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BizReport : Advertising archives : January 20, 2016


Bot fraud will eat up $7.2 billion of advertising dollars in 2016

The Association of National Advertisers (ANA) has released a study revealing the extent to which advertisers will lose out to fraudulent ads in 2016, and the picture is not good.

by Helen Leggatt

Advertisers stand to lose out on $7.2 billion this year thanks to fraudsters. The figures come from a study from the Association of National Advertisers and online fraud detection firm White Ops.

The fraud being conducted is not a case of simple click fraud. Automated bots trigger non-human clicks and ad impressions which, while generating revenue for the fraudsters, end up costing advertisers money. In 2014, bot percentages (the number of ad impressions by bots) were in the 2% to 22% range but rose to 3% to 37% in 2015.

Programmatic media buys were found to have higher levels of bot fraud compared with direct deals, particularly programmatic video buys. While programmatic display ads had 14% more bots than average, programmatic video buys had 73% more due to higher value ads.

"The level of criminal, non-human traffic literally robbing marketers' brand-building investments is a travesty," said Bob Liodice, ANA president and CEO. "The staggering financial losses and the lack of real, tangible progress at mitigating fraud highlights the importance of the industry's Trustworthy Accountability Group in fighting this war. It also underscores the need for the entire marketing ecosystem to manage their media investments with far greater discipline and control against a backdrop of increasingly sophisticated fraudsters."

A copy of the full report is available on request from the ANA.






Image via Shutterstock

Tags: advertising, bot fraud, fraud, marketing, online








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