Impact of Fraud in Programmatic Advertising

Programmatic advertisements are goldmines for cybercriminal syndicates. Statista report estimated that programmatic ad spending would exceed $147 billion in 2020. It also stated that it accounted for 69.2% of the worldwide display ad spend in 2019. Moreover, the estimated cost per lead through programmatic display ads is nearly $40. Our research reveals that $1 out of $4 of advertising spends goes to fraudsters.

Cybercriminals create hoax websites, spoof domains, manipulate IPs & geolocations, etc., to obtain financial gain and drain advertising budgets. Such activities also hamper brand safety drastically. Programmatic ad frauds commonly occur through bot impressions, wherein fraudsters use bots, an invalid traffic source for displaying the desired results. Moreover, fraudulent clicks account for more than 60% of the installs and must be rejected. Instead, the ad network and advertisers account for it as postbacks.Read more