Ad fraud tripling: TrafficGuard

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Australian organisations should step up their defences against ad fraud, according to Perth based TrafficGuard.

The number and sophistication of ad fraud attacks are on track to triple this year, said TrafficGuard CEO Mathew Ratty, citing Juniper Research's estimate that Australian businesses have lost US$1.97 billion to ad fraud this year, already surpassing the US$1.32 billion for the whole of 2022. The current rate implies a tripling of 2022 numbers by the end of this year.

The company also notes that according to Statista, ad fraud is now the world's second biggest crime business behind drugs, and is expected to reach US$100 billion this year.

"Ad fraud has quickly become one of the most lucrative businesses for criminal organisations, made more appealing by the fact it's relatively easy to execute while being extremely difficult to detect and prove, It's therefore incumbent upon any organisation operating in the digital world to limit their exposure with the best tools they can source", said Ratty.

Ratty is a co-author of the Interactive Advertising Bureau's recently published Digital Ad Fraud Handbook. It analyses of current ad fraud (aka invalid traffic) types, and the best tools and techniques available to mitigate against them. Common vehicles for ad fraud include Google pay per click, mobile app user acquisition campaigns, and affiliate scams, with increasingly sophisticated frauds being detected on social media platforms.

TrafficGuard points out that victims of ad fraud not only suffer direct losses, but may also be incurring major opportunity costs if their advertising budgets are being exhausted by criminals before they reach the intended audience.

"TrafficGuard drives unrivalled advertising performance by verifying engagement in real-time, actively blocking IVT from marketing campaigns, ensuring that ad spend reaches more real users while protecting the integrity of data that brands, marketers, agencies, and publishers rely on to drive better performance," said Ratty.

It is about to release a self-serve product aimed at SMEs, and another product aimed at tackling the rampant ad fraud on Instagram, Facebook and Twitter. A product designed to provide full-funnel protection is scheduled for release in the third quarter.

"We now offer a comprehensive suite of products for full-funnel protection, making us the first company to truly offer an omnichannel digital marketing anti-fraud solution," said Ratty.

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