Mobile ad-fraud on the rise, and its costing the industry billions

Digital advertising fraud is on the rise, and it’s costing the industry billions of dollars. In 2016, Google removed 1.7 billion ads it says were fraudulent, which is twice the amount it removed in 2015, proving the ongoing scale of the problem.

The fake traffic, along with the clicks generated by bots, cost the online advertising industry a massive $7.2b across both mobile and desktop, says Charles Xi, president of Mobvista. The company has released a white paper on how to understand and combat ad-fraud, after researching the problem.

Charles Xi says:

“By deliberately creating fake views, clicks or installs, these fraudsters artificially boost the performance of their advertising, taking money from advertisers and legitimate ad networks, and giving consumers a substandard experience.”

Fraudulent ads take many forms, from manipulating click count and  influencing user conversions, to more complex systems where hijacking purchase attribution is the end goal. It’s incredibly lucrative when carried out correctly, so how is it stopped?

Xi continues:

“Ultimately, ad fraud is going to happen until such a time as there is no money in ad fraud. The challenge – as with any part of life where fraud occurs – is that where there is money, there is motive. And there is a lot of money in mobile advertising.”

To learn more about advertising fraud, and what you can do about it, take a look at Mobvista’s white paper here.

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