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Augustine Fou- 1 -
Brands Insourcing
Advertising Functions
Dr. Augustine Fou
http://linkd.in/augustinefou
acfou @mktsci .com
June 2014
Augustine Fou- 2 -
P&G Programmatic
Source: Adage June 2014 -- Procter &
Gamble Aims to Buy 70% of Digital Ads
Programmatically
P&G, which declined to comment, spent
$235 million of its $3.2 billion in
measured media last year on internet
display advertising, according to WPP's
Kantar Media.
With its own trading desk, P&G
essentially eliminates middle players,
though not ad networks.
Augustine Fou- 3 -
Apple Advertising
Source: Engadget June 2014 --
Apple turns up its advertising
push with plans for 1,000-person
internal agency
Augustine Fou- 4 -
Source: ANA via eMarketer, Sept 2013
Brands Use In-House “Agencies”
- 4 -
56% have
already
started
moving
work in-
house to
save costs
Augustine Fou- 5 -
Source: ANA via eMarketer, Sept 2013
What In-House “Agencies” Do
- 5 -
• Magazine ads
• Social media
• Online display ads
• Search engine marketing
• Newspaper ads
• Search engine optimization
• Mobile advertising
• Out of home advertising
• Radio advertising
• Tv advertising
• Social Media
• Display Ads
• Search Marketing
• Search Optimization
• Mobile Ads
Are being done in house
because they can buy direct
or use ad networks
themselves.
Augustine Fou- 6 -
Dr. Augustine Fou – Digital Consigliere
“I study trends and advise clients on
staying on trend or getting out in front of
them. As clients move specific tasks in-
house, agencies need to more quickly
reinvent themselves and their revenue
streams.”
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
@acfou
ClickZ Articles: http://bit.ly/augustine-fou-clickz
Slideshares: http://bit.ly/augustine-fou-slideshares
LinkedIn: https://www.linkedin.com/today/author/84444-augustinefou
Augustine Fou- 7 -
Related Articles
Augustine Fou- 7 -
http://www.slideshare.net/augustinefou/investment-thesis-ad-agency-sector-
by-augustine-fou-april-2014
http://www.slideshare.net/augustinefou/ad-fraud-estimates-by-augustine-fou-
technical-forensics-32293935
http://www.slideshare.net/augustinefou/agencies-are-being-disintermediated-
by-augustine-fou-digital-consigliere
http://www.slideshare.net/augustinefou/evolution-of-agency-compensation-
by-augustine-fou-chief-digital-officer
http://www.clickz.com/clickz/column/2205122/the-agencyclient-
relationship-is-forever-changed

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Brands Insourcing Advertising Functions by Augustine Fou 2014

  • 1. Augustine Fou- 1 - Brands Insourcing Advertising Functions Dr. Augustine Fou http://linkd.in/augustinefou acfou @mktsci .com June 2014
  • 2. Augustine Fou- 2 - P&G Programmatic Source: Adage June 2014 -- Procter & Gamble Aims to Buy 70% of Digital Ads Programmatically P&G, which declined to comment, spent $235 million of its $3.2 billion in measured media last year on internet display advertising, according to WPP's Kantar Media. With its own trading desk, P&G essentially eliminates middle players, though not ad networks.
  • 3. Augustine Fou- 3 - Apple Advertising Source: Engadget June 2014 -- Apple turns up its advertising push with plans for 1,000-person internal agency
  • 4. Augustine Fou- 4 - Source: ANA via eMarketer, Sept 2013 Brands Use In-House “Agencies” - 4 - 56% have already started moving work in- house to save costs
  • 5. Augustine Fou- 5 - Source: ANA via eMarketer, Sept 2013 What In-House “Agencies” Do - 5 - • Magazine ads • Social media • Online display ads • Search engine marketing • Newspaper ads • Search engine optimization • Mobile advertising • Out of home advertising • Radio advertising • Tv advertising • Social Media • Display Ads • Search Marketing • Search Optimization • Mobile Ads Are being done in house because they can buy direct or use ad networks themselves.
  • 6. Augustine Fou- 6 - Dr. Augustine Fou – Digital Consigliere “I study trends and advise clients on staying on trend or getting out in front of them. As clients move specific tasks in- house, agencies need to more quickly reinvent themselves and their revenue streams.” 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 @acfou ClickZ Articles: http://bit.ly/augustine-fou-clickz Slideshares: http://bit.ly/augustine-fou-slideshares LinkedIn: https://www.linkedin.com/today/author/84444-augustinefou
  • 7. Augustine Fou- 7 - Related Articles Augustine Fou- 7 - http://www.slideshare.net/augustinefou/investment-thesis-ad-agency-sector- by-augustine-fou-april-2014 http://www.slideshare.net/augustinefou/ad-fraud-estimates-by-augustine-fou- technical-forensics-32293935 http://www.slideshare.net/augustinefou/agencies-are-being-disintermediated- by-augustine-fou-digital-consigliere http://www.slideshare.net/augustinefou/evolution-of-agency-compensation- by-augustine-fou-chief-digital-officer http://www.clickz.com/clickz/column/2205122/the-agencyclient- relationship-is-forever-changed