Published on February 28, 2014
Optimization Pyramids for Digital Ads Dr. Augustine Fou http://linkd.in/augustinefou acfou @mktsci .com February 2014 -1- Augustine Fou
Optimize Targeting “Non-human and not in-view traffic confounds measurement systems and messes up metrics. Once those are under control, reach and targeting optimization can become much more effective.” (see the green slices) -- Ted McConnell -2- Augustine Fou
Display Ads 16-25% 23-54% 15-30% -3- non-fraud, human viewer not-in-view or ad-blocked known fraudulent impressions Augustine Fou
Display Ad Impressions 30 – 60% fraudulent, wasted, not-in-view IAB: FY 2012 Display Ad Spend = $7.7B • By far, the easiest to commit – fill a web page with many display ads and repeatedly load the page with scripts or bots • Clients pay on CPM basis and are usually goaled on the number of impressions delivered and CPM -4- Augustine Fou
Video Ads 10-20% non-fraud, human viewer 30-50% 20-40% -5- not-in-view, autoplay confirmed fraudulent views Augustine Fou
Video Ad Impressions 50 - 77% fraudulent, autoplay, wasted, not-in-view Source: Vindico via Adweek, December 15, 2013 eMarketer: Digital Video Ad Spend est. $4B in 2013 • Advanced bots are programmed to load video ads and wait till they are counted as “views” before leaving the page • Video ads have 10x the CPM compared with display ads, and are therefore a prime target for ‘bad guys’ -6- Augustine Fou
Search Ads 70-90% 5-10% 5-20% -7- non-fraud, human viewer accidental clicks ads shown on fraudulent sites Augustine Fou
Search Ad Clicks 20 - 40% fraudulent, accidental, wasted Source: Adometry Click Fraud Report 1H 2013 IAB: FY 2012 Search Ad Spend = $16.8B • Search ad fraud is a bit more involved to commit and usually occurs on “search partner” sites (not the main search sites) • Bad guys set up sites with no content, execute searches with lucrative keywords, and click the ads with bots -8- Augustine Fou
Dr. Augustine Fou – Digital Consigliere “I advise clients on optimizing advertising across all channels. One main area of focus is reducing ad waste due to fraud – fake impressions, clicks, leads, and sales.” 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 -9- @acfou Augustine Fou
Ted McConnell – Digital Consigliere “My Goals are to drive, and participate in the process that yields the winning vision for my clients. I'm a Digital Marketing Generalist: I've Run large organizations, been staff to c-level executives at P&G, hold 4 Patents, successfully driven change in Marketing and Advertising practice in P&G and other companies.” ADVERTISING RESEARCH FOUNDATION MANAGER, DIGITAL MARKETING INNOVATION AdAge Articles: http://adage.com/author/ted-mcconnell/4334 LinkedIn: https://www.linkedin.com/pub/ted-mcconnell/0/5b5/8a2 - 10 - Augustine Fou
Related Articles ROI Case for Solving Ad Fraud By: Augustine Fou January 2014 Fake YouTube Videos By: Augustine Fou, December 2013 Digital Ad Fraud Briefing By: Augustine Fou December 2013 Motive and Opportunity for Ad Fraud By: Augustine Fou, February 2014 How Display Fraud Works By: Augustine Fou, May 2013 Fake Facebook Profiles By: Augustine Fou, Dec 2013 How Click Fraud Works By: Augustine Fou, November 2013 Fake Twitter Accounts By: Augustine Fou, August 2013 The Magnitude of Digital Ad Fraud By: Augustine Fou, November 2013 Display Fraud 101 (video) By: Augustine Fou, Feb 2014 - 11 - Augustine Fou
APPENDIX - 12 - Augustine Fou
Display Ad Backup Data - 13 - Augustine Fou
Fraudulent Impressions Ad exchanges are particularly prone to fraud because shady sites sell enormous quantities “ad impression inventory” into the exchanges for re-sale. Source: Integral Ad Science, via BusinessWeek Nov 26, 2013 - 14 - Augustine Fou
Bot Traffic Estimates 30 – 75% 51% suspicious fraudulent, not-in-view, adblocked bot 24-29% confirmed IAB: FY 2012 Display Ad Spend = $7.7B • By far, the easiest to commit – fill a web page with many display ads and repeatedly load the page with scripts or bots • Clients pay on CPM basis and are usually goaled on the number of impressions delivered and CPM Source: Solve Media via Marketing Charts September 12, 2013 - 15 - Source: Solve Media Dec 31 2013 Augustine Fou
54% Online Ads Aren’t In View Source: comScore June 2013 via MarketingCharts - 16 - Augustine Fou
23% of Users Use Adblockers Source: PageFair, August 2013 Average Adblocking Rate 22.7% - 17 - Augustine Fou
Video Ad Backup Data - 18 - Augustine Fou
Video Ad Viewability A new study [download page] from VideoHub indicates that during the first quarter, average viewability for online video ads in the US was 83%, although rates varied widely among properties, from 43% on the low end to 94% on the high end. Broadcast TV sites fared best (89% on average) among property categories, with networks and exchanges (73%) bringing up the rear. Source: VideoHub August 2013 via MarketingCharts - 19 - Augustine Fou
Search Ad Backup Data - 20 - Augustine Fou
Click Fraud by Qtr Source: ClickForensics 2011 - 21 - Augustine Fou
Before and After BEFORE AFTER Top 2 “good guys” = 76% Top 5 “good guys” = 94% 18% of spend shifted from fraudulent websites to “top 5” good guys - 22 - Augustine Fou
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