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marketing.science consulting group, inc. Effectiveness of Digital Ads 2015 Update July 2015 Augustine Fou, PhD. http://linkd.in/aug ustinefou acfou @ mktsci .com 212. 203. 7239
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Effectiveness of Digital Ads 2015 Update by Augustine Fou

Aug 14, 2015

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Page 1: Effectiveness of Digital Ads 2015 Update by Augustine Fou

marketing.scienceconsulting group, inc.

Effectiveness of Digital Ads2015 Update

July 2015Augustine Fou, PhD.http://linkd.in/augustinefou

acfou @ mktsci .com 212. 203. 7239

Page 2: Effectiveness of Digital Ads 2015 Update by Augustine Fou

July 2015 / Page 2marketing.scienceconsulting group, inc.

Dr. Augustine Fou

100 million impressions - 60% bots / NHT

Source: Incapsula, Dec 2014

40 million impressions - 60%

~10 million impressions

ad-blocked by userSource: PageFair, Sep 2014

Paid $0.45 CPM on 100M impressions ($45k) and got 10 million productive impressions = $4.69 eCPM

Avg. $0.45 CPM

10X higher effective cost

16 million impressions - 40%

Source: Turn Oct 2013

Display ads: Programmatic and RTB

Distil Networks says 59% bots, May 2015

40% in-view (RTB)Source: DoubleVerify, Q1 2015

Page 3: Effectiveness of Digital Ads 2015 Update by Augustine Fou

July 2015 / Page 3marketing.scienceconsulting group, inc.

Dr. Augustine Fou

Three firms corroborate webwide bot levels: ~60%

Distil Networks May 2015 – 59% botsIncapsula Dec 2014 – 56% bots

SolveMedia Jan 2015 – 56% bots

Page 4: Effectiveness of Digital Ads 2015 Update by Augustine Fou

July 2015 / Page 4marketing.scienceconsulting group, inc.

Dr. Augustine Fou

Viewability rate of Programmatic, Exchanges, RTB: ~40%

Source: Sizmek, Apr 2015

Source: DoubleVerify April, 2015

Source: Vindico April, 2015

Page 5: Effectiveness of Digital Ads 2015 Update by Augustine Fou

July 2015 / Page 5marketing.scienceconsulting group, inc.

Dr. Augustine Fou

100 million impressions - 2% bad bots

Source: Marketing Science July 2015

98 million impressions - 40% 60% in-view (publisher direct)

Source: Sizmek, Apr 2015

35 million impressions

ad-blocked by userSource: PageFair, Sep 2014

Paid $0.45 CPM on 100M impressions ($45k) and got 35 million productive impressions = $1.28 eCPM

Avg. $0.45 CPM

59 million impressions - 40%

Source: Turn Oct 2013

Display ads: Premium Publishers

“premium publishers typically earn around $1.35 CPM from open exchanges” Source: DCN, May 2015

Page 6: Effectiveness of Digital Ads 2015 Update by Augustine Fou

July 2015 / Page 6marketing.scienceconsulting group, inc.

Dr. Augustine Fou

Premium publishers have real human visitors and low bots

confirmed humans77% overall average

confirmed bots2% overall average

declared / search bots1% overall average

Note that 1% confirmed bots does not mean 99% humans; and vice versa 87% humans does not mean 13% bots. Using a deterministic approach, there are visits that cannot be sufficiently, accurately labeled and hence are marked uncategorized.

Page 7: Effectiveness of Digital Ads 2015 Update by Augustine Fou

July 2015 / Page 7marketing.scienceconsulting group, inc.

Dr. Augustine Fou

Viewability rate of premium publishers: ~60%

Source: Sizmek, Apr 2015

Source: DoubleVerify April, 2015

Source: Vindico April, 2015

Source: Marketing Science, July 2015

Directly measured, onlypremium publishers (60)

60% viewable

Page 8: Effectiveness of Digital Ads 2015 Update by Augustine Fou

July 2015 / Page 8marketing.scienceconsulting group, inc.

Dr. Augustine Fou

100 million impressions - 60% bots / NHT

Source: Incapsula, Dec 2014

40 million impressions - 46%

~13 million impressions

ad-blocked by userSource: PageFair, Sep 2014

Paid $10 CPM on 100M impressions ($1M) and got 13 million productive impressions = $77 eCPM

Avg. $10 CPM

8X higher effective cost

21 million impressions - 40%

Source: Turn Oct 2013

Video ads

54% in-viewSource: Google, May 2015

Page 9: Effectiveness of Digital Ads 2015 Update by Augustine Fou

July 2015 / Page 9marketing.scienceconsulting group, inc.

Dr. Augustine Fou

Three firms corroborate webwide bot levels: ~60%

Distil Networks May 2015 – 59% botsIncapsula Dec 2014 – 56% bots

SolveMedia Jan 2015 – 56% bots

Page 10: Effectiveness of Digital Ads 2015 Update by Augustine Fou

July 2015 / Page 10marketing.scienceconsulting group, inc.

Dr. Augustine Fou

Viewability rate of video ads webwide: ~54%

Source: Google, May 2015

Page 11: Effectiveness of Digital Ads 2015 Update by Augustine Fou

July 2015 / Page 11marketing.scienceconsulting group, inc.

Dr. Augustine Fou

Top priorities for increasing digital ad productivity

Served ad impressions

-11%Display ads

-23%Video ads

-52%

NH

T (“

bots

”)

Sourced trafficSource: WhiteOps / ANA Dec 2014

Display ads

Source: Google Nov 2014

-36% Average NHT (bots)

View

abili

ty

-56%Video ads

-80%Views Source: RealVu 2014 “1 in 5 ads are viewable”

-26%Ad Block usage Source: Marketing Science 2014

-34.5%Display adsSource: PageFair 2014

Ad B

lock

ing

-54% Source: comScore Jun 2013

-60% Average Viewability

Page 12: Effectiveness of Digital Ads 2015 Update by Augustine Fou

July 2015 / Page 12marketing.scienceconsulting group, inc.

Dr. Augustine Fou

Dr. Augustine Fou – Digital Consigliere

“I advise clients on optimizing their advertising, across offline and online channels. I assess ROI by analyzing the measured productivity of different forms of advertising and advise on re-allocation of budget to the most productive types of ads or channels.”

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-clickzSlideshares: http://bit.ly/augustine-fou-slidesharesLinkedIn: https://www.linkedin.com/today/author/84444-augustinefou