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Consumers are
Empowered and
Savvy    Dr. Augustine Fou
         http://linkd.in/augustinefou
         February 14, 2013.
Consumers Skip TV Ads
      comScore (Dec 2009) estimates of the TV watched
      54 – 65% is time-shifted.
      Nielsen (Dec 2010) estimates 44% of ads are not
      skipped – i.e. 56% of ads ARE SKIPPED

      IPG/YuMe (May 2011) study found 63%     of TV
      ads are avoided or simply ignored.

-2-                                                Augustine Fou
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

-3-                                                         Augustine Fou
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
Users Revolt in Social
Forces Instagram to revert to old Terms of Service

                                   Enormous public outcry
                                   spread through social
                                   media forced Instagram
                                   to publicly apologize
                                   and revert to old terms
                                   of service where they
                                   won’t sell users photos
                                   or use them in ads.


  Source: Gizmodo Dec 20, 2012

-5-                                               Augustine Fou
Users click on natural results
                                                  Most users
                                                  click on
                                                  natural search
                                                  results
                     15-25% of clicks             Natural results
                       1-9% avg CTRs              have 10x the
                                                  click through
                                                  rate of paid ads
   75-85% of clicks
   13-21% avg CTRs


             Source: go-Digital Blog, July 2012
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
-7-                                                                Augustine Fou
Users rise up in
social media

-8-                Augustine Fou
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

March 28, 2012                                 9
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




March 28, 2012                                     10
So What?
   “The fact that you sent it out, doesn’t mean
   users received, opened, or used it. Digital
   technologies and the internet have
   empowered consumers to a point where they
   have entirely turned the tables on
   advertisers, who must change the way they
   do marketing in response.”
                         -- Dr. Augustine Fou
- 11 -                                     Augustine Fou
Dr. Augustine Fou – Chief Digital Strategist
 “I analyze trends and advise
 clients on how to take
 advantage or to stay away.”
 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

acfou@mktsci.com                                                    12

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Consumers Are Empowered and Savvy by Augustine Fou Chief Digital Officer

  • 1. Consumers are Empowered and Savvy Dr. Augustine Fou http://linkd.in/augustinefou February 14, 2013.
  • 2. Consumers Skip TV Ads comScore (Dec 2009) estimates of the TV watched 54 – 65% is time-shifted. Nielsen (Dec 2010) estimates 44% of ads are not skipped – i.e. 56% of ads ARE SKIPPED IPG/YuMe (May 2011) study found 63% of TV ads are avoided or simply ignored. -2- Augustine Fou
  • 3. 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 -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 Revolt in Social Forces Instagram to revert to old Terms of Service Enormous public outcry spread through social media forced Instagram to publicly apologize and revert to old terms of service where they won’t sell users photos or use them in ads. Source: Gizmodo Dec 20, 2012 -5- Augustine Fou
  • 6. Users click on natural results Most users click on natural search results 15-25% of clicks Natural results 1-9% avg CTRs have 10x the click through rate of paid ads 75-85% of clicks 13-21% avg CTRs Source: go-Digital Blog, July 2012
  • 7. 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 -7- Augustine Fou
  • 8. Users rise up in social media -8- Augustine Fou
  • 9. 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 March 28, 2012 9
  • 10. 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 March 28, 2012 10
  • 11. So What? “The fact that you sent it out, doesn’t mean users received, opened, or used it. Digital technologies and the internet have empowered consumers to a point where they have entirely turned the tables on advertisers, who must change the way they do marketing in response.” -- Dr. Augustine Fou - 11 - Augustine Fou
  • 12. Dr. Augustine Fou – Chief Digital Strategist “I analyze trends and advise clients on how to take advantage or to stay away.” 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 acfou@mktsci.com 12