March 2013, shift of budget to digital channels and tactics. CPG brands tend to stick with TV for large reach (digital is a smaller percentage); other advertisers may shift more aggressively into digital.

1. eTailers’ Digital Budget Mix
30% paid search SEM
16% email
11% search engine optimization SEO
7% affiliate marketing
5% comparison shopping engines
4% Retargeting
4% social media marketing
March 2012
1

2. 55% to increase digital
March 2012
2

3. Digital Marketers’ Top Priorities

4. Digital Marketing Budget Mix
Source: Gartner via Marketing Charts March, 2013

5. ROI By Channel

6. Worldwide Brand Ad Spend
As you can see in the chart above,
Nielsen’s figures — which are global
— show that despite the surge of users
on services like Facebook and Twitter,
Internet display ads are still not getting
much of a look in. In the first half of
this year, Internet display ads only
took 4.3% of all spend. In other
words, for ever dollar spent on
advertising by a brand, only 4.3 cents
were online.
Source: Nielsen, Q2 Report
October 22, 2013

7. Worldwide Digital Ad Spend
Source: ZenithOptimedia Sep 2013
In the U.S. — disporportionately the largest single ad market — digital in
2013 will account for 21.8% of all ad spend ($109.7 billion), up from 19%
the year before.

8. Dr. Augustine Fou – Agency Czar
“I advise clients on digital strategy and
budget optimization across channels and
tactics. The shift within digital is to
performance based tactics as marketers
look for better ROI and measurability.”
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
March 2013
acfou@mktsci.com
8

9. Related Articles
Trends in Advertising
By: Augustine Fou, Nov 15, 2012
Digital Maturity by Industry
By: Augustine Fou, November 7, 2012
Shift from Traditional to Digital
By: Augustine Fou, November 11, 2010
Digital is a Philosophy
By: Augustine Fou, July 18, 2012
-9-
Augustine Fou

10. APPENDIX
October 23, 2012
10

11. Paid Search Allocation 2010
Source: Higher Visibility, Nov 2010
October 23, 2012
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