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AD FRAUD INTERRUPTING GROWTH IN QUALITY OF DIGITAL ADVERTISING ECOSYSTEM

Global Ad Tech Corporation

AD FRAUD INTERRUPTING GROWTH IN QUALITY OF DIGITAL ADVERTISING ECOSYSTEM

The world’s digital advertising ecosystem has been developed rapidly for every single years by ‘Programmatic buying’ which is automatizing high profitability of purchasing, arrangement and optimization of ads campaigns. There are many players between Advertiser and Audience in ‘Programmatic marketplace’, and they all have a various of solutions to maximize the ROAS of an ad.

So here is one question of it. Do you really think that the growth of Digital advertising industry is providing transparent profits for Advertiser and Publisher so far?

For many years, on performance measurement of ads, there have been issues of Ad Fraud and Brand Safety in Digital ads industry. According to the eMarketer, over 60% of advertiser and agency in United states have been interested in quality of inventory and transparency of performance measurement. It indicates that with the development of Digital advertising industry, Advertiser wants to apply more accurate targeting to their ads and enforce their ads in premium inventories for their Brand safety.

On the contrary to these needs, there were recently big issue of efficiency of ads.

According to Adloox which is detection firm, 16.4 billion is predicted to be loss by fraudulent activity in 2017. and there are some kinds of ad frauds such as Bot, Ad Stacking, Click Farm etc. By these kinds of an ad frauds, the advertiser would buy an expensive inventory generated by Invalid Traffic, and Publisher having a genuine users could get huge damage like losing their premium inventory reputation. As a results, it makes the Digital advertising industry get polluted. Unfortunately, there is not a solution to block the Ad fraud perfectly. However, this is obviously responsibility of every players in Digital advertising industry from advertiser to publisher.

  1. WHAT IS  DIGITAL AD FRAUD?

Ad Fraud is concerned with practice of fraudulently representing online ads impressions, clicks, conversion or data events in order to generate revenue. There are many types of Ad fraud.

  • Bot: A Bot attempts to imitate legitimate web traffic (like a real person visiting a website) and generate additional fake web page views for the website publisher. That’s why advertiser would pay for ads being served to bots rather than humans.
  • Ad Stacking: Placing more than one ad in the same ad spot. Even if you just see the top ad, advertisers unknowingly pay for all of them
  • Pixel Stuffing: The practice of stuffing ads into a single pixel. Real users trigger impressions, although they never actually see any ads because a single pixel is impossible to spot.
  • Domain Spoofing: Domain spoofing is the practice of selling ad inventory on low-profile website as premium ones. Advertisers think that their ads are being served on a trustworthy websites, but they pay for places on fake websites inventory
  • Cookie Stuffing: Attaching cookies to users without their knowledge. In this way, when conversion happens, the fraudster get paid
  • Click Farms: There are large groups of low paid workers whose job is click on ads. Especially, in case of checking a number of clicks from specific countries, we could get doubt of it.

There are more the above lists around the world. and Ad Fraud is getting upgrade time to time like learning of users moving pattern in web.

  1. HOW TO PREVENT AD FRAUD?

To protect your ads and inventories from Ad fraud, you need to monitor the features of reports every single days. By analysing the features of ads platform site’s reports and weblog, you could find the abnormal traffic where comes from and take measure to fix it. Or you could work with companies which is interworking with DSP measuring the features of data. Like this way, there are globally various of attempts to prevent ad fraud.

For example, there is a campaign called Ads.txt which is made for transparency of digital ads industry.

  • ADS.TXT

To protect the ad fraud, IAB is leading the campaign called Ads.txt. It is made for increasing the transparency of advertising inventories by showing what kind of advertising networks are linked with your sites. As a results, Advertisers can see that their advertising campaign is carried out in the right inventory, and publishers can prevent fraud and misuse of their own inventory.

It is being encouraged (by some companies such as DoubleClick Bid Manager and overseas DSP) to have an authority by “ads.txt” for the inventory, if not, it would be likely to be excluded from the bid. (starting from the end of September, 2017)

The ADOP, providing a various of solutions and services for publishers revenue optimization, is encouraging all of publishers linked with ADOP to use the Ads.txt. It contributes to not only transparency of digital advertising industry but also increasing the confidence in publishers from advertisers.

Ad Fraud is definitely one of the activities for hacking but it is relatively hard to define the penalty for ad fraud. However, the digital advertising industry could achieve the qualitative development as long as all of people who are engaged in this area try to discuss the ad fraud consistently each other.