Video ads are also plagued with fraudulent views (generated by bots) and ads that are simply not in view.

1. Augustine Fou- 1 -
100 million impressions
- 36% bogus impressions
Source: WSJ One-Third of Traffic is Bogus
64 million impressions
- 54% not-in-view
Source: comScore June 2013
29 million impressions
- 23%
ad-blocked by user
Source: PageFair, August 2013
22 million impressions
$0.50 CPM
productive 4.5x higher effective cost
Display Ad Productivity

2. Augustine Fou- 2 -
Display ad CPMs are in the $0.10 - $0.80 range
Display Ad Global eCPM
Source: Turn, October 2013

3. Augustine Fou- 3 -
100 million impressions
- 56% not viewable
Source: Vindico Year-in-Review 2013
44 million impressions
- 11% bot-generated ad views
Source: TubeMogul 2014, Vindico
39 million impressions
- 23%
ad-blocked by user
Source: PageFair, August 2013
30 million impressions
$8-12 CPM
productive 3.3x higher effective cost
Video Ad Productivity

4. Augustine Fou- 4 -
60% Video ad CPMs are in the $8 - $12 range
Video Ad Global eCPM
Source: Turn, October 2013

5. Augustine Fou- 5 -
500 billion
display ad impressions /mo
Impression (CPM) Fraud
29%
confirmed bot traffic
~$1 - $3.50
cost per thousand
$2-6 billion
wasted ad spend (annualized)
Display Ads
35 billion
video ad impressions /mo
40%
estimated fake views
~$8 - $12
cost per thousand
$1-2 billion
wasted ad spend (annualized)
Video Ads
Source: Vindico, 2013Source: Solve Media 2013

6. Augustine Fou- 6 -
Dr. Augustine Fou – Agency Czar
“I advise clients on optimizing their
digital spend – first by ensuring that
waste is minimized or eliminated, then
by further optimizing based on
targeting, etc.”
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://www.clickz.com/author/1151/augustine-fou
Slideshares: http://www.slideshare.net/augustinefou
LinkedIn: http://www.linkedin.com/in/augustinefou

7. Augustine Fou- 7 -
Related Articles
Augustine Fou- 7 -
http://www.slideshare.net/augustinefou/display-ad-fraud-101-by-augustine-fou-
technical-forensics
http://www.slideshare.net/augustinefou/digital-advertising-benchmarks-2014-by-
augustine-fou
http://www.slideshare.net/augustinefou/effectiveness-of-digital-ads-by-augustine-fou
http://www.slideshare.net/augustinefou/optimization-pyramids-for-digital-ads-by-
augustine-fou
http://www.slideshare.net/augustinefou/usefulness-of-advertising-by-augustine-fou-
marketing-consigliere
http://www.slideshare.net/augustinefou/optimizing-targeting-of-display-ads-by-
augustine-fou

8. Augustine Fou- 8 -
APPENDIX

9. Augustine Fou- 9 -
Digital Video Ad Spend
Source: eMarketer, May 2013
Digital video ad
spend continues to
rise rapidly as more
TV ad dollars shift to
digital.
Because video CPMs
are so much more
lucrative, it is more
lucrative for bad
guys too.

10. Augustine Fou- 10 -
A new study [download page] from
VideoHub indicates that during the first
quarter, average viewability for online
video ads in the US was 83%, although
rates varied widely among properties,
from 43% on the low end to 94% on the
high end. Broadcast TV sites fared best
(89% on average) among property
categories, with networks and
exchanges (73%) bringing up the rear.
Video Ad Viewability
Source: VideoHub August 2013 via MarketingCharts