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Trends in Advertising and Marketing by Augustine Fou Digital Consigliere


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Trends in Advertising and Marketing by Augustine Fou Digital Consigliere

  1. 1. Augustine Fou- 1 -Dr. Augustine Fou 2013Trends in Advertisingand Marketing
  2. 2. Augustine Fou- 2 -Trends1. Time spent with media is shifting, so advertisers have toreach customers differently – shift to digital.2. Advertisers focusing more on ROI and measurement;digital is more measurable; shift to performance in digital3. Power is shifting to users; so advertisers cannot just shoutlouder and more often.4. Manufacturers and retailers go direct to consumers sincethey already have direct access via social media.5. Inefficiencies and intermediaries are cut out; more businessimpact is achieved with less ad spending
  3. 3. Augustine Fou- 3 -Trend 1Time Spent with Media
  4. 4. Augustine Fou- 4 -Time Spent with Media
  5. 5. Augustine Fou- 5 -Screen-based consumptionSource: Google, August 2012 Multi-screen WorldAugustine Fou- 5 -
  6. 6. Augustine Fou- 6 -From Traditional to DigitalSource: IAB and BusinessInsider Oct 2012Television is 42%Online is 38%
  7. 7. Augustine Fou- 7 -Trend 2Shift to ROI / Performance
  8. 8. Augustine Fou- 8 -One-way Media Two-way Mediabanner ads search adsAlways onAlways informedAlways connectedMany-Way MediaThe Evolution of MediaTwo-way means you have feedback loops / metrics
  9. 9. Augustine Fou- 9 -Pay for impressions vs...… pay only for results (clicks).Display AdsPay for impressionsSearch AdsPay for clicks
  10. 10. Augustine Fou- 10 -From CPM to PerformanceSource: IAB, PwC April 2011The digital market has already shifted to “performance”
  11. 11. Augustine Fou- 11 -Trend 3Power Shifted to Users
  12. 12. Augustine Fou- 12 -Users have instant and ……constant access to info“no, that isn‟t the „best price‟for this HDTV and thereviews aren‟t even thatgood… ”• 43% smartphone owners useddevice in-store• 15% checked prices in-store andthen bought from competitorSource: comScore 2012Augustine Fou- 12 -
  13. 13. Augustine Fou- 13 -Users trust peers most..…ads the leastAugustine Fou- 13 -
  14. 14. Augustine Fou- 14 -Total Social Media Ad Spend2014 - $6.8 billion2015 - $8.3 billion2016 - $9.2 billionSource: BIA/Kelsey, Nov 2012Advertisers are now trying to reach users in socialchannels and stimulate more social actions
  15. 15. Augustine Fou- 15 -Trend 4Manufacturers go direct
  16. 16. Augustine Fou- 16 -Facebook already larger… than many top TV ShowsHermesCartierVersaceFendiPradaArmaniCoachCalvin KleinRalph LaurenDolce & GabbanaChanelLouis VuittonGucciDiorBurberry 12.6M7.8M7.6M7.3M6.5M5.3M4.9M4.0M3.3M3.1M1.7M1.6M0.8M0.7M0.6M NCISDancing with the StarsPerson Of InterestBig Bang TheoryThe VoiceBlue BloodsUnforgettable60 MinutesSURVIVOR: ONE WORLDBody Of ProofCSI: NYTouchRules of EngagementDesperate HousewivesOnce Upon A Time8.4M8.5M8.6M8.9M9.5M9.7M10.0M10.1M10.5M10.7M12.0M14.0M14.6M18.0M18.6MSource: Facebook, April 2012 Source: TVByTheNumbers, April 2012
  17. 17. Augustine Fou- 17 -HermesCartierVersaceFendiPradaArmaniCoachCalvin KleinRalph LaurenDolce & GabbanaChanelLouis VuittonGucciDiorBurberry 12.6M7.8M7.6M7.3M6.5M5.3M4.9M4.0M3.3M3.1M1.7M1.6M0.8M0.7M0.6M PeopleCosmopolitanGlamourSeventeenReal SimpleInStyleShapeFitnessSelfVogueVanity FairElleLuckyGQMarie Claire1.0M1.0M1.1M1.1M1.2M1.3M1.5M1.5M1.6M1.7M2.0M2.0M2.4M3.0M3.6MSource: Facebook, April 2012 Source: Wikipedia, 2H 2011Facebook already larger… than all top magazines
  18. 18. Augustine Fou- 18 -Burberry – direct interactions14 million fanshistoric images25,495 like the item1,168 commentsAugustine Fou- 18 -
  19. 19. Augustine Fou- 19 -Trend 5Killing inefficiencies/intermediaries
  20. 20. Augustine Fou- 20 -Ad Spending by ShareCAGR 2009 – 2015TV: 1.2%Internet: 8.8%Newspapers: -6.4%Radio: 0.3%Magazines: -7.2%Directories: -13.7%Outdoor: 1.6%
  21. 21. Augustine Fou- 21 -What are we seeing?“But more importantly, the forms of advertisingthat are neither „mass reach‟nor „performance‟will fall in between the cracks. Because theydon‟t have large enough reach and they are notperformance oriented, magazines andnewspapers are falling the hardest.”- Dr. Augustine Fou
  22. 22. Augustine Fou- 22 -Marketing Continuum2012 - $107B2016E - $104Bbranding performance“Soup and Soda” “Cars and Computers”Television ($70B, 2012) Digital ($37B, 2012)Display(Facebook)22%Search(Google)46%Other32%55% 45%Broadcast CableTelevision ($61B, 2016E) Digital ($43B, 2016E)42% 49%Other9%51% 49%Broadcast Cable Branding(Facebook)Performance(Google)
  23. 23. Augustine Fou- 23 -Dr. Augustine Fou – Digital Consigliere“The impact of digital has already been feltin many industries. Its impact on advertisingand marketing has been even more dramatic,reshaping multiple industries that relied onad revenues. Digital increases themeasurability and overall effectiveness of alladvertising.”FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)MCKINSEY CONSULTANTCLIENT SIDE / AGENCY SIDE EXPERIENCEPROFESSOR AND COLUMNISTENTREPRENEUR / SMALL BUSINESS OWNERPHD MATERIALS SCIENCE (MIT 95) AT AGE 23@acfouClickZ Articles: