...AND WHERE THEY WILL GO

WHY 2014 AD BUDGETS COULD ROCKET PAST EXPECTATIONS

HERE'S WHY

Based on S&P 500 (big company) analysis, we estimate companies could spend $185 billion in advertising in 2014 - $7 billion more than the eMarketer estimate as of Dec. 2013.

Ad budgets peaked at $178 billion in 2007 before the recession, and are projected to reach $178 billion for 2014, according to eMarketer.However, most S&P companies surpassed 2007 values years ago and have kept growing.

ADVERTISING BUDGET GROWTH IS LAGGING BEHIND CORPORATE GROWTH

S&P 500 Average Company Value Is Up 41% Since 2007

-40.0%2008

-30.0%-20.0%-10.0%

0.0%10.0%20.0%30.0%40.0%50.0%

2009 2010 2011 2012 2013 2014

S&P 500 EPS Gr Since 07

eMarketer Ad Gr Since 07

The Standard & Poor 500 Index is an index of 500 companies chosen for market size, liquidity and industry grouping. The Index is designed to be a leading indicator of the health of U.S. equities. It is currently hovering around all-time highs.

-40.0%2008

-30.0%-20.0%-10.0%

0.0%10.0%20.0%30.0%40.0%50.0%

2009 2010 2011 2012 2013 2014

S&P 500 Average Company Earnings Are Up 48% Since 2007

S&P 500 EPS Gr Since 07

eMarketer Ad Gr Since 07

The Standard & Poor 500 Index is an index of 500 companies chosen for market size, liquidity and industry grouping. The Index is designed to be a leading indicator of the health of U.S. equities. It is currently hovering around all-time highs.

2008

-30.0%-40.0%

-20.0%-10.0%

0.0%10.0%20.0%30.0%

40.0%50.0%

2009 2010 2011 2012 2013 2014

S&P 500 Average Dividends Are Up 42% Since 2007

S&P 500 EPS Gr Since 07

eMarketer Ad Gr Since 07

The Standard & Poor 500 Index is an index of 500 companies chosen for market size, liquidity and industry grouping. The Index is designed to be a leading indicator of the health of U.S. equities. It is currently hovering around all-time highs.

2014:Brickfish Estimate

$185 billion1.73% of total revenue

advertising expenditures

eMarketer Estimate

$178 billion1.67% of total revenue

advertising expenditures

NOW, THINK OF TOTAL ADVERTISING BUDGETS AS A PERCENTAGE OF THE S&P 500 COMPANIES' TOTAL REVENUE

YEAR2009 2010 2011 2012 2013 2014

1.98% ($178 B)

1.88% ($170 B)

1.82% ($147 B)

1.75% ($153 B)

1.66% ($158 B)1.69% ($165 B)

1.72% ($171 B) 1.73% ($185 B)

1.67% ($178 B)

1.5

2.0

% O

F TO

TAL

REVE

NU

E

2007 2008

While the US GDP was severely impacted by weather in Q1, analysts believe that the U.S. economy continues to improve - so why would ad spend as a percentage of total revenue decrease from last year?

Even if it remained stagnant from last year at 1.72%, we would see a $184 billion total ad spend.

Looking Ahead to 2014 Growth

Despite the weather, 68% of S&P 500 companies surpassed estimates for Q1 earnings.

Consider These 2014 Major Media Events:Winter Olympics � Midterm Elections � World Cup

(February) (November) (June-July)

WHERE WILL THE NEW AD DOLLARS GO? MOBILE & DIGITAL

Today, consumers spend 6.5x more minutes each day with mobile than with print media - yet advertisers this year will spend an estimated $32.2 billion on print and only $13.1 billion on mobile.

TIME SPENT PER DAYCHANGE

SINCE 2013

CHANGESINCE 2013DOLLARS SPENT PER HOUR

MOBILE

DIGITAL

MOBILE

DIGITAL

PRINT

+ 23%

+ 10%

- 18%

CONSUMERS

ADVERTISERS

+ 40%

+ 11%

+ 19%

$0.07

$0.10

$0.83

PRINT

2 hrs 51 min

5 hrs 46 min

26 min

20% of all media consumptionis on mobile - but advertisers only budget 4% of ad dollars there.

In 2013, mobile revenue totaled $38 billion - but less than $15 billion came from advertising.

Venture capital firmKPCB calls mobile a

$30 billionad opportunity.

Sources: eMarketer, Kleiner Perkins Caufield & Byers, “Internet Trends 2014”, S&P Dow Jones Index Data 5/30/14

Are you ready to go mobile-first? Call our team at (855) 281-4500 for a digital strategy session.