SlideShare a Scribd company logo
1 of 24
Download to read offline
How Ad Fraud Harms
Good Publishers
April 2017
Augustine Fou, PhD.
acfou [at] mktsci.com
212. 203 .7239
How publishers are harmed
April 2017 / Page 2marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Ad revenue is diverted away
1. Bot visits good
publisher site to
collect “cookie”
2. Bot then visits fake sites to
cause ad impressions to load
there; those sites make the
ad revenue
www.nejm.org healthsiteproductionalways.com
April 2017 / Page 3marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Profit margins are depressed
www.nejm.org healthsiteproductionalways.com
$100 CPMs $0.10 CPMsvs
“Media agencies want to buy more of the low-
cost stuff to lower their average costs.”
April 2017 / Page 4marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
http://www.olay.co
m/skin-care-
products/OlayPro-
X?utm_source=msn
&utm_medium=cpc
&utm_campaign=Ol
ay_Search_Desktop
Bad guys pretend to be good publishers
Click thru URL
passes fake source
“utm_source=msn”
to ‘launder’ the domain
buy eye cream online
(expensive CPC keyword)
1. Fake site that
carries search ads
Olay.com ad in
#1 position
2. search ad
served, fake click
Destination page
fake source declared
3. Click through to
destination page
April 2017 / Page 5marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Premium audiences stolen by cookie matching
specialized audience:
oncologists
jco.ascopubs.org
specialized audience can
be targeted elsewhere
“cookie matching”
(by placing javascript on your site)
April 2017 / Page 6marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Fake inventory sold on exchanges
publisherA.com
… but, PublisherA
does NOT sell ads
on open exchanges!
“Dark Revenue” is ad revenue diverted away from
publishers, so they don’t even see it’s missing.
• Large pubs – “dark” is 1-2X ad revenue
• Medium pubs - “dark” is 5-10X ad revenue
• Small pubs - “dark” is 20-100X ad revenue
April 2017 / Page 7marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Publishers wrongly accused by bad data
Incorrect IVT
Measurement
Sources 1 and 2
on-page
Source 3
in foreign iframe
1x1 pixel
incorrectly reported as
100% viewable
Incorrect
Viewability
April 2017 / Page 8marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Unfair fight because bad guys cheat
“Bad guys have higher (fake) viewability”
AD
Bad guys cheat by
stacking all ads
above the fold to
fake 100% viewability
Good guys have to array
ads on the page – e.g.
lower average viewability.
April 2017 / Page 9marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Publishers get the “short stick”Advertisers
Publishers
are left with 30%
Bad Guys
siphon dollars OUT
of the ecosystem
30% ($6B)
60% ($11B)
Ad Blocking
users use ad blocking to
protect themselves
10% ($2B)
Ad Tech
“plumbing” and verification
Source: The Guardian, Oct 2016
$5B to Google Display
$16B to Facebook Display
Display Spend$40B
DisplaySpend
Background and Context
April 2017 / Page 11marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Fraud diverts ad spend to fraudsters
Good Publishers “sites that carry ads”
• No content
• Few humans
• Low CPMS
$40 Search Spend Display Spend $40
$21$30
$3
Google Search FB+Google Display
$29
(outside Google/Facebook)
$83 Digital Spend Source: eMarketer March 2017
47%
programmatic
April 2017 / Page 12marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
$29
(outside Google/Facebook)
There’s 160X more “sites with ads”
Good Publishers “sites with ads”
Source: Verisign, Q4 2016
329M
domains
est. 164 million
“sites that carry ads”
“sites you’ve heard of”
WSJ
ESPN
NYTimes
Economist
Reuters
Elle
3%
no ads
carry ads
160X more
47%
programmatic
est. 1 million
April 2017 / Page 13marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
700X more
There’s 700X more fake apps
7M
apps
