Digital Use Shifts To Search by Augustine Fou
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Users are getting more savvy, power has shifted from advertisers to consumers; digital tools should enable and empower both sides.
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Digital Use Shifts To Search by Augustine Fou
- 1. Digital Use Shifting to Search Dr. Augustine Fou http://www.linkedin.com/in/augustinefou November 14, 2012. November 14, 2012 1
- 2. Explosion of Content Google Index 1998 670M hostnames 26 million web pages 200M active domains 2000 5 million TB of data 1 billion web pages Source: Netcraft, July 2012 2008 1 trillion unique URLs Source: Google November 14, 2012 2
- 3. Search is necessary Users continue to use search to find what they want from the “ocean” of information Source: Pew Internet March 2012 November 14, 2012 3
- 4. Users search more often Users rely on search even Google reports more than 3 more frequently. billion searches per day Source: Pew Internet March 2012 Source: Business Insider 2012 November 14, 2012 4
- 5. Users search more savvy Long tail terms imply users • Users are searching longer terms type longer phrases to get • Average query word count is more accurate search results. greater than 4 words, in 2012 Source: Optify 2012 Source: Chitika, Jan 2012 November 14, 2012 5
- 6. Ad Spend Shifts to Search 1996 2000 2004 2008 2011 $267 million $8.2 billion $9.6 billion $23 billion $31 billion 100% display Search Display Other 40% display 40% search 45% search 47% search 31% sponsorships 39% display 33% display 35% display 29% classifieds 21% other 22% other 18% other Source: IAB March 1997 Source: IAB April 2001 Source: IAB April 2005 Source: IAB March 2009 Source: IAB April 2012 http://bit.ly/JKwCJ1 http://bit.ly/MA9FIh http://bit.ly/LlB6zY http://bit.ly/LuiZhD http://bit.ly/JK2lIu crossover November 14, 2012 6
- 7. Shift to performance 2011 Ad spending is Source: PwC/IAB April 2011 also catching up 65% by shifting to performance and away from display. 31% Performance (CPC) is where 4% advertisers only pay when they get the click. Source: IAB - Full year 2011 November 14, 2012 7
- 8. More detailed breakdown November 14, 2012 8
- 9. CPM-based Ad Revenue Display Ad-Centric Companies AOL (AOL) Yahoo (YHOO) November 14, 2012 9
- 10. CPC-based Ad Revenue Search Ad-Centric Companies Google (GOOG) Baidu (BIDU) November 14, 2012 10
- 11. So What? “Marketing and advertising is moving towards a performance orientation – enabled by digital and the shift of power to consumers. They are empowered by technology and information, and they are using it.” - Dr. Augustine Fou November 14, 2012 11
- 12. Dr. Augustine Fou – Chief Digital Strategist “I help clients leverage digital tools and techniques to create sustainable 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 November 14, 2012 12 acfou@mktsci.com