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  • 1. Augustine Fou- 1 - Dr. Augustine Fou http://linkd.in/augustinefou July 2014 How Large is Digital Ad Fraud
  • 2. Augustine Fou- 2 - Digital Ad Spend (IAB FY 2013) Impressions (CPM/CPV) Clicks (CPC) Leads (CPL) Sales (CPA) Search 43% $18.5B Video 7% $3.0B Lead Gen 4% $1.7B 11% Other $4.8B Source: IAB, FY 2013 Internet Advertising Report, April 2014 $36.2B Display 19% $8.2B Mobile 15% $3.7B$2.8B NOTE: figures from IAB FY 2013 ($43B annual ad spend) CPM Performance • classifieds • sponsorship • rich media • email $6.5B
  • 3. Augustine Fou- 3 - Digital Ad Fraud Estimates Impressions (CPM/CPV) Clicks (CPC) Search $18.5B $36.2B Ad Spend Display $8.2B Video $3.0B Mobile $3.7B$2.8B (U.S. digital ad spend only) DollarsAvg Fraud Rate $4B50%Display $2B60%Video $6B30%Search $2B40%Mobile $14BTOTALS 39% Multiple sources
  • 4. Augustine Fou- 4 - Buckets of Ad Fraud Impressions (CPM fraud) Botnets generate fake pageviews which produce ad impression “inventory” that is sold into ad exchanges. Clicks (CPC fraud) Leads (CPL fraud) Sales (CPA fraud) Bots type search queries to bring up search ads and then click on the ads to earn share of CPC. Bot or low wage workers fill in lead forms with real addresses and get paid bounty per lead. Fake sites set up to do cookie stuffing or trick users to click on affiliate links to earn rev share.
  • 5. Augustine Fou- 5 - Display Ad Impressions • 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 30 – 60% fraudulent, wasted, not-in-view IAB: FY 2012 Display Ad Spend = $7.7B
  • 6. Augustine Fou- 6 - Video Ad Impressions • 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’ 50 - 77% fraudulent, autoplay, wasted, not-in-view eMarketer: Digital Video Ad Spend est. $4B in 2013 Source: Vindico via Adweek, December 15, 2013
  • 7. Augustine Fou- 7 - Search Ad Clicks • 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 20 - 40% fraudulent, accidental, wasted Source: Adometry Click Fraud Report 1H 2013 IAB: FY 2012 Search Ad Spend = $16.8B
  • 8. Augustine Fou- 8 - Affiliate Sales Fraud http://www.businessinsider.com/ebay-the-fbi-shawn-hogan-and-brian-dunning-2013-4
  • 9. Augustine Fou- 9 - Lead Fraud ~ 20-40% http://www.webranking.com/blog/lead-click-fraud-adsense-scam- google-adwords-advertisers
  • 10. Augustine Fou- 10 - 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 @acfou ClickZ Articles: http://bit.ly/augustine-fou-clickz Slideshares: http://bit.ly/augustine-fou-slideshares LinkedIn: http://linkd.in/augustinefou
  • 11. Augustine Fou- 11 - Additional Resources Augustine Fou- 11 - http://www.slideshare.net/augustinefou/display-ad-fraud-101-by-augustine- fou-technical-forensics http://www.slideshare.net/augustinefou/video-ad-fraud-101-by-augustine- fou-technical-forensics http://www.slideshare.net/augustinefou/search-ad-fraud-101-by-augustine- fou-technical-forensics https://www.youtube.com/watch?v=MwXdDRPqBTM