For different types of ads, if the brand advertisers can cut out the waste due to fraud, they can significantly increase the effectiveness of their ads as well as the ROI and business impact.

1. Augustine Fou- 1 -
Display Ads
known fraudulent impressions
not-in-view or ad-blocked
non-fraud, human viewer
15-30%
23-54%
16-25%

2. Augustine Fou- 2 -
Video Ads
confirmed fraudulent views
not-in-view, autoplay
non-fraud, human viewer
20-40%
30-50%
10-20%

3. Augustine Fou- 3 -
Search Ads
ads shown on fraudulent sites
accidental clicks
non-fraud, human viewer
5-20%
5-10%
70-90%

4. Augustine Fou- 4 -
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
@acfou
ClickZ Articles: http://bit.ly/augustine-fou-clickz
Slideshares: http://bit.ly/augustine-fou-slideshares
LinkedIn: http://linkd.in/augustinefou

5. Augustine Fou- 5 -
APPENDIX

6. Augustine Fou- 6 -
Main Types of Digital Ads
Impressions
(CPM/CPV)
Clicks
(CPC)
Leads
(CPL)
Sales
(CPA)
• Display ads
• Video ads
• Social display
• Mobile display
• Search ads
• Mobile search
• Affiliate
revenue share
• Completed
lead forms
sold on cost-
per-lead basis

7. Augustine Fou- 7 -
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

8. Augustine Fou- 8 -
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