stats on the shift of ad dollars from traditional to digital and then allocations within digital channel.

1. Shift from
Traditional to
Digital
Dr. Augustine Fou
http://www.linkedin.com/in/augustinefou
July 18, 2012.

2. Marketing Budget and Digital Allocation
Media – marketing budgets are 12.7% of
revenues; digital is 3.9%
Financial services – 10.6% marketing;
2.4% digital
Manufacturing – 10.6% marketing; 2.8%
digital
Retail – 10.6% marketing; 2.5% digital
Healthcare – 9.2% marketing; 2.2% digital
High-Tech – 9.1% marketing; 2.3% digital
Overall – 10.4% of revenues is used for
marketing; 2.5% for digital
(digital is 22.5% of total marketing spend
on average across industries)
Source: eMarketer March, 2013
July 18, 2012 2

3. Allocation to Digital 2010
51% of advertisers
have between 0 – 30%
of their budget
allocated to digital
29% of advertisers
have 31 – 70% of their
budget in digital
21% of advertisers
have 71 – 100% of
their budgets allocated
to digital
July 18, 2012 3

4. Allocation Within Digital
Shifting to more
performance oriented
Off site social media investment
tactics
On-site social media investment
Search engine optimization (natural search) Shifting to social
Mobile marketing channels where users
Email marketing (for retention) help amplify and pass-
along
Email marketing (for acquisition)
Paid search (PPC) Shifting to tactics that
Online display advertising yield longer lasting
Affiliate marketing pay-off (user reviews)
versus paid campaigns
which are over after
the media buy ends
July 18, 2012 4

5. From CPM to Performance
Source: IAB/PwC FY 2011 Report, April 2012

6. 2009 Brand, DR, Digital
Digital ($24B) is equivalent to
1/8th of the total brand spend
($147B) in the U.S.
Digital ($18B) is equivalent to
33% of the Direct Response
spend in the U.S. in 2009
July 18, 2012 6

7. Dr. Augustine Fou – Chief Digital Strategist
“I advise clients on shifting their
marketing mix among traditional
and digital tactics, and unifying
them to work optimally together.”
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
July 18, 2012 7
acfou@mktsci.com

8. APPENDIX

9. Major Media Ad Spending
Source: eMarketer March 2011