#programmaticadfraud

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Ad Fraud in Programmatic Ads: Why Impression-Level Protection Matters

Performance Programmatic Platforms follow the same rules as traditional programmatic platforms, but the focus on performance campaigns is to optimize ad placements through real-time bidding and enable data-driven decision-making.

These platforms buy and place ads for advertisers with targeting functionalities, dynamic creative optimization, and performance analysis. As they market themselves, the entire process is ML and algorithm-driven. However, there is a prevailing myth that these platforms are fraud-free. Even MMPs are failing to do anything to curb these frauds because they have no protection at the impression level and minimum protection at clicks.

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Ai in Programmatic Advertising Fraud Detection to Deliver Performance and Sustainability

The rise of programmatic advertising has shifted the focus towards accuracy and automation. It surged from $9.75 billion in 2023 to $12.46 billion in 2024, an annual growth rate of 27.8% and is expected to continue expanding, reaching $28.12 billion by 2028 at a compound annual growth rate (CAGR) of 22.6%. However, with AI coming into the picture, performance programmatic platforms are prone to ad fraud even more. The need for optimization of programmatic media buying with comprehensive ad fraud solution  across the advertising funnel is the necessity to yield results.  

More and more advertisers are pushing for a stronger and harder success KPIs in programmatic advertising. The shift from visibility only to performance-first is underway. With new and upcoming programmatic platforms selling inventory on impressions, it is today evident that impression fraud is 10-15% of campaign spends in the MENA region, as per mFilterIt reports. There is a ROI uplift of 7-10% when advertisers identify and block for Made-For-Ad sites and Ad Frequency cap violations. 

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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. 

Are you aware of fraudulent or invalid traffic in your programmatic ad campaigns? The need for full-funnel protection with AI, ML-driven solutions, and real-time analysis, has never been greater. 

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Programmatic Ad fraud: The bane of the Branding Campaigns

The global programmatic advertising market size is expected to grow at a CAGR of 22.8% from 2024 to 2030. Programmatic advertising encompasses a wide range of digital channels, from walled gardens like Google and Facebook to connected television (CTV) and OTT. This variety of channels’ capacity increased the reach of advertisements to even broader groups of audiences.   

However, this wider scope of innovation has also opened the door to significant fraud, with programmatic ad fraud becoming a growing concern for marketers worldwide. With the programmatically run advertisements at $546billion in 2023 according to a Statista report, the volume of ad fraud and low-quality impressions stand at 15-20% according to mFilterIt reports.  

To make their digital campaigns a success advertisers need AI-ML driven ad fraud analytics to improve ROAS (return on ad spends) and reduce budget wastages.  Click here to read more about Programmatic Ad fraud

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Safeguard Your Programmatic Ad Campaigns from Fraud

To stay on top of your digital marketing game, safeguarding your programmatic ad campaigns from fraud is paramount. Ad fraud can drain your budget, distort your performance metrics, and threaten your brand’s reputation.

Protects Your Digital Ad Campaigns

Advertisers need comprehensive protection against fraudulent activities. Here’s how it ensures the integrity and effectiveness of your programmatic advertising:

Identification and Filtering of Invalid TrafficMeticulously analyzes traffic to identify and filter out invalid clicks and bot activities. This ensures that your ads are seen by real people, enhancing engagement and conversion rates.

Automated BlacklistingBy automating the blacklisting of suspicious traffic sources, continuously cleanses your traffic, prevent fraudulent sources from inflating your ad spend.

Enhanced TransparencyAccuracy in measurement and weeding out invalid or fraudulent traffic build trust and transparency allowing for more informed decision-making and improved ROI on ad spends.

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Combatting Programmatic Ad Fraud: Traffic Validation with Integrated Brand Safety

Programmatic advertising offers unparalleled efficiency and reach. However, programmatic ad fraud is a growing problem that has dented the efficiency and return on investment (ROI). It not only leads to a massive loss in advertising Ad spend but also causes reputational damage.

Programmatic ad fraud mainly includes generating fake clicks and impressions using bots and automated systems. Inflated ad spending, depleted ROI, and eroded trust caused by programmatic fraud are significant consequences. Artificial Intelligence and Machine learning-driven tech with monitoring, analysis, and real-time actionable insights is needed to optimize programmatic ad campaigns. Read more at Combatting Programmatic Ad Fraud: Traffic Validation with Integrated Brand Safety

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Challenges In Programmatic Advertising: Know How You Can Combat Them

Programmatic advertising has portrayed itself as the best solution to traditional advertising. However, some challenges make it hard for advertisers to trust the ad-tech ecosystem blindly. We’re here to spill the beans on how these challenges are directly impacting your ad campaigns and what you can do to protect them.

Read along and ensure that your brand doesn’t have to be the victim of fraudulent practices and other limitations of programmatic ads in the future.

Programmatic Advertising – Challenges & Solutions

1. Lack of Transparency

Due to programmatic advertising, many publishers have emerged that attract a large audience. Though the ideal goal of an advertiser is to reach a wider audience, these publishers cause a major concern for brand safety. These sites are usually low-quality and spam sites which redirect irrelevant traffic to the campaigns and impact the brand reputation. In addition to this, lack of transparency in the programmatic also impacts the decision of ad budget allocation for an advertiser. As they are unaware of the real impact of the ad campaigns and where their ads are showing, they are unable to decide which campaigns are genuinely performing better.

Solution

To solve this problem, mFilterIt’s ad fraud solution ensures that your ad campaign doesn’t consist of fraudulent and invalid traffic. We detect the sources of the malicious traffic and blacklist the fraudulent IP addresses to prevent the impact on future ad campaigns.

2. Viewability Issues

As defined by the International Advertising Bureau, ad viewability is a standard metric to measure viewable impressions. According to them, an ad is considered viewable when it appears at least 50% on screen for more than one second. This is a quantifiable metric to know the percentage of ads that are viewed by real people.

However, in programmatic advertising, many factors impact the viewability of an ad. Some of the factors are audience targeting, platform choices, and context which determines that the ads are shown to the right audience in real time and place.

Solution

Our Ad fraud software ensures that your digital ads are viewable to the targeted audience. Our solution also detects the ad placements on brand unsafe placements, masked websites, and sets of devices used for ad impressions.

Programmatic Advertising Challenges in UAE and South East Asia

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Programmatic Ad fraud: The bane of the Branding Campaigns

The global programmatic advertising market size is expected to grow at a CAGR of 22.8% from 2024 to 2030. Programmatic advertising encompasses a wide range of digital channels, from walled gardens like Google and Facebook to connected television (CTV) and OTT. This variety of channels’ capacity increased the reach of advertisements to even broader groups of audiences.   

However, this wider scope of innovation has also opened the door to significant fraud, with programmatic ad fraud becoming a growing concern for marketers worldwide. With the programmatically run advertisements at $546billion in 2023 according to a Statista report, the volume of ad fraud and low-quality impressions stand at 15-20% according to mFilterIt reports.  

To make their digital campaigns a success advertisers need AI-ML driven ad fraud analytics to improve ROAS (return on ad spends) and reduce budget wastages. 

To read more: Programmatic Ad fraud: The bane of the Branding Campaigns