Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

2021 update on ad fraud brand safety privacy

digital ad fraud is as rampant as ever; new ripples caused by privacy regulations are starting to affect the market. and more BS from trade associations pretending to be doing something

  • Be the first to comment

2021 update on ad fraud brand safety privacy

  1. 1. February 2021 / Page 0 consulting group, inc. Update on Ad Fraud, Brand Safety, Privacy February 2021 Augustine Fou, PhD. acfou [at]
  2. 2. February 2021 / Page 1 consulting group, inc. Ad Fraud: 2021
  3. 3. February 2021 / Page 2 consulting group, inc.
  4. 4. February 2021 / Page 3 consulting group, inc. streamscam ctv fraud monarch ctv fraud CTV Fraud Cases: 2020-21 Mar 2020 Apr 2020 Dec 2020 “Monarch” “IceBucket” “StreamScam” Sep 2020 “MultiTerra” Parrotterra ctv fraud Jan 2021 “ParrotTerra” Jan 2020 “DiCaprio”
  5. 5. February 2021 / Page 4 consulting group, inc. Malvertising, Redirect Attacks Large-scale malvertising attacks continue through ad networks December 2020 trend-of-client-side- fingerprinting-in-cloaked-landing- pages-21915eb473df January 2021 -malvertising-attacker-dccboost- raged-as-the-year-faded- 4d09340cd3f5 February 2021 scamclub-bypasses-iframe-sandboxing- with-postmessage-shenanigans-cve- 2021-1801-1c998378bfba February 2021 g-made-in-china-f5081521b3f0
  6. 6. February 2021 / Page 5 consulting group, inc. Mobile apps on millions of phones Mobile apps monetize by loading ad impressions, on real devices August 2020 oogle-play-apps-promised-free- shoes-but-users-got-ad-fraud- malware-instead/ March 2020 0/03/android-apps-ad-fraud.html June 2020 m/2020/06/17/more-ad-fraud- apps-found-hiding-on-google- play-store/ Feb 2020 news/google-removes-600-apps- from-google-play-to-reduce-ad- fraud/572700/
  7. 7. February 2021 / Page 6 consulting group, inc. Industry downplayed fraud “The 11 percent decline in two years is particularly noteworthy” – ANA (2019) “IVT is between 1 – 3%, except in China (31%)” – GroupM (2019) “IVT is 1.41%” – TAG (2019)
  8. 8. February 2021 / Page 7 consulting group, inc. Overall fraud is more than just bots Sites and apps that cheat may look fine in bot detection reports 1.3% + 57% = 58% bot fraud site/app fraud overall fraud bot detection sees this bot detection misses this
  9. 9. February 2021 / Page 8 consulting group, inc. Not humans, something else
  10. 10. February 2021 / Page 9 consulting group, inc. Brand Safety: 2021
  11. 11. February 2021 / Page 10 consulting group, inc. Brand Safety Defunded Real News Source: “4 in 10 articles on receive conflicting brand safety values be labeled as ‘safe’/‘unsafe’ or ‘unsafe’/‘safe’ by the two BS vendors.”
  12. 12. February 2021 / Page 11 consulting group, inc. BS Funded Fake News/Disinfo Fake local news sites tricked users, committed ad fraud for years fake local news sites coronavirus disinfo
  13. 13. February 2021 / Page 12 consulting group, inc. Local news killed by fake news Local news sites relied on ad revenue; fake sites stole ad budgets McClatchy Bankruptcy 1,300 local news “deserts” 2,000 newspapers died
  14. 14. February 2021 / Page 13 consulting group, inc. MRC accreditation for BS Accreditation covers up the abuse and enables it to continue
  15. 15. February 2021 / Page 14 consulting group, inc. Privacy: 2021
  16. 16. February 2021 / Page 15 consulting group, inc. Hypertargeting, crappy params Ad tech myths designed to keep advertisers spending 1 parameter: gender 42% accuracy 2 params: gender+age 24% accuracy
  17. 17. February 2021 / Page 16 consulting group, inc. Audiences Stolen, Fake Oncologists Journal of Clinical Oncology “cookie matching” Bots pretend to be oncologists by collecting cookie Attract ad dollars to fake sites when retargeted
  18. 18. February 2021 / Page 17 consulting group, inc. Regulations and Monopolies Beyond GDPR/CCPA, moves by Google and Apple cause ripples
  19. 19. February 2021 / Page 18 consulting group, inc. Impact on Marketers
  20. 20. February 2021 / Page 19 consulting group, inc. Chase: -99% reach, no impact “JPMorgan had already decided last year to oversee its own programmatic buying operation. Advertisements for JPMorgan Chase were appearing on about 400,000 websites a month. [But] only 12,000, or 3 percent, led to activity beyond an impression. [Then, Chase] limited its display ads to about 5,000 websites. We haven’t seen any deterioration on our performance metrics,” Ms. Lemkau said.” “99% reduction in ‘reach’ … Same Results.” Source: NYTimes, March 29, 2017 (because it wasn’t real, human reach)
  21. 21. February 2021 / Page 20 consulting group, inc. P&G: cut $200M, no impact “Once we got transparency, it illuminated what reality was,” said Mr. Pritchard. P&G then took matters into its owns hands and voted with its dollars, he said.” “As we all chased the Holy Grail of digital, self-included, we were relinquishing too much control— blinded by shiny objects, overwhelmed by big data, and ceding power to algorithms,” Mr. Pritchard said. Source: WSJ, March 2018
  22. 22. February 2021 / Page 21 consulting group, inc. Uber: cut 80%, no change • Uber cut $120M from $150M, signups remained steady; paid signups dropped, and organic signups increased to replace it. • Uber sued 100 mobile exchanges for falsifying placement reports and fabricating transparency reports.
