Digital ad spending is expected to hit $50B in the U.S. Retail, financial services, auto, telecom, and CPG remain the top 5 spenders in digital.

1. Augustine Fou- 1 -
Digital Ad Spending
March 2014 Data
Dr. Augustine Fou
http://linkd.in/augustinefou
acfou @mktsci .com
May 2014

2. Augustine Fou- 2 -
Digital Ad Spending
by industry
Source: eMarketer March 2014

3. Augustine Fou- 3 -
2014
59% performance
41% branding
2013
65% performance
33% branding
Branding vs Performance
Augustine Fou- 3 -
In 2013 digital was 65%
performance and 33% branding
In 2014 and beyond, marketers
are looking for more branding

4. Augustine Fou- 4 -
Ad spending in the U.S.
Source: IAB Full Year 2013 reportIn 2013
Performance 65%
CPM/Impressions 33%
Hybrid/Other 2%
Digital is Performance
Augustine Fou- 4 -

5. Augustine Fou- 5 -
Source: Gartner March 2013
Allocation of Digital Budget

6. Augustine Fou- 6 -
How They Spend Within Digital
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Direct Response
Branding
Direct
response vs
branding by
industry
Travel is
heavily DR
while
entertainment
is mainly
brandingbranding direct response
Direct response (performance) vs Branding by Industry

7. Augustine Fou- 7 -
eMarketer Dec 2013
CPG and entertainment
focused their digital ad
spend on branding like
tactics (display ads, video
ads) while travel and
retail focused their digital
ad spend on direct
response tactics like
search and content.

8. Augustine Fou- 8 -
Related Articles
Future of Advertising
By: Augustine Fou, March 2013
Why Digital Kicks Traditional
By: Augustine Fou, March 2012
Video Ads Destroy TV Ads
By: Augustine Fou, April 2012
Mythbusting Advertising
By: Augustine Fou, June 2012
Augustine Fou- 8 -
State of Online Video Ads
By: Augustine Fou, December 2013
How Display Fraud Works
By: Augustine Fou, May 2013
How Click Fraud Works
By: Augustine Fou, November 2013
The Biggest Lies of TV Advertising
By: Augustine Fou, May 2012

9. Augustine Fou- 9 -
Dr. Augustine Fou – Digital Consigliere
“I advise clients on optimizing
advertising across all channels. Using
insights and fast-feedback loops from
digital, we can not only target brand ads
better, but we can shift towards more
detailed measurement and ROI.”
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
@acfou
ClickZ Articles: http://bit.ly/augustine-fou-clickz
Slideshares: http://bit.ly/augustine-fou-slideshares
LinkedIn: http://linkd.in/augustinefou

10. Augustine Fou- 10 -
APPENDIX

11. Augustine Fou- 11 -
eMarketer Dec 2013
Retail was the biggest
spender (in dollar
amount), followed by
financial services and
automotice.