Innovations in marketing and business model are necessary to drive business impact and ROI in the digital age where information overload limits the linear impact of more advertising on sales.

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Marketing Innovation
That Drives Lasting ROI
Dr. Augustine Fou
http://linkd.in/augustinefou
acfou @mktsci .com
March 2014

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Author’s Commentary
“Many marketers continue to increase their ad
budgets. This is directly rooted in traditional
advertising mentality – increased advertising leads to
increased sales. But in a world where there is
oversaturation of advertising and
information, shouting more often and more loudly
won’t sales. Instead, we should look for true
innovations in marketing and business model that
drive lasting ROI and impact. This is a collection of
such innovations.”
-- Dr. Augustine Fou

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Innovations in Marketing
and Business Model

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Nationwide
Vanishing Deductible
Safe drivers who have seen reductions in their deductibles
will want to stay with Nationwide (and may tell others)

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Delta
Delta Innovation Class
This is the first time I
have actually considered
“choosing” Delta for a
flight, rather than my
default carrier
This innovation made
me consider “switching”
like no amount of
advertising would.
http://www.deltainnovationclass.com/

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FreshDirect (NYC)
One-Click Recipes
Freshdirect.com
One-click Recipes
inspire variations
in daily meals
and has resulted
in actual
increases to
dollars per order.

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Users Don’t Recall Ads
or Find Them Useful

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In the past WEEK, do you recall seeing ANY of the following types of ads?
44% Don’t Recall ANY Ads
Source: Marketing Science Custom Research, March 2014

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Who’s Ignoring Which Ads?
Source: Harris Interactive via MarketingCharts Feb 2014

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“Which of the following help you decide to buy a specific low-
cost/big-ticket item (e.g. soda, candy, toilet paper, shampoo)”
N = 1,000
70% Think Ads Don’t Help
Source: Marketing Science Custom Research, March 2014

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Users do their own research...
Source Parago via Marketing Charts March 24, 2014

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Users rely on peer recommendations
• Recommendations
from friends
• Consumer
opinions/ratings
posted online
Marketing Science March 2014

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Nielsen Corroborates Q3 2013
http://hk.nielsen.com/new
s/2013-09-19.shtml

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Dr. Augustine Fou – Innovocateur
“I study innovation, not just technological
innovation but also marketing and business
model innovations. In the digital age of
information overload, more advertising is
not the answer. Innovation is the only
answer.”
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
@acfou
ClickZ Articles: http://bit.ly/augustine-fou-clickz
Slideshares: http://bit.ly/augustine-fou-slideshares
LinkedIn: http://linkd.in/augustinefou

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Related Articles
http://www.slideshare.net/augustinefou/digital-advertising-benchmarks-2014-by-
augustine-fou
http://www.slideshare.net/augustinefou/usefulness-of-advertising-by-augustine-fou-
marketing-consigliere
http://www.slideshare.net/augustinefou/mythbusting-tv-advertising-by-augustine-fou
http://www.slideshare.net/augustinefou/effectiveness-of-digital-ads-by-augustine-fou
http://www.slideshare.net/augustinefou/industry-actions-against-digital-ad-fraud-
reported-by-augustine-fou
http://www.slideshare.net/augustinefou/mistargeted-ads-investigated-by-augustine-fou-
technical-forensics
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