 45. Selecting Optimal WordsHow do we ensure our content is findable “baby bedding” is the way more users search; 16x more than “infant bedding”- 45 - Augustine Fou
  46. 46. Some visitors are more valuable Visitors from display ads Visitors from search Source: Google Analytics Sample CPG client… site analytics show they stayed and engaged.- 46 - Augustine Fou
  47. 47. What words to use?How do we describe LinkedIn to small biz cardholders “Business Networking?” “ComputerNetworking?” “Professional Networking?” “Social “Networking?” Networking?”- 47 - Augustine Fou
  48. 48. Godaddy – Superbowl AdsSearch volume rises with Superbowl ads and NASCAR sponsorship SuperBowl Ads NASCAR- 48 - Augustine Fou
  49. 49. Subway FootlongsLaunched in early 2008, but waning interest TV Ads started- 49 - Augustine Fou
  50. 50. Study Cause and Effect Purell demand and search volume lifted swine flu swine flu drove 1st peak h1n1 h1n1 drove 2nd peak- 50 - Augustine Fou
  51. 51. Demand PlanningSee when users search for which products chocolate covered strawberries (Valentine‟s) chocolate covered cherries (Christmas)- 51 - Augustine Fou
  52. 52. Grandma with Harley Harley would usually not advertise to her because she is not in their typical demographic, but ...- 52 - Augustine Fou 52
  53. 53. Grandma with Harley But .. when she comes online to search, our job as marketers is to make sure she can find the information she needs … and quickly get to the purchase.- 53 - Augustine Fou 53
  54. 54. Marketing in a Digital World Traditional Advertising Marketing in Digital World 1. Who is our target 1. What information does customer? target user need? 2. What message do we 2. Do we have that info push/shout at them? available? 3. Where do we stick the 3. Is it optimized so they can message? find and use it? storytelling performance- 54 - Augustine Fou
  55. 55. Traditional Digital Performance- 55 - Augustine Fou
  56. 56. Performance is …- 56 - Augustine Fou
  57. 57. Burberry – direct interactions 14 million fans historic images 25,495 like the item 1,168 comments- 57 - Augustine Fou
  58. 58. A Direct Way to InteractBrands have more fans than top TV shows in viewership Brands’ Facebook Top TV Shows 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- 58 - Augustine Fou
  59. 59. A Direct Way to InteractBrands have more fans than top magazines have circulation Brands’ Facebook Top Magazines 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- 59 - Augustine Fou
  60. 60. Social Actions Are Free Paid Advertising Social Actions 10k Impressions People telling people can lead to the same 1 action for FREE 0.001% click- rate Share, recommend, comment, rate, etc. 1 action (go to website) 1 action (go to website) … and more effective (comes from a friend)- 60 - Augustine Fou
  61. 61. Timex – real-time insights Which styles are being searched for What users spend time viewing on site What users are buying- 61 - Augustine Fou
  62. 62. Starbucks – ideation/innovationLeveraged the community to source and prioritize ideas.- 62 - Augustine Fou
  63. 63. Netflix (b2c)Leveraged their Facebook fan base (1.6M) to do continuous customer researchby asking questions and posting useful content.- 63 - Augustine Fou
  64. 64. B2B Enterprise Demo videos for IT Professionals, prop erly SEO‟ed with technical terms- 64 - Augustine Fou
  65. 65. Act of Loyalty- 65 - Augustine Fou
  66. 66. Integrating “Long Lasting”.. paid marketing campaigns sustained organic traffic …digital techniques- 66 - Augustine Fou
  67. 67. Performance is … • A digital tactic (affiliate) • A business/pricing model • Speedy innovation • Efficient organization • THE new mindset- 67 - Augustine Fou
  68. 68. Dr. Augustine Fou – Agency Czar “I study trends and advise clients on optimizing their marketing mix as well as increasing efficiency and effectiveness of current tactics.” 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- 68 - Augustine Fou
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×