Optimization Pyramids for Digital Ads by Augustine Fou

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Different forms of digital ads have different levels of ad fraud. For example display and video ads (served on an impression basis) have far higher levels of fraud than search ads. The pyramids are …

Different forms of digital ads have different levels of ad fraud. For example display and video ads (served on an impression basis) have far higher levels of fraud than search ads. The pyramids are visuals so brands and media buyers can see what are the "low hanging fruit" areas to prioritize first.

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  • 1. Optimization Pyramids for Digital Ads Dr. Augustine Fou http://linkd.in/augustinefou acfou @mktsci .com February 2014 -1- Augustine Fou
  • 2. 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
  • 3. Display Ads 16-25% 23-54% 15-30% -3- non-fraud, human viewer not-in-view or ad-blocked known fraudulent impressions Augustine Fou
  • 4. 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
  • 5. Video Ads 10-20% non-fraud, human viewer 30-50% 20-40% -5- not-in-view, autoplay confirmed fraudulent views Augustine Fou
  • 6. 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
  • 7. Search Ads 70-90% 5-10% 5-20% -7- non-fraud, human viewer accidental clicks ads shown on fraudulent sites Augustine Fou
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. APPENDIX - 12 - Augustine Fou
  • 13. Display Ad Backup Data - 13 - Augustine Fou
  • 14. 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
  • 15. 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
  • 16. 54% Online Ads Aren’t In View Source: comScore June 2013 via MarketingCharts - 16 - Augustine Fou
  • 17. 23% of Users Use Adblockers Source: PageFair, August 2013 Average Adblocking Rate 22.7% - 17 - Augustine Fou
  • 18. Video Ad Backup Data - 18 - Augustine Fou
  • 19. 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
  • 20. Search Ad Backup Data - 20 - Augustine Fou
  • 21. Click Fraud by Qtr Source: ClickForensics 2011 - 21 - Augustine Fou
  • 22. 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