Putting a pricetag on ad fraud: $16.4 billion
March 24, 2017
Ad fraud has become a major problem in digital advertising.
Alas for advertisers, we’re still at the point where we’re figuring out how costly it is rather than actually doing much about it.
Action will come at some point, one has to figure, especially when each successive report about the cost of ad fraud generates such alarming numbers.
Well, add another report to that growing body of evidence. A study from The & Partnership, a WPP agency, finds that in 2017, global ad fraud will cost the industry $16.4 billion.
The study concludes that previous estimates of the price of ad fraud were too low, at roughly $73 billion.
“The study, conducted across a robust 200 billion daily bid requests, 4 billion ad calls and 10 billion ad impressions a month, for a period of 12 months, showed that the real scale and cost of ad fraud has until now been signiﬁcantly under-reported,” notes the report.
The report notes that a disproportionately high percentage of programmatic advertising is impacted by fraud. It says fraud costs programmatic some $7.8 billion, or 29 percent of all buys.
Adware and botnet fraud are the biggest drivers of this phenomenon.
Non-programmatic, meanwhile, saw a much lower percentage of fraudulent traffic, 12 percent.
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