From two reputable exchanges (platforms) at every CPM price point, only 60 cents of every dollar goes towards working digital media. The rest can be considered "mark up" or margin taken by the middlemen.
Procurement can play a crucial role in fighting ad fraud; by helping marketers to move away from easily faked quantity metrics, to real business outcome metrics. And also removing misaligned incentives - like buying ultra low cost CPM inventory.
Digital ad fraud is so bad, I could not wait another quarter to update the numbers, based on recent research. The difference in quality is so dramatic, it is worthwhile just buying clean to begin with. Savvy marketers are already starting to do this.
If we can cut off this outflow of dollars from the digital ad ecosystem, there will be 4 - 7X more digital ad dollars left for good publishers. Currently, marketers dollars are flowing straight out of the digital ecosystem into the pockets of cybercriminals.
Good publishers have real human audiences. Advertisers should value real human audiences because their ads will be shown to humans. By focusing on good publishers, marketers can get more ROI from their digital campaigns; good publishers will earn what they deserve; and ad fraud will be significantly reduced.
Much more data and case studies included. Good advertisers and good publishers are making significant headway against fraud that impacts their own businesses. This cannot be said more generally of the broader digital advertising ecosystem where fraud remains rampant, because it is allowed to be.
Many still think that ad fraud is lower in mobile. It's not lower; it's just that current fraud detection cannot detect it. Examples and case studies about the rampant fraud in mobile - betcha didn't know.
From two reputable exchanges (platforms) at every CPM price point, only 60 cents of every dollar goes towards working digital media. The rest can be considered "mark up" or margin taken by the middlemen.
Procurement can play a crucial role in fighting ad fraud; by helping marketers to move away from easily faked quantity metrics, to real business outcome metrics. And also removing misaligned incentives - like buying ultra low cost CPM inventory.
Digital ad fraud is so bad, I could not wait another quarter to update the numbers, based on recent research. The difference in quality is so dramatic, it is worthwhile just buying clean to begin with. Savvy marketers are already starting to do this.
If we can cut off this outflow of dollars from the digital ad ecosystem, there will be 4 - 7X more digital ad dollars left for good publishers. Currently, marketers dollars are flowing straight out of the digital ecosystem into the pockets of cybercriminals.
Good publishers have real human audiences. Advertisers should value real human audiences because their ads will be shown to humans. By focusing on good publishers, marketers can get more ROI from their digital campaigns; good publishers will earn what they deserve; and ad fraud will be significantly reduced.
Much more data and case studies included. Good advertisers and good publishers are making significant headway against fraud that impacts their own businesses. This cannot be said more generally of the broader digital advertising ecosystem where fraud remains rampant, because it is allowed to be.
Many still think that ad fraud is lower in mobile. It's not lower; it's just that current fraud detection cannot detect it. Examples and case studies about the rampant fraud in mobile - betcha didn't know.
You all knew this, right? The adage "you get what you pay for" never held more than it does in digital media. Buying low CPM impressions doesn't save you money if you spend the same budget. Buying better media so your ads are shown to humans leads to better outcomes. And notice the conversions are done by humans.
Directly measured ad blocking rates are more accurate than estimates based on self-reported surveys or counts of downloads of ad blocking browsers. U.S. consumers have downloaded adblocking browsers but do not use them regularly.
The results confirm last month's observations that ad blocking is lower among good publishers, and industry estimates.
Ad Fraud is at its highest point ever. Yet detection of fraud is at its lowest point ever. Hmmm. It's probably because the bots are better at hiding so the detection is catching less and less of it.
There are many types of bots. Some are simple; others are more advanced and therefore cost more. The key is that bots are used to make money and they won't work harder than they need to, to get the job done.
Ad blocking must be directly measured, not estimated from the number of downloads of ad blocking extensions or ad blocking mobile browsers. In mobile, due to app store rules, one app may not interfere with the operation of another app, which includes calling for ads. So unless users use an ad blocking browser or specifically configured proxy server, ads are NOT blocked in mobile. Our data confirms 100% of ads are loaded in mobile, in the U.S. And ad blocking may be irrelevant to advertisers because good publishers do not call for ads when an ad blocker is active (they respect consumers' wishes or they have asked them to whitelist the site).
Notice the trend over many years. It doesn't change much. Display ad click through rates are in the 0.1 - 0.2% range. So if you are getting 1% CTR or 10% or even 100% click through rates, something is wrong. Double check it.
So much misinformation out there about digital ad fraud. Most numbers come without context. And that is a problem. Here are some charts updated with the latest data; internally consistent.
A handful of apps caused the vast majority of fraudulent display impressions in mobile. These apps were loaded by fake mobile devices and used solely to load ad impressions.
Marketers do their own experiments to determine the effectiveness of digital ads. The best way is to go dark for a short period of time and see if there is any change to business outcomes.
Good publishers are left with a small portion of the ad spend, after fraud siphons the dollars out of the ad ecosystem into the pockets of the bad guys. Once the fraud is cleaned up, a lot more ad revenue opens up for good publishers (the ones that have human audiences, and good business practices).
Marketers should always insist on detailed reports; otherwise they are sure to be ripped off and not get what they thought they bought, in digital media. The charts collected over the years show that the reality is usually the opposite of what people expected.
