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BizReport : Advertising archives : April 05, 2016

DataXu report reveals high levels of ad fraud in auto and CPG sectors

A new report from programmatic marketing software firm DataXu reveals the full extent of ad fraud in the industry.

by Helen Leggatt

An analysis of all campaigns run through DataXu's platform reveals that ad fraud affects every part of the industry's ecosystem and, says the firm, it is set to increase and become more sophisticated in the months ahead.

The findings, revealed in DataXu's 'The 2015 Advertising Fraud Report', show that the automotive sector as the most severely affected by ad fraud last year with average fraud rates of 22.8%. Also badly affected were the CPG sector (18.5%) and telecommunications (14.8%). The finance and entertainment sectors both saw ad fraud rates of 12.1% while alcohol, retail and tech saw rates under 10% at 9.5%, 8.7% and 8.2% respectively.

DataXu is one of a few platforms that offers a fraud-free guarantee - in their case 97% fraud free. The reason for this guarantee, says DataXu, boils down to trust, "trust of advertisers and agencies that we are working transparently and earnestly with them as true partners, and of our ecosystem relationships in us and our word".

Their report shows that they were able to limit fraud to an average rate of 2.85% in 2015 which compares extremely favorably with average industry rates of up to 30% on open exchanges, 17% on networks and 7% on publisher direct buys. DataXu's 97% fraud-free guarantee pays out credits to clients that can show fraud levels above 3% across their investments during a month-long period.

"We hope the data presented in this report inspires more industry initiatives like DataXu's Fraud-Free Guarantee, as well as renewed commitment to cross-industry anti-fraud collaboration in 2016 to protect brand and agency customers from the waste and detrimental effects of fraud," said Mike Baker, DataXu CEO and co-founder.

Image via Shutterstock

Tags: advertising, fraud, programmatic advertising

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