Brand advertisers should take a fresh hard look at TV advertising and hold it up to the same, high standards of measurability and ROI as digital; and they should be sure to synergize TV (pitching) and digital (catching).

1. Biggest LIES of
TV Advertising
Dr. Augustine Fou
http://linkedin.com/in/augustinefou
Marketing Science Consulting Group, Inc.
May 1, 2012 1

2. Executive Summary
• The old ad-land joke about “wasting 50% of my ad dollars”
has gone on long enough; brand advertisers should take a
hard look at TV and hold it to the same, high standards of
measurability and ROI as digital.
• TV advertising may continue to be used as long as it is part
of an overall Unified Marketing™ approach AND only if the
main marketing problem is lack of awareness.
• This deck will debunk the most frequently told lies about TV
advertising and propose steps to unifying and synergizing
TV and digital marketing, including budget reallocation.
Further reading: TV Advertising Still Works, … NOT!
May 1, 2012 2

3. TV Advertising
Used to Work
May 1, 2012 3

4. Selling Tide
TV was great at making a lot
of people aware of Tide …
…by raising awareness where
there was none, TV drove sales.
May 1, 2012 4

5. But, today, lack of
awareness is not problem…
… but the same blunt instrument
is still used for everything.
May 1, 2012 5

6. We’ve known for a long time
“I know I‟m wasting 50% of
my ad dollars; I just don‟t
know which half...”
- John Wanamaker
May 1, 2012 6

7. We know it’s bad for us …
smoker’s lungs brain on drugs
… and yet we continue to do it.
May 1, 2012 7

8. Busting
the LIES
May 1, 2012 8

9. “TV’s got amazing reach..”
“Using Nielsen reported numbers you get: 146.5
hours per individual (age 2+) x 285 million
individuals (age 2+) that watch TV = 41.8 Billion
hours of TV watching; of which roughly 25% of the
time is TV ads or 10.4 Billion hours of total time
with TV ads, equivalent to some 1.2 Trillion 30
second commercials per month).”
May 1, 2012
… but,
9

10. But, reach is irrelevant if…
Nielsen (Dec 2010) estimates 44% of ads are not
skipped – i.e. 56% of ads ARE SKIPPED
IPG/YuMe (May 2011) study found 63% of TV
ads are avoided or simply ignored.
… no one saw the ads.
May 1, 2012 10

11. “People watch a LOT of TV”
Source: Nielsen Feb 2012
May 1, 2012
… but,
11

12. But, having the TV on…
Activity Engagement While TV is On
Surf the Internet on computer 56%
Read a book, magazine, newspaper 44%
Go on social networking site 40%
Text on mobile phone 37%
Something else (other) 30%
Shop online 29%
Surf the Internet on mobile phone 18%
None (i.e. actually watch TV)
14%
Surf the Internet on tablet
7%
Read a book on eReader
7%
Source: Harris / Adweek June 2011 0 10 20 30 40 50 60
… doesn’t mean they watched the ads.
May 1, 2012 12

13. “TV still beats Internet video”
May 1, 2012
Source: Nielsen, Jan 2012 … but,
13

14. But, TV ad spending has…
Source: Kleiner Perkins, May 30, 2012
… already plateaued; others have not .
May 1, 2012 14

15. “It just works, trust us …”
… but,
May 1, 2012.

16. But, how do you know it works ...
Traditional Digital
• TV • Search
• Print • Social
• Radio • Mobile
• Video
Metric: Metric:
Size of Actions of
Audience The Grand Digital Canyon Users
… if the metrics only tell you
the size of the audience.
May 1, 2012.

17. We’ve won awards for it
… but,
May 1, 2012.

18. But, the agency got all …
By 2007, per store sales
for Burger King fell
behind Wendy’s.
By 2012, Burger King fell
to No. 3 in overall sales. No. 2
… the fame and new biz.
May 1, 2012.