You all knew this, right? The adage "you get what you pay for" never held more than it does in digital media. Buying low CPM impressions doesn't save you money if you spend the same budget. Buying better media so your ads are shown to humans leads to better outcomes. And notice the conversions are done by humans.
Directly measured ad blocking rates are more accurate than estimates based on self-reported surveys or counts of downloads of ad blocking browsers. U.S. consumers have downloaded adblocking browsers but do not use them regularly.
The results confirm last month's observations that ad blocking is lower among good publishers, and industry estimates.
Ad Fraud is at its highest point ever. Yet detection of fraud is at its lowest point ever. Hmmm. It's probably because the bots are better at hiding so the detection is catching less and less of it.
There are many types of bots. Some are simple; others are more advanced and therefore cost more. The key is that bots are used to make money and they won't work harder than they need to, to get the job done.
Ad blocking must be directly measured, not estimated from the number of downloads of ad blocking extensions or ad blocking mobile browsers. In mobile, due to app store rules, one app may not interfere with the operation of another app, which includes calling for ads. So unless users use an ad blocking browser or specifically configured proxy server, ads are NOT blocked in mobile. Our data confirms 100% of ads are loaded in mobile, in the U.S. And ad blocking may be irrelevant to advertisers because good publishers do not call for ads when an ad blocker is active (they respect consumers' wishes or they have asked them to whitelist the site).
Notice the trend over many years. It doesn't change much. Display ad click through rates are in the 0.1 - 0.2% range. So if you are getting 1% CTR or 10% or even 100% click through rates, something is wrong. Double check it.
So much misinformation out there about digital ad fraud. Most numbers come without context. And that is a problem. Here are some charts updated with the latest data; internally consistent.
A handful of apps caused the vast majority of fraudulent display impressions in mobile. These apps were loaded by fake mobile devices and used solely to load ad impressions.
Marketers do their own experiments to determine the effectiveness of digital ads. The best way is to go dark for a short period of time and see if there is any change to business outcomes.
Good publishers are left with a small portion of the ad spend, after fraud siphons the dollars out of the ad ecosystem into the pockets of the bad guys. Once the fraud is cleaned up, a lot more ad revenue opens up for good publishers (the ones that have human audiences, and good business practices).
Marketers should always insist on detailed reports; otherwise they are sure to be ripped off and not get what they thought they bought, in digital media. The charts collected over the years show that the reality is usually the opposite of what people expected.
how the money flows from the advertisers through the ad tech intermediaries to longtail, fraud, and fake sites, with the help of botnets and traffic sellers
In 2021 some marketers are still asking whether ad fraud is real and whether it is pervasive. This serves as a simple reminder of some of the evidence collected over the years.
bad guys started with fake websites, then moved to loading ads only to save time and bandwidth; now they are simply faking bid requests and flooding exchanges
Previous studies that addressed the impact of losing third party (“3P”) cookies on ad revenue did not clearly differentiate between the impact on ad tech intermediaries versus on publishers. Instead of “advertiser CPMs” (what advertisers pay) this study uses “media CPMs” (what the publishers get) to better isolate the impact of tracking vs no tracking on publishers.
“In addition to the ad fraud itself, bad guys make money by selling the “picks and shovels” too – e.g. bots, traffic, clicks, malware, fake apps, etc. They have an entire ecosystem to extract value. What follows are just a few examples, scratching the surface.”
The original idea of the digital media trust collaborative is was sharing threat intelligence to more quickly remove fraudulent domains and apps from media buys.
most buyers who buy in programmatic channels think they are getting enormous "reach" -- i.e. their ads are shown on many sites; but this data shows the exact opposite is true. Their ads are being shown on a small number of sites (less than 1,000); the buyers might as well have bought more direct from good publishers.
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
Using Google Analytics to find abnormal traffic and fraud; this is a how-to, to get hourly charts instead of daily rolled-up or averaged data, which hides the fraud.
from the IAB FY 2019 advertising revenue report, we show that CPM and CPC ads represent 92% of all digital spend; these are the favorite targets of fraudters
FouAnalytics is an alternative to Google Analytics, but with fraud and bot detection baked in. Marketers can use FouAnalytics to look at their own campaigns, find the domains and apps that are eating up their budgets fraudulently, and turn them off, while the campaign is still running. How does that compare to your blackbox fraud detection that just gives you a percent IVT number?
FouAnalytics - site analytics and media analytics for practitioners to detect fraud and take action themselves - on-site tags and in-ad tags measure sites and ad impressions, respectively
More from Dr. Augustine Fou - Independent Ad Fraud Researcher (20)
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Features of Wireless Communication
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Wireless communication can be used for cellular telephony, wireless access to the internet, wireless home networking, and so on.
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test test test test testtest test testtest test testtest test testtest test ...
Fraud Diverts Ad Spend to Bad Guys
1. December 2017 / Page 0marketing.scienceconsulting group, inc.
linkedin.com/in/augustinefou
Fraud diverts ad spend to fraudsters
Good Publishers “sites that carry ads”
• No content
• Few humans
• Low CPMS
$40 Search Spend Display Spend $40
$21$30
$3
Google Search FB+Google Display
$29
(outside Google/Facebook)
$83 billion Digital Spend Source: eMarketer March 2017
$10
1% of
impressions
$19
99% of
impressions