Consumers are empowered with information.

1. Shift of Power
to Consumers
Dr. Augustine Fou
http://linkd.in/augustinefou
March 11, 2013
-1- Augustine Fou

2. Users Avoid Display Ads
Source: Banner
Blindness
“The ads to the right are only noticed by 23%
of the respondents, and they spend only half a
second on the ads.” Source: Mashable 12/29/2011
-2- Augustine Fou

3. 30-72% Skip Ads by DVR
Tivo Research
(Sep 2012)
Finds up to 72%
ads skipped
IPG/YuMe (May 2011) study found
63% of TV ads are avoided or simply ignored.
Nielsen (Dec 2010) estimates 44% of ads are not skipped
– i.e. 56% of ads ARE SKIPPED
-3- Augustine Fou

4. Users Ignore/Delete Email
“this is what
gmail filters
are made for!”
Source: Feb 24, 2012 “2012 Digital Advertising Attitudes Report” via @eMarketer
-4- Augustine Fou

5. Users have instant and …
“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
…constant access to info
-5- Augustine Fou

6. Users trust peers most …
92% trust
“recommendations from
people I know”
47% trust
“ads on TV”
Source: Nielsen, April 2012
33% trust
“online banner ads”
29% trust “text ads on
mobile phones”
November 26, 2012
… and ads the least. 6
-6- Augustine Fou

7. Users Revolt in Social
Forces BofA to rescind $5 monthly debit card fee
-7- Augustine Fou

8. More User Power
• 200 million phone numbers in the
National Do Not Call Registry
• 1 in 1000 direct mail pieces opened
(estimated, ever wonder why they never publish actual results?)
• FSIs (free standing inserts) –
performance unknown or estimated
-8- Augustine Fou

9. 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
-9- Augustine Fou

10. People search for products
People search for the products they want, not the brand in most cases
- 10 - Augustine Fou

11. Users look for context …
378 reviews
# of shares
November 26, 2012
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Augustine Fou

12. Dr. Augustine Fou – Agency Czar
“If the power has already shifted to
users, what do advertisers need to
do differently? Certainly shouting
louder and more often through one-
way push ads is not an answer.”
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