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Video Ad Fraud is Most Rampant Form of Fraud

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video ads are skyrocketing due to the continued shift of ad dollars from TV into digital. But the fraud is also rampant, in fact larger or a higher percentage of the inventory compared with other forms for digital ads.

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Video Ad Fraud is Most Rampant Form of Fraud

  1. 1. Augustine Fou- 1 - Dr. Augustine Fou http://linkd.in/augustinefou January 2015 Video Ad Fraud is Most Rampant
  2. 2. Augustine Fou- 2 - “It is possible that the entire year-over-year increase 2013 vs 2012 (or 75% of the current observed video ad views) is fraudulent – i.e. caused by non-human viewers (aka ‘bots’). The reports from Sandvine and comScore show lower downstream bandwidth and flat unique users and time spent, respectively. Even the doubling of ad-load cannot account for a 4X increase in ‘video ad views’.” -- Dr. Augustine Fou
  3. 3. Augustine Fou- 3 - Monthly Network Traffic YoY Sandvine 2H 2012 Global Internet Phenomena [PDF] Sandvine 2H 2013 Global Internet Phenomena [PDF] Sandvine 2H 2014 Global Internet Phenomena [PDF] -13% (‘13 vs ‘12) mean downstream +29% (‘14 vs ‘13) mean downstream
  4. 4. Augustine Fou- 4 - What Downstream Means Sandvine 2H 2012 Global Internet Phenomena [PDF] Sandvine 2H 2013 Global Internet Phenomena [PDF] Sandvine 2H 2014 Global Internet Phenomena [PDF] 2H 2012 2H 2013 2H 2014 Commentary • There are no ads on Netflix • Facebook jumped in rank by adding video (defaulted to auto-play) • YouTube monthly average in 2H 2013 was 18.7% (7.1GB per month) ads ads ads ads ads ads ads
  5. 5. Augustine Fou- 5 - Time Spent on Online Video in 2013 is flat to 20122012 2013 2013 hours and unique viewers are FLAT to 2012 Source: comScore, Jan 2014
  6. 6. Augustine Fou- 6 - But ad views exploded 4-fold Source: comScore Feb 2014 via Marketing Charts 50 – 75% NOT in view
  7. 7. Augustine Fou- 7 - Smallest video ads are only 25% viewable Medium video ads are 40% viewable Large video ads are 50% viewable Video Ad Viewability Jan 2014 North America Source: TubeMogul Jan 2014 50 – 75% NOT in view
  8. 8. Augustine Fou- 8 - Frequency rose 4-fold reach increased 10% Source: comScore Feb 2014 via Marketing Charts 10% increase in reach
  9. 9. Augustine Fou- 9 - Video Minutes and Ads Source: comScore April 2014 press release Viewers watched 1,067 minutes of online video in March 2014 (17.8 hours/mo or 36 mins per day) Video ads were in 61.6 percent of all videos viewed and 5.4% of all minutes spent viewing video online March 2014 Data Source: comScore June 2013 Viewers watched 1,250 minutes of online video in May 2013 (20.8 hours/mo or 42 mins per day) Video ads accounted for 27.9 percent of all videos viewed and 2.6% of all minutes spent viewing video online May 2013 Data
  10. 10. Augustine Fou- 10 - Video Fraud (March 2014 data) Total video ads March 2014 = 28.7B Fake video ad impressions per day = 88.4M /day Fake video ads per month = 2.7B /month 3 botnets accounted for 9.2% of video ad views (assuming $10 CPMs, 3 botnets caused $27 million of waste in March) Source: TubeMogul Report Source: comScore “from 3 botnets”
  11. 11. Augustine Fou- 11 - Video Bots Double Display Source: ANA / White Ops Study Published December 2014 [PDF] The assumption that video ad fraud is harder to commit and therefore lower than display or mobile fraud is wrong. The ANA/WhiteOps study from December 2014 shows video ad fraud by bots is double that of display ads and can be as high as 62% for premium (i.e. expensive) video ad inventory).
  12. 12. Augustine Fou- 12 - Dr. Augustine Fou – Technical Forensics “I advise clients and their agencies on the technical aspects of fighting digital ad fraud. Using forensic technologies and techniques I help to assess the threat and the current countermeasures in order to recommend additional steps that can be taken to combat fraud and improve ROI.” 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 acfou @ mktsci. com | 212.203.7239
  13. 13. Augustine Fou- 13 - APPENDIX
  14. 14. Augustine Fou- 14 - Click through rates Engagement rate Average engagement time (seconds) Average video playtime (seconds) Percent in-screen impressions Video Ad Performance Metrics Source: AdForm via eMarketer Oct 22, 2014 Source: comScore via eMarketer Sept 2014
  15. 15. Augustine Fou- 15 - Online Video Starts (Adobe) NOTE: These figures from Adobe are entirely different than the figures from comscore (next slide); but ad load can still be calculated: 5.4%

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