Video ad fraud is also running rampant, because video CPMs and CPVs are more than 10x more expensive than display ads. Bad guys are deploying their botnets to create video ad views in order to siphon off ad dollars from unsuspecting brand advertisers.

1. Video Ad Fraud
101
Dr. Augustine Fou
acfou [at] mktsci.com
http://linkd.in/augustinefou
February 2014
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Augustine Fou

2. Why Now?
“As more ad inventory is bought and sold
programmatically on ad exchanges, bad
guys are finding it far easier to commit fraud
because few agencies and advertisers
actually check in detail the hundreds of
thousands of sites on which the ads are run.
It’s easier to hide in a far larger haystack.”
-- Dr. Augustine Fou
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Augustine Fou

3. Real-Time Bidding
Real-Time
Bidding to
Account for
25% of DisplayAd Spending by
2015: eMarketer
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Augustine Fou

4. Types of Ad Fraud
Impressions
Clicks
Leads
Sales
(CPM fraud)
(CPC fraud)
(CPL fraud)
(CPA fraud)
Bot or low
wage workers
fill in lead
forms with real
addresses and
get paid bounty
per lead.
Fake sites set
up to do cookie
stuffing or trick
users to click
on affiliate
links to earn rev
share.
(CPV for video)
Botnets
generate fake
pageviews
which produce
ad impression
“inventory” that
is sold into ad
exchanges.
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Bots type
search queries
to bring up
search ads and
then click on
the ads to earn
share of CPC.
Augustine Fou

5. How Video Ad Fraud
(Cost per View) Works
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Augustine Fou

6. Bad Guys Put Up Sites
site = analyzecanceradvice .com
site = missomoms.com
19 blocked ads on page
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Augustine Fou

7. Autoplay Video Ads
Break.com
Multiple video
ads auto-played
simultaneously
on the same
page.
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Augustine Fou

8. Autoplay (4) Ads
Metacafe.com
Multiple video ads autoplayed back to back with
no user intervention.
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Augustine Fou

9. Autoplay Video Takeover
Break.com
Autoplayed T-mobile
video ad in full page
takeover.
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Augustine Fou

10. Use Botnets to Create Views
Source: Wired
Source: Google Digital Attack Map
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Augustine Fou

11. Traffic Firehose On/Off
Source: Alexa
Legit human traffic does not change rapidly; but bot traffic
(firehose) can be rapidly turned off and directed to other sites.
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Augustine Fou

12. Normal vs Fake Traffic
FAKE traffic is the same
across several sites
(corresponds to what was
purchased)
Normal traffic differs from
site to site
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Augustine Fou

13. Video Ad Impressions
50 - 77%
fraudulent, autoplay, wasted, not-in-view
Source: Vindico via Adweek, December 15, 2013
eMarketer: Digital Video Ad Spend est. $4B in 2013
• Advanced bots are programmed to load video ads and wait
till they are counted as “views” before leaving the page
• Video ads have 10x the CPM compared with display ads, and
are therefore a prime target for „bad guys‟
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Augustine Fou

14. Video Ad Views Exploded
Surge in views probably
not due to more humans
Source: comScore, Jan 2014 via MarketingCharts
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Augustine Fou

15. 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.
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Augustine Fou

16. Video Ads Are Lucrative
Video ad CPMs
are $8 $12, which
means they are
more than 10X
more lucrative
than display or
mobile ads.
Source: Turn, Inc.
October 2013
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Augustine Fou

17. Video Ad Viewability
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.
Source: VideoHub August 2013 via MarketingCharts
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Augustine Fou

18. Video Ad (CPV) Fraud
Video Ads
35 billion
video ad impressions /mo
40%
Source: Vindico, 2013
estimated fake views
~$8 - $12
cost per thousand
$1-2 billion
wasted ad spend (annualized)
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Augustine Fou

19. What Advertisers
Can/Should Do
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Augustine Fou

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

21. Low Hanging Fruit
The most immediate, direct impact on ROI comes from reducing waste
25% On-Target Delivery
(Nielsen)
54% Not In View
(comScore)
82% Ignored
(Harris Interactive)
23% Ad Blocked
(PageFair)
24 – 29% confirmed bot
(Solve Media)
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Augustine Fou

22. Digital Ad Forensics Process
Preliminary Scan
Sizing of
ad fraud
Forensic Analysis
Maintenance
• Technology Tools
• Statistical analysis
• Budget shifts
• Further optimization
Implementation
FREE
$$$
Preliminary analysis of
paid campaigns and
analytics to determine
magnitude of the ad
fraud impacting client.
Creating recommended
list of
changes, including list
of sites to exclude in
each ad channel.
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$
Subscribe to triangulated,
cross-industry database of
“ad fraud offenders” to
continuously update
blacklists and whitelists.
Augustine Fou

23. Related Articles
Digital Ad Fraud Briefing
By: Augustine Fou December 2013
Fake YouTube Videos
By: Augustine Fou, December 2013
Ad Fraud Fighting Techniques
By: Augustine Fou October 2013
Fake Linkedin Profiles
By: Augustine Fou, December 2013
How Display Fraud Works
By: Augustine Fou, May 2013
Fake Facebook Profiles
By: Augustine Fou, Dec 2013
How Click Fraud Works
By: Augustine Fou, November 2013
Fake Twitter Accounts
By: Augustine Fou, August 2013
The Magnitude of Digital Ad Fraud
By: Augustine Fou, November 2013
An Ecosystem of Digital Ad Fraud
By: Augustine Fou, October 2013
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Augustine Fou

24. Dr. Augustine Fou – Technical Forensics
“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 – which produces
immediate 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
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