Forecast: Ad fraud to skyrocket

Over the next four years, advertising fraud is expected to skyrocket and could cost North American businesses up to $100 million per day. That's a key takeaway from a new report out from Juniper Research and TrafficGuard. Their state of ad fraud in North America finds that ad fraud may increase by 125% by 2023.

by Kristina Knight

Researchers note that North America has the largest ad spend (455% higher than the global average) per digital user. They believe 1 in 5 ad transactions will be fraudulent by 2023, costing advertisers up to $100 million per day.

Looking at the situation globally, the North American share of fraudulent ads will cost nearly $19 billion this year, accounting for more than one-third (36%) of global losses.

"Speaking to advertisers in North America we know that ad fraud is a major pain point, not just in draining ad spend but in slowing business growth. Premium traffic sources have a finite reach but using TrafficGuard, advertisers can access alternate traffic sources confident in the knowledge that they are protected from fraud," said Luke Taylor, COO and founder of TrafficGuard. "We're thrilled to be expanding our reach to North America by establishing a new office in New York City and look forward to helping businesses in the region grow."

As to recovering the losses, TrafficGuard predicts that about 10% of losses from ad fraud will be recovered by brands this year. By 2023, up to 20% of losses may be recovered.

More data from the Juniper and TrafficGuard forecast can be accessed here.

Tags: ad fraud, advertising, digital ad fraud, digital advertising, ecommerce, loyalty marketing, mobile marketing, search marketing, social marketing, TrafficGuard