A new, US-based study as revealed that almost a quarter of video ad impressions can be identified as ‘bot fraud’ – with the problem set to cost advertisers $6.3bn globally in 2015
The research, carried out by the Association of National Advertisers (ANA) and online fraud detection firm White Ops, analysed 181 campaigns from 36 ANA member companies, which were tagged to identify bot fraud.
During the study, 5.5 billion impressions in 3 million domains were measured over 60 days in line with industry spending patterns.
Bot fraud originates from malicious sites with fake ad traffic that passes through both legitimate and “phantom” elements of the digital advertising ecosystem. Fraudsters collect payments from advertisers for non-human impressions.
According to the study, older browsers were deemed a higher risk, with Internet Explorer 6 and 7 recording fraud levels of 58 and 46 percent, respectively.
“This study confirmed some prior assumptions and fears, but it is not about sowing distrust or policing ecosystem partners,” said Michael Tiffany, White Ops CEO.
“It’s about stopping outright criminal theft. Ad fraud is hugely profitable and is one of the major sources of funding for a global underground responsible for a broad spectrum of cybercrime.
“To protect this cash cow, adversaries are aggressive, smart and adaptable. As such, the results of this study should not be about building better mousetraps, but about driving substantive change in the industry to alter the economics for criminals, and ultimately drive them out of business.”
ISBA, the voice of British advertisers, said there is no doubt brands will be concerned about the findings of the study.
“This is an astronomical sum of money that is being wasted and fraudulently taken away,” said Ian Twinn, ISBA’s director of public affairs.
“As digital advertising budgets become larger more emphasis will be needed on truth and integrity. The pressures on media, already experienced by traditional outlets, will be felt online.
“Advertising is a key business tool but to get the advertising budget, results have to show success, which means there is a necessity to prove key indicators such as ROI on the ad.”
The ANA has published recommendations to help combat ad fraud.
