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Shift from Traditional to Digital


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stats on the shift of ad dollars from traditional to digital and then allocations within digital channel.

Published in: Business, News & Politics
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Shift from Traditional to Digital

  1. 1. Shift fromTraditional toDigital Dr. Augustine Fou July 18, 2012.
  2. 2. Marketing Budget and Digital Allocation Media – marketing budgets are 12.7% of revenues; digital is 3.9% Financial services – 10.6% marketing; 2.4% digital Manufacturing – 10.6% marketing; 2.8% digital Retail – 10.6% marketing; 2.5% digital Healthcare – 9.2% marketing; 2.2% digital High-Tech – 9.1% marketing; 2.3% digital Overall – 10.4% of revenues is used for marketing; 2.5% for digital (digital is 22.5% of total marketing spend on average across industries) Source: eMarketer March, 2013July 18, 2012 2
  3. 3. Allocation to Digital 2010 51% of advertisers have between 0 – 30% of their budget allocated to digital 29% of advertisers have 31 – 70% of their budget in digital 21% of advertisers have 71 – 100% of their budgets allocated to digitalJuly 18, 2012 3
  4. 4. Allocation Within Digital Shifting to more performance oriented Off site social media investment tactics On-site social media investment Search engine optimization (natural search) Shifting to social Mobile marketing channels where users Email marketing (for retention) help amplify and pass- along Email marketing (for acquisition) Paid search (PPC) Shifting to tactics that Online display advertising yield longer lasting Affiliate marketing pay-off (user reviews) versus paid campaigns which are over after the media buy endsJuly 18, 2012 4
  5. 5. From CPM to Performance Source: IAB/PwC FY 2011 Report, April 2012
  6. 6. 2009 Brand, DR, Digital Digital ($24B) is equivalent to 1/8th of the total brand spend ($147B) in the U.S. Digital ($18B) is equivalent to 33% of the Direct Response spend in the U.S. in 2009July 18, 2012 6
  7. 7. Dr. Augustine Fou – Chief Digital Strategist “I advise clients on shifting their marketing mix among traditional and digital tactics, and unifying them to work optimally together.” 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: 18, 2012 7
  8. 8. APPENDIX
  9. 9. Major Media Ad Spending Source: eMarketer March 2011