Source: Statista, March 2017
6.99 million
96% “apps that carry ads”
10,000
“apps you’ve heard of”
Facebook
Spotify
Pandora
Zynga
Pokemon
YouTube
$29
(outside Google/Facebook)
47%
programmatic
Facebook, 2015
Users use 8 – 15 apps on their
phones.
Spotify, 2016
People have 25 apps on their
phones, use 5-8 regularly
Forrester Research, May 2017
Humans “use 9 apps per day, 30
per month”
April 2017 / Page 14marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Examples of fake sites, fake apps
Fake Sites (10s of millions)
Source: Sadbottrue.com
Fake Apps (millions)
April 2017 / Page 15marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
How ad fraud works … very simply
Source: Distil Networks 2017
1. Start with lots of bots
2X more data center browsers
than malware on PCs at home
2. Launder using tech tools
Randomize referrer to look legit,
user agent, and IP address location
3. Sell traffic to willing buyers
“Sites that carry ads” want to buy
traffic to increase ad revenues
4. Sell low cost CPMs on exchanges
Massive quantities of low cost inventory
sold to marketers, fully laundered
Source: Ratko Vidakovic, May 2017
Publishers who want it Advertisers who want it
What are publishers doing?
April 2017 / Page 17marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Publisher myths about ad fraud
1. Fraud doesn’t affect us, there’s low bots on our site
Bots don’t come in large quantities to your sites; they just
collect a cookie and go elsewhere to create ad impressions
2. We have bot protection on our site
Nice. But what if bad guys pretend to be your site by
passing fake data, and put your brand reputation at risk?
3. We have high quality traffic
Great. We believe you. But what if bot detection tech
accuses you of high bots (falsely)?
April 2017 / Page 18marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Good publishers take action to reduce bots
Publisher 1 – stopped buying traffic
Publisher 2 – filtered data center traffic
April 2017 / Page 19marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Good publishers protect advertisers
On-Site measurement,
bots are still coming
In-Ad measurement, bots
and data centers filtered
11% red
-9% (filtered GIVT
and data centers)
2% red
“Filter data center traffic and not call the ads”
April 2017 / Page 20marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Good publishers protect users
42 trackers
24.3s load time
8 trackers
1.3s load time
“minimize 3rd party javascript trackers on pages”
April 2017 / Page 21marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
About the Author
April 2017
Augustine Fou, PhD.
acfou@mktsci.com
212. 203 .7239
April 2017 / Page 22marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Dr. Augustine Fou – Independent Ad Fraud Researcher
2013
2014
Follow me on LinkedIn (click) and on Twitter
@acfou (click)
Further reading:
http://www.slideshare.net/augustinefou/presentations
https://www.linkedin.com/today/author/augustinefou
2016
2015
April 2017 / Page 23marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Harvard Business Review – October 2015
Excerpt:
Hunting the Bots
Fou, a prodigy who earned a Ph.D. from MIT at
23, belongs to the generation that witnessed
the rise of digital marketers, having crafted his
trade at American Express, one of the most
successful American consumer brands, and at
Omnicom, one of the largest global advertising
agencies. Eventually stepping away from
corporate life, Fou started his own practice,
focusing on digital marketing fraud
investigation.
Fou’s experiment proved that fake traffic is
unproductive traffic. The fake visitors inflated
the traffic statistics but contributed nothing to
conversions, which stayed steady even after the
traffic plummeted (bottom chart). Fake traffic is
generated by “bad-guy bots.” A bot is computer
code that runs automated tasks.

