September 22, 2021
digital ad fraud

Digital Ad Fraud is this Big of a Problem

Digital ad fraud is a real and serious problem, costing a tremendous amount in wasted money and lessening ad buy reach considerably…

United States businesses spend a combined $2.6 billion on mobile ads monthly. In the United Kingdom, the figure is $0.4 billion a month. Together, that’s $3 billion per month and enterprises want to know their ads are seen by real people, not robots. But there is no precise data to explain just how big a problem digital ad fraud is or what’s its rate of growth. Like app fatigue plaguing consumers, this is a sad but stubborn reality.

Digital Ad Fraud Numbers Prove Troubling to Brands Marketing Products and Services

The World Federation of Advertisers estimates ad fraud is likely to exceed $50 billion globally by the year 2025, if current trends continue. The problem is so big U.S. Sens. Mark R. Warner (D-VA) and Chuck Schumer (D-NY) wrote a letter to the Federal Trade Commission

“The level of concern among advertisers about click fraud – that includes mobile click fraud – worldwide has now reached a point where the industry – agencies, ad networks, DSPs, exchanges – needs to accept there’s an issue and continue pulling together, through cross-industry initiatives to rebuild trust,” Richard Foan, Chairman, JICWEBS (the UK-based Joint Industry Committee for Web Standards) tells ClickZ.

The portion of the estimated amount of online ad fraud that’s attributed to mobile isn’t known since there are no available industry statistics. It is known hidden code is at the root of ad fraud, artificially inflating key metrics and faking click-throughs.

Research by ad verification vendor Forensiq strongly suggests hijacking apps with malicious code cost businesses $857 million in 2015 alone. What makes it so difficult to measure is ad fraud comes in many forms. 

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