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Advertising Polarizing To Branding Versus Performance by Augustine Fou PhD
1. Augustine Fou- 1 -
2012 - $107B
2016E - $107B
branding performance
āSoup and Sodaā āCars and Computersā
Television ($70B, 2012) Digital ($37B, 2012)
Display
(Facebook)
22%
Search
(Google)
46%
Other
32%55% 45%
Broadcast Cable
Television ($60B, 2016E) Digital ($47B, 2016E)
42% 49%
Other
9%51% 49%
Broadcast Cable Branding
(Facebook)
Performance
(Google)
Polarizing Advertising
2. Augustine Fou- 2 -
What are we seeing?
āUsersātime-spent-with-media is changing.ā
āBut more importantly, the forms of advertising that
are neither āmass reachānor āperformanceāwill fall in
between the cracks. Because they donāt have large
enough reach and they are not performance oriented,
magazines and newspapers are falling the hardest.ā
- Dr. Augustine Fou
3. Augustine Fou- 3 -
Prediction
āBranding dollars will continue shift
into digital and will seek the most
massive reach ā Facebook display ads;
while other ābig-ticketāand ācomplex
productācategories will use digital in a
performance way ā e.g. search.ā
- Dr. Augustine Fou
5. Augustine Fou- 5 -
Time Spent with Media
Combination of āonlineā and
āmobileā (38%) is already nearly
that of āāTVā (42%)
6. Augustine Fou- 6 -
New Revenues Not Enough to
Offset Ad Revenue Drop
Source: Newspaper Association of America
Source: Business Insider Dec 2012
7. Augustine Fou- 7 -
Dr. Augustine Fou ā Digital Consigliere
āI advise clients on optimizing their
advertising across channels and
tactics, selecting the ones that have
the largest business impact and
ROI.ā
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
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