More Related Content

What's hot

What's hot (20)

State of Ad Fraud #RampUp17
State of Ad Fraud #RampUp17State of Ad Fraud #RampUp17
State of Ad Fraud #RampUp17
 
Most popular browsers mimicked by fraud bots
Most popular browsers mimicked by fraud botsMost popular browsers mimicked by fraud bots
Most popular browsers mimicked by fraud bots
 
Piracy and Ad Fraud - Bad Guys Rip Off Studios Twice
Piracy and Ad Fraud - Bad Guys Rip Off Studios TwicePiracy and Ad Fraud - Bad Guys Rip Off Studios Twice
Piracy and Ad Fraud - Bad Guys Rip Off Studios Twice
 
Better Media Means Better Outcomes and ROI Augustine Fou
Better Media Means Better Outcomes and ROI Augustine FouBetter Media Means Better Outcomes and ROI Augustine Fou
Better Media Means Better Outcomes and ROI Augustine Fou
 
Illustrated ad fraud risks for advertisers
Illustrated ad fraud risks for advertisersIllustrated ad fraud risks for advertisers
Illustrated ad fraud risks for advertisers
 
Chase example of reducing reach by 99 percent
Chase example of reducing reach by 99 percentChase example of reducing reach by 99 percent
Chase example of reducing reach by 99 percent
 
Good Publishers Will Save Digital
Good Publishers Will Save DigitalGood Publishers Will Save Digital
Good Publishers Will Save Digital
 
Piracy Sites' Ad Fraud Double Whammy by Augustine Fou
Piracy Sites' Ad Fraud Double Whammy by Augustine FouPiracy Sites' Ad Fraud Double Whammy by Augustine Fou
Piracy Sites' Ad Fraud Double Whammy by Augustine Fou
 
Fraud Detection is Easily Fooled
Fraud Detection is Easily FooledFraud Detection is Easily Fooled
Fraud Detection is Easily Fooled
 
State of Digital Ad Fraud Q2 2017 by Augustine Fou
State of Digital Ad Fraud Q2 2017 by Augustine FouState of Digital Ad Fraud Q2 2017 by Augustine Fou
State of Digital Ad Fraud Q2 2017 by Augustine Fou
 
State of Digital Ad Fraud August 2017
State of Digital Ad Fraud August 2017State of Digital Ad Fraud August 2017
State of Digital Ad Fraud August 2017
 
At-Scale Ad Fraud Absorbs Most Digital Dollars
At-Scale Ad Fraud Absorbs Most Digital DollarsAt-Scale Ad Fraud Absorbs Most Digital Dollars
At-Scale Ad Fraud Absorbs Most Digital Dollars
 
State of digital ad fraud 2017 by augustine fou
State of digital ad fraud 2017 by augustine fouState of digital ad fraud 2017 by augustine fou
State of digital ad fraud 2017 by augustine fou
 
Mobile Ad Fraud - Betcha Didn't Know
Mobile Ad Fraud - Betcha Didn't KnowMobile Ad Fraud - Betcha Didn't Know
Mobile Ad Fraud - Betcha Didn't Know
 
Q2 2017 Ad Blocking Update
Q2 2017 Ad Blocking UpdateQ2 2017 Ad Blocking Update
Q2 2017 Ad Blocking Update
 
Bots Range in Sophistication
Bots Range in SophisticationBots Range in Sophistication
Bots Range in Sophistication
 
Five Pro Tips for Optimizing Programmatic Campaigns
Five Pro Tips for Optimizing Programmatic CampaignsFive Pro Tips for Optimizing Programmatic Campaigns
Five Pro Tips for Optimizing Programmatic Campaigns
 
May 2017 - Mobile Display Fraud Case Study
May 2017 - Mobile Display Fraud Case StudyMay 2017 - Mobile Display Fraud Case Study
May 2017 - Mobile Display Fraud Case Study
 
Bots Can Do Everything You Can Research by Augustine Fou
Bots Can Do Everything You Can Research by Augustine FouBots Can Do Everything You Can Research by Augustine Fou
Bots Can Do Everything You Can Research by Augustine Fou
 
Procurement to Help Fight Ad Fraud
Procurement to Help Fight Ad FraudProcurement to Help Fight Ad Fraud
Procurement to Help Fight Ad Fraud
 

Similar to How Ad Fraud Impacts Good Publishers

Dr. Augustine Fou - The Lowdown on Ad Fraud for Advertisers - Seattle Interac...
Dr. Augustine Fou - The Lowdown on Ad Fraud for Advertisers - Seattle Interac...Dr. Augustine Fou - The Lowdown on Ad Fraud for Advertisers - Seattle Interac...
Dr. Augustine Fou - The Lowdown on Ad Fraud for Advertisers - Seattle Interac...Seattle Interactive Conference
 

Similar to How Ad Fraud Impacts Good Publishers (19)

