The Many Faces of Ad Fraud and How To Protect Yourself
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Centro's Programmatic expert, Ratko Vidakovic, presents at the 2015 ad:tech New York on Ad Fraud, its many forms and how to best protect yourself from it.
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The Many Faces of Ad Fraud and How To Protect Yourself
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- 3. 3 Centro was founded in 2001, with 37 offices around the country and over 700 employees.
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- 24. 24 TURN OFF CLICK-BASED OPTIMIZATION AVOID EASY-TO-FAKE CAMPAIGNS GOALS EMBRACE DEFENSIVE BUYING TACTICS REFUSE TO PAY FOR FRAUDULENT IMPRESSIONS
Editor's Notes
- Welcome Title Before we dive in
- Who I am Housekeeping items Q+A at the end Link to deck online Some basic knowledge assumed Twitter hashtag: #stopadfraud
- 1. Centro is unifying digital advertising. It has software, it has services, it works with thousands of brands and agencies, and tens of thousands of campaigns.
- We are going to be covering lots of ground today around fraud What it is, how big of a problem is it, examples of fraud, why it exists, who’s responsible, how do you guard against it, and so on Respectful of time, so I’ll move fast (if I don’t jump into detail, ask in the Q+A)
- Jugular problem and why In the news recently Blew up with BusinessWeek feature
- ANA/WhiteOps study that got attention Stats Footnotes about the stats
- ANA report was aggregate Based on what we see, much more nuance
- Lots of issues mixed under the “Fraud” banner Let’s start with a quick definition before we move forward into examples
- Biggest mistakes I see is that many definitions of fraud limit it to non-human traffic, but it goes far beyond bots. Human users can also constitute fraud, especially when the ads are misrepresented. Read definition
- Here are some examples of non-human or bot traffic. This is where most anti-fraud companies focus And where most of the media attention and studies go
- Here are some examples of fraud that are committed against human users More sinister because they are harder to police (in some cases)
- Another important distinction is between fraud and low-quality Just because publisher is low-quality (viewability, performance, brand safety, etc) doesn’t mean fraud Examples…
- Here are some examples of how low-quality can invade the marketplace, but isn’t exactly fraud (grey area) Again, all of these things up here are human traffic, not bots, so harder to detect and police One of the most insidious is “arbitrage”, which we will talk about quickly for a second…
- Real quick, if you see a site in your reports that looks fishy, or has suspicious performance, follow these steps Go through steps Add bad sites to your blacklist, and possibly report them to your DSP
- Now we’re going to talk about why fraud exists and persists in the ecosystem Main reason (#1) is open marketplace (pros and cons) The only alternative to open marketplaces are closed platforms (like Google + Facebook), which have their own tradeoffs
- The second (#2) biggest reason fraud exists is because it isn’t illegal, yet highly lucrative Furthermore, higher payoffs mean higher levels of fraud (e.g., video) Not advocating or endorsing fraud, but bottom line: it’s low-risk and high-reward (no brainer, easy money)
- Third biggest reason (#3) is the misaligned incentives of the players, practically across the board Read Ben Thompson quote What Thompson means by improper incentives
- Biggest victims of course are the brands and advertisers that are financing fraud The second biggest victim are Internet users (now taking things into their own hands: ad blockers) Bottom line: primary victims are advertisers and internet users. Secondary victim is the ad-tech industry as a whole.
- Sounds cliché, but it’s a shared responsibility by everyone But everyone is scared to talk about it (Pandora’s box) What ends up happening is the Chain of Pressure and blame
- As we go through supply chain, let’s start at the source: Publishers Read quote from Businessweek What this quote suggests is that some publishers are committing fraud intentionally, and some accidentally
- Brings us to ad-tech ecosystem, specifically the SSP and DSP (this part is tricky and important, so pay ATTENTION) Before there were ad networks Now we have divided supply and demand… starting with SSP, then DSP… Not a perfect world, so what can advertisers do to protect themselves from fraud that makes it’s way through?
- These best practices really all tie into each other Read them all How the first two feed into third practice
- Read through solutions