If you must do display ads, then shift dollars from large media buys on portals to ad networks and even to Facebook, where CPMs are orders of magnitude lower.

1. Optimizing Display
Ad Budgets
Dr. Augustine Fou
http://www.linkedin.com/in/augustinefou
July 18, 2012.

2. Display Advertising
Big Portals Ad Networks Facebook
Large audience Lots of long-tail Massive number of
small websites impressions
Publisher/portal
has more power Advertiser has “Junk” quality and
more power super-low prices
CPM 10’s of dollars 1’s of dollars 10’s of cents
CTR 0.1% 0.01% 0.001%
Shift allocation to get more impressions or lower cost
July 18, 2012 2

3. Budgets Shifting to Social
As more budget
shifts to lower
CPM social
networks, it has
the effect of
depressing
industry-wide
CPMs for
display ads.
July 18, 2012 3

4. Display Ad Ecosystem
Source: http://www.iabuk.net/video/the-evolution-of-online-display-advertising
July 18, 2012 4

5. Bad Guys Rob Display Advertisers
1 • Pages are auto generated by script to
optimize for high value search
2 keywords and content
3
• 10 – 15 display ads per page plus text
ads and videos ads, in rotation
4 6 • Advertisers should minimize ad dollars
spent on impression (CPM) basis and
5 7 focus on paying only when they get the
click (CPC)
• They also auto-refresh pages to load
another 10 – 15 ads
8
9 • Many other examples of display ads
10 shown next to unsavory content
Source: http://www.satelliteguys.us/archive/t-232266.html
July 18, 2012 5

6. Dr. Augustine Fou – Agency Czar
“I advise clients on optimizing their
digital spend and integrating
across 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://www.clickz.com/author/1151/augustine-fou
Slideshares: http://www.slideshare.net/augustinefou
LinkedIn: http://www.linkedin.com/in/augustinefou
July 18, 2012 6
acfou@mktsci.com