DMA_PPT_Analytics FINAL Sept 2017
DMA_PPT_Analytics FINAL Sept 2017DMA_PPT_Analytics FINAL Sept 2017
DMA_PPT_Analytics FINAL Sept 2017
 
Where the Wild Bots are OPSNY June 2016
Where the Wild Bots are OPSNY June 2016Where the Wild Bots are OPSNY June 2016
Where the Wild Bots are OPSNY June 2016
 
You're Not Getting What You Bought
You're Not Getting What You BoughtYou're Not Getting What You Bought
You're Not Getting What You Bought
 
State of Ad Fraud Ad Blocking Q1 2016 Update Augustine Fou
State of Ad Fraud Ad Blocking Q1 2016 Update Augustine FouState of Ad Fraud Ad Blocking Q1 2016 Update Augustine Fou
State of Ad Fraud Ad Blocking Q1 2016 Update Augustine Fou
 
Unintended Consequences for Publishers using Adtech
Unintended Consequences for Publishers using AdtechUnintended Consequences for Publishers using Adtech
Unintended Consequences for Publishers using Adtech
 
Digital ad fraud impact on class action notice industry
Digital ad fraud impact on class action notice industryDigital ad fraud impact on class action notice industry
Digital ad fraud impact on class action notice industry
 
State of Digital Ad Fraud Q4 2018
State of Digital Ad Fraud Q4 2018State of Digital Ad Fraud Q4 2018
State of Digital Ad Fraud Q4 2018
 
How Brands are Solving Ad Fraud Themselves
How Brands are Solving Ad Fraud ThemselvesHow Brands are Solving Ad Fraud Themselves
How Brands are Solving Ad Fraud Themselves
 
Dr. Augustine Fou - The Lowdown on Ad Fraud for Advertisers - Seattle Interac...
Dr. Augustine Fou - The Lowdown on Ad Fraud for Advertisers - Seattle Interac...Dr. Augustine Fou - The Lowdown on Ad Fraud for Advertisers - Seattle Interac...
Dr. Augustine Fou - The Lowdown on Ad Fraud for Advertisers - Seattle Interac...
 
Good Publishers Will Save Digital Marketing v2019
Good Publishers Will Save Digital Marketing v2019Good Publishers Will Save Digital Marketing v2019
Good Publishers Will Save Digital Marketing v2019
 
Entire ecosystem supporting ad fraud 2018
Entire ecosystem supporting ad fraud 2018Entire ecosystem supporting ad fraud 2018
Entire ecosystem supporting ad fraud 2018
 
State of Digital Ad Fraud Q2 2018
State of Digital Ad Fraud Q2 2018State of Digital Ad Fraud Q2 2018
State of Digital Ad Fraud Q2 2018
 
History and Impact of Digital Ad Fraud
History and Impact of Digital Ad FraudHistory and Impact of Digital Ad Fraud
History and Impact of Digital Ad Fraud
 
Marketers Take Control Run Experiments
Marketers Take Control Run ExperimentsMarketers Take Control Run Experiments
Marketers Take Control Run Experiments
 
What The Hell Happened to Good Publishers 1995 2015
What The Hell Happened to Good Publishers 1995 2015What The Hell Happened to Good Publishers 1995 2015
What The Hell Happened to Good Publishers 1995 2015
 
State of Digital Ad Fraud Q1 2015 Update by Augustine Fou
State of Digital Ad Fraud Q1 2015 Update by Augustine FouState of Digital Ad Fraud Q1 2015 Update by Augustine Fou
State of Digital Ad Fraud Q1 2015 Update by Augustine Fou
 
Ad fraud update for publishers Feb 2020
Ad fraud update for publishers Feb 2020Ad fraud update for publishers Feb 2020
Ad fraud update for publishers Feb 2020
 
Hidden Costs in Digital Media Supply Path
Hidden Costs in Digital Media Supply PathHidden Costs in Digital Media Supply Path
Hidden Costs in Digital Media Supply Path
 
FouAnalytics DIY site media analytics fraud detection baked in
FouAnalytics DIY site media analytics fraud detection baked inFouAnalytics DIY site media analytics fraud detection baked in
FouAnalytics DIY site media analytics fraud detection baked in
 

