This week's review of ad fraud and quality in the digital advertising space.
1: How big is the ad fraud problem in OTT/CTV?
"One thorny problem with connected TV (CTV) advertising is that the growing number of ad dollars spent on CTV has attracted fraudsters," wrote eMarketer in a piece examining the state of ad fraud in OTT/CTV. "Pixalate ... estimated that 22% of programmatic OTT and CTV ad impressions were served as invalid traffic [in 2019]. Vendors in this area have unveiled numerous CTV fraud schemes that they claim were worth millions of dollars," wrote eMarketer, including DiCaprio and Monarch.
2. Mobile Marketing Magazine: Ad fraud scheme on popular video editing app
Mobile Marketing Magazine reports that a popular video editing app with over 100 million downloads from the Google Play Store "has allegedly been attempting to initiate subscription charges while serving hidden ads to users in order to generate fake clicks," citing research from Upstream.
3. 'Fighting digital ad fraud'
The Edge Malaysia Weekly published an in-depth look at the fight against digital ad fraud, writing: "Digital advertising fraud has been plaguing the advertising industry both locally and [globally] for the longest time, and it is expected to remain an issue in the foreseeable future."
4. Gaming industry hit by scammers
SC Media reports that "the gaming industry [is] an even more alluring target than usual for cybercriminals" due to shifts in consumer media habits stemming from COVID-19. SC Media quoted Robert Gates, threat intelligence analyst with IBM Security X-Force, as saying: “Gaming companies are great targets for ad fraud, credential fraud, bots or distribution of malware through Trojan horse games,”
5. Lawsuit over clicks from fake Facebook accounts given green light
"Siding against Facebook, a federal judge has ruled that the Arkansas company dotStrategy can proceed with a class-action complaint alleging that Facebook charged marketers for clicks originating from 'fake' accounts," reported MediaPost.
Disclaimer: The content of this blog reflects Pixalate’s opinions with respect to the factors that Pixalate believes can be useful to the digital media industry. Any proprietary data shared is grounded in Pixalate’s proprietary technology and analytics, which Pixalate is continuously evaluating and updating. Any references to outside sources should not be construed as endorsements. Pixalate’s opinions are just that - opinion, not facts or guarantees.
Per the MRC,
“'Fraud' is not intended to represent fraud as defined in various laws, statutes and ordinances or as conventionally used in U.S. Court or other
legal proceedings, but rather a custom definition strictly for advertising measurement purposes. Also per the MRC,
“‘Invalid Traffic’ is defined generally as traffic
that does not meet certain ad serving quality or completeness criteria, or otherwise does not represent legitimate ad traffic that should be included in measurement counts.
Among the reasons why ad traffic may be deemed invalid is it is a result of non-human traffic (spiders, bots, etc.), or activity designed to produce fraudulent traffic.”