Shift of Dollars from Traditional to Digital by Augustine Fou
1. Augustine Fou- 1 -
Shift of Dollars from
Traditional to Digital
Dr. Augustine Fou
http://linkd.in/augustinefou
Marketing Science Consulting Group, Inc.
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Digital Grew Rapidly
Source: IAB and Business Insider Oct 2012
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Digital Nearly Caught TV
Online is 38%
Television is 42%
Source: IAB and Business Insider Oct 2012
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Digital vs Other Traditional
Source: IAB/PwC FY 2012 Report, April 2013
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2012 Brand vs Direct ResponseBrand
Direct
Response
2012 US
Ad Spending
$162B
$100B
$62B
2012 US
Internet Ad
$37B
$12B
$24B39%
12%
Source: IAB/PwC FY 2012 Report, April 2013
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Digital is a Philosophy
By: Augustine Fou, March 31, 2011
Future of Advertising
By: Augustine Fou, March 15, 2013
Augustine Fou- 7 -
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Dr. Augustine Fou – Chief Digital Strategist
“I advise clients on optimizing their
marketing mix across traditional and
digital channels – with a tight focus on
driving business impact.”
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
Augustine Fou@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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Future of Advertising
2012 - $107B
2016E - $104B
branding performance
“Soup and Soda” “Cars and Computers”
Television ($70B, 2012) Digital ($37B, 2012)
Display
(Facebook)
22%
Search
(Google)
46%
Other
32%55% 45%
Broadcast Cable
Television ($61B, 2016E) Digital ($43B, 2016E)
42% 49%
Other
9%51% 49%
Broadcast Cable Branding
(Facebook)
Performance
(Google)
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Major Media Ad Spending
Source: eMarketer March 2011
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2009 Brand, DR, Digital
July 18, 2012 12
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 2009