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Many App Marketers Think Ad Fraud Is a Serious Problem
Published on August 18, 2017 • eMarketer
Ad fraud is a major concern for the majority of app marketers worldwide, according to a survey conducted by InMobi in July. The poll found that 59% of respondents thought of ad fraud as a serious problem that ad networks needed to address.
In addition, the survey revealed that 40% of app marketers believed they understood how ad fraud was perpetrated, as well as its potential effect on their advertising campaigns. But a significant number—44%—either knew what ad fraud was but wanted to learn more about it, or understood the concept but didn’t know how it might affect campaigns.
Nearly half (48%) of respondents identified invalid traffic from bots and scripts as the most common type of ad fraud they encountered. That was followed by unauthorized rebrokering (13%), click cramming (13%) and ad stacking (10%).
Advertisers in the survey were taking various measures to combat the problem of ad fraud, but none relied heavily on a technical solution. InMobi found that 58% of those polled had partnered with a trusted ad network in an effort to make sure they were not victims of fraud.
Other techniques failed to be used by a majority of marketers. One-third said they had blacklisted IP addresses, while 27% were cutting out the middlemen by relying on direct publisher partnerships. Another 27% were integrating their systems with independent fraud prevention tools, and about one-quarter said they demand full transparency and reporting.
Earlier research from half of digital marketers in the US identified media quality—a category that included problems related to ad fraud—as a leading challenge they faced.
The costs associated with ad fraud are both real and substantial. According to Forrester Research, US fraudulent or nonviewable ad costs totaled $7.4 billion in 2017, with that figure projected to rise to $10.9 billion by 2021.