Ad Fraud Prevention across Programmatic advertising landscape in the USA
Programmatic has become the powerhouse behind ad placements in the U.S. However, alongside its growth, ad fraud has also skyrocketed, posing a significant challenge for brands trying to make the most of their digital ad spending. Ad fraud costs U.S. advertisers billions each year, and the automated process makes it increasingly difficult to detect and prevent.
According to mFilterIt reports, bot traffic remains one of the biggest culprits, making up an estimated 20-25% of programmatic ad impressions. Meanwhile, the ANA report says low-quality “made-for-advertising” (MFA) sites account for roughly 10-15% of programmatic spending, delivering little value as they exist solely to serve ads on poorly engaging or irrelevant content. Even the burgeoning Connected TV (CTV) sector isn’t immune, with up to 17% of CTV programmatic impressions deemed fraudulent. Ad fraud solution with integrated brand safety is the key to optimizing programmatic ad campaigns.
Here are some additional reasons to consider programmatic advertising “Black box”
Fraudulent Traffic and Ad Waste: Click fraud, bot traffic, and ad stacking are prevalent in programmatic advertising. Without adequate validation, advertisers might pay for impressions that never reach a genuine audience.
Limited Performance Metrics: Programmatic platforms may restrict access to granular performance metrics, offering only top-level KPIs. This limits advertisers’ ability to make informed decisions and optimize campaigns effectively.
Complex Supply Chain: Programmatic advertising involves multiple intermediaries, including supply-side platforms (SSPs), demand-side platforms (DSPs), ad exchanges, and data management platforms (DMPs). Each layer takes a portion of the advertising budget, but transparency on costs and value added by each is often missing.
Lack of Transparent Data: Advertisers frequently lack access to the complete data trail across the ad supply chain. This makes it hard to track where ads are being served, who is viewing them, and whether they are reaching the intended audience.
Data Discrepancies Across Platforms: Advertisers often face data inconsistencies between platforms (e.g., discrepancies between ad platforms and analytics tools). These inconsistencies make it challenging to evaluate ROI accurately.
High Reliance on Algorithms: Programmatic platforms rely heavily on machine learning algorithms for targeting and bidding. These algorithms operate as “black boxes,” with little transparency into how they make decisions or optimize for specific goals.
Brand Safety and Ad Placement Risks: Without control over ad placements, brands risk their ads appearing alongside inappropriate or harmful content, which can damage brand reputation. Solutions to ensure brand safety often come with additional costs.
Lack of Accountability: With limited insight into who is responsible for performance issues within the ecosystem, advertisers struggle to hold intermediaries accountable for missed KPIs or wasted ad spending. Click here to read more about the Programmatic Advertising Landscape in USA.