New Report Finds Digital Ad Fraud Worse Than Previously Thought

We’ve all known that ad fraud is a major concern in this industry, but according to a new report from independent ad fraud researcher, Augustine Fou. The report, which is normally published quarterly, showed such serious problems with ad fraud that Fou decided to release it early to get the data out there as quickly as possible.

Fou commented, “It’s about 60 to 100 per cent fraud, with an average of 90 per cent, but it is not evenly distributed.” Some types of ads produce about $.68 for each $1 spent on ads (with the remaining money being wasted displaying ads to bots and other types of fraud). For ad networks and open exchanges, however, the fraud rate is far higher, and in some cases as high as 100%.

This report looked at a wide range of different ad networks and types of ads to get the information, which is important. Many marketers have been looking at information that only takes into account the ad providers with the highest standards, which paints a better picture. Many ad buyers, however, don’t take the time to really research where they should be displaying ads. Instead, they trust that they will be getting what they pay for, which is a huge mistake.

The online ad industry is full of self-proclaimed experts who offer to help brands with their online marketing. They then proceed to purchase low quality ads, which rarely ever get seen by real humans (despite what their internal reports suggest).

Many recent reports from throughout the industry have tried to say that ad fraud is going down, but according to Fou, that is not the case. “And the recent reports from industry trade [publications] that ad fraud is going lower and mobile fraud is non-existent is simply because they can’t measure it. The bots are getting better at hiding, so they are seeing less and less of it. But more and more fraud is happening.”

The report can be seen HERE. For those who are buying digital ads, this report shows why it is so important to really put some time and effort into finding trustworthy publishers where ads are displayed where real people can see them.

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