Traditional advertising was based on the premise of "reach and frequency" to drive ROI. However, in digital, the same "spray and pray" mentality means advertisers are underutilizing digital ads' potential -- as a highly measurable medium.

1. Traditional Advertising
Mentality Applied to
Digital
Dr. Augustine Fou
http://linkd.in/augustinefou
February 2014
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Augustine Fou

2. Traditional Advertising
(Reach & Frequency)
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Augustine Fou

3. Case: Jlo/Fiat (2011)
“the jlo ad”
“Fiat, who?”
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Fiat’s TV ad generated huge search
interest for Jennifer Lopez but had
virtually no impact for Fiat, launching the
500C.
Augustine Fou

4. People Remember Celebrity
2012 Superbowl Ads
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Augustine Fou

5. Ace Metrix
Study: 56% Consumers say celebrities make little difference
45% of US adults believe that celebrities can
make either a large (11%) or some (33%)
positive difference to issues they are promoting,
but a greater proportion (51%) feel that they
make little to no difference, per results from a
study by Harris Interactive. Interestingly,
respondents were more convinced of
celebrities’ potential negative impact: 55%
believe that celebrities’ negative publicity can
have a somewhat (35%) or very (20%)
damaging impact on the issue they’re
promoting.
Source: Ace Metrix via Marketing Charts Feb 6, 2014
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Augustine Fou

6. 2012 Olympics TV Ad…
http://www.youtube.com/watch?v=c8Y_oeYlmUw
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Augustine Fou

7. … drove sales for Audible
Specific titles: Moby Dick, Odyssey spiked up
Odyssey
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Moby Dick
Augustine Fou

8. Case: Kodak
Canon and Fuji were harvesting ROI online because they had
better search optimized websites and better reviews on Amazon.
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Augustine Fou

9. Spray & Pray “Mentality”
“Advertisers have brought their
„spray and pray‟ mentality to digital –
reach and frequency now means
tonnage of digital ads.”
-- Augustine Fou
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Augustine Fou

10. “Spray and Pray”
in Digital
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Augustine Fou

11. Google – 12 ads per page
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5
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6
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9
10
11
12
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Augustine Fou

12. NY Times – 25 ads
Do advertisers know their ads are shown next to so many others?
Top half
Bottom half
25 ads
per page!
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Augustine Fou

13. Extreme Ad Load
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Augustine Fou

14. Facebook 7–9 Ads /pageview
2012
2011
2010
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Source: Facebook Display Ads | go-Digital Blog
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Augustine Fou

15. 155 Video Ads /user /mo
Nov 2013 reach = 56%
frequency = 155 ads /mo
Source: comScore, dec 2013 via MarketingCharts
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Augustine Fou

16. Ad “Tonnage”
Doesn’t Equal ROI
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Augustine Fou

17. “If ad impressions were generated by
bots and not humans, if the ads were
not in view or adblocked, or if the ads
are not targeted properly, they will not
lead to paying customers for the
advertiser.”
-- Augustine Fou
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Augustine Fou

18. Suspicious/Confirmed Bot Traffic
51% suspicious
24-29% confirmed bot
Source: Solve Media via Marketing Charts September 12, 2013
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Source: Solve Media Dec 31 2013
Augustine Fou

19. 54% Online Ads Aren’t In View
Source: comScore June 2013 via MarketingCharts
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Augustine Fou

20. 23% of Users Use Adblockers
Source: PageFair, August 2013
Average Adblocking Rate
22.7%
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Augustine Fou

21. Properly Targeted Impressions
Source: Nielsen, October 2011
25% average
on-target delivery
Case Example
5% properly targeted
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Augustine Fou

22. Areas of Optimization
30%
40%
30%
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targeting
improving
optimization
delivery
viewability
bots /not seen by humans
waste
reduction
Augustine Fou

23. Low Hanging Fruit
The most immediate, direct impact on ROI comes from reducing waste
25% On-Target Delivery
(Nielsen)
54% Not In View
(comScore)
23% Ad Blocked
(PageFair)
24 – 29% confirmed bot
(Solve Media)
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Augustine Fou

24. Forms of Ad Waste
Source: Ted McConnell, Brand Innovators Summit
I didn’t get what I paid for:
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10% never get loaded into the browser – Moat
31% are never “in-view” (fraud or not) – comScore
20-80% are off demo target (depending on density) – Nielsen
29% are served to bots – Solve Media
20-40% are over frequency (bots or not) – Audience Science
5-30% are served outside your market geography – comScore
10% (est.) Dwell time < 1 second – SWAG
5% Overzealous Ad Verification (didnt get shown) – SWAG
20% Video: Autoplay, Sound off, Below the fold – TubeMogul
Net using average values and statistical overlap:
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87% wasted
Augustine Fou

25. Dr. Augustine Fou – Digital Consigliere
“I advise clients on optimizing
advertising across all channels. One
aspect of this is detecting waste and
fraud; and then taking steps to mitigate it.
After that is resolved then we further
optimize the performance of the ads.”
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: http://linkd.in/augustinefou
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@acfou
Augustine Fou

26. Related Articles
Digital Ad Fraud Briefing
By: Augustine Fou December 2013
ROI Case For Solving Ad Fraud
By: Augustine Fou, February 2014
Ad Fraud Fighting Techniques
By: Augustine Fou October 2013
An Ecosystem of Digital Ad Fraud
By: Augustine Fou, October 2013
How Display Fraud Works
By: Augustine Fou, May 2013
The Magnitude of Digital Ad Fraud
By: Augustine Fou, November 2013
How Click Fraud Works
By: Augustine Fou, November 2013
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Augustine Fou