Good publishers have had to lay off journalists and other staff in an effort to survive. Ad dollars spent by marketers are not going to them but instead of siphoned off by ad tech for themselves and also into the pockets of bad guys, using ad fraud to steal ad dollars. Go back to buying media as if it were 1995 and cut out the middlemen - the Badtech industrial Complex.

1. January 2019 / Page 0marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Adtech enabled siphoning
PublishersAdvertisers
Human
Audience
Advertisers Publishers
Human
Audience
Fake Users
Fake Sites
1995
2015

2. January 2019 / Page 1marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Badtech Tax: 60-70% extracted
Source: WFA, April 2017
Source: ANA, May 2017

3. January 2019 / Page 2marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Case examples of this …
Publisher only gets 30-60c on the dollar after middlemen fees
https://mediatel.co.uk/newsline/2016/10/04/where-did-the-
money-go-guardian-buys-its-own-ad-inventory
2016
The Guardian
“for every pound an advertiser
spends programmatically on the
Guardian only 30 pence actually
goes to the publisher.”
2017
BusinessInsider
“$40,000 worth of ad inventory
through the open exchanges,
the publication only saw $97.”
http://adage.com/article/digital/business-insider-york-times-
shed-details-ad-industry-s-biggest-problem/311081/

4. January 2019 / Page 3marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
U.S. Digital Ad Spend Distribution
$46 Search Display/Video $46
$32$39
$8
Google Search FB+Google Display$29
(outside Google/Facebook)
$100 Billion Digital SpendSource: IAB 2H 2018 Report
Source: Verisign, Q4 2016
329M
domains
est. 1 million est. 164 million
7M
apps
Source: Statista, March 2017
est. 10,000 est. 6.99 million
1% of
impressions
99% of
impressions
$10B $19B
Good Publishers “sites/apps with ads”

5. January 2019 / Page 4marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Scarcity … vs unlim fake ads
Infinite quantities of digital ads can be created on real or fake sites
Unlike real billboards that
people actually drive by in
the physical world …
Limitless quantities of digital
ads can be created on fake
sites that humans never visit.

6. January 2019 / Page 5marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Myth of the long tail
Most people visit sites they know most; occasionally long tail ones
“There are numerous pieces of research on how even as people
accumulate hundreds of TV channels, they only watch seven. It's rather
commonly accepted that in a sea of millions of mobile apps, most people
stick to half a dozen.” http://www.businessinsider.com/the-advertising-industry-has-been-living-a-lie-2017-10

7. January 2019 / Page 6marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Myth of Hypertargeting
After 3 parameters, the matching audience gets really tiny
Female Male
18-25 13-17 25-34 35-49 50+
1. gender
2. age range
3. geographic location
50%
10%
2%
100 params?
300 params?
Starting Audience 100%
?
?
% of AudienceTargeting parameters

8. January 2019 / Page 7marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Myth of behavioral targeting
Ad tech sold the idea of deriving intent from web history
Outdoor
enthusiast?Male? Female?
“This works on simplistic examples, like the above. But when the list of sites grows
longer and more diverse, the assumptions used to derive data points, even gender, are
going to be less and less accurate. In fact, a recent study of online identifiers determined
that over 80% of the records were designated as BOTH male and female.”
Source: Yeah, Your Data’s Screwed

9. January 2019 / Page 8marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
hypertargeting
behavioral targeting
“Badtech” harms all parties
Good Publishers
(lower revenue, CPMs)
Consumers
(privacy violations)
Advertisers
(ad fraud, no outcomes)
Badtech
Industrial
Complex
Badtech
Industrial
Complex long tail sites