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Two-fifths of marketers remain oblivious to ad fraud risks

By John Glenday | Reporter

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September 5, 2019 | 3 min read

Eye-opening new research has exposed the full extent of ad fraud naivety among marketers with two-fifths found to be unaware of the dangers presented by mobile advertising campaigns.

The findings are drawn from a study commissioned by AppsFlyer which showed that 41% of marketers do not consider mobile ad fraud to present any risk to their ad spend – even though a recent State of Mobile Fraud report identified $2.3bn worth of fraudulent activity in the first half of 2019 alone.

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Two-fifths of marketers remain oblivious to ad fraud risks

The worrying stats are thrown into sharper relief by the contined emergence of new ad formats, a development which 69% of those quizzed agreed represented additional opportunities for those determined to profit at the expense of others.

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Moreover, even those marketers who are cognisant of the risk presented by fraud remain remarkably blasé about the threat, with only half of those attuned to the risks putting comprehensive protections in place.

At the other extreme 37% of those made aware of the risks have hired dedicated anti-fraud specialists.

Paul Wright, managing director of UK, France & MENA commented: “Ad fraud is a huge challenge for advertisers – just as mobile has rapidly evolved on all fronts, so has mobile ad fraud and the battle against it. The continued growth in ad spend, in combination with a growing risk of ad fraud means it is more crucial than ever for marketers to truly understand the effectiveness of their campaigns and to protect their ad spend.

“Marketers must not ignore the warnings and learn to exercise greater caution around highly susceptible markets, platforms and verticals. By demanding greater brand safety and full transparency from media partners, marketers will continue to thwart off future threats.”

The study findings are based on the responses of 700 global marketers undertaken by market research firm Savanta in July.

The global cost of ad fraud generated via fake users and install hijacking has been put as high as $30bn.

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