what tactics digital marketing budgets are spent on; how to allocate digital marketing budgets, best practices for digital marketing mix

1. Augustine Fou- 1 -
Percent allocated to digital
Digital share of marketing budget
Digital marketing budget by industry
Digital marketing budget 2013
Digital Ad Spend by Industry
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
branding
branding direct response

2. Augustine Fou- 2 -
Marketers from companies with more than $500 million in annual
revenue are devoting the largest portion of their digital marketing
budgets to digital or online advertising (12.5%) and content creation
and management (11.6%), per survey results from a Gartner report.
Those results reflect the ongoing growth of online ad spend in the
US, as well as the continued rise in importance of content
marketing. The study also finds that 28% of respondents reduced
their traditional advertising budget to fund digital marketing
activities, a finding supported by various pieces of research showing
such a shift in the media mix.
Still, a plurality 41% of respondents say that they are funding their
digital marketing activities through the savings they are getting from
using digital as opposed to traditional marketing.
Digital Budget Allocation
Source: Gartner via MarketingCharts March 2013

3. Augustine Fou- 3 -
Digital Budget Changes

4. Augustine Fou- 4 -
Dr. Augustine Fou – Digital Consigliere
“I advise clients on optimizing their digital
ad budgets by selecting the right tactics,
allocating the right share of budgets, and
executing efficiently.”
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

5. Augustine Fou- 5 -
Related Articles
Augustine Fou- 5 -
http://www.slideshare.net/augustinefou/digital-ad-fraud-
countermeasures-by-augustine-fou
http://www.slideshare.net/augustinefou/search-ad-fraud-101-by-
augustine-fou-technical-forensics
http://www.slideshare.net/augustinefou/sizing-digital-ad-fraud-
investigation-by-augustine-fou
http://www.slideshare.net/augustinefou/industry-actions-against-digital-
ad-fraud-reported-by-augustine-fou

6. Augustine Fou- 6 -
U.S. Retail Industry Digital Spend

7. Augustine Fou- 7 -
Coming down to budgets, brands are spending nearly 75% of their digital
budget on display advertising, search and producing video. Spending on
social including influencer outreach, makes up to only 10% of brands’ digital
marketing spend. Astoundingly, Of that percent of social budget, more than
half goes to Facebook. YouTube and Twitter get 13% each, while about 6% is
spent on influencers and 5% advertising on blogs.
Digital Budget Breakdown 2013
Source: Daze Info Feb 2013
BRANDS spend most of their digital budgets on awareness tactics like display

8. Augustine Fou- 8 -
Allocation of b2b marketing
budgets 2010

9. Augustine Fou- 9 -
Online Marketing Budget
Allocations 2011

10. Augustine Fou- 10 -
Digital Ad Budget Allocation
2012

11. Augustine Fou- 11 -
http://www.adamsherk.com/seo/search-
and-social-media-marketing-budget-
allocation/
2009 Digital Ad Budget
Allocations by Industry