Revenue Model of Digital Ads Plus 2013 Sizing by Augustine Fou

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Size of digital advertising revenues in 2013, grouped by ad type, pricing model (CPM vs performance) and also revenue model (CPM, CPC, CPL, CPA).

Size of digital advertising revenues in 2013, grouped by ad type, pricing model (CPM vs performance) and also revenue model (CPM, CPC, CPL, CPA).

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  • 1. Augustine Fou- 1 - 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
  • 2. Augustine Fou- 2 - 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
  • 3. Augustine Fou- 3 - Digital Ads by Format Source: IAB, 1H 2013 Digital Advertising Report, Oct 2013
  • 4. Augustine Fou- 4 - Performance 65% CPM 33% Hybrid/Other 2% Pricing Model Trends Source: IAB, 1H 2013 Digital Advertising Report, Oct 2013
  • 5. Augustine Fou- 5 - Dr. Augustine Fou – Digital Consigliere “I advise clients on optimizing advertising across all channels. One main area of focus is reducing digital ad waste due to fraud and then optimizing the remaining good inventory.” 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