True cost of ad fraud - Part 2: Deep dive into prevention strategies

The battle against ad fraud has become increasingly critical as we approach 2024. Advertisers, publishers, and technology experts find themselves at the vanguard of a dynamic struggle to maintain the integrity of the digital advertising ecosystem. As the threat of ad fraud continues to grow, so too does the urgency for innovative technologies and collaborative strategies to thwart malicious actors.

Part 2 of this two-part report delves into the cutting-edge technologies and collaborative approaches that industry stakeholders are deploying to combat ad fraud. From monitoring invalid clicks to harnessing the power of geolocation tracking, the narrative unfolds the emerging solutions that promise to reshape the landscape of digital advertising in the coming year.

Collaboration is arguably one of the most beneficial things companies can do to help combat the growing threat of ad fraud, opines Nick Frizzell, VP, Marketplace Quality, Magnite. He says that threat-sharing minimises financial gains for bad actors and lessens their intended impact.

“Greater collaboration also helps instill more trust within the programmatic landscape as ad quality issues that impact users can be defeated sooner with more knowledge and awareness. A mix of technology (verification) and human review/oversight is always recommended to minimize risk as much as possible. Technology only goes so far; and human review is critical in understanding that if something looks too good to be true, it probably is,” adds Frizzell.

According to Andreas Naumann, Anti-Fraud Evangelist at AppsFlyer, the geographical regions have no bearing on the tactics employed by fraudsters; they target unsecured budgets using their specific methods. Naumann suggests that marketers must either be well-versed in the subject or have access to knowledgeable resources to effectively utilize available tools.

“There is no one-size-fits-all solution; it always depends on the context. An often-overlooked resource for many marketers is tapping into their in-house expertise from other departments, such as brand advertising or monetization teams. These teams possess profound insights into advertising performance and can assist in scrutinizing whether eCPMs and conversion rates align sensibly with other marketing metrics or their internal monetization benchmarks,” he explains.

Tej Naidu Kota, Business Head, PAD, lists the following pivotal technologies and collaboration to prevent ad fraud:

Blockchain - Securely track ad impressions and clicks, enhancing transparency and accountability.
Machine Learning - Develop sophisticated algorithms to detect and predict emerging fraud tactics.
Collaborative information sharing - Create industry-wide databases to share intelligence on known fraudsters and tactics.
Regulation and standards - Implement stricter regulations and standardized reporting frameworks.

According to Kota, industry stakeholders can build a more resilient ad ecosystem by:

Standardizing practices - Establishing common definitions, metrics, and best practices for detecting and preventing fraud across all platforms.
Sharing threat intelligence - Collaborating to create a central pool of information on emerging fraud tactics and sharing real-time data on suspicious activity.
Investing in technology - Developing and adopting advanced AI-powered detection tools and blockchain-based solutions for increased transparency and accountability.
Promoting transparency - Encouraging open communication about ad fraud challenges and successes, fostering greater trust and awareness within the industry.
Holding each other accountable - Implementing robust enforcement mechanisms and penalties for non-compliance with anti-fraud standards and regulations.

Emerging solutions

In digital advertising, the perpetual evolution of technology is both a boon and a challenge. As we stand on the cusp of a new era in 2024, the battle against ad fraud takes center stage, prompting marketers to explore innovative solutions that promise to reshape the landscape of digital security. When it comes to ad fraud prevention, marketers need to rely on emerging solutions such as monitoring invalid clicks and harnessing the power of geolocation tracking.

Sharath Madhavan Lead Performance Marketing TheSmallBigIdea

Emerging solutions like monitoring invalid clicks and geolocation tracking offer proactive measures, says Sharath Madhavan, Lead - Performance Marketing, TheSmallBigIdea. According to him, marketers can leverage these tools by integrating them into their ad platforms, setting up real-time alerts, and fostering industry collaboration to share threat intelligence. Challenges may arise in navigating diverse regulatory landscapes and adapting strategies to regional nuances.

Laura Quigley, SVP, APAC, Integral Ad Science

“Invalid clicks involve clicking on ads that aren’t a result of genuine user interest, including intentionally fraudulent traffic and accidental or duplicate clicks. In contrast, standard-quality clicks are most likely from potential customers. To get the most from your ad campaign, you want to ensure you get as many standard-quality clicks as possible. By monitoring for invalid traffic, a user’s geolocation is the position of a user’s device, whether it is a home, computer, laptop, or smartphone. Geolocation accuracy