A new study from Juniper
Research forecasts advertisers will lose $42 billion of ad spend
globally this year to fraudulent activities committed via online, mobile
and in-app advertising. This is a 21% increase from the $35 billion lost
to advertising fraud in 2018. This growth will be driven by increasingly
sophisticated techniques being implemented by fraudsters.
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Advertisers’ Loss to Reach $100 billion by 2023
The new research, Future
Digital Advertising: Artificial Intelligence & Advertising Fraud
2019-2023, found that advertisers’ total loss to fraud will rise to
$100 billion by 2023. The report claims fraudsters will gravitate to
advanced techniques such as spoofing advertising networks to falsify ad
clicks and displayed ads, rather than labour-intensive activities such
as app install farms.
Juniper forecasts that advertisers will only save $16 billion of
potential lost ad spend to fraud; owing to a lack of adoption of
anti-fraud solutions from smaller advertisers and the increasingly
complex tactics of fraudsters. Additionally, the research projects that
the growth of ad media inventory from publishers will grow faster than
advertisers’ demand over the next 4 years. As a result, fraudulent
players will look to fill this increasing gap between supply and demand
by filling unused inventory with fraudulent ads.
Digital TV the Next Battleground for Advertising Fraud
The research forecasts that spend on advertising over OTT (Over-the-Top)
TV services will exceed $42 billion by 2023; rising from $28 billion in
2019. However, it found a lack of standardisation amongst OTT TV
services leaves advertisers exposed to increased levels of fraud by
simplifying the process needed to spoof advertising networks via
Research author Sam Barker noted “OTT TV service providers must
address the issue of advertising fraud if they wish to attract high
value advertisers to their platforms. These players must prove the value
of advertising on their services by minimising exposure to ad fraud
through the adoption of fraud detection and mitigation solutions
specific to OTT TV solutions”.
Juniper Research provides research and analytical services to the global
hi-tech communications sector; providing consultancy, analyst reports
and industry commentary.