traditional advertising

The Marketing Continuum from Traditional to Digital

All tactics have their place:

– traditional advertising is great at awareness

– digital and “second screen” are great in the middle of the “purchase funnel” during consideration

– mobile and “the third screen” are great in the bottom part of the funnel for loaylty and advocacy


traditional advertising, digital marketing

all tactics have their place from traditional to digital along continuum




See also “The Future of Advertising” slideshare by Augustine Fou

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Tuesday, March 26th, 2013 digital No Comments

Power of Social Media Illustrated

Power of Social Media Illustrated by Augustine Fou from Dr Augustine Fou

“The power of ‘the people’ can now be rapidly and vigorously expressed through social media, to the point that big huge corporations are forced to cave and retract planned actions. Look for more of this and notice the impact on traditional advertising where brands can no longer just tell customers what they should think .. “

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Wednesday, March 28th, 2012 digital No Comments

This is what happens when 99% of the inefficiencies are cut out of a system (advertising industry)

Update: Including Q3 09 numbers


While no holding company’s results are pretty these days, Interpublic Group of Cos. last week posted particularly poor numbers, swinging to a net loss of over $35 million for the first nine months of 2009 from almost $60 million in profit during the same period in 2008. IPG’s third-quarter revenue fell 18% compared to declines of 14.4% at rival Omnicom Group, 8.7% at WPP (factoring out the effect of acquisitions and currency shifts) and 5.3% at Publicis Groupe. WPP’s reported revenue, including revenue from its big Taylor Nelson Sofres acquisition, rose 16.7%. In the same quarter, net income attributable to IPG tumbled 47.3%, more than double the drop of Omnicom (down 22.5%).


Google changed the game by changing the business model from paying for impressions to paying only when the advertiser gets the click.  This helped to cut out the 99% of waste and inefficiency which existed in the industry.

WPP Profit Dropped 47% in Second Quarter More Than Half of Company’s Revenue Came From Nontraditional Advertising

NEW YORK ( — Using words such as “severe” and “surprise” to describe the recession’s impact on its business, WPP, the world’s largest advertising conglomerate, today said its profit was down 47% for the second quarter. And WPP Chief Executive Martin Sorrell said it will be a while before marketing executives begin to spend and take chances the way they did just a few years back.



In a first half earnings statement released this morning, WPP Group announced that digital and direct marketing-related services now comprise 25% of its body.

WPP Group owns labels like 24/7 Real Media, Mediaedge:cia, MediaCom, Mindshare, GroupM and Outrider.

Digital and direct garnered $1.7 billion in revenues in the first half of ‘09, with a projected annual run rate of nearly $3.5 billion total. But it is digital media and advertising that appear to be dominating the segment.

Overall, first half revenues fell 2.9% to $6.4 billion in the first half on a reported basis, MediaPost reports. Like-for-like, however, total revenues slid 8.3% against the first half of 2008.

According to WPP, traditional advertising and “media investment management” have been the hardest-hit amidst the economic downturn.

“On a constant currency basis, advertising and media investment management revenues fell by 7.5%, with like-for-like revenues down 7.8%,” it stated.

Branding and identity, healthcare and specialist communications — which includes direct, internet and interactive — were least affected.

The media conglomerate committed to prioritizing the growth of digital communications, customer insights and strong geographic markets.

Related topics: Online Advertisers, Data Updates,


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Thursday, August 27th, 2009 digital 1 Comment

I know I am wasting my ad dollars…

I know I am wasting half of my ad dollars; I just don’t know which half — is more like “I know I am wasting 99% of my ad dollars and I know which 99%”  — banner ad click through rates are generously at 1%, which means the other 99% is known to be wasted — no more guessing necessary.

Digital advertising is more efficient than traditional advertising and is more measurable (despite being called “unmeasured” media by traditional measurement purveyors — you know who you are). In traditional advertising the advertiser pays for 100% of the media costs (e.g. pay to air the ad on TV, pay to print the ad in magazines, pay for banner ad impressions). If banner ad click through rates are an indication of what percent of targeted users actually like the ad, then only 1% like the ad or the message. So the other 99% either didn’t like it, didn’t see it, or didn’t think it was relevant at the time.

Google changed the game by charging advertisers only for the 1% that clicked (pay per click) not for how many times the ad was aired (impressions, pay per thousand). If advertisers are paying only for the click and not for the 99% other impressions that did not get any clicks, then the 99% of waste is eliminated — making the entire system more efficient.

Now that advertisers have a way to pay for ONLY the “audience” that wants what they are advertising (they show this interest by clicking) there is no need to re-aggregate audiences. When a user searches for something, that is when they are interested or are researching. That is the only time advertisers need to show ads. Any other time, it would be wasted. Large audiences were useful in the “olden ages” of television, print, radio, and banner ad advertising. Large audiences are no longer necessary because advertisers should only care about the 1% that may be interested anyway. Advertisers can save the 99% of media cost that is known to be wasted — good for the advertiser, bad for the media companies.

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Monday, July 13th, 2009 digital No Comments

The ROI of Social Media is ZERO

What is the ROI (define) for social media? It’s zero. That’s because there’s no such thing as “social media.”

People’s conversations are not media; they can’t be purchased as such by advertisers. In other words, people don’t talk whenever advertisers want them to and they won’t say whatever advertisers tell them to — so it isn’t “media” like TV, print, and radio.

If you treat people’s conversations as media, you’d be doing it wrong. Social marketing done right means asking for and respecting people’s conversations and giving them a public place to talk so others can hear. If the advertiser’s product is already great, much of the conversation will be positive. But even if it isn’t the advertiser will have the benefit of free “product research” because people will give them ideas for improvement.


Untargetables are hard to reach. Unreachables are not reachable by traditional advertising media or channels.

read more about the ROI of social media on ClickZ …

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Friday, April 10th, 2009 integrated marketing 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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