Size of digital advertising revenues in 2013, grouped by ad type, pricing model (CPM vs performance) and also revenue model (CPM, CPC, CPL, CPA).

1. Augustine Fou- 1 -
Digital Ad Spend (IAB FY 2013)
Impressions
(CPM/CPV)
Clicks
(CPC)
Leads
(CPL)
Sales
(CPA)
Search 43%
$18.5B
Video 7%
$3.0B
Lead Gen 4%
$1.7B
11% Other
$4.8B
Source: IAB, FY 2013 Internet Advertising Report, April 2014
$36.2B
Display 19%
$8.2B
Mobile 15%
$3.7B$2.8B
NOTE: figures from IAB FY 2013
($43B annual ad spend)
CPM Performance
• classifieds
• sponsorship
• rich media
• email
$6.5B

2. Augustine Fou- 2 -
Digital Ad Fraud Estimates
Impressions
(CPM/CPV)
Clicks
(CPC)
Search
$18.5B
$36.2B Ad Spend
Display
$8.2B
Video
$3.0B
Mobile
$3.7B$2.8B
(U.S. digital ad spend only)
DollarsAvg Fraud Rate
$4B50%Display
$2B60%Video
$6B30%Search
$2B40%Mobile
$14BTOTALS 39%
Multiple sources

3. Augustine Fou- 3 -
Digital Ads by Format
Source: IAB, 1H 2013 Digital Advertising Report, Oct 2013

4. Augustine Fou- 4 -
Performance 65%
CPM 33%
Hybrid/Other 2%
Pricing Model Trends
Source: IAB, 1H 2013 Digital Advertising Report, Oct 2013

5. Augustine Fou- 5 -
Dr. Augustine Fou – Digital Consigliere
“I advise clients on optimizing
advertising across all channels. One
main area of focus is reducing digital
ad waste due to fraud and then
optimizing the remaining good
inventory.”
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
@acfou
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