41% of marketers aren’t worried about ad fraud being risk to ad spend

Anne Freier

In Mobile Advertising. September 9, 2019

Marketers continue to be largely unaware of the risks of ad fraud despite $2.3 billion in ad spending being exposed to app install fraud during H1 2019. That’s according to mobile marketing analytics company AppsFlyer which just published its latest State of Mobile Fraud 2019 report.

Forty-one percent of marketers said they were not worried that ad fraud was a risk to their ad spend.

“Given the dominance of mobile across all ad spending in general, and as the financial exposure of mobile app marketers roughly adds up to $800 million quarterly, mobile ad fraud constitutes a pressing concern for the mobile advertising industry,” said Chris Babayode, Managing Director, EMEA, Mobile Marketing Association.

Although advertisers admit that mobile ads carry the greatest fraud risk (53%), they topped the list for future investments. Display ads were identified as the most dangerous ad type by 44% of marketers although 24% admitted they would still invest in the ad type.

Cases of click flooding were almost as high in the UK (52%) as they were worldwide (46%).

Although 44% of marketers in the US have adopted ad fraud strategies that include a change of metrics, in the UK 43% if marketers were working with third-party verification agencies.

“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,” said Paul Wright, Managing Director of UK, France & MENA, AppsFlyer.

Yet, some marketers (37%) have begun to take more drastic action by working with dedicated anti-fraud specialists. Half (50%) admit that their fraud protection tools are not effective in identifying and blocking fraud.

The recruitment of experts in advertising fraud has taken priority (43%) over the recruitment of programmatic experts (25%).

“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,” added Wright.

It seems the majority would agree with Wright – 69% of marketers admit that new ad formats could be an opportunity for new crime.