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Ad Fraud the Trade Desk Technology

The Trade Desk and White Ops ink deal to block fraudulent traffic before it is bought

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By Ronan Shields, Digital Editor

August 31, 2017 | 5 min read

With some of the internet’s largest media owners issuing refunds for fraudulent traffic, The Trade Desk and White Ops have entered a pact that will see the pair identify fraudulent traffic before it is purchased.

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Ad Fraud is reported to cost the advertising industry millions of dollars each day / Pixabay

Ad fraud is a problem that will cost advertisers over $16bn this year, according to reports, with the pair claiming this “landmark” agreement is differentiated from previous efforts to tackle online ad fraud. This is because both parties aim to ensure there is a human being on the other end of every ad impression served by the demand-side platform (DSP).

This will involve the pair co-locating data centers in North America, Europe and Asia, which will then scan every biddable ad impression in real-time – a tactic that is commonly used by high frequency traders in the financial markets. This means that when fraudulent traffic, or “sophisticated invalid traffic” (SIVT), is identified by White Ops The Trade Desk will be notified, and then it will block the impression, with the pair aiming to use this method for every ad impression it serves.

Existing pre- and post-bid anti-fraud measures have not been applied in adequate measure to truly tackle the problem, with the pair claiming that it has historically been common practice for such measures to be used in an ad hoc manner. As a result those players profiting from SIVT have been able to stay ahead of the game, according to both parties.

“To date, the industry standard response has been to request credits from publishers and SSPs [supply-side platforms], or to create complex thresholds of acceptable fraud, rather than preventing the problem at the start,” reads a post from the pairing.

Also commenting on the agreement, Megan Pagliuca, Accuen global CEO, added: “This is a truly unique approach to fraud prevention that will make a significant impact for our brands. Unlike other solutions, the goal here is to run all impressions across The Trade Desk’s platform through White Ops, not just sampled impressions. Additionally, the Trade Desk has collaborated with the leading SSPs to bring a unified solution to market.”

Will Doherty, Index Exchange, VP of business development, added: “The Trade Desk and White Ops are two of Index’s important partners, and we believe this initiative will provide more transparency in programmatic buying.”

Adfraud1

White Ops caused a stir in the advertising industry late last year after it published the notorious Methbot study, which claimed the problem was costing advertisers millions of dollars each day.

This created such a stir that it reached the attention of mainstream media outlets, was probed by US Federal authorities, and prompted trade body Trustworthy Action Group (TAG) to assemble 170 of its adtech members for a debrief on the findings.

Last year also saw TAG attempt to implement a payment ID system which it hoped will help prevent organized crime elements from continuing to siphon-off money from the advertising industry.

Speaking at the time, TAG CEO Mike Zaneis told The Drum its measures included members sharing anti-fraud intellectual property as a means of furthering the fight against crime.

“It’s about knowing who you’re doing business with, and following the money,” he said.

“Things like payment IDs or TAG are important for that … if you look at the IAB study it estimates that about $4.4-or-$4.6bn is lost to fraud … a lot of companies have to ask themselves: ‘what am I doing about it?’"

A 2016 survey of Association of National Advertisers (ANA) members identified fraud as one of the top concerns among advertisers, with many in the industry claiming that online ad fraud is one of the biggest revenue generators for organized crime elements outside of drug trafficking.

Such was the level of concern that it prompted the ANA to issue guidance to its members advising them to not pay for any impressions that are considered fraudulent when dealing with their media agencies, plus their third-party tech partners.

Ad Fraud the Trade Desk Technology

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