New Study Shows Vast Majority of Ad Fraud Caused by Small Percentage of Publishers

Contributor, June 12, 2017

According to an early 2017 study conducted by Fraudlogix, an ad fraud solutions specialist catering to global DSPs and SSPs, an evaluation of 1.3 billion random ad impressions during a 30 day period uncovered that 247 million of the monitored impressions, roughly 19 percent, were found to be either fake or bot generated. 

Fraudlogix’ global analysis study focused on the activity of 59,000 publishers over a 30 day evaluation in April 2017.

In particular, 514 publishers (0.9%) were found to be responsible for more than 50% of all of the fraudulent activities documented during the study.

Fortunately for advertisers, the fake impressions were discovered not to be spread across the internet, but rather, clustered within a small group of publishers whom are uniquely accountable for the majority of fraudulent activity currently monitored in the study.

Going further, roughly 2,000 publishers (3.0%) of the same pool were generating more than two-thirds (68%) of all of the ad fraud found. 

Fraudlogix found that the publishers whom were participating in ad fraud were buying bot-generated traffic in order to generate falsified impressions for advertisers.

Fraudlogix still believes that the ad industry as a whole is honest and is providing clean ad traffic.

Despite the optimism, figures released in March 2017 point to ad fraud costing advertisers $16.4 billion in wasted ad spend globally during the current calendar year, a figure which amounts to a total loss just short of 20% of the total digital ad spend worldwide in 2017.  

Lesson of the day is to be careful what you buy!

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