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Brands Lose up to an Estimated $50 Billion Annually from Ad Fraud

IMAGE: Forbes

By Laurie Sullivan | 5 March 2019

MEDIA POST — About three-quarters of U.S. fraudulent advertising traffic is “sophisticated” invalid traffic, according to data released Tuesday.

Looking at IP and blacklists no longer works, said Guy Tytunovich, CHEQ founder-CEO, and a former Israeli military intelligence officer.

Tytunovich called ad fraud the second-largest organized-crime scheme globally, in terms of revenue generated, including narcotics.

“The industry needs to understand that for the last 10 years, vendors have been talking about different methods for detecting fraud through probabilistic and simplistic approaches,” he said. “At the end of the day, which I learned working for the defense intelligence in Israel, it’s a cat-and-mouse game. These methods no longer work.”

CHEQ, whose scientists continue to build out a military-grade ad-verification service, analyzed 4.1 billion ad requests made in the United States across 1.2 million websites between October 2018 and February 2019 — up about 20% from the prior year. About 18% of the online ad traffic was fraudulent. […]

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