Marketing Innovations That Drive Lasting Business Impact by Augustine Fou

Augustine Fou- 1 -

Marketing Innovation That Drives Lasting ROI

Dr. Augustine Fouhttp://linkd.in/augustinefouacfou @mktsci .comMarch 2014

Augustine Fou- 2 -

Author’s Commentary“Many marketers continue to increase their ad budgets. This is directly rooted in traditional advertising mentality – increased advertising leads to increased sales. But in a world where there is oversaturation of advertising and information, shouting more often and more loudly won’t sales. Instead, we should look for true innovations in marketing and business model that drive lasting ROI and impact. This is a collection of such innovations.”

-- Dr. Augustine Fou

Augustine Fou- 3 -

Innovations in Marketing and Business Model

Augustine Fou- 4 -

NationwideVanishing Deductible

Safe drivers who have seen reductions in their deductibles will want to stay with Nationwide (and may tell others)

Augustine Fou- 5 -

DeltaDelta Innovation Class

This is the first time I have actually considered “choosing” Delta for a flight, rather than my default carrier

This innovation made me consider “switching” like no amount of advertising would.

http://www.deltainnovationclass.com/

Augustine Fou- 6 -

FreshDirect (NYC)One-Click Recipes

Freshdirect.com

One-click Recipes inspire variations in daily meals and has resulted in actual increases to dollars per order.

Augustine Fou- 7 -

Users Don’t Recall Ads or Find Them Useful

Augustine Fou- 8 -

In the past WEEK, do you recall seeing ANY of the following types of ads?

44% Don’t Recall ANY Ads

Source: Marketing Science Custom Research, March 2014

Augustine Fou- 9 -

Who’s Ignoring Which Ads?

Source: Harris Interactive via MarketingCharts Feb 2014

Augustine Fou- 10 -

“Which of the following help you decide to buy a specific low-cost/big-ticket item (e.g. soda, candy, toilet paper, shampoo)” N = 1,000

70% Think Ads Don’t Help

Source: Marketing Science Custom Research, March 2014

Augustine Fou- 11 -

Users do their own research...

Source Parago via Marketing Charts March 24, 2014

Augustine Fou- 12 - Augustine Fou- 12 -

Users rely on peer recommendations

• Recommendations from friends• Consumer

opinions/ratings posted online

Marketing Science March 2014

Augustine Fou- 13 - Augustine Fou- 13 -

Nielsen Corroborates Q3 2013

http://hk.nielsen.com/news/2013-09-19.shtml

Augustine Fou- 14 -

Dr. Augustine Fou – Innovocateur“I study innovation, not just technological innovation but also marketing and business model innovations. In the digital age of information overload, more advertising is not the answer. Innovation is the only answer.”

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-clickzSlideshares: http://bit.ly/augustine-fou-slidesharesLinkedIn: http://linkd.in/augustinefou

Augustine Fou- 15 -

Related Articleshttp://www.slideshare.net/augustinefou/digital-advertising-benchmarks-2014-by-augustine-fou

http://www.slideshare.net/augustinefou/usefulness-of-advertising-by-augustine-fou-marketing-consigliere

http://www.slideshare.net/augustinefou/mythbusting-tv-advertising-by-augustine-fou

http://www.slideshare.net/augustinefou/effectiveness-of-digital-ads-by-augustine-fou

http://www.slideshare.net/augustinefou/industry-actions-against-digital-ad-fraud-reported-by-augustine-fou

http://www.slideshare.net/augustinefou/mistargeted-ads-investigated-by-augustine-fou-technical-forensics

Augustine Fou- 15 -