More from Dr. Augustine Fou - Independent Ad Fraud Researcher

More from Dr. Augustine Fou - Independent Ad Fraud Researcher (20)

Forensic Auditing of Digital Media.pdf
Forensic Auditing of Digital Media.pdfForensic Auditing of Digital Media.pdf
Forensic Auditing of Digital Media.pdf
 
Q1 2022 Update on ad fraud for AMM
Q1 2022 Update on ad fraud for AMMQ1 2022 Update on ad fraud for AMM
Q1 2022 Update on ad fraud for AMM
 
Ad blocking benchmarks q4 2021
Ad blocking benchmarks q4 2021Ad blocking benchmarks q4 2021
Ad blocking benchmarks q4 2021
 
Digital ad dollars trickle down chart
Digital ad dollars trickle down chartDigital ad dollars trickle down chart
Digital ad dollars trickle down chart
 
Still nothing but ad fraud 2021 dr augustine fou
Still nothing but ad fraud 2021 dr augustine fouStill nothing but ad fraud 2021 dr augustine fou
Still nothing but ad fraud 2021 dr augustine fou
 
Bad guys optimize ad fraud efficiency
Bad guys optimize ad fraud efficiencyBad guys optimize ad fraud efficiency
Bad guys optimize ad fraud efficiency
 
Alternative to ANA's end to end supply chain transparency study v final
Alternative to ANA's end to end supply chain transparency study v finalAlternative to ANA's end to end supply chain transparency study v final
Alternative to ANA's end to end supply chain transparency study v final
 
Impact of Loss of 3P Cookies on Publishers' Ad Revenue
Impact of Loss of 3P Cookies on Publishers' Ad RevenueImpact of Loss of 3P Cookies on Publishers' Ad Revenue
Impact of Loss of 3P Cookies on Publishers' Ad Revenue
 
Digital Media Trust Collaborative
Digital Media Trust CollaborativeDigital Media Trust Collaborative
Digital Media Trust Collaborative
 
Programmatic reach analysis 2021
Programmatic reach analysis 2021Programmatic reach analysis 2021
Programmatic reach analysis 2021
 
2021 update on ad fraud brand safety privacy
2021 update on ad fraud brand safety privacy2021 update on ad fraud brand safety privacy
2021 update on ad fraud brand safety privacy
 
Browser and OS Share Jan 2021
Browser and OS Share Jan 2021Browser and OS Share Jan 2021
Browser and OS Share Jan 2021
 
Checking abnormal referrer traffic in google analytics
Checking abnormal referrer traffic in google analyticsChecking abnormal referrer traffic in google analytics
Checking abnormal referrer traffic in google analytics
 
Digital Fraud Viewability Benchmarks Q4 2020
Digital Fraud Viewability Benchmarks Q4 2020Digital Fraud Viewability Benchmarks Q4 2020
Digital Fraud Viewability Benchmarks Q4 2020
 
What CFEs can do about digital ad fraud
What CFEs can do about digital ad fraudWhat CFEs can do about digital ad fraud
What CFEs can do about digital ad fraud
 
Four types of digital ad spend updated august 2020
Four types of digital ad spend updated august 2020Four types of digital ad spend updated august 2020
Four types of digital ad spend updated august 2020
 
How to Use FouAnalytics For Marketers
How to Use FouAnalytics   For MarketersHow to Use FouAnalytics   For Marketers
How to Use FouAnalytics For Marketers
 
Investigating digital ad fraud spi virtual meeting
Investigating digital ad fraud   spi virtual meetingInvestigating digital ad fraud   spi virtual meeting
Investigating digital ad fraud spi virtual meeting
 
Fraud by Browser Study
Fraud by Browser StudyFraud by Browser Study
Fraud by Browser Study
 
Digital Ad Fraud FAQ Question 1
Digital Ad Fraud FAQ Question 1Digital Ad Fraud FAQ Question 1
Digital Ad Fraud FAQ Question 1
 

Recently uploaded

SVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdfSVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdfvikrs213
 
Top 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldTop 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldD Cloud Solutions
 
