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Effectiveness of Digital Ads 2015 Update by Augustine Fou

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Different types of digital ads -- display ads and video ads -- have different levels of productivity when you subtract out NHT (non-human traffic -- aka "bots"), the ones that are not viewable, and the ones that are blocked by users with ad blockers.

Published in: Marketing

Effectiveness of Digital Ads 2015 Update by Augustine Fou

  1. 1. marketing.scienceconsulting group, inc. Effectiveness of Digital Ads 2015 Update July 2015 Augustine Fou, PhD. http://linkd.in/augustinefou acfou @ mktsci .com 212. 203. 7239
  2. 2. July 2015 / Page 1marketing.scienceconsulting group, inc. Dr. Augustine Fou 100 million impressions - 60% bots / NHT Source: Incapsula, Dec 2014 40 million impressions - 60% ~10 million impressions ad-blocked by user Source: PageFair, Sep 2014 Paid $0.45 CPM on 100M impressions ($45k) and got 10 million productive impressions = $4.69 eCPM Avg. $0.45 CPM 10X higher effective cost 16 million impressions - 40% Source: Turn Oct 2013 Display ads: Programmatic and RTB Distil Networks says 59% bots, May 2015 40% in-view (RTB) Source: DoubleVerify, Q1 2015
  3. 3. July 2015 / Page 2marketing.scienceconsulting group, inc. Dr. Augustine Fou Three firms corroborate webwide bot levels: ~60% Distil Networks May 2015 – 59% botsIncapsula Dec 2014 – 56% bots SolveMedia Jan 2015 – 56% bots
  4. 4. July 2015 / Page 3marketing.scienceconsulting group, inc. Dr. Augustine Fou Viewability rate of Programmatic, Exchanges, RTB: ~40% Source: Sizmek, Apr 2015 Source: DoubleVerify April, 2015 Source: Vindico April, 2015
  5. 5. July 2015 / Page 4marketing.scienceconsulting group, inc. Dr. Augustine Fou 100 million impressions - 2% bad bots Source: Marketing Science July 2015 98 million impressions - 40% 60% in-view (publisher direct) Source: Sizmek, Apr 2015 35 million impressions ad-blocked by user Source: PageFair, Sep 2014 Paid $0.45 CPM on 100M impressions ($45k) and got 35 million productive impressions = $1.28 eCPM Avg. $0.45 CPM 59 million impressions - 40% Source: Turn Oct 2013 Display ads: Premium Publishers “premium publishers typically earn around $1.35 CPM from open exchanges” Source: DCN, May 2015
  6. 6. July 2015 / Page 5marketing.scienceconsulting group, inc. Dr. Augustine Fou Premium publishers have real human visitors and low bots confirmed humans 77% overall average confirmed bots 2% overall average declared / search bots 1% overall average Note that 1% confirmed bots does not mean 99% humans; and vice versa 87% humans does not mean 13% bots. Using a deterministic approach, there are visits that cannot be sufficiently, accurately labeled and hence are marked uncategorized.
  7. 7. July 2015 / Page 6marketing.scienceconsulting group, inc. Dr. Augustine Fou Viewability rate of premium publishers: ~60% Source: Sizmek, Apr 2015 Source: DoubleVerify April, 2015 Source: Vindico April, 2015 Source: Marketing Science, July 2015 Directly measured, only premium publishers (60) 60% viewable
  8. 8. July 2015 / Page 7marketing.scienceconsulting group, inc. Dr. Augustine Fou 100 million impressions - 60% bots / NHT Source: Incapsula, Dec 2014 40 million impressions - 46% ~13 million impressions ad-blocked by user Source: PageFair, Sep 2014 Paid $10 CPM on 100M impressions ($1M) and got 13 million productive impressions = $77 eCPM Avg. $10 CPM 8X higher effective cost 21 million impressions - 40% Source: Turn Oct 2013 Video ads 54% in-view Source: Google, May 2015
  9. 9. July 2015 / Page 8marketing.scienceconsulting group, inc. Dr. Augustine Fou Three firms corroborate webwide bot levels: ~60% Distil Networks May 2015 – 59% botsIncapsula Dec 2014 – 56% bots SolveMedia Jan 2015 – 56% bots
  10. 10. July 2015 / Page 9marketing.scienceconsulting group, inc. Dr. Augustine Fou Viewability rate of video ads webwide: ~54% Source: Google, May 2015
  11. 11. July 2015 / Page 10marketing.scienceconsulting group, inc. Dr. Augustine Fou Top priorities for increasing digital ad productivity Served ad impressions -11%Display ads -23%Video ads -52% NHT(“bots”) Sourced traffic Source: WhiteOps / ANA Dec 2014 Display ads Source: Google Nov 2014 -36% Average NHT (bots) Viewability -56%Video ads -80%Views Source: RealVu 2014 “1 in 5 ads are viewable” -26% Ad Block usage Source: Marketing Science 2014 -34.5% Display ads Source: PageFair 2014 AdBlocking -54% Source: comScore Jun 2013 -60% Average Viewability
  12. 12. July 2015 / Page 11marketing.scienceconsulting group, inc. Dr. Augustine Fou Dr. Augustine Fou – Digital Consigliere “I advise clients on optimizing their advertising, across offline and online channels. I assess ROI by analyzing the measured productivity of different forms of advertising and advise on re- allocation of budget to the most productive types of ads or channels.” 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: https://www.linkedin.com/today/author/84444-augustinefou

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