TV is $68B and Digital is $48B in 2014. Digital is projected to catch up to TV ad spending by 2017-18.

1. TV is $69B Digital is $48B
TV vs Digital Ad Spend
TV DigitalPrint Radio
Out-of-Home $8 (5%)
Other $2 (1%)
$75 billion
42%
$43 billion
24%
$32
18%
$17
10%
Display
$8 billion
19%
Search
$18 billion
43%
Video $3 (7%)
Mobile
$4B$3B
display search
17%
Other
$5
11%
Lead Gen $2 (4%)
• classifieds
• sponsorship
• rich media
Source: IAB Full Year 2013 report
Augustine Fou- 1 -
branding performance
$34B$40B
broadcast cable

2. TV is $69B Digital is $48B
Broadcast vs Cable TV
Broadcast
$40 billion
Cable
$34 billion
Source: IAB Full Year 2013 report
54% 46%
Augustine Fou- 2 -
TV DigitalPrint Radio
Out-of-Home $8 (5%)
Other $2 (1%)
$75 billion
42%
$43 billion
24%
$32
18%
$17
10%$34B$40B
broadcast cable
branding performance

3. In 2013
Digital marketing was $42B
Broadcast TV was $40B
Cable TV was $34B
Network TV vs Cable TV
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Source: IAB Full Year 2013 report
$175B total ad spending

4. Broadcast TV $20 cpm
Cable TV $18 CPM
Radio $5 cpm
Magazines $20
Newspaper $35
Out of Home $4
Internet $11
Direct mail $40 CPM
Comparative Media Costs
Cost per Thousand (CPM): Cost to reach 1,000 users or impressions
Source: OAAA, 2011
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5. Dr. Augustine Fou – Agency Czar
“I advise clients on optimizing ads
and ad spend across all channels –
offline and online.”
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://bit.ly/augustine-fou-clickz
Slideshares: http://bit.ly/augustine-fou-slideshares
LinkedIn: http://linkd.in/augustinefou

6. Related Slideshares
http://www.slideshare.net/augustinefou/digital-advertising-benchmarks-2014-by-
augustine-fou
http://www.slideshare.net/augustinefou/mythbusting-tv-advertising-by-augustine-fou
http://www.slideshare.net/augustinefou/effectiveness-of-digital-ads-by-augustine-fou
http://www.slideshare.net/augustinefou/left-side-is-branding-right-side-is-performance-by-
augustine-fou
http://www.slideshare.net/augustinefou/digital-time-per-week-surpasses-tv-time-per-week-
by-augustine-fou
http://www.slideshare.net/augustinefou/video-ads-vs-tv-ads-by-the-numbers-comparison-
by-augustine-fou
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7. APPENDIX

8. Left-side Right-side
branding performance
“Soup and Soda” “Cars and Computers”
• Low cost
• Low complexity
• Low consideration
• High cost
• High complexity
• High consideration

9. In 2012
TV advertising is $64 billion
Digital marketing was $38 billion
TV vs Digital Ad DollarsTV advertising market size vs digital marketing total spend
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Source: PwC via MarketingCharts Dec 2013

10. Major Media Ad Spending
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2013
TV Ad Spend
$66B
Internet Ad
Spend
$42B