What is the breakdown between traditional and digital ad spending? And within digital what is the breakdown between branding and direct response?

1. marketing.scienceconsulting group, inc.
Digital vs Traditional
Branding vs Direct Response
June 2015
Augustine Fou, PhD.
acfou @ mktsci .com
212. 203. 7239

2. June 2015 / Page 1marketing.scienceconsulting group, inc.
Dr. Augustine Fou
U.S. Total Media Spending in Context (2015E)
TV is $69B Digital is $48B
TV DigitalPrint Radio
Out-of-Home $7 (4%)
Other $6 (3%)
$70 billion
38%
$53 billion
29%
$32
17%
$16
9%
Display
$6 billion
24%
Search
$14 billion
43%
Video $7 (13%)
Mobile
$9B$7B
display search
Other
$9
17%
Lead Gen $2 (4%)
• classifieds
• sponsorship
• rich media
Source: eMarketer $184B total (2015E)
$32B$38B
broadcast cable
branding performance
“Soup and Soda” “Cars and Computers”

3. June 2015 / Page 2marketing.scienceconsulting group, inc.
Dr. Augustine Fou
UPDATED: Full Year 2014 Digital Ad Spend – $50B
Impressions
(CPM/CPV)
Clicks
(CPC)
Leads
(CPL)
Sales
(CPA)
Search 38%
$18.8B
Video 7%
$3.5B
Lead Gen 4%
$2.0B
10% Other
$5.0B
Source: IAB, FY 2014 Internet Advertising Report, May 2015
$42.5B
Display 16%
$7.9B
Mobile 25%
$6.2B$6.2B
CPM Performance
• classifieds
• sponsorship
• rich media
$7.0B
(86% of digital spend)

4. June 2015 / Page 3marketing.scienceconsulting group, inc.
Dr. Augustine Fou
Spending in Digital is Mainly Performance

5. June 2015 / Page 4marketing.scienceconsulting group, inc.
Dr. Augustine Fou
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
65
52
42 44 44 40 38 35
28
42
Direct Response
Branding
Within Digital – Branding vs DR (May 2015)
Direct
response vs
branding by
industry
Travel is
heavily DR
while
entertainment
is mainly
branding
branding direct response
Source: eMarketer May 2015 via MarketingCharts

6. June 2015 / Page 5marketing.scienceconsulting group, inc.
Dr. Augustine Fou
0
10
20
30
40
50
60
70
80
90
100
retail finance automotive telecom CPG entertainment pharma travel cons.
electronics
indexed spend share
indexed fraud rate
Ad fraud impacts every industry vertical
High CPC
industries
Source: Ad spend share data from IAB, May 2015 | Fraud rate data from Integral Ad Science Q2 2014 Fraud Report
display (CPM) fraud search (CPC) fraud

7. June 2015 / Page 6marketing.scienceconsulting group, inc.
Dr. Augustine Fou
Future of Advertising – Continued Shift to Digital
2015
2018E - $136B
branding performance
“Soup and Soda” “Cars and Computers”
Television ($70B, 2015) Digital ($53B, 2015)
Display
(Facebook)
27%
Search
(Google)
52%
Other
21%55% 45%
Broadcast Cable
Television ($79B, 2018E) Digital ($82B, 2018E)
49%
Other
9%49% 51%
Broadcast Cable Branding
(Facebook)
Performance
(Google)
42%

8. June 2015 / Page 7marketing.scienceconsulting group, inc.
Dr. Augustine Fou
Dr. Augustine Fou – Digital Consigliere
“I advise clients on improving the impact of all of
their marketing by using each channel and tactic
optimally -- that is, traditional for branding and
digital for direct response. Tactics within each
channel can be more branding-like (e.g. display
ads) or more DR-like (e.g. search).”
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
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LinkedIn: https://www.linkedin.com/today/author/84444-augustinefou
212. 203. 7239 | acfou @ mktsci. com