The Bot Baseline: Fraud in Digital Advertising 2017 Report
Third Annual Bot Baseline Report Estimates a 10 percent Decline in Economic Losses Due to Ad Fraud
The third annual Bot Baseline Report reveals that the economic losses due to bot fraud are estimated to reach $6.5 billion globally in 2017. This is down 10 percent from the $7.2 billion reported in last year’s study. The fraud decline is particularly impressive recognizing that this is occurring when digital advertising spending is expected to increase by 10 percent or more.
The Bot Baseline: Fraud in Digital Advertising (Full Report)
In this latest study, 49 ANA member companies participated. Their digital advertising activity between October 2016 and January 2017 was analyzed, with the concentration of activity in November and December. Some key findings are:
- Traffic sourcing is still the major risk factor for fraud. Traffic sourcing, or the process of purchasing traffic from inorganic sources, was again a large source of fraudulent activity. The report said 3.6 times as much ad fraud came from sourced than non-sourced traffic.
- Nine percent of desktop display and 22 percent of video spending was fraudulent. This was a decline from the previous year when display advertising fraud was reported at 11 percent and the fraud rate for desktop video was 23 percent.
- Mobile fraud was found to be considerably lower than expected. Overall, participants saw less than two percent of fraudulent activity in app environments and mobile web display buys. However, this does not include fraud in mobile web video and pay-per-click fraud which remain high and problematic.
- Fraud in programmatic media buys is no longer riskier than general market buys as media agencies have improved filtration processes and controls.
The report provides a number of action steps for the industry to fight fraud going forward, including:
- Demand transparency for sourced traffic.
- Refuse payment on non-human traffic in media contracts.
- Avoid excessive restrictions.
- Encourage Media Rating Council (MRC) accredited third-party fraud detection on walled gardens.
- Support the Trustworthy Accountability Group (TAG).
ANA/White Ops Study Reveals Bot Fraud Will Cost Marketers More (Press Release)
The third annual Bot Baseline Report released at the ANA Advertising Financial Management Conference, revealed that the economic losses due to bot fraud are estimated to reach $6.5 billion globally in 2017. This is down 10 percent from the $7.2 billion reported in last year’s study. The fraud decline is particularly impressive recognizing that this is occurring when digital advertising spending is expected to increase by 10 percent or more. Read the press release here.
About the ANA
The ANA (Association of National Advertisers) makes a difference for individuals, brands, and the industry by advancing the interests of marketers and promoting and protecting the well-being of the marketing community. Founded in 1910, the ANA provides leadership that advances marketing excellence and shapes the future of the industry. The ANA’s membership includes more than 1,000 companies with 15,000 brands that collectively spend or support more than $250 billion in marketing and advertising annually. The membership is comprised of more than 700 client-side marketers and nearly 300 associate members, which include leading agencies, law firms, suppliers, consultants, and vendors. Further enriching the ecosystem is the work of the nonprofit Advertising Educational Foundation (AEF), an ANA subsidiary, which has the mission of enhancing the understanding of advertising and marketing within the academic and marketing communities.
About White Ops
White Ops is the global leader in human verification technology and data integrity. In 2016, White Ops was the first company to receive Media Rating Council (MRC) accreditation for Sophisticated Invalid Traffic (SIVT) detection, paving the way for the industry and offering a full suite solution that includes viewability, brand safety, fraud detection and pre-bid verification. Working with some of the best hackers and ad tech specialists in the world, we’re able to think outside the box and create the best solutions for our clients. To learn more, visit whiteops.com.