Google has issued refunds to many hundreds of advertisers who ran adverts on websites with fraudulent and bot-generated traffic via the DoubleClick Bid Manager. However, the refunds only represent up to 10% of the original spending, leaving many agencies and marketers disappointed and angry. The remaining funds went to the site owners and in-between parties
Google Alphabet had told selected advertisers and agencies about the fraudulent traffic that affected their ads. It is apparently working on discussing the issue with third-parties responsible.
Scott Spencer, Director of Project Management at Google said:
“Today, we can’t disclose the information about third parties. So when we aren’t able to catch invalid traffic before it impacts our advertisers and we’re unable to refund their media spent, it hurts us, even if we’re not responsible.”
According to Google, the refunds were mainly related to video ads. Google has since confirmed that it is working to solve the issue.
Ad fraud is a considerable problem in the mobile and digital ad landscape.
Indeed, recent research by Tune confirmed that advertising fraud across over 700 ad networks was higher than 15%. Meanwhile, Adloox says that marketers stand to lose $16 billion to fraud in 2017.