19. People love watching ads…
… but,
May 1, 2012 19

20. But, actually they will…
Top Reasons for Owning/Using DVR
Pause, Rewind, Fast…
Recommendations: Get…
“I buy a season of
Watch TV Shows When…
„24‟ on DVD so I
Skipping Ads /…
can watch 60 min
Season Management (1…
shows in 41 mins”
No Tapes (VCR)
0% 20% 40% 60% 80% 100%
Source: Online Poll April 2012
… skip them if they could.
May 1, 2012 20

21. Ads are engaging …
Users trust us …
TV ads are for branding…
… but,
May 1, 2012 21

22. Telling users about an experience
… is not the same as experiencing it.
May 1, 2012 22

23. Users trust peers the most…
May 1, 2012
… and TV ads the least.
23

24. TV ads are like …
“Homeless Marketing”
… because, at best, you get a glance.
May 1, 2012 24

25. The “Fiat500Co” (fiasco)
“the jlo ad”
“Fiat, who?”
May 1, 2012 25

26. Can you name the company
Hint: they are ALL 2012 Superbowl ads
May 1, 2012
…behind these ads?
26

27. $10 billion of TV ads …
1988: 50.4M barrels
2001: 33.4M barrels
2010: $555 million ad spend
1996
“bud”-”why”-”zer”
1999
“whassssuuuuup?”
2012: 17.7M barrels
…could not save Budweiser.
May 1, 2012 27

28. Cost-Benefit Analysis…
Television Online Video DVDs
32% ads
1.5% ads 0% ads
68% 98.5% 100%
Content: Free Content: Free Content: $40
Time Cost: 19 mins Time Cost: 1.5% Time Cost: 456 ad
of ads per 60 mins time spent on ads mins saved (19 mins x
24 episodes)
Source: eMarketer Dec 2010 Source: MarketingCharts, April 2012 Source: Google Shopping, May 2012
… what’s your time worth?
May 1, 2012 28

29. Users have evolved …
PUSH PULL
• Direct marketing People ignore “interruption media” and
• Email marketing only pay attention to information they are
• Online marketing seeking. (“Purple Cow” by Seth Godin)
• Sports marketing
• Word of mouth marketing
• Guerrilla marketing
• Blog marketing
• Event marketing
• Product placement
• In-game marketing
• Sponsorships
Advertisers push message out Users do their own research
May 1, 2012 29

30. Advertisers can no longer…
… just shout their ads at people.
May 1, 2012 30

31. Empowered customers…
• Research products online
• Find information via search
• Trust peers most
Source: Forrester Research Q3 2010
May 1, 2012 31

32. Paid ads are over …
TV Advertising
“it’s over after it’s aired”
Even Superbowl ads stimulate only
fleeting recall – of the top 100 daily
Google searches how many were
related to Superbowl ads?:
• Feb 1: 20 of 100
• Feb 2: 6 of 100
• Feb 3: 1 of 100
• Feb 4: ZERO of 100 (forgotten by day 4)
… when the media buy ends.
March 29, 2012. 32

33. Make the
Televigital
Transition
May 1, 2012 33

34. Televigital Transition
• Understand your customers’ missing links (most of
them may already be aware of your brand); they
need other information to take action
• More transparency and accountability; count and
measure what matters – viewed ads not aired ads
• If you must still do the “pitching” via TV ads, be
sure to do the “catching” in digital channels when
modern users come online to research further.
May 1, 2012 34

35. Next steps
• Missing Link analysis – what are the bits of
information your customers need to move
expeditiously towards the purchase?
Further reading: http://mktsci.com/missing-link-marketing.htm
• Unified Marketing™ Framework – map your
current advertising and marketing tactics to
detect redundancies or gaps in spending.
Further reading: Unified Marketing http://bit.ly/mQfPXU
May 1, 2012 35

36. Dr. Augustine Fou – Chief Digital Strategist
Dr. Augustine Fou is an advisor on digital strategy
and social media marketing, with over 16 years of
in-the-trenches, hands-on experience. He provides
client executives with objective, in-depth
assessments of their current marketing programs
and recommendations for improving business
impact and ROI with digital insights.
Dr. Fou was the former Group Chief Digital Officer of
Omnicom's Healthcare Consultancy Group. He is also an
Adjunct Professor at NYU in the School for Continuing and
Professional Studies and at Rutgers University at the Center
for Management Development, where he teaches courses on
digital strategy, social media marketing to executives. He is a
frequent panelist, moderator, and keynote speaker.
Dr. Fou completed his PhD at MIT at the age of 23. He started
his career with McKinsey & Company. He writes a monthly
column on Integrated Marketing for ClickZ.com, and can be
found on Twitter.com @acfou.
May 1, 2012 acfou@mktsci.com 36