There’s A Clear Shift Happening In TV Advertising (OMC)


tv viewer

Omnicom Group, the world’s second largest advertising holding company by revenue, just gave the market another major indication that TV dollars are moving to digital.

Speaking on the company’s third-quarter earnings call Tuesday, Omnicom Group CEO John Wren explained how the rise of programmatic advertising and the increase in quality inventory becoming available online over the past few months has seen a “rapid shift” in the way clients have been booking advertising.

Referencing the move from TV and traditional advertising to digital in particular, Wren said:

“Marketing budgets continue to grow and clients, especially when it comes to TV, there has been I’d say a shift when you look at traditional areas like the upfront and scatter market. If you went back a couple of years there was an urgency on the part of clients to make certain they didn’t miss out on the programming they want.

“With all the various choices of audiences you want to reach today and the ability to do it, there just wasn’t that urgency going into the upfront this year. And with respect to the scatter market, you are seeing money being diverted into other areas.

“I believe that trend will continue. I don’t believe TV is dead, but I believe there is going to be a shift.”

The upfront refers to the time of year when TV broadcasters sell all their advertising for their most attractive Fall programming ahead of time. The practice keeps the price of TV advertising high because it creates a short, limited window in which brands feel they need to lock in the best deals they can by buying in bulk.

The scatter market refers to TV advertising sold closer to the broadcast date. It is sometimes referred to as leftover advertising and is often sold at a far higher rate if the TV show pulls in bigger ratings than previously forecast.


Wren called to the move from traditional media buying to digital practices as “the shift from mass marketing to mass personalization.”  That shift isn’t new advertising money coming into the market. It’s TV advertising money (and other traditional advertising money) moving into more-measureable online advertising. That move from one pot to another was also referenced by Omnicom Media Group CEO Daryl Simm earlier this month when he said he was advising clients to shift as much as 25% of their TV budgets to online video.

Meanwhile in recent months Omnicom, which represents more than $50 billion in annual ad spend for clients like Apple and Pepsi, has signed huge global upfront advertising commitments with Instagram, Twitter, and the now Disney-owned YouTube content creator Maker Studios and became the first advertising network to trial Facebook’s new Atlas advertising platform.

All these stories compounded together ought to frighten TV broadcasters. They need to change their approach to selling, optimizing, and measuring advertising if they are to prevent this “shift” from rapidly decaying their businesses.

A shift is happening. But TV isn’t at all dead yet.

emarketerpngHowever, to put this into some perspective, TV advertising is projected by eMarketer to make up 38.1% of total US ad spend in 2014. Digital, meanwhile, is estimated to make up 28.2% of the total advertising outlay.

So even though eMarketer also predicts digital spend will overtake TV spend in 2018, there is still quite a way to go before we stop seeing 30-second ads on our TV sets. It’s also worth bearing in mind that broadcasters are ! also off ering digital advertising opportunities across their websites, video-on-demand platforms and apps, which can make up for some of the traditional advertising shortfall.

Omnicom also revealed on the earnings call that programmatic media buying — which makes the buying of media far easier than TV because the process is automated —accounts for just around 2% of the company’s revenue. However, with a recent Forrester study forecasting programmatic ad spend across North America will double to $39 billion by 2019, Wren said the company was ” rapidly evolving” its business to ensure it had the capability to serve clients in this area. There has been a “meaningful increase in demand” from clients for the company’s programmatic services over the last year, he added.

Omnicom Group’s third-quarter net revenue rose 7.4% to $3.75 billion, while net income increased 24.4% to $243.8 million. The company was boosted by strong advertiser demand in its home US market.

The earnings report came six months after the company’s proposed merger with Publicis Groupe to create the world’s biggest advertising group collapsed. The company said the pre-tax impact of the abandoned transaction in the year to date was $8.8 million, which was mainly spent on professional fees.

Tuesday, October 21st, 2014 digital No Comments

4 in 5 Companies Report Steady or Increasing CostsLead


A slim majority of marketers and salespeople from around the world say that their lead generation effectiveness is improving, while just 1 in 10 see it worsening, finds Ascend2 and its Research Partners in a new study[download page]. While that may be the case, respondents (chiefly B2B-focused) were more likely to say that their costs-per-lead are increasing (25%) than decreasing (19%).

Data quality appears to be a significant problem area in the report. In a worrisome juxtaposition, improving marketing data ranked last on the list of important lead generation objectives, even though lack of quality data and list resources tied with the lack of an effective strategy as the most challenging obstacle to lead generation success. Slightly fewer said that inadequate marketing budgets are most challenging.

Budgets, however, have been blamed for not meeting sales lead generation targets, according to a recent study from 360 Leads. Respondents to that study were more apt to blame budgets than data quality issues for missing their targets. Interestingly, marketing and sales respondents to the 360 Leads survey pointed the finger at internal company issues as a chief obstacle.

Monday, October 20th, 2014 digital No Comments

LinkedIn Revenue is a Rocketship


LinkedIn reported its earnings on Thursday, and the company beat Wall Street’s expectations across the board. The professional networking site reported $533.9 million in revenue, a big improvement over the $511 million analysts expected. And with several new products announced over the past few months, that revenue is expected to keep soaring.

