?

55% 50% 39%

2016

2015

How

will top $186Bin 2016

will surpass TV ad spendby 2018

will account for 45% of allad spending by 2020

Advertisers today operate in a cross-channel, consumer-driven media landscape that forces them to constantly adapt. Brands around the world are spending more than ever on digital advertising, but there are growing concerns about what they are getting in return.

Google found more than 56% of ad impressions are never seen by con-sumers even though the average viewability rate is 50%.

A key source of waste is ad fraud, which drastically impacts viewability.

Above all, marketers are wasting ad dollars by sending the wrongmessages to the wrong people at wrong times, and as a consequence,consumers are tuning out or blocking ads. There are several reasonsmarketers struggle with relevancy:

Poor user experiences and concerns over data usage have contributed tolower viewability thresholds andthe rise of ad-blocking.

Serving one or multiple ads in a tiny 1x1 pixel frame.

A software application that automates ad clicks to fake

human traffic.

Placing multiple ads on top of each other in a single ad slot.

Active installs of ad-blocking software

38% of internet users worldwideblocked an ad in Q4 of 2015,up from 28% in Q3.

Why do people block ads?

there are too many ads being shown the same ad too much

GLOBAL

DIGITAL AD

SPENDING

WHY ARE DIGITAL DOLLARS GOING DOWN THE DRAIN?

AD FRAUD

PIXEL STUFFING AD STACKING

VIDEO FRAUD BOTS

Video ads are played in the background, in banner ads or played simultaneously

with other ads.

LACK OF CONTEXT AND RELEVANCY

AD BLOCKING

Globally, advertisers will lose $7.2B to bot fraud in 2016, up from $6.3B in 2015.

Programmatic contributes to the problem, attracting 73% more bots worldwide than direct buys.

Globally, the average advertiser is spending $10M on ads that no consumer ever saw.

For some brands, this number reached $42M.

2010

21M

2011

30M

2012

39M

2013

54M

2014

121M

2015

181M

59%

52%

56%

54%

59%

56%

US

UK

AU

They do not have a single view of the customer:Just 6% of global marketers say they have attained the single view of the

customer that is necessary to provide relevant, seamless experiences.

They cannot recognize their customers across devices and channels:Consumers own, on average, 7.2 Internet connected devices.

They retarget ads ineffectively:Far too often, marketers use unreliable cookies and stale data to retarget ads

that are actually irrelevant.

They struggle to control the reach and frequency of ads due to fragmented technologies:

Lack of insight into how ads actually perform hinders optimization.

Their technology does not allow them to engage with customers and optimize their campaigns in real time:

They need to be able to systematically collect and connect customer data across channels.

This contributes to wasted ad spend because customers wantpersonalized messaging and seamless experiences across channels.

47%

44%

US

UK

47% of U.S. and 44% of U.K. consumers ignored future communications from companies that sent them irrelevant

information or product recommendations.

Lack of relevance contributes to the ad blocking problem and hurts ROAS.

Marketers must address the issue of ad waste on multiple fronts which include:

Above all, marketers must adopt a new approach for advertising that leverages higher quality data for

addressable, personalized advertising.

This will help increase the precision and efficiency of their targeting, as well as the impact of each ad on the

individual consumer.

55% of U.S. consumers believe personalized

content saves time and attention from browsing

irrelevant content.

Do not leverage first-party data

Use generic consumer segments rather than robust profiles

Rely on inferred behavior data

Take a spray and pray approach to digital media

Personalizing adsbased on the consumer’s purchase history results

in a 50% lift in brand favorability.

Personalizing adsbased on the consumer’s purchase history results in a 39% lift in purchase

intent.

As a result,the average global click-through rate on display ads is just 0.17%. This translates to fewer than two clicks per 1000 impressions.

Viewability is negatively impacted by advertising strategies that:

OVERCOMING THE AD WASTE CHALLENGE

People-based targeting

Using first-party data to enable one-to-one

cross-channel engagement

Better reach andfrequency measurement

Participation in cross-industry collaborative efforts

to stop ad fraud

Sources:http://www.tubefilter.com/2015/12/07/digital-advertising-will-take-over-tv-ad-spend-globally-by-2017-in-the-u-s-by-2016/http://www.emarketer.com/Article/Worldwide-Ad-Spending-Growth-Revised-Downward/1013858https://think.storage.googleapis.com/docs/the-importance-of-being-seen_study.pdfhttps://www.marketingweek.com/2016/01/26/ad-fraud-the-marketing-industrys-7-2bn-problem/http://na2.totalaccess.emarketer.com/Reports/Viewer.aspx?R=2001738&dsNav=Ro:-1,N:1305-499http://www.signal.co/resources/signal-global-special-report-solving-identity-puzzle/http://www.cmo.com/articles/2016/3/17/adi-device-data-highlights-marketers-difficulty-assembling-holistic-experiences-.htmlhttp://www.ipglab.com/wp-content/uploads/2015/04/Going-Deeper-Booklet_Web-2.pdfhttp://venturebeat.com/2015/07/14/consumers-want-privacy-yet-demand-personalization/http://www.smartinsights.com/internet-advertising/internet-advertising-analytics/display-advertising-clickthrough-rates/https://www.marketingweek.com/2016/01/26/ad-fraud-the-marketing-industrys-7-2bn-problem/

38%28%

Q3 Q4

*All dollar amounts in USD