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BizReport : Advertising archives : March 17, 2017

Global online ad fraud far higher than ANA estimates

The findings of a recent survey suggest that global online fraud, dubbed the bank robbery of the digital age, could top $16bn this year, far more than the Association of National Advertisers' annual estimate.

by Helen Leggatt

According to the Association of National Advertisers' (ANA) 2014 Bot Baseline Report, around $7.2bn gets lost each year to global ad fraud.

"Advertising fraud is the bank robbery of the digital age - and it needs to be dealt with as such," said Marco Ricci, CEO of Adloox. "Unless the industry takes concrete steps to combat it, it poses a serious threat to the future of our industry. Only through a combination of constant human vigilance, corporate diligence and constant updates to ad verification technologies will it be possible to reverse the rising tide, and put a stop to ad fraud once and for all."

According to a new report commissioned by The&Partnership and conducted by Adloox, titled 'What Happens Next: How to Reverse the Rising Tide of Ad Fraud', global online ad fraud last year may have far exceeded the ANA estimate.

When Adloox, a fraud verification firm, analyzed 200bn daily bid requests and 10bn ad impressions per month over 12 months, they found that an estimated 20% of the $66bn spent on digital advertising last year could have been wasted on ad fraud.

That means the cost of global ad fraud in 2016 amounted to as much as $12.4bn. If, as eMarketer forecasts, adspend reaches $80bn this year, the cost of global online ad fraud for 2017 could reach $16.4bn.

"These figures serve as a stark reminder that much still remains to be done in order to protect and nurture the future vitality of the digital economy," said Johnny Hornby, Founder of The&Partnership. "We have a duty to come together as an industry - from media agencies and industry bodies to big platform players like Google and Facebook, bringing in government help if we need it - in order to protect our own future and those of our clients."

Tags: ad fraud, advertising, bots, digital, online

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