Digital and mobile ad fraud to cause losses of $100 million by 2023 for North American advertisers

Anne Freier | February 18, 2020

Mobile Advertising

Ad fraud is predicted to increase over the coming five years in North America as total ad spending exceeded $100 billion in 2019.

According to research by TrafficGuard and JuniperResearch, in 2018 advertisers lost a whopping $44 million in ad spend to fraudulent traffic – a loss that anticipated to reach $100 million by 2023.

Around 36% of global ad spend lost to ad fraud in 2023 will be from North American advertisers according to the study.

Despite various anti-fraud solutions being in place, fraudsters are becoming more skilled at adopting their technologies to avoid detection.

Mobile in-app advertising may be at greater risk as spending is forecast to rise 72% until 2023.

The average ad spend per Internet user in the US is estimated to be over $407 in 2019 – representing a 455% higher rate than the global average.

The average invalid traffic volume per North American Internet user is estimated to increased 57% over the next four years, twice the growth of genuine ad traffic over the same time frame.

But what are the effects of ad fraud on digital marketers?

Apart from wasted resources and budgets, many advertisers are also likely to continue to invest in fraudulent traffic, wasting their time and resulting in weaker campaign performance.

Although ad fraud is predicted to grow overall, Juniper Research also expects around 20% of loss to be potentially recovered.

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