In the past, programmatic buying has rendered advertisers vulnerable to advertisement fraud. However, there is good news: last year’s ANA report suggested that this trend is changing, thanks to stronger filtration processes and security measures that counteract risky traffic sources.
Study participants observed that programmatic media buys now carry the same risk level as general market buys. Still, there are fundamental considerations and metrics that also factor into ad fraud risk.
Rich Kahn, CEO and co-founder of Anura.io, observed that performance-based campaigns are especially vulnerable to ad fraud because it takes time to uncover both bogus leads and bogus credit card transactions. This time lag plays in the fraudsters’ favor: it could take months before the chargebacks come in, the leads fall flat, and the bot farms are exposed.
Bad traffic, and the fraudulent transactions that often accompany it, can derail an entire digital marketing campaign. Kahn’s tool, Anura, monitors traffic to separate real users from the fake ones. Anura frequently deals with conversion fraud, but Kahn sells his solution for the same cost to all advertisers, regardless of how they use it. However, Kahn has noticed that competing ad fraud solutions often focus on the protection of branding efforts as opposed to performance-based campaigns.
“A lot of people still spend a lot of money on branding,” said Kahn. “And fraudsters love that. Because how do you judge a branding campaign?”
For more of Kahn's insights, please visit DMN.