PMI Conference Traditional to Digital to Performance by Augustine Fou
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performance is the new mindset that should make all advertising and marketing better.
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PMI Conference Traditional to Digital to Performance by Augustine Fou
- 1. From Traditional to Digital to Performance Dr. Augustine Fou http://linkd.in/augustinefou March 12, 2013 -1- Augustine Fou
- 2. -2- Augustine Fou
- 3. Context of my thinking ... Marketing and Advertising Chief Digital Officer, HCG (Omnicom) Digital Business Strategy Technology / Innovation McKinsey Consultant PhD, MIT Mat‟l Science -3- Augustine Fou
- 4. Background Stats -4- Augustine Fou
- 5. Internet Adoption On Average 78% use internet Source: Pew Internet, April 2012 -5- Augustine Fou
- 6. Smartphone Ownership 34-66% use smartphones Source: Pew Internet, Jan 2012 Source: Pew January 2012 -6- Augustine Fou
- 7. Use of Social Networks Source: Pew February 2012 -7- Augustine Fou
- 8. Top Online Activities Source: Pew Internet, April 2012 -8- Augustine Fou
- 9. -9- Augustine Fou
- 10. Time Spent with Media - 10 - Augustine Fou
- 11. Newspaper Ads Declining Classified ad revenue Overall ad revenues fell declining since 2000 off cliff (back to 1950‟s levels) - 11 - Augustine Fou
- 12. Newspaper Companies Gannett Co., Inc. (GCI) - $3.4B market cap July 2012 New York Times (NYT) - $1.1B market cap July 2012 Both off 70-80% since 2007 peak - 12 - Augustine Fou
- 13. Magazine Ads Declining Circulation declining Ad prices pressured by online alternatives Shift away from reach to performance - 13 - Augustine Fou
- 14. Magazine Companies Meredith Corp (MDP) - $1.4B market cap July 2012 Martha Stewart (MSO) - $235M market cap July 2012 Off 50% (MDP) and 80% (MSO) since 2007 peak - 14 - Augustine Fou
- 15. Comparing Costs of Media Normalizing (CPM) cost to reach 1,000 users or impressions Elle Magazine Superbowl 2013 Websites/Digital Circulation 1.1M Audience 108M Target Audiences $156k /pg $4M /30s eCPM: $1‟s of dollars eCPM: $141 eCPM: $37 Source: AP March 10, 2013 - 15 - Augustine Fou
- 16. From Traditional to Digital Television is 42% Online is 38% Source: IAB and Business Insider Oct 2012 - 16 - Augustine Fou
- 17. Audience Characteristics Are Also Changing - 17 - Augustine Fou
- 18. Users watch what they want Broadcast Cable Online Video mass audience niche audience individuals ‟80s-‟98 ‟99-‟12 ‟05-pres - 18 - Augustine Fou
- 19. When they want … 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 - 19 - Augustine Fou
- 20. On whatever device … Source: Google, August 2012 Multi-screen World - 20 - Augustine Fou
- 21. Users go where they want … Content Portals Major Blogs Facebook Twitter audience size - 21 - Augustine Fou
- 22. Users share more online … HTML Coding Blogs Social Networks <!DOCTYPE html> <html> <body> <h1>My First Heading</h1> <p>My first paragraph.</p> </body> </html> only developers writers/individuals everyone „90s 2000s ‟05-pres - 22 - Augustine Fou
- 23. 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 - 23 - Augustine Fou
- 24. 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 - 24 - Augustine Fou
- 25. Search is more efficient... Pay for impressions CPM CPC Pay for clicks … pay only for results (clicks). - 25 - Augustine Fou
- 26. From CPM to Performance Source: IAB, PwC April 2012 - 26 - Augustine Fou
- 27. Consumers Are Empowered and Savvy - 27 - Augustine Fou
- 28. 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 - 28 - Augustine Fou
- 29. 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 - 29 - Augustine Fou
- 30. Users Ignore/Delete Email “this is what gmail filters are made for!” Source: Feb 24, 2012 “2012 Digital Advertising Attitudes Report” via @eMarketer - 30 - Augustine Fou
- 31. Users Revolt in Social Forces BofA to rescind $5 monthly debit card fee - 31 - Augustine Fou
- 32. Feb 2013 – Tesla Owners Refute Falsified NYTimes Report NYTimes reporter seemingly deliberately ran down the battery and reported negatively on the Tesla S. Now owners set out to publicly refute the report. Source: Gizmodo Feb 18, 2013 - 32 - Augustine Fou
- 33. Feb 2013 – Maker‟s Mark Reverses Decision to Water Down Whiskey drinkers didn‟t like the idea of their drink being diluted yet still cost the same price. Source: Business Insider, Feb 17, 2013 - 33 - Augustine Fou
- 34. Users Exert Their 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 - 34 - Augustine Fou
- 35. People search for products People search for the products they want, not the brand in most cases - 35 - Augustine Fou
- 36. David Beckham vs H&M - 36 - Augustine Fou
- 37. Adriana vs Teleflora - 37 - Augustine Fou
- 38. Users look for context … 378 reviews # of shares - 38 - Augustine Fou
- 39. 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” … and ads the least. - 39 - 26, 2012 November 39 Augustine Fou
- 40. From CPM to CPC to CPA $7 CPM means $70 ad spend on CPM basis $1 CPC means $100 ad spend on CPC basis CPA is lowest risk and most cost effective 1% CTR 1% conversion $20 avg ticket, 5% 10,000 impressions 100 clicks 1 purchase $1 rev share (CPM) (CPC) (CPA) - 40 - Augustine Fou
