Programmatic Ad fraud: The bane of the Branding Campaigns

The global programmatic advertising market size is expected to grow at a CAGR of 22.8% from 2024 to 2030. Programmatic advertising encompasses a wide range of digital channels, from walled gardens like Google and Facebook to connected television (CTV) and OTT. This variety of channels’ capacity increased the reach of advertisements to even broader groups of audiences.

However, this wider scope of innovation has also opened the door to significant fraud, with programmatic ad fraud becoming a growing concern for marketers worldwide. With the programmatically run advertisements at $546billion in 2023 according to a Statista report, the volume of ad fraud and low-quality impressions stand at 15-20% according to mFilterIt reports.

New tactics that are coming up in the programmatic ad ecosystem are:

• Frequency Cap Breaches – Frequency capping is when a brand sets a limit on the number of times its advertisement is displayed to a given user within a specific time frame. Breaching this leads to oversaturation, which means the ads are shown to the same users instead of reaching a broader audience. This not only wastes ad spending but also lowers the reach of the ads and the campaign’s overall efficacy, which is in violation of the objective of the branding campaign. mFilterIt has identified approx. 25% of f-cap violations depending on the campaign.

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