Some industries are more heavily weighted in the branding forms of digital marketing (e.g. display ads and video ads) while other industries spend more on the direct response forms of digital marketing (e.g. search).

1. Branding vs Direct
Response Budgets
in Digital Dr. Augustine Fou
http://linkd.in/augustinefou
acfou @mktsci .com
May 2014

2. TV is $69B Digital is $48B
Digital is 24% of Total
TV DigitalPrint Radio
Out-of-Home $8 (5%)
Other $2 (1%)
$75 billion
42%
$43 billion
24%
$32
18%
$17
10%
Display
$8 billion
19%
Search
$18 billion
43%
Video $3 (7%)
Mobile
$4B$3B
display search
17%
Other
$5
11%
Lead Gen $2 (4%)
• classifieds
• sponsorship
• rich media
Source: IAB Full Year 2013 report
Augustine Fou- 2 -
branding performance
$34B$40B
broadcast cable
$175B total ad spending

3. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
65
51 46 44 44 40 38
30 26
41
Direct Response
Branding
Branding vs DR in Digital 2014
Direct
response vs
branding by
industry
Travel is
heavily DR
while
entertainment
is mainly
branding
branding direct response
Augustine Fou- 3 -

4. Branding vs Direct Response
Augustine Fou- 4 -
Source: eMarketer via Marketing Charts 2014

5. How They Spend Within Digital
63.5 63.0
46.0 45.0 43.0 41.6 40.0 40.0 39.5 38.0 35.4
27.0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Direct Response
Branding
Direct
response vs
branding by
industry
Travel is
heavily DR
while
entertainment
is mainly
brandingbranding direct response
Direct response (performance) vs Branding by Industry 2013

6. Branding vs Direct Response
CPG and entertainment
focused their digital ad
spend on branding like
tactics (display ads, video
ads) while travel and
retail focused their digital
ad spend on direct
response tactics like
search and content.

7. Ad spending in the U.S.
Source: IAB Full Year 2013 reportIn 2013
Performance 65%
CPM/Impressions 33%
Hybrid/Other 2%
Digital is Performance
Augustine Fou- 7 -

8. Dr. Augustine Fou – Digital Consigliere
“I study trends and advise clients
on staying on-trend or getting
ahead of them to create competitive
advantage.”
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
Augustine Fou- 8 -

9. APPENDIX

10. In 2013
Digital marketing was $42B
Broadcast TV was $40B
Cable TV was $34B
Network TV vs Cable TV
Augustine Fou- 10 -
Source: IAB Full Year 2013 report
$175B total ad spending

11. Digital is 25% of Ad Spend
Augustine Fou- 11 -

12. Digital Ad Spending
by industry
Source: eMarketer March 2014