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design CourseElevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Courseamirshaikhv21realtyp
 
A_B Testing Personalized Meditation Recommendations.pdf
A_B Testing Personalized Meditation Recommendations.pdfA_B Testing Personalized Meditation Recommendations.pdf
A_B Testing Personalized Meditation Recommendations.pdfVWO
 
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxivanrazine1
 
scope in Digital Marketing & advertising
scope in Digital Marketing & advertisingscope in Digital Marketing & advertising
scope in Digital Marketing & advertisingKBS SHOP
 
Fashion-Marketing-1- Assaginment mid.pdf
Fashion-Marketing-1- Assaginment mid.pdfFashion-Marketing-1- Assaginment mid.pdf
Fashion-Marketing-1- Assaginment mid.pdfUttara University
 
Digital Gravity - Full-Scale SEO Services Preview
Digital Gravity - Full-Scale SEO Services PreviewDigital Gravity - Full-Scale SEO Services Preview
Digital Gravity - Full-Scale SEO Services PreviewDigital Gravity
 
The 2024 Next Gen Attention Study - www.livewire.group
The 2024 Next Gen Attention Study - www.livewire.groupThe 2024 Next Gen Attention Study - www.livewire.group
The 2024 Next Gen Attention Study - www.livewire.groupLivewire
 
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdfSnapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdfEastern Online-iSURVEY
 
Increase Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarIncrease Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarSEO Optimizers
 
Harnessing Social Media for Marketing Growth
Harnessing Social Media for Marketing GrowthHarnessing Social Media for Marketing Growth
Harnessing Social Media for Marketing Growthabinashdm2014
 
Cricket Playbook for Growth Marketers: Adjust x Glance report
Cricket Playbook for Growth Marketers: Adjust x Glance reportCricket Playbook for Growth Marketers: Adjust x Glance report
Cricket Playbook for Growth Marketers: Adjust x Glance reportSocial Samosa
 
Ice Cream Brand Harmony Study - TINT Emotional Profiling Research
Ice Cream Brand Harmony Study - TINT Emotional Profiling ResearchIce Cream Brand Harmony Study - TINT Emotional Profiling Research
Ice Cream Brand Harmony Study - TINT Emotional Profiling ResearchTINT Marketing
 
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdfTAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdfSocial Samosa
 
Marketing Team of 1, A Framework To Win!
Marketing Team of 1, A Framework To Win!Marketing Team of 1, A Framework To Win!
Marketing Team of 1, A Framework To Win!Joseph Skibbie
 
Ppt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing coursPpt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing courstegveersingh09
 
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptxFriends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptxGregory Edwards
 
Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024Nedko Nedkov
 
Digital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEMDigital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEMNazal Digital
 

Recently uploaded (20)

SVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdfSVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdf
 
Top 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldTop 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern World
 
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design CourseElevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
 
A_B Testing Personalized Meditation Recommendations.pdf
A_B Testing Personalized Meditation Recommendations.pdfA_B Testing Personalized Meditation Recommendations.pdf
A_B Testing Personalized Meditation Recommendations.pdf
 
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
 
scope in Digital Marketing & advertising
scope in Digital Marketing & advertisingscope in Digital Marketing & advertising
scope in Digital Marketing & advertising
 
Fashion-Marketing-1- Assaginment mid.pdf
Fashion-Marketing-1- Assaginment mid.pdfFashion-Marketing-1- Assaginment mid.pdf
Fashion-Marketing-1- Assaginment mid.pdf
 
Digital Gravity - Full-Scale SEO Services Preview
Digital Gravity - Full-Scale SEO Services PreviewDigital Gravity - Full-Scale SEO Services Preview
Digital Gravity - Full-Scale SEO Services Preview
 
The 2024 Next Gen Attention Study - www.livewire.group
The 2024 Next Gen Attention Study - www.livewire.groupThe 2024 Next Gen Attention Study - www.livewire.group
The 2024 Next Gen Attention Study - www.livewire.group
 
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdfSnapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
 
Increase Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarIncrease Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads Webinar
 
