With programmatic ad spend projected to hit $123 billion in 2022, fraudsters have a massive incentive to leverage technology in nefarious ways. And, their efforts are paying off—nearly 45 percent of all programmatic ad spend in the US was due to fraudulent traffic in 2019. That translates to losses in programmatic advertising of more than $50 billion in 2022 alone.
A major part of the problem is a general misunderstanding of fraud solutions in the realm of programmatic advertising. Many DSPs claim to use anti-fraud solutions, but the truth is most fraudulent traffic slips by undetected. Fraudsters are continually developing their tactics, making them appear as valid visitors to unsophisticated filters. Fortunately, there are solutions available. Here’s how you can prevent programmatic ad fraud from hurting your campaigns.
3 Ways to Prevent Programmatic Ad Fraud
Programmatic ad fraud is difficult to detect because of the tricks fraudsters employ to mimic the behavior of valid traffic. By implementing special code that can instruct devices to scroll, click, and view video just like a real person, fraudsters are able to operate without being caught. In order to catch this type of traffic, known as Sophisticated Invalid Traffic (SIVT), more advanced approaches are required.
One - Focus On SIVT
Most DSPs claim to prevent fraud by running pre-bid filters. However, these filters only catch GIVT such as data center and basic bot traffic. This is accomplished by collecting IP addresses and user agent info, which are only 2 data points. The result is that only around 1-3% of actual fraudulent traffic is prevented at the pre-bid stage. To catch the majority of programmatic ad fraud, you need a solution that can detect SIVT collecting hundreds of data points to determine fraud.
Two - Analyze Post-Impression Data
Three - Use A Solution With Human Interpretation
Stop Programmatic Ad Fraud Today