1. User Time Spent with Media
2012
42% - Time Spent with TV
38% - Time Spent with Online + Mobile
What is the percent time spent on internet and mobile?
What is the percent time spent watching TV?
-1- Augustine Fou

2. U.S. Ad Spending by Channel
Online is 38%
Broadcast Television is 42%
What percent of total U.S. ad spend is online? 38%
Source: IAB and Business Insider Oct 2012
-2- Augustine Fou

3. Time Spent vs Ad Spend
Source: KPCB Internet Trends Year-End Update, Dec 2012
-3- Augustine Fou

4. U.S. Ad Spending by Share
Source: eMarketer, Dec 2012
-4- Augustine Fou

5. U.S. Ad Spending by Media
23.7%
19.5%
18.5%
12.8%
11.1%
9.4%
4.0%
0.6%
0.4%
Source: IAB, PwC April 2012
-5- Augustine Fou

6. U.S. Digital Ad Spending by Format
Source: eMarketer Sept 2012
-6- Augustine Fou

7. Digital Ad Spending by Type
Source: IAB, PwC April 2012
-7- Augustine Fou

8. Digital Ad Type Trend by Share
Source: IAB/PwC FY 2011 Report, April 2012
-8- Augustine Fou

9. Looking out 5 years
2011
Television ($69B, 2011) Digital ($32B, 2011)
57% 43% 11% 62% 27%
Broadcast Cable Facebook Google Other
“Soup and Soda” performance
branding/awareness
“Cars and Computers”
2016
Television ($61B, 2016) Digital ($36B, 2016)
54% 46% 28% 63% 9%
Broadcast Cable Facebook Google Other
-9- Augustine Fou

10. Trend Commentary
• Overall ad market will shrink because digital introduces
new efficiencies into the system, so fewer dollars are need to
achieve the same effect
• Awareness ad dollars will always exist, but awareness
spending will shift to digital channels – e.g.
Facebook, because of its massive reach and better targeting
(than TV, print, etc.)
• The general trend is from impression based advertising
towards performance; small-ticket, low consideration
products (e.g. soda, cpg) will remain on the left side
(awareness) while big-ticket, high consideration products will
tend towards the right (performance)
- 10 - Augustine Fou

11. So What?
“Even awareness ad dollars in search of
mass reach will shift online to places like
Facebook where performance can be better
measured; the rest of digital will continue
trend towards performance and pay per
action – e.g. search.”
- Dr. Augustine Fou
- 11 - Augustine Fou

12. Dr. Augustine Fou – Digital Consigliere
“I show clients how they need to
evolve their advertising and
marketing in the new digital
world.”
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
- 12 - Augustine Fou

13. APPENDIX
- 13 - 15, 2012.
November 13 Augustine Fou

14. Percent of Budgets in Digital
Source: eMarketer Feb 2012
- 14 - Augustine Fou

15. Marketers to DECREASE
Source:
http://www.marketingcharts.com/wp/television/marketer
s-say-theyre-shifting-focus-away-from-traditional-
media-26578/
- 15 - 15, 2012
November 15 Augustine Fou