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Audience
Fragmentation
        Dr. Augustine Fou
        http://linkedin.com/in/augustinefou
        Marketing Science Consulting Group, Inc.
Increasingly niche content
          Broadcast           Cable         Online Video




        mass audience      niche audience    individuals
                ‟80s-‟98      ‟99-‟12         ‟05-pres

November 15, 2012                                          2
Audiences fragment …
                              Since the mid
                              80's broadcast
                              networks share of the
                              prime-time audience
                              has plunged from 85%
                              to less than 50% as
                              audiences shifted to
                              cable.

                              Source: Nielsen 2007



        … in search of more specific content
November 15, 2012                                     3
Increasing ease of publication
    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
November 15, 2012                                                         4
Led to the explosion …
                    670M hostnames
                    200M active domains




           …of content and sites online.
November 15, 2012                         5
Audiences fragment …
      Content Portals   Major Blogs   Facebook




                                       Twitter
       audience size



       … in search of more specific content.
November 15, 2012                                6
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.
-7-                                    Augustine Fou
So what?
   “Audiences have fragmented so they are
   harder to reach en masse (e.g. through TV or
   portals); power has shifted to users so they
   trust and rely on ads less. What do you do?
   What if you also relied less on „reach and
   frequency‟ advertising?”
                              - Dr. Augustine Fou

November 15, 2012                                   8
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                                                    acfou@mktsci.com   9

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Audience Fragmentation and Shift of Power by Augustine Fou

  • 1. Audience Fragmentation Dr. Augustine Fou http://linkedin.com/in/augustinefou Marketing Science Consulting Group, Inc.
  • 2. Increasingly niche content Broadcast Cable Online Video mass audience niche audience individuals ‟80s-‟98 ‟99-‟12 ‟05-pres November 15, 2012 2
  • 3. Audiences fragment … Since the mid 80's broadcast networks share of the prime-time audience has plunged from 85% to less than 50% as audiences shifted to cable. Source: Nielsen 2007 … in search of more specific content November 15, 2012 3
  • 4. Increasing ease of publication 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 November 15, 2012 4
  • 5. Led to the explosion … 670M hostnames 200M active domains …of content and sites online. November 15, 2012 5
  • 6. Audiences fragment … Content Portals Major Blogs Facebook Twitter audience size … in search of more specific content. November 15, 2012 6
  • 7. 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. -7- Augustine Fou
  • 8. So what? “Audiences have fragmented so they are harder to reach en masse (e.g. through TV or portals); power has shifted to users so they trust and rely on ads less. What do you do? What if you also relied less on „reach and frequency‟ advertising?” - Dr. Augustine Fou November 15, 2012 8
  • 9. 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 acfou@mktsci.com 9