1. Augustine Fou- 1 -
Dr. Augustine Fou
http://linkd.in/augustinefou
April 2013
Trends in Advertising
and Marketing

2. Augustine Fou- 2 -
Trends
1. Time spent with media is shifting, so advertisers have to
reach customers differently – shift to digital.
2. Advertisers focusing more on ROI and measurement;
digital is more measurable; shift to performance in digital
3. Power is shifting to users; so advertisers cannot just shout
louder and more often.
4. Manufacturers and retailers go direct to consumers since
they already have direct access via social media.
5. Inefficiencies and intermediaries are cut out; more business
impact is achieved with less ad spending

3. Augustine Fou- 3 -
Trend 1
Time Spent with Media

4. Augustine Fou- 4 -
Time Spent with Media

5. Augustine Fou- 5 -
Screen-based consumption
Source: Google, August 2012 Multi-screen World
Augustine Fou- 5 -

6. Augustine Fou- 6 -
From Traditional to Digital
Source: IAB and Business
Insider Oct 2012
Television is 42%
Online is 38%

7. Augustine Fou- 7 -
Trend 2
Shift to ROI / Performance

8. Augustine Fou- 8 -
One-way Media Two-way Media
banner ads search ads
Always on
Always informed
Always connected
Many-Way Media
The Evolution of Media
Two-way means you have feedback loops / metrics

9. Augustine Fou- 9 -
Pay for impressions vs...
… pay only for results (clicks).
Display Ads
Pay for impressions
Search Ads
Pay for clicks

10. Augustine Fou- 10 -
From CPM to Performance
Source: IAB, PwC April 2011
The digital market has already shifted to “performance”

11. Augustine Fou- 11 -
Trend 3
Power Shifted to Users

12. Augustine Fou- 12 -
Users have instant and …
…constant access to info
“no, that isn‟t the „best price‟
for this HDTV and the
reviews aren‟t even that
good… ”
• 43% smartphone owners used
device in-store
• 15% checked prices in-store and
then bought from competitor
Source: comScore 2012
Augustine Fou- 12 -

13. Augustine Fou- 13 -
Users trust peers most..
…ads the least
Augustine Fou- 13 -

14. Augustine Fou- 14 -
Total Social Media Ad Spend
2014 - $6.8 billion
2015 - $8.3 billion
2016 - $9.2 billion
Source: BIA/Kelsey, Nov 2012
Advertisers are now trying to reach users in social
channels and stimulate more social actions

15. Augustine Fou- 15 -
Trend 4
Manufacturers go direct

16. Augustine Fou- 16 -
Facebook already larger
… than many top TV Shows
Hermes
Cartier
Versace
Fendi
Prada
Armani
Coach
Calvin Klein
Ralph Lauren
Dolce & Gabbana
Chanel
Louis Vuitton
Gucci
Dior
Burberry 12.6M
7.8M
7.6M
7.3M
6.5M
5.3M
4.9M
4.0M
3.3M
3.1M
1.7M
1.6M
0.8M
0.7M
0.6M NCIS
Dancing with the Stars
Person Of Interest
Big Bang Theory
The Voice
Blue Bloods
Unforgettable
60 Minutes
SURVIVOR: ONE WORLD
Body Of Proof
CSI: NY
Touch
Rules of Engagement
Desperate Housewives
Once Upon A Time8.4M
8.5M
8.6M
8.9M
9.5M
9.7M
10.0M
10.1M
10.5M
10.7M
12.0M
14.0M
14.6M
18.0M
18.6M
Source: Facebook, April 2012 Source: TVByTheNumbers, April 2012

17. Augustine Fou- 17 -
Hermes
Cartier
Versace
Fendi
Prada
Armani
Coach
Calvin Klein
Ralph Lauren
Dolce & Gabbana
Chanel
Louis Vuitton
Gucci
Dior
Burberry 12.6M
7.8M
7.6M
7.3M
6.5M
5.3M
4.9M
4.0M
3.3M
3.1M
1.7M
1.6M
0.8M
0.7M
0.6M People
Cosmopolitan
Glamour
Seventeen
Real Simple
InStyle
Shape
Fitness
Self
Vogue
Vanity Fair
Elle
Lucky
GQ
Marie Claire1.0M
1.0M
1.1M
1.1M
1.2M
1.3M
1.5M
1.5M
1.6M
1.7M
2.0M
2.0M
2.4M
3.0M
3.6M
Source: Facebook, April 2012 Source: Wikipedia, 2H 2011
Facebook already larger
… than all top magazines

18. Augustine Fou- 18 -
Burberry – direct interactions
14 million fans
historic images
25,495 like the item
1,168 comments
Augustine Fou- 18 -

19. Augustine Fou- 19 -
Trend 5
Killing inefficiencies/intermediaries

20. Augustine Fou- 20 -
Ad Spending by Share
CAGR 2009 – 2015
TV: 1.2%
Internet: 8.8%
Newspapers: -6.4%
Radio: 0.3%
Magazines: -7.2%
Directories: -13.7%
Outdoor: 1.6%

21. Augustine Fou- 21 -
What are we seeing?
“But more importantly, the forms of advertising
that are neither „mass reach‟nor „performance‟
will fall in between the cracks. Because they
don‟t have large enough reach and they are not
performance oriented, magazines and
newspapers are falling the hardest.”
- Dr. Augustine Fou

22. Augustine Fou- 22 -
Marketing Continuum
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)

23. Augustine Fou- 23 -
Dr. Augustine Fou – Digital Consigliere
“The impact of digital has already been felt
in many industries. Its impact on advertising
and marketing has been even more dramatic,
reshaping multiple industries that relied on
ad revenues. Digital increases the
measurability and overall effectiveness of all
advertising.”
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
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