We triangulated the questions 1) ‘do you recall seeing specific kinds of ads?’ 2) ‘are ads useful?’ and 3) what is useful in your purchase decision for big ticket items and/or low-cost items?

1. Augustine Fou- 1 -
What Consumers
Think of Ads
Dr. Augustine Fou
http://linkd.in/augustinefou
acfou @mktsci .com
March 2014

2. Augustine Fou- 2 -
Author‟s Commentary
“From our custom research with N = 5,120
respondents, we triangulated the questions 1) „do
you recall seeing specific kinds of ads?‟2) „are ads
useful to decisionmaking?‟and 3) what is
important in your decision for big ticket items vs
low-cost items? We believe the combined answers
yield useful insights about what consumers value
at each stage of their purchase journey (or
purchase „funnel‟).” -- Dr. Augustine Fou

3. Augustine Fou- 3 -
Our Research
Fielded March 2014

4. Augustine Fou- 4 -
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
“In the past week do you recall seeing
any of the following?” N = 500

5. Augustine Fou- 5 -
“Which of the following make you aware
of a specific low-cost/big-ticket item” N = 1,007
Source: Marketing Science Custom Research, March 2014
45% Ads Don‟t Help Awareness
low-cost
item
big-ticket
item
Of those who do think ads help awareness, „ads on TV‟ were
most useful for both big-ticket as well as low-cost items.

6. Augustine Fou- 6 -
“Which of the following help you decide to
buy a specific low-cost/big-ticket item” N = 1,000
Source: Marketing Science Custom Research, March 2014
70% Ads Don‟t Help Decision
big-ticket
item
low-cost
item

7. Augustine Fou- 7 -
• Recommendations
from friends
• Consumer
opinions/ratings
posted online
big-ticket
item
low-cost
item
Recommendations most influential
N = 1,573
Source: Marketing Science Custom Research, March 2014

8. Augustine Fou- 8 -
big-ticket
item
User Reviews Most Important
Source: Marketing Science Custom Research, March 2014
N = 1,038
low-cost
item

9. Augustine Fou- 9 -
Once you become aware of a new LOW
COST item, what do you do NEXT?
Immediately After Awareness
Source: Marketing Science Custom Research, March 2014

10. Augustine Fou- 10 -
Related Research
Q1 2014

11. Augustine Fou- 11 -
Users Ignore Ads When Researching
Source: Harris Interactive via MarketingCharts Feb 2014
In digital consumers
are in research mode
In offline channels users
are open to ideas

12. Augustine Fou- 12 -
Young U.S. Consumers‟ Attitudes
Source: Millward Brown March 2014

13. Augustine Fou- 13 -
Role of the Channel
0% 20% 40% 60% 80% 100%
Email
Mobile App
Direct Mail
SMS Text Message
Website
Social Media (not paid)
Search
Radio
Print Ads
Online Display Ads
Social Display Ads
TV
Greeter (Awareness)
Influencer (Consideration)
Closer (Decision)
Source: Experian Marketing
Services March 2014
Sorted by
Awareness

14. Augustine Fou- 14 -
Dr. Augustine Fou – Digital Consigliere
“I advise clients on optimizing
advertising across all channels. One
main area of focus is reducing ad waste
due to fraud – fake impressions, clicks,
leads, and sales.”
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

15. Augustine Fou- 15 -
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