How to reduce fraud in programmatic advertising

• Digital pros trying to reduce fraud levels at the pre-bid stage
• Looking to better maintain integrity of their supply chains

 
THE digital marketing and advertising industry constantly experiences issues of fraudulent behaviour, both on the buy-side and sell-side of programmatic online advertising trading.
 
As a result, marketing and advertising technology professionals are looking for solutions to reduce fraud and create a secure ecosystem, according to a study by interconnection and data centre company Equinix Inc, in collaboration with ExchangeWire.
 
The study explored attitudes toward fraud in programmatic advertising, and found that marketing and advertising technology professionals are realising that preventing fraudulent activities earlier in the bid process reduces the chance for fraudulent behaviour in subsequent phases.
 
These professionals are increasingly looking to better maintain the integrity of their digital supply chains, Equinix said in a statement.
 
The survey indicated a significant drive towards clean inventory data ecosystems within the next 12 months, as digital marketing and advertising professionals strive to reduce fraud levels at the pre-bid stage.
 
In fact, 60% of respondents indicated that it is very important to detect fraud even before impressions are sent to be traded.
 
Furthermore, one-third said they are willing to move applications to a new data centre for an 11-30% reduction in latency time in an effort to reduce fraudulent activities.
 
Highlights/ key facts:
 
The global study of 129 marketing and advertising technology professionals from around the world analysed attitudes towards programmatic advertising fraud and the benefits of a neutral data centre with secure business ecosystems.
 
Media-buying efficiency was cited as the main advantage to using a neutral data centre with secure ecosystems by marketers in Europe/ Middel East/ Africa or EMEA (73%), Asia Pacific (69%) and the United States (62%).
 
Within Latin America, reduced fraud levels (58%) were cited as the main advantage, while Asia Pacific (44%) and the United States (47%) cited reduced fraud levels as the second greatest advantage.
 
83% of Latin America and 80% of EMEA respondents believe that the detection of fraud before ad impressions are sent to be traded is either essential or very important. Results were slightly lower within the United States (61%) and Asia Pacific (74%).
 
Marketing and advertising technology professionals have differing views on the main advantage to moving to a neutral data centre, with secure ecosystems solution with those in EMEA (73%), Asia Pacific (69%) and the United States (62%) viewing media-buying efficiency as the main advantage.
 
Marketers within Latin America see reduced fraud levels (48%) as the main advantage to this type of ecosystem.
 
Interconnection and ad fraud
 
Meanwhile, Equinix said it is adding anti-fraud managed services to its strategic ad exchanges around the world to create data centre environments with secure business ecosystems to bring together buyers and sellers and drive interconnection.
 
“We are experiencing an increasing demand for reduced latency times in order to combat the growing sophistication of cybercriminals,” said its Global Market Development senior director Lou Najdzin.
 
“Equinix provides customers with a secure platform to interconnect with leading ad exchanges, media buyers, data platforms, data aggregators and major networks.
 
“As a result, latency times are reduced and the risk of fraudulent activities are mitigated,” he claimed.
 
To download a PDF the full report, click here. [Note: As at press time, DNA could not access the site]
 
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