Ad Fraud Is Now A Seven Billion Dollar Problem


Ad Fraud is now a 7 billion dollar problem. According to Association of National Advertisers, marketers continue to waste billions of dollars in digital advertising. In 2015 advertisers had a range of bots percentage ranging from 3 to 37 percent, compared to 2 to 22 percent in 2014.

It’s been reported, “the changing nature of online advertising is making fraud more prevalent. More valuable ad inventory – video ads and display targeted at specific demographic groups – are more susceptible to bots. Programmatic is a particular problem; the ANA found that it attracts 73% more bots than direct buys.

“As markets change their targeting goals, bot traffic fills in the gaps between what marketers want to reach and the real online audience,” says the study.

Study show that direct buys have lower frauds and programmatic buys is much higher. But the leading fraud appears to be coming from video ads with marks as high as 73% in ad fraud.

So by now you’re thinking what’s the solution to solving this seven billion dollar problem? Right now there doesn’t appear to be a simple answer to solve this problem. Agencies, publishers, and tech firms are not really sure how to tackle this issue. Big companies such as google deals with this by simply blocking ads that they believe might be in violation of their terms and conditions. It was estimated that google blocked close to 800 million ads last year.

What appears to be helping are bot filters that have been created by such companies as Integral Ad Science and Double Verify.

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