business impact

Advertising Outlook 2012 – 2016

1. the overall advertising “pie” will shrink because the new efficiencies enabled by “digital” will allow advertisers to spend less (e.g. media placement dollars) and still drive the same or greater business impact

2. there will be a continued shift to digital, especially for companies that have products that benefit from more consumers coming online to do more research — e.g. bigger ticket items or items that require more consideration and research

3. because of the massive reach of Facebook, it will siphon branding dollars that used to be allocated to traditional one-way mass media such as TV; but in the short term magazines and newspapers will “hurt” the most, since they can’t even offer competitive mass reach any more – relative to Facebook.

Trends in Advertising by Augustine Fou Chief Digital Strategist from Dr Augustine Fou

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Thursday, November 29th, 2012 digital No Comments

Few are ready or able to do real-time optimization

According to this study by Acxiom and Digiday in December 2011.  But from my perspective there are far more low-hanging fruit that can be harvested to yield bigger business impact before we even get to real-time optimization. 

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Wednesday, July 18th, 2012 news No Comments

RTB – real-time bidding may make ad exchanges more efficient, but it still won’t save display (ads)

in response to this mediapost article
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=113621

While RTB will make ad exchanges even more efficient, it may not be that necessary.

RTB depends on 3 things: 1) inventory, which depends on how many people hit the page to generate an impression, 2) clicks, which depend on people clicking something, and 3) bidders, the more niche you get, the fewer bidders there will be.  Inventory does not change rapidly. Clicks take time to accumulate (to yield click rates, which are a necessary ingredient in the RTB calculation). And if there are too few bidders the price of the auction “item” won’t appreciate or depreciate much or rapidly. Because of these 3 things, making bidding real-time versus non-real-time (i.e. overnight) may not make it significantly better or move the needle much on efficiency and ROI.

And RTB will still not save “display” ads. The golden age of display was in the mid 90s when people tolerated ads when they read content. They are now trained to avoid looking at the top and right of web pages So while RTB may increase the ROI of display ads by increasing click rates from a percentage with too many zeros to count to something sligtly higher, display ads are still ignored by users and will still not generate measurable business impact for advertisers.

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Saturday, September 19th, 2009 display advertising 1 Comment

Two viral campaigns – one drove sales, the other probably didn’t

Samsung’s extreme sheep LED art video went viral and was definitely passed along as the bit.ly stats show below, but whether it drove sales for Samsung, or whether people even knew what it meant (Samsung makes LED lit LCD TVs), no one will really know.

Whereas JetBlue’s All-You-Can-Jet Pass also went viral (similar order of magnitude of shares, again by way of the bit.ly stats) and it led straight to the page about the All-You-Can-Jet Pass where users could then go on to buy it.

In the case of Samsung, the video was cool, entertaining, and unexpected and went viral. But the link to sales was tenuous at best. In the case of JetBlue, the product itself went viral and the link to sales was direct.

Hmm…  which had a larger business impact?  you tell me.

samsung-extreme-sheep-LED-art

jetblue-all-you-can-jet

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Friday, September 11th, 2009 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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