Digital media is suffering because of the increase in ad fraud worldwide. It affects both the advertisers and consumers of digital media content. Advertisers suffer from ad fraud losses because their ads don’t reach the right target audience at the right time. This way, the lack of awareness affects the leads, traffic, and sales that a business wants to generate to get a high revenue at the end of the day. Most companies are using ad-based solutions while only a few of them are running their businesses through subscription products. So, ad fraud affects a larger number of businesses all over the world by decreasing their ad value and revenues.
The first step is to get an awareness of the issue to be able to eradicate it. So, you should know the statistics that reflect the increase in digital ad fraud by $11bn according to the analysts’ estimate.
Statistics Of Digital Ad Fraud in 2021
According to sources, the global loss caused by digital ad fraud last year was $59bn. It has now reached $68bn which is a huge difference. The $11bn increase is twice the annual Gross Domestic Product (GDP) of Eritrea. It is quite evident with the statistics that the total sum of ad fraud loss is significant enough to affect the nations on a larger scale.
The top five nations that have contributed 60% towards the global ad fraud loss are Japan, the US, China, the UK, and South Korea. Out of the 60%, the US alone, being on the top, has accounted for 35% losses which are equivalent to $23bn, in 2022.
The statistics of the US indicate that it is high time to monitor the fraudulent activities in the digital media content, especially in those countries that are more advanced. These countries are facing more economic losses because of the high level of screen time and mobile app adoption.
The other reason that attracts the fraudulent players towards economically strong countries like the US is that it spends a huge amount of money on digital ads. So, the fraudulent players can easily apply different innovative fraud tactics here which no one has ever seen or done before.
Furthermore, it leads to a higher demand for fraud protection and detection services to be able to stop such activities. The US advertisers want a proper fraud detection system to prevent significant losses which they are facing by running their digital advertising campaigns.
US advertisers are also trying to partner more with ad fraud detection and prevention providers to be able to differentiate between fake and genuine traffic of their ads. Their investments in partnerships and detection services will likely get paid off in the end.
According to a previous study, there has also been a constant increase in ad impressions. One of the reasons for that is fake video streaming and other new tactics that are being introduced by fraudulent players.
Some More Ways to Stop the Digital Ad Fraud Other Than Stats
After analyzing the estimated increase in digital ad fraud loss through statistics, we also need to develop more tools and strategies that can detect scams and frauds regularly to keep a check on the ad spending and losses. Any significant increase in spending should immediately get noticed and verified. The digital media industry needs to take urgent action to create awareness among both advertisers and consumers regarding ad frauds to ensure safety.
Here are a few main steps mentioned to stop digital ad fraud in 2022.
Vet Marketing Program
When you partner with a marketing program, start vetting it to get rid of any fraudulent activity. You should keep a check on the service to see what ways it is used to help you get subscribers and viewers. You must make sure that it is not using any artificial way to inflate your online profile.
Get a Reliable Partner
You can get an instant solution to ad fraud by getting a reliable partner. It must know a proper way to verify the real conversion data to ensure that you don’t waste a single penny to pay fraudulent players.
Refine the Metrics
Only one metric might not be enough to help you stop ad fraud. You should refine the metrics to get a clear picture to be able to detect the fraud easily.
Detect Red Flags
You must invest all of your attention and time to detect the red flags earlier. For instance, domain spoofing is one of the most common types of ad fraud in which the fraudster tries to associate the fake site with another valuable one to make the advertisers pay more than they should without even realizing it.
When you start looking for alarming signs of domain spoofing while making bids, the probability of ad fraud will reduce. You can simply do that by verifying the domain name and registry owner of the website. Also, there shouldn’t be any typos in the URL.
In short, you must have a detailed insight into the fraud statistics and trends to be able to watch out for it properly. Also, if you know some effective ways to stop ad fraud, it will help you protect your ad spending and budget. It can also reduce the drastic effect of digital ad fraud globally.