  23. 23. February 2021 / Page 22 consulting group, inc. Supply chain costs/inefficiencies Source: WFA, April 2016 Source: ANA, May 2015 Source: ISBA, May 2020 “only half of the dollar goes through to the publisher, for showing ads” “on top of that 15% goes ‘missing’ and cannot be accounted for” “went missing”
  24. 24. February 2021 / Page 23 consulting group, inc. Fraud Detection Tech is Useless
  25. 25. February 2021 / Page 24 consulting group, inc. False Positives; False Negatives Many examples of incorrect measurements; harm to publishers
  26. 26. February 2021 / Page 25 consulting group, inc. Bad guys easily avoid detection Blocking of tags, altering measurement to avoid detection Detection Tag Blocking— analytics tags/fraud detection tags are accidentally blocked or maliciously stripped out “malicious code manipulated data to ensure that otherwise unviewable ads showed up in measurement systems as valid impressions, which resulted in payment being made for the ad.” Source: Buzzfeed, March 2018
  27. 27. February 2021 / Page 26 consulting group, inc. Traffic sellers’ “high quality traffic” Many sources to buy “traffic” and even tune “quality” level Choose Your “Traffic Quality Level” “Valid traffic” goes for higher prices
  28. 28. February 2021 / Page 27 consulting group, inc. Legit sites incorrectly marked Domain (spoofed) % SIVT 77% 76% 76% 74% 72% 71% bid request passes blacklist passes whitelist ✅ ✅ declared 1. has to pretend to be to get bids; 2. fraud measurement shows high IVT b/c it is measuring the fake site with fake traffic 3. Fake gets mixed with real so average fraud rates appear high. 4. Real gets backlisted; bad guy moves on to another domain.
  29. 29. February 2021 / Page 28 consulting group, inc. (2017) Pop-Unders / Redirects These forms of fraud typically get by current fraud detection tech a.k.a. “zero-click” “pop-under” “forced-view” “auto-nav” Source:
  30. 30. February 2021 / Page 29 consulting group, inc. He said, she said “there’s 15% IVT, I want a refund” “no, it’s 1% IVT” My vendor is MRC-accredited My vendor is MRC-accredited, too!
  31. 31. February 2021 / Page 30 consulting group, inc. How Marketers Use Analytics to Reduce Fraud
  32. 32. February 2021 / Page 31 consulting group, inc. Progressively clean campaigns Obvious fraud still gets through; analyze and turn off the fraud Launch Week 3 and beyond Week 2 Initial baseline measurement Measurement after first optimization After turning off more “sites that cheat” 30% bots 15% bots 3% bots Stacked percent chart Blue (human) Red (bots)
  33. 33. February 2021 / Page 32 consulting group, inc. Domains and Apps to Remove Domains Apps es.socialpoint.DragonCity es.socialpoint.MonsterLegends com.codigames.idle.prison.empire.manager .tycoon es.socialpoint.MonsterLegends com.mars.avgchapters com.productmadness.cashmancasino com.taggedapp
  34. 34. February 2021 / Page 33 consulting group, inc. Check Location Targeting Geolocation patterns reveal data centers vs humans
  35. 35. February 2021 / Page 34 consulting group, inc. How Publishers Use Analytics to Show Low Fraud
  36. 36. February 2021 / Page 35 consulting group, inc. Good publishers protect advertisers On-Site measurement, bots are still coming In-Ad measurement, bots and data centers filtered 11% red -9% (filtered GIVT and data centers) 2% red “Filter data center traffic and not call the ads”
  37. 37. February 2021 / Page 36 consulting group, inc. Good publishers protect users 42 trackers 24.3s load time 8 trackers 1.3s load time “minimize 3rd party javascript trackers on pages”
  38. 38. February 2021 / Page 37 consulting group, inc. Good publishers protect themselves Yellow: search crawlers Orange: declared bots Red: malicious bots
  39. 39. February 2021 / Page 38 consulting group, inc. Where do visitors click? Click patterns on desktop and mobile screens, vs bots
  40. 40. February 2021 / Page 39 consulting group, inc. March 2021
  41. 41. February 2021 / Page 40 consulting group, inc. About the Author Augustine Fou, PhD. acfou [@]
  42. 42. February 2021 / Page 41 consulting group, inc. Dr. Augustine Fou 2013 2014 2016 2015 2017 2019 2018 2020 2021
  43. 43. February 2021 / Page 42 consulting group, inc. Harvard Business Review – October 2015 Excerpt: Hunting the Bots Fou, a prodigy who earned a Ph.D. from MIT at 23, belongs to the generation that witnessed the rise of digital marketers, having crafted his trade at American Express, one of the most successful American consumer brands, and at Omnicom, one of the largest global advertising agencies. Eventually stepping away from corporate life, Fou started his own practice, focusing on digital marketing fraud investigation. Fou’s experiment proved that fake traffic is unproductive traffic. The fake visitors inflated the traffic statistics but contributed nothing to conversions, which stayed steady even after the traffic plummeted (bottom chart). Fake traffic is generated by “bad-guy bots.” A bot is computer code that runs automated tasks.
  44. 44. February 2021 / Page 43 consulting group, inc. Dr. Augustine Fou 176 Articles for Forbes CMO Network 254 LinkedIn Articles on Ad Fraud and Digital Marketing 778 Slide Decks on Ad Fraud and Digital Marketing Taught digital marketing at New York University and Rutgers University Center for Management Development