Why Ad Fraud is the Biggest Challenge for the Industry and How to Fight It

Ad fraud cost marketers $84 billion this year. This is 22% of all online ad spend. According to a new in-depth study from Juniper Research, this figure is expected to soar to $170 billion in 2028. This is the biggest threat to the integrity of the advertising industry. 

So what constitutes ad fraud? 

Ad fraud refers to various practices that result in the misrepresentation of advertising data and metrics. This can lead to advertisers paying for ad impressions, clicks, or conversions that are not legitimate or valuable. Key forms of ad fraud include click fraud, impression fraud, ad stacking, domain spoofing and bot traffic. Click fraud occurs when individuals, bots, or automated scripts click on digital ads without any intention of legitimate interaction or purchase. Impression fraud involves stacking ads in a single ad slot (where only the top ad is actually viewable) or using 0% viewability placements where the ad is never in view for the user. One more type of ad fraud - ad stacking. This is when multiple ads are layered on top of each other in a single ad space, but only the top ad is visible. Advertisers for all the ads are charged as if their ads were viewed. Domain spoofing occurs when fraudsters make it appear as though an ad ran on a premium website, when in fact it ran on a lower-quality site. This tricks advertisers into paying premium prices for low-quality ad placements. Bot traffic is the last most popular rype of ad fraud.  Automated programs, or bots, mimic human behavior to artificially inflate traffic numbers. This can make it seem like more people are viewing or interacting with an ad than there actually are.

Ad fraud not only causes financial losses for advertisers but also skews marketing data and analytics, making it difficult for businesses to make informed decisions about their advertising strategies. Combatting ad fraud requires a combination of technology, vigilance, and adherence to best practices in digital advertising.

How To Fight Ad Fraud

There are five best strategies to fight back against digital ad fraud.

Strategy #1. Start With People-Based Data

For marketers, ensuring that you are targeting and reaching real people is more critical than ever. Try to find providers who offer a validity guarantee for email data associated with digital marketing campaigns. This ensures that you target the right and genuine individuals.

Strategy #2. Implement Fraud Detection Tools

Utilize sophisticated ad verification and fraud detection software. These tools can identify and filter out fraudulent traffic by analyzing patterns of behavior, IP addresses, and user interactions. They help in real-time monitoring of ad traffic, identifying bots, and flagging suspicious activities.

Strategy #3. Use Deterministic Intent Data To Zero In On Top Prospects

Using deterministic intent data provides a multi-pronged approach to targeting real people who are actively searching for what you offer. These insights are derived from the online actions and behaviors of individuals conducting searches. Additionally, methodologies in deterministic intent data ensure that your ads do not target the wrong prospects using a shared device within a household.

Strategy #4. Regularly Update Blacklists and Whitelists

Maintain and regularly update lists of domains and IP addresses known to be associated with fraudulent activities (blacklists), as well as those that are verified and trusted (whitelists). This practice helps in preventing your ads from being displayed on or being accessed by fraudulent entities.

Strategy #5. Collaborate with Industry Bodies and Participate in Certification Programs

Engage with industry bodies and participate in certification programs like the Trustworthy Accountability Group (TAG). Collaborating with them can keep you updated on the latest trends in ad fraud and the best practices for combating it.

Ad fraud remains a persistent challenge in the digital advertising landscape, threatening advertisers' budgets, campaign effectiveness, and brand reputation. This is an issue that simply can’t be ignored any longer. At GothamAds, we combat ad fraud through advanced technology, continuous monitoring, and industry collaboration.

When you choose GothamAds as your partner, you entrust your advertising campaigns to a secure and reliable team. Our joint efforts aim to create a safer, more trustworthy advertising environment. We ensure that your ads reach the intended audience effectively, leading to impactful results.