1. Optimal Digital
Budget Allocations
Dr. Augustine Fou
http://linkd.in/augustinefou
Marketing Science Consulting Group, Inc.
-1- Augustine Fou

2. Digital as Percent of Marketing
Budget
Media 30.7%
Financial Services/Insurance 22.6%
Manufacturing 26.4%
Retail 23.6%
Healthcare 23.9%
High-Tech 25.3%
Total 24%
Source: eMarketer March, 2013
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3. Marketing Budget and Digital Allocation
Media – marketing budgets are 12.7% of
revenues; digital is 3.9%
Financial services – 10.6% marketing;
2.4% digital
Manufacturing – 10.6% marketing; 2.8%
digital
Retail – 10.6% marketing; 2.5% digital
Healthcare – 9.2% marketing; 2.2% digital
High-Tech – 9.1% marketing; 2.3% digital
Overall – 10.4% of revenues is used for
marketing; 2.5% for digital
(digital is 22.5% of total marketing spend
on average across industries)
Source: eMarketer March, 2013
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4. Time Spent with Media
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5. From Traditional to Digital
Internet /
Digital
surpassed
newspapers
and cable
TV in ad
revenue by
2011
Source: IAB/PwC FY 2011 Report, April 2012
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6. From Traditional to Digital
Source: eMarketer Sep Oct 2012
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7. Shift within Digital
From CPM to Performance
Source: IAB/PwC FY 2011 Report, April 2012
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8. Advertising Format Share (Digital)
Source: IAB/PwC FY 2011 Report, April 2012
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9. U.S. Digital Ad Spending by Format
Source: eMarketer Sept 2012
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10. Spending by Ad Format (Digital)
Ad spend by format
Digital ad spend allocation
Source: IAB/PwC FY 2011 Report, April 2012
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11. Digital Ad Revenues by Industry
Source: IAB/PwC FY 2011 Report, April 2012
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12. Related Articles
Trends in Advertising
By: Augustine Fou, Nov 15, 2012
Grand Digital Canyon
By: Augustine Fou, November 11, 2010
Digital is a Philosophy
By: Augustine Fou, March 31, 2011
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13. Dr. Augustine Fou – Chief Digital Strategist
“Within „digital‟ ad spending is
continuing to shift towards performance
ad formats like search, because digital is
inherently a measurable medium and best
suited for performance marketing.”
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
ClickZ Articles: http://bit.ly/augustine-fou-clickz
Slideshares: http://bit.ly/augustine-fou-slideshares
LinkedIn: http://linkd.in/augustinefou
- 13 -@acfou Augustine Fou
Augustine Fou

14. APPENDIX
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15. Digital Operations Spending Mix
Source: East Coast Catalyst, Dec 2010
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16. Digital Budget Allocation - SMBs
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17. ROI By Channel
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18. Digital Marketers’ Top Priorities
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19. Digital Marketing Budget Mix
Source: Gartner via Marketing Charts March, 2013
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20. Future of Advertising
2012
Television ($39B, 2012) Digital ($32B, 2012)
11% 62% 27%
“Soup and Soda” Facebook Google Other
branding/awareness performance
2016 “Cars and Computers”
Television Digital
35% 60% 5%
Facebook Google Other
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21. Marketers to DECREASE
Source:
http://www.marketingcharts.com/wp/television/marketer
s-say-theyre-shifting-focus-away-from-traditional-
media-26578/
- 21 - 15, 2012
November 21 Augustine Fou

22. U.S. Online Exceeds Print
- 22 - 15, 2012
November 22 Augustine Fou

23. Top Digital Ad Spend Categories
Source: eMarketer June 2011
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24. Top Digital Advertising Companies
Source: IAB/PwC FY 2011 Report, April 2012
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25. Top Business Objectives 2012
Source: Distributed Marketing Blog, July 2011
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26. Current vs Planned Marketing
Source: Distributed Marketing Blog, July 2011
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27. Mobile, Social, SEO Tops
Source: Distributed Marketing Blog, July 2011
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