Research Shows Adtech Fraud Costing Advertisers Millions per Month

(LegalLaw247.com, May 08, 2013 ) Orlando, FL -- According to a new study released, over 1,200 websites are currently defrauding advertisers of nearly $6.9 million per month.

The sites apparently due to through the use of copyright infringing material, according to the authors of the study. One author noted "The ad impressions from this traffic are ‘laundered’ through a complex series of redirects that make the ads appear as though they originated on legitimate sites containing advertiser-friendly content."

Many of the ads which are fraudulent are not actually seen by the users. They are “served” so that they do not show, and never appear in front of user's browsers. This problem appears to affect nearly 3% of “programmatic” ads that are found in automated auctions and real-time bidding networks.

According to the research, nearly 0.1% of impressions that are bought by the publishers are affect if they are seeking exposure through a third party.

The study was handled by DoubleVerify, which has indicated that rates of fraud and web advertising are now lower than previously assumed given the investment. RadiumOne, who had estimated fraud could be anywhere up to $400 million per year, is in sharp contrasts to the $81.6 million estimated by DoubleVerify.

The reason may have something to do with the dovetailing that the DoubleVerify data does from Spider.io. The latter company was said to have spent $6 million in fraudulent clicks per month.

The latter company did point to a rather clear flaw in the system. The company cited only two websites, Icefilms.info and DIYchef.com, and did made no attempt to name the advertising clients that were affected by the companies. DoubleVerify did not respond to requests for explanations of the omissions.

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Source: EmailWire.Com
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