Business Model Canvas (BMC)- A new venture concept
Display Ad Effectiveness Starts at Two Percent by Augustine Fou
1. UPDATE: January 2014
Display Ad Maximum Possible Effectiveness
Human (not bot)
(Solve Media)
Viewable
(comScore)
71%
46%
x
x
Not AdBlocked
(PageFair)
77%
25%
25% of ads are human/viewable/not-blocked
x $7.7B
$5.8B
IAB: 21% of $36.6B FY 2012 Ad Spend
Other 75% wasted
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Augustine Fou
2. Suspicious/Confirmed Bot Traffic
51% suspicious
22-29% confirmed bot
Source: Solve Media via Marketing Charts September 12, 2013
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Source: Solve Media Dec 31 2013
Augustine Fou
3. 54% Online Ads Aren’t In View
Source: comScore June 2013 via MarketingCharts
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Augustine Fou
4. 23% of Users Use Adblockers
Source: PageFair, August 2013
Average Adblocking Rate
22.7%
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Augustine Fou
5. Dr. Augustine Fou – Digital Consigliere
“I advise clients on optimizing
advertising and marketing spend; and
this includes reducing or eliminating
waste. In digital channels, the large
amounts of data allow us to detect and
mitigate quickly.”
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
7. 5% Ad Impressions Properly Targeted
Source: Nielsen, October 2011
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Augustine Fou
8. “5 in 10 ads never seen
by their target audiences”
(46% assumed to be viewable)
Source: comScore Report June 2013
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Augustine Fou
9. May 2013 Display Ad MPE
Maximum Possible Effectiveness
Human (not bot)
(Solve Media)
Viewable
(comScore)
71%
70%
x
Properly Targeted
(Nielsen)
x
5%
2.4%
50% of ads are human/viewable
Other 50% wasted
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x $7.7B
$3.8B
Augustine Fou
10. IAB Full Year 2012
Source: IAB 2012 Annual Report
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Augustine Fou