- 41. Beyond Performance As “Affiliate” - 41 - Augustine Fou
- 42. Conversations Offline conversations now online - 42 - Augustine Fou
- 43. Likes / Fans Brands now have direct access to users 14 million fans historic images 25,495 like the item 1,168 comments - 43 - Augustine Fou
- 44. User Reviews Reviews from others who bought and used - 44 - Augustine Fou
- 45. Selecting Optimal Words How do we ensure our content is findable “baby bedding” is the way more users search; 16x more than “infant bedding” - 45 - Augustine Fou
- 46. Some visitors are more valuable Visitors from display ads Visitors from search Source: Google Analytics Sample CPG client … site analytics show they stayed and engaged. - 46 - Augustine Fou
- 47. What words to use? How do we describe LinkedIn to small biz cardholders “Business Networking?” “Computer Networking?” “Professional Networking?” “Social “Networking?” Networking?” - 47 - Augustine Fou
- 48. Godaddy – Superbowl Ads Search volume rises with Superbowl ads and NASCAR sponsorship SuperBowl Ads NASCAR - 48 - Augustine Fou
- 49. Subway Footlongs Launched in early 2008, but waning interest TV Ads started - 49 - Augustine Fou
- 50. Study Cause and Effect Purell demand and search volume lifted swine flu swine flu drove 1st peak h1n1 h1n1 drove 2nd peak - 50 - Augustine Fou
- 51. Demand Planning See when users search for which products chocolate covered strawberries (Valentine‟s) chocolate covered cherries (Christmas) - 51 - Augustine Fou
- 52. Grandma with Harley Harley would usually not advertise to her because she is not in their typical demographic, but ... - 52 - Augustine Fou 52
- 53. Grandma with Harley But .. when she comes online to search, our job as marketers is to make sure she can find the information she needs … and quickly get to the purchase. - 53 - Augustine Fou 53
- 54. Marketing in a Digital World Traditional Advertising Marketing in Digital World 1. Who is our target 1. What information does customer? target user need? 2. What message do we 2. Do we have that info push/shout at them? available? 3. Where do we stick the 3. Is it optimized so they can message? find and use it? storytelling performance - 54 - Augustine Fou
- 55. Traditional Digital Performance - 55 - Augustine Fou
- 56. Performance is … - 56 - Augustine Fou
- 57. Burberry – direct interactions 14 million fans historic images 25,495 like the item 1,168 comments - 57 - Augustine Fou
- 58. A Direct Way to Interact Brands have more fans than top TV shows in viewership Brands’ Facebook Top TV Shows Burberry 12.6M 8.4M Once Upon A Time Dior 7.8M 8.5M Desperate Housewives Gucci 7.6M 8.6M Rules of Engagement Louis Vuitton 7.3M 8.9M Touch Chanel 6.5M 9.5M CSI: NY Dolce & Gabbana 5.3M 9.7M Body Of Proof Ralph Lauren 4.9M 10.0M SURVIVOR: ONE WORLD Calvin Klein 4.0M 10.1M 60 Minutes Coach 3.3M 10.5M Unforgettable Armani 3.1M 10.7M Blue Bloods Prada 1.7M 12.0M The Voice Fendi 1.6M 14.0M Big Bang Theory Versace 0.8M 14.6M Person Of Interest Cartier 0.7M 18.0M Dancing with the Stars Hermes 0.6M 18.6M NCIS Source: Facebook, April 2012 Source: TVByTheNumbers, April 2012 - 58 - Augustine Fou
- 59. A Direct Way to Interact Brands have more fans than top magazines have circulation Brands’ Facebook Top Magazines Burberry 12.6M 1.0M Marie Claire Dior 7.8M 1.0M GQ Gucci 7.6M 1.1M Lucky Louis Vuitton 7.3M 1.1M Elle Chanel 6.5M 1.2M Vanity Fair Dolce & Gabbana 5.3M 1.3M Vogue Ralph Lauren 4.9M 1.5M Self Calvin Klein 4.0M 1.5M Fitness Coach 3.3M 1.6M Shape Armani 3.1M 1.7M InStyle Prada 1.7M 2.0M Real Simple Fendi 1.6M 2.0M Seventeen Versace 0.8M 2.4M Glamour Cartier 0.7M 3.0M Cosmopolitan Hermes 0.6M 3.6M People Source: Facebook, April 2012 Source: Wikipedia, 2H 2011 - 59 - Augustine Fou
- 60. Social Actions Are Free Paid Advertising Social Actions 10k Impressions People telling people can lead to the same 1 action for FREE 0.001% click- rate Share, recommend, comment, rate, etc. 1 action (go to website) 1 action (go to website) … and more effective (comes from a friend) - 60 - Augustine Fou
- 61. Timex – real-time insights Which styles are being searched for What users spend time viewing on site What users are buying - 61 - Augustine Fou
- 62. Starbucks – ideation/innovation Leveraged the community to source and prioritize ideas. - 62 - Augustine Fou
- 63. Netflix (b2c) Leveraged their Facebook fan base (1.6M) to do continuous customer research by asking questions and posting useful content. - 63 - Augustine Fou
- 64. B2B Enterprise Demo videos for IT Professionals, prop erly SEO‟ed with technical terms - 64 - Augustine Fou
- 65. Act of Loyalty - 65 - Augustine Fou
- 66. Integrating “Long Lasting”.. paid marketing campaigns sustained organic traffic …digital techniques - 66 - Augustine Fou
- 67. Performance is … • A digital tactic (affiliate) • A business/pricing model • Speedy innovation • Efficient organization • THE new mindset - 67 - Augustine Fou
- 68. Dr. Augustine Fou – Agency Czar “I study trends and advise clients on optimizing their marketing mix as well as increasing efficiency and effectiveness of current tactics.” 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 - 68 - Augustine Fou