According to company data charted for us by Statista, LinkedIn’s revenue keeps accelerating each quarter, even though its year-over-year growth had begun to slow down since 2011. Still, LinkedIn posted its first year-over-year growth improvement in several quarters, thanks to a 47% year-over-year increase in revenue, compared to 46% YOY growth last quarter.



Friday, August 1st, 2014 digital No Comments

drag2share: FORECAST: A Quarter Of Consumers’ Payment Card Transactions Will Be CardPresent By 2018


Card-not-present transactions include e-commerce and mobile payment transactions, online bill pay, over-the-phone transactions, and the like — basically any card-based transaction made without presenting a physical card to a merchant.

We arrived at our forecast based on data from the Federal Reserve, past growth trends, and our close tracking of the card payments industry.


US Card Transaction

Here is a look at share:

US Card Transaction Share

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Monday, July 21st, 2014 digital No Comments

drag2share: US E-Commerce Has Grown By Double Digits For The Past Fourteen Consecutive Quarters


E-commerce has been upending the retail industry over the past few years, and retailers are desperately trying to figure out the happy medium of how many stores they need to operate and how much to invest in e-commerce.

And, if comScore’s latest U.S. e-commerce data is any indication of what to expect this year, e-commerce sales will continue growing at a rapid pace. BI Intelligence has prepared the chart below, showing how e-commerce sales have trended since 2008.

  • PC-based e-commerce spending in the U.S. grew 12% year-over-year to $56.1 billion in the first quarter of 2014. This is the fourteenth quarter in a row that desktop-based e-commerce spending has grown by double digits.
  • Mobile-based e-commerce spending grew 23% year-over-year to $7.3 billion in the first quarter.
  • PC-based spending accounted for 88.5% of all e-commerce purchase volume in the first quarter. For comparison, PC-based spending accounted for 89.5% of all e-commerce spending in the first quarter of 2013, so mobile is taking up a bigger share of online purchases.

BI Intelligence, Business Insider’s premium research service, recently launched a new vertical dedicated to the e-commerce industry. Subscribe today to stay in the know on the rapidly changing e-commerce industry.

bii us ecommerce spending comscore

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Thursday, June 5th, 2014 digital No Comments

Augustine Fou’s Favorite NYC Places

Friday, May 23rd, 2014 digital No Comments

drag2share: BricksMortar Retailers Need To Start Going After ‘Reverse Showroomers’


With all the talk of showrooming — consumers armed with smartphones, comparing prices in-store — little has been made of the phenomenon known as reverse showrooming. Reverse showrooming, in which consumers compare prices online, but then go to the store to buy, is actually more common than showrooming and offers bricks-and-mortar retailers a real advantage over e-commerce only companies.

In the U.S., 69% of people have reverse showroomed, while only 46% have showroomed, according to a Harris poll.

In a recent report from BI Intelligence, we examine the numbers behind showrooming and reverse showrooming, what’s driving each trend, and what the different showrooming behaviors look like. We also look at what in-store advantages retailers have, and what they are doing both to capture in-store sales from reverse showroomers and to drive up purchases across channels.

Here are some of the key ways bricks-and-mortar retailers are leveraging their advantages to drive more reverse showrooming.

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Thursday, May 22nd, 2014 digital No Comments

Spending on programmatic digital display ads to jump nearly 600% in Brazil

When you read this:

Programmatic to See Big-Time Growth in Latin America, Fueled by Brazil

And you see this (Digital Attack Map – NOTICE BRAZIL)

digital attacks over time


Monday, May 19th, 2014 digital No Comments

What a Massive Digital Attack Looks Like

Source:  Google Digital Attack Map

Dec 26 2013 attack on the US

Dec 26 2013 attack on the US

digital attacks over time

Google Digital Attack Map

Google Digital Attack Map

visualization of DDoS attacks around the world

Saturday, May 17th, 2014 digital No Comments

Marketers’ Most Effective Word of Mouth Tactics


WOMMAAMA-Satisfaction-W-O-M-Social-Tactics-Apr2014About 9 in 10 marketers indicate that difficulty measuring offline word-of-mouth (W-O-M) marketing is an obstacle in pursuing a W-O-M strategy at their companies, and 8 in 10 concur with respect to difficulties measuring online social media marketing, according to full results from a survey by the Word of Mouth Marketing Association (WOMMA) and the American Marketing Association (AMA). Despite that, 2 in 3 believe that W-O-M is more effective than traditional marketing – and at least 7 in 10 are satisfied with a variety of tactics they’re using.

The survey measured usage of 19 word-of-mouth (WOM) and social media tactics, finding a broad range of adoption. At the top end, some 92% have experience with (82%) or are considering (10%) building and managing social media pages and profiles, while at the low end, only one-third have experience (13%) or are considering (20%) using agents for sampling.

For the most part, social media marketing tactics are being used by more respondents than offline W-O-M tactics; the researchers note that tactics that “delegate responsibility to consumers” are among the least-used, such as engaging fans in product development (16% with experience) and engaging fans in product development (26% with experience).

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Tuesday, April 29th, 2014 digital No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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