Ad fraud moves to streaming video platforms

Ad fraud moves to streaming video platforms

Article published by Digiday, the 16th of December  2019

As ad dollars increasingly pour into streaming video, fraudsters are wasting no time in attempting to illicitly siphon off their share of the spoils.

MadHive, an advanced TV advertising company, estimates 20% of streaming video ad requests are fraudulent, up from an estimate of 18% it made in March. Using that percentage figure and other industry estimates for over-the-top (OTT) ad-spending, AdLedger, a nonprofit consortium working on blockchain standards for online advertising, predicts marketers will waste $1.4 billion on fraudulent OTT ads in 2019.

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Michael Nevins, chief marketing officer at ad server company Smart, says any new tech creates a “murky environment” that attracts bad actors. Added to that, the increase in demand for OTT inventory and rising CPMs creates a “perfect storm” of opportunity for fraud.

“I’d expect the fraud vendors to become more sophisticated, which will help, but the device industry is still quite fragmented without strong standards yet,” Nevins said. “This presents a challenge.”

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