Fighting Ad Fraud: 6 Strategies for Programmatic Advertisers

In 2023, 22% of all digital ad spending was wasted due to fraud, which is around $84 billion. What is even worse, this figure is forecasted to surpass $170 billion by 2028. Ad impression and click fraud, domain spoofing, and ad injection — these and other issues result in poor campaign performance, a decrease in ROI, misleading analytics results, wasted marketing budgets, affected brand reputation, and reduced customer trust.

Unfortunately, ad fraud is not a challenge that can be solved once and for all, as fraudulent techniques evolve continuously. However, there are still ways to minimize the risks and protect your programmatic campaigns — read on to learn more about them.

Leverage Fraud Detection and Ad Verification Tools

The most basic thing that you can do is to integrate ad verification and fraud detection tools. Ad verification software allows you to check if your ads are delivered as intended: within the right context, on the right websites, etc. In turn, the aim of ad fraud solutions is to detect and prevent fraudulent activities. They help identify click fraud, bot traffic, etc.

Using AI-powered tools can be a great help. However, it is important to combine AI models trained on known fraud with anomaly detection to identify new patterns. Besides, human oversight is still required. AI is a powerful technology, but it may still make mistakes. For instance, fraud detection tools may flag some real users as fraudulent traffic, which will affect the campaign’s performance.

Implement Pre-Bid and Post-Bid Verification

Pre-bid verification implies using third-party tools to check ad inventory before placing a bid. This is done according to a set of rules. While pre-bid verification allows you to optimize your ad spend, it also helps reduce the risk of fraud — the technology enables you to prevent suspicious activity before you even start bidding. Thus, you act proactively.

As for post-bid verification, it takes place after the ad has been delivered. It allows you to check if all the placements were appropriate and decide if you want to make any changes. It analyzes the performance data and provides optimization insights. It is like an additional layer of protection for your campaigns.

To reach maximum results, do not choose between pre-bid and post-bid. Instead, leverage both of these verification methods.

Create White and Blacklists

The right demand-side platform (DSP) should have advanced targeting and filtering settings to help you reach your targeted audience and maximize the performance of your campaigns. However, there is one more important benefit to consider. Creating whitelists of publishers allows you to focus on high-performing, premium inventory that is less prone to fraud. In turn, blacklisting enables you to block media owners who send fraudulent or low-quality traffic.

However, keep in mind that both white and blacklists should be reviewed and updated on a regular basis.

Negotiate Direct Deals

Among different types of programmatic media buying, open auctions are most vulnerable to fraud. Therefore, identify your top-performing publishers and suggest cooperation with no intermediaries. With direct programmatic deals, you will know exactly where your ads will appear. Besides, you will access an ad space of a higher quality, which also contributes to risk reduction.

Joining private marketplaces (PMPs) can be helpful as well. Yes, they still imply competing for ad inventory, but due to its premium nature, the probability of fraud is lower.

Monitor Campaign Performance Continuously

Keeping an eye on the performance of your campaigns enables you not only to check if you are meeting your goals but also to detect suspicious patterns. For instance, a sudden and unexplained spike in traffic, impressions, clicks, or conversions may be a sign of fraudulent activity. High bounce rates may be a consequence of fake clicks. Unusual click patterns and unexpected geographic locations also may indicate ad fraud.

Being able to detect such issues on time enables you to act quickly and minimize the negative impact. Use advanced analytics techniques to identify anomalies effectively.

Collaborate Across the Industry

Ad fraud is a global problem, and addressing it requires collaborative efforts. Therefore, apart from choosing trusted partners and vendors, join initiatives like, for instance, the Trustworthy Accountability Group (TAG). Its goal is to combat criminal activity and increase transparency and trust in digital advertising.

Such partnerships allow for effective data sharing on fraud tactics and the standardization of best practices. This way, they help the entire ecosystem stay ahead of fraudsters and fight back.

Final Words

Following the recommendations provided above will help you reduce risks and keep your brand safe. However, it is also important to keep an eye on the evolution of fraudulent tactics. Being aware of what is going on will enable you to act proactively and adopt additional fraud prevention strategies. Besides, monitor the market of fraud prevention tools. New solutions may enter the stage, and you should be able to discover them on time.

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By the way, getting your own ad exchange solution can help you gain greater control over the processes and, therefore, contribute to risk reduction. Contact us to learn more.