Harnessing Social Media for Marketing Growth
Harnessing Social Media for Marketing GrowthHarnessing Social Media for Marketing Growth
Harnessing Social Media for Marketing Growth
 
Cricket Playbook for Growth Marketers: Adjust x Glance report
Cricket Playbook for Growth Marketers: Adjust x Glance reportCricket Playbook for Growth Marketers: Adjust x Glance report
Cricket Playbook for Growth Marketers: Adjust x Glance report
 
Ice Cream Brand Harmony Study - TINT Emotional Profiling Research
Ice Cream Brand Harmony Study - TINT Emotional Profiling ResearchIce Cream Brand Harmony Study - TINT Emotional Profiling Research
Ice Cream Brand Harmony Study - TINT Emotional Profiling Research
 
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdfTAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
 
Marketing Team of 1, A Framework To Win!
Marketing Team of 1, A Framework To Win!Marketing Team of 1, A Framework To Win!
Marketing Team of 1, A Framework To Win!
 
Ppt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing coursPpt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing cours
 
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptxFriends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
 
Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024
 
Digital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEMDigital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEM
 

How Ad Fraud Impacts Good Publishers

  • 1. How Ad Fraud Harms Good Publishers April 2017 Augustine Fou, PhD. acfou [at] mktsci.com 212. 203 .7239
  • 3. April 2017 / Page 2marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Ad revenue is diverted away 1. Bot visits good publisher site to collect “cookie” 2. Bot then visits fake sites to cause ad impressions to load there; those sites make the ad revenue www.nejm.org healthsiteproductionalways.com
  • 4. April 2017 / Page 3marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Profit margins are depressed www.nejm.org healthsiteproductionalways.com $100 CPMs $0.10 CPMsvs “Media agencies want to buy more of the low- cost stuff to lower their average costs.”
  • 5. April 2017 / Page 4marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou http://www.olay.co m/skin-care- products/OlayPro- X?utm_source=msn &utm_medium=cpc &utm_campaign=Ol ay_Search_Desktop Bad guys pretend to be good publishers Click thru URL passes fake source “utm_source=msn” to ‘launder’ the domain buy eye cream online (expensive CPC keyword) 1. Fake site that carries search ads Olay.com ad in #1 position 2. search ad served, fake click Destination page fake source declared 3. Click through to destination page
  • 6. April 2017 / Page 5marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Premium audiences stolen by cookie matching specialized audience: oncologists jco.ascopubs.org specialized audience can be targeted elsewhere “cookie matching” (by placing javascript on your site)
  • 7. April 2017 / Page 6marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Fake inventory sold on exchanges publisherA.com … but, PublisherA does NOT sell ads on open exchanges! “Dark Revenue” is ad revenue diverted away from publishers, so they don’t even see it’s missing. • Large pubs – “dark” is 1-2X ad revenue • Medium pubs - “dark” is 5-10X ad revenue • Small pubs - “dark” is 20-100X ad revenue
  • 8. April 2017 / Page 7marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Publishers wrongly accused by bad data Incorrect IVT Measurement Sources 1 and 2 on-page Source 3 in foreign iframe 1x1 pixel incorrectly reported as 100% viewable Incorrect Viewability
  • 9. April 2017 / Page 8marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Unfair fight because bad guys cheat “Bad guys have higher (fake) viewability” AD Bad guys cheat by stacking all ads above the fold to fake 100% viewability Good guys have to array ads on the page – e.g. lower average viewability.
  • 10. April 2017 / Page 9marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Publishers get the “short stick”Advertisers Publishers are left with 30% Bad Guys siphon dollars OUT of the ecosystem 30% ($6B) 60% ($11B) Ad Blocking users use ad blocking to protect themselves 10% ($2B) Ad Tech “plumbing” and verification Source: The Guardian, Oct 2016 $5B to Google Display $16B to Facebook Display Display Spend$40B DisplaySpend
  • 12. April 2017 / Page 11marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Fraud diverts ad spend to fraudsters Good Publishers “sites that carry ads” • No content • Few humans • Low CPMS $40 Search Spend Display Spend $40 $21$30 $3 Google Search FB+Google Display $29 (outside Google/Facebook) $83 Digital Spend Source: eMarketer March 2017 47% programmatic
  • 13. April 2017 / Page 12marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou $29 (outside Google/Facebook) There’s 160X more “sites with ads” Good Publishers “sites with ads” Source: Verisign, Q4 2016 329M domains est. 164 million “sites that carry ads” “sites you’ve heard of” WSJ ESPN NYTimes Economist Reuters Elle 3% no ads carry ads 160X more 47% programmatic est. 1 million
  • 14. April 2017 / Page 13marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou 700X more There’s 700X more fake apps 7M apps Source: Statista, March 2017 6.99 million 96% “apps that carry ads” 10,000 “apps you’ve heard of” Facebook Spotify Pandora Zynga Pokemon YouTube $29 (outside Google/Facebook) 47% programmatic Facebook, 2015 Users use 8 – 15 apps on their phones. Spotify, 2016 People have 25 apps on their phones, use 5-8 regularly Forrester Research, May 2017 Humans “use 9 apps per day, 30 per month”
  • 15. April 2017 / Page 14marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Examples of fake sites, fake apps Fake Sites (10s of millions) Source: Sadbottrue.com Fake Apps (millions)
  • 16. April 2017 / Page 15marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou How ad fraud works … very simply Source: Distil Networks 2017 1. Start with lots of bots 2X more data center browsers than malware on PCs at home 2. Launder using tech tools Randomize referrer to look legit, user agent, and IP address location 3. Sell traffic to willing buyers “Sites that carry ads” want to buy traffic to increase ad revenues 4. Sell low cost CPMs on exchanges Massive quantities of low cost inventory sold to marketers, fully laundered Source: Ratko Vidakovic, May 2017 Publishers who want it Advertisers who want it
  • 18. April 2017 / Page 17marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Publisher myths about ad fraud 1. Fraud doesn’t affect us, there’s low bots on our site Bots don’t come in large quantities to your sites; they just collect a cookie and go elsewhere to create ad impressions 2. We have bot protection on our site Nice. But what if bad guys pretend to be your site by passing fake data, and put your brand reputation at risk? 3. We have high quality traffic Great. We believe you. But what if bot detection tech accuses you of high bots (falsely)?
  • 19. April 2017 / Page 18marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Good publishers take action to reduce bots Publisher 1 – stopped buying traffic Publisher 2 – filtered data center traffic
  • 20. April 2017 / Page 19marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Good publishers protect advertisers On-Site measurement, bots are still coming In-Ad measurement, bots and data centers filtered 11% red -9% (filtered GIVT and data centers) 2% red “Filter data center traffic and not call the ads”
  • 21. April 2017 / Page 20marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Good publishers protect users 42 trackers 24.3s load time 8 trackers 1.3s load time “minimize 3rd party javascript trackers on pages”
  • 22. April 2017 / Page 21marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou About the Author April 2017 Augustine Fou, PhD. acfou@mktsci.com 212. 203 .7239
  • 23. April 2017 / Page 22marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Dr. Augustine Fou – Independent Ad Fraud Researcher 2013 2014 Follow me on LinkedIn (click) and on Twitter @acfou (click) Further reading: http://www.slideshare.net/augustinefou/presentations https://www.linkedin.com/today/author/augustinefou 2016 2015
  • 24. April 2017 / Page 23marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Harvard Business Review – October 2015 Excerpt: Hunting the Bots Fou, a prodigy who earned a Ph.D. from MIT at 23, belongs to the generation that witnessed the rise of digital marketers, having crafted his trade at American Express, one of the most successful American consumer brands, and at Omnicom, one of the largest global advertising agencies. Eventually stepping away from corporate life, Fou started his own practice, focusing on digital marketing fraud investigation. Fou’s experiment proved that fake traffic is unproductive traffic. The fake visitors inflated the traffic statistics but contributed nothing to conversions, which stayed steady even after the traffic plummeted (bottom chart). Fake traffic is generated by “bad-guy bots.” A bot is computer code that runs automated tasks.