Fighting Ads Fraud in the Mobile Apps, David Mail VP R&D AT INNERACTIVE. http://moscow.targetsummit.com

1. D a v i d M a i l , V P R & D
I n n e r a c t i v e
M a r c h 2 0 1 6
Fighting Ads Fraud in Mobile
Apps

2. Inneractive is a global independent
mobile ad exchange focused on powering
native and video ads

3. Where We Are in the Value Chain
AD
NETWORKS
DSP
PUBLISHER
S
ADVERTISER
S
AGENCIES
SSP
AD
EXCHANGE

4. Inneractive at a Glance
pivoted to ssp
NYC LONDON
TEL AVIVSF
OUR
OFFICES
2010
founded
2007
R&D and
product
37enthusiastic
employees
80 out of
which
66%
34%
120Demand Partners
Part of RNTS Media group
along with Fyber, DE
BIJIENG
Up to
iOS & Android SDKs
virtual servers in AWS
300
Transactions a day
8B
Over
Java, Scala & AKKA @
server side
Native and video support
Mobile web & Story units

5. The raise of Programmatic Spend
US Programmatic Digital Display Ad Spending 2013-2016
Billions, % change and % of total digital display ad spending
45.0%
47.9%
55.0%
$14.88
137.1%
108.7%
37.2%
63.0%
2013 2014 2015 2016
$20.41
Programmatic Digital Display Ad Spending % change % of total digital display spending
Source: US Programmatic Ad Spend Tops $10 Billion This Year, to Double by 2016, October 2014, eMarketer
24.0%

6. US Digital Ads Spend: Desktop vs. Mobile
2019
Source: Mobile Will Account For 72% of US Digital Ad Spend by 2019, eMarketer 2015
$25.35
$65.87
2013 2014 2015 2016 2017 2018
Desktop Mobile
$32.44
$10.67
$31.58
$19.15
$29.89
$28.72
$26.59
$40.50
$24.96
$49.81
$25.17
$57.78
US Digital Ad Spending, by Device, 2013-2019
billions

7. Video Is Growing
Source: AdColony Survey H2-2015
Top 5 Campaign Trends
App install budget continue to increase driven by growth in mobile video & global campaigns
1H ‘15 2H ‘15
Increase Spend Testing New Channels More Video More Geos Partner Consolidation
Partner Consolidation
More Geos
More Video
Testing New Channels
Increase Spend
+24 pts
+15 pts
+9 pts
+9 pts
+7 pts
Trend
72%
81%
63%
78%
52%
76%
59%
68%
61%
68%

8. Programmatic, Native & In-Feed Video
Source: AdColony Survey H2-2015
Emerging Mobile App Install Channels
Native, playable & programmatic ads emerge and grow while in-feed video continues to grow
86%
81%
53%
49%
24%
2H ‘15
Playable Ads
Programmatic
Native Ads
In-Feed Video

9. Apps Installs Trends
Source: AdColony Survey H2-2015
App Install Sources over Time
Video. Display, and interstitials lead the way as native ads and programmatic emerge

10. Ads Fraud and Malvertising Problem
 Invalid Traffic – estimated cost impact $4.6B (56%)
 Costs to advertisers $4.4B (72% Desktop + 28% Mobile)
 Costs to fight $169M
 Malvertising – est. $1.1B (13%)
 Lost revenue from malware related adblocking - $781M
 Cost from direct incidents - $204M
 Cost for blacklisting - $57M
 Cost to fight - $17M
 Infringed content – est. $2.6B (31%)
 TOTAL: $8.2B industry-wide lost
 Costs summary by type
 Incurred costs – est. $4.8B
 Lost revenue opportunities costs - $3.4B
Source: IAB US benchmarking study “What is an untrustworthy supply chain costing the US digital advertising industry?”, November 2015
Invalid
Traffic
Types of
corruption
Malvertising+
Infringed contents

11. Invalid Traffic
 Invisible or Hidden ads
 Ad bots & ads malware
 “Fake” mobile web sites
 Traffic duplication & traffic re-selling
AppNexus filters out 65% of the requests due to fraud
Source: IAB US benchmarking study “What is an untrustworthy supply chain costing the US digital advertising
industry?”, November 2015

12. Academ Media Case Study
“Sentrant has claimed to have identified more than 200 apps in the Google Play store that, after being installed on a mobile
device, loaded “invisible” ads in the background. Its researchers estimated that these rogue apps generated at least
$250,000 in advertising revenues each day — from companies paying for views — even though the ad placements could
not actually be seen by people” (Financial Times)
"In reaction to our communication with Google,
all apps have been removed from the Play
Store. But apps already installed on user
devices would not be affected as users would
need to uninstall the apps themselves," Hadi
Shiravi, the co-founder of Sentrant Security, told
IBTimes UK.

13. PLYMedia Case Study
“One fraudulent ad-unit shows so many
ads that in 25-minutes I tracked:
5359 HTTP calls. Yes, five thousand
three hundred and fifty nine individual
HTTP calls.
70.19 MB of traffic. SEVENTY
MEGABYTES. Thankfully I loaded this
on my laptop as this one single ad unit
would have used 7% of my monthly cell
phone data allowance!”
(Mike Nolet on LinkedIn)
Notice the page URLs that are being passed into
Liverail (Facebook) and Adaptv (AOL): weather.com,
wayfair.com, usmagazine.com, sbnation.com ... this is
one ad-unit bought on an exchange on one website
and it's being repackaged many times over into a
variety of premium domains.

14. Google / YouTube Case Study
“YouTube did not count many of
the "fake views" they directed at
their own videos. But it still
charged the researchers for
many of them” (bbc.com)

15. $8.2B losses? … and it is getting worst
90%
10%
2014
Open Ex Private Marketplace
70%
30%
2016
Open Ex Private Marketplace
Mobile programmatic grew by 300% in 2014
2.92
5.62 6.52 6.26
1.33
4.44
8.36
14.15
0
2
4
6
8
10
12
14
2013 2014 2015 2016
US Programmatic Digital Display
Ad Spending (in $ billions)
Desktop/Laptop Mobile

16. [Video] Viewability vs. Fraud
“After two years of industry focus on
improving the “viewability” rate of
digital ads, with the IAB advocating
last year for 70% averages for
campaigns, and the 4A’s insisting
100% should be the standard, the
actual rate was only 46%, effectively
unmoved from the year prior.”
(adotas.com)
Source: VIANT Video Insights Report 2015

17. Viewablity
By Media Type
Source: VIANT Video Insights Report 2015

18. Video Completion Rate is Up, CTR is down
Source: VIANT Video Insights Report 2015

19. Malvertising
Congratulations, you are today's lucky user!
You have (1) unclaimed reward
Click OK for the opportunity to claim your reward now
OK

20. Malvertising (contd.)

21. Malvertising (contd.)

22. The Industry’ Response
 Private Market Places (PMP)
 Investment in Anti-fraud and Anti-malvertising /
Ad-Quality tools
 Improving the entire chain transparency
 Standardization (IAB, Trustworthy Accountability
Group - TAG) & building trustworthy relations

23. I am not a Fraud! Why no ads for me?
 Why my legitimate mobile inventory remains unsold?
 Sophisticated buyers who are willing to pay top $$ buy audiences / segments,
not “inventory” neither the “ad slots”
 The publisher must supply enough information about “impression opportunity”
 A good SSP / Exchange might and should create even more value for the
buyers adding extra information to the “impression opportunity”
 Major parameters
 Application: App id, App name, Store link, Bundle
 Device: [hashed] IDFA / AAID, User Agent, OS, Model
 Location: GPS (best) or WiFi
 User info / Audience segment
 Use the advertising SDK from a legitimate partner!
 Helps you to pass all the required parameters in the correct way
 Does most of the work for you
 Optimizes User’s Experience for your customers
 Maintained and updated for you when OS updates come
 Introduce innovative Ad Units you can use
 Good SDK maximizes your advertising revenues – simple like that

24. Sample Open RTB request
{
"id":"8406081320927176439",
"imp":[
{
"id":"1",
"video":{
"mimes":[
"video/mp4",
"video/ogg",
"video/webm"
],
"minduration“ : 5,
"maxduration“ : 30,
"protocols“ : [ 2, 5],
"w“ : 320,
"h“ : 480,
"startdelay“ : 0,
"linearity“ : 1,
"battr“ : [ 3, 8 ],
"pos“ : 7,
"ext“ : {}
},
"instl“ : 1,
"bidfloor“ : 0.45,
"bidfloorcur“ : "USD",
"ext“ : {}
}
],
"app":{
"id“ : "529861",
"name“ : "Story_TextFree_Production",
"cat“ : [ "IAB3"],
"bundle“ : "com.pinger.textfree",
"publisher":{
"id":"185753",
"name":"pinger",
"ext“ : { }
},
"keywords":[
],
"storeurl":"https://play.google.com/store/app
s/details?id=com.pinger.textfree&hl=en",
"ext" : { }
},
"device":{
"dnt“ : 0,
"ua":"Mozilla/5.0 (Linux; U; Android 4.2.2; en-
us; Galaxy Nexus Build/JDQ39) AppleWebKit/534.
30 (KHTML, like Gecko) Version/4.0 Mobile Safari
/534.30",
"ip“ : “67.250.124.205",
"geo“ : {
"lat“ : 41.5065661,
"lon“ : -74.2138721,
"country“ : "USA",
"city“ : "Maybrook",
"zip“ : "12543",
"type“ : 1,
"ext":{ }
},
"dpidsha1":"1b93f76c86c02a541c8d21b7631f
f61ca8c57d12",
"dpidmd5":"5ea1b1f53222e8ae6fda41b4a754
655f",
"carrier“ : "Time Warner Cable",
"language“ : "en",
"make“ : "Samsung",
"model“ : "Galaxy Nexus",
"os“ : "Android",
"osv“ : "4.2",
"js“ : 1,
"connectiontype“ : 0,
"devicetype“ : 4,
"ifa":"",
"ext": { }
},
"user":{
"id":"-2001123641207391605",
"gender":""
},
"at":2,
"tmax“ : 150,
"bcat“ : [ "IAB25", "IAB26" ],
"badv“ : [ ],
"ext“ : { }
}

25. Thank You
 Keep in touch!
 LinkedIn: https://www.linkedin.com/in/davidmail
 Skype: david.mail37
 david@inner-active.com
 Publishers relations contact:
 Rita Lepp (Native Russian Speaker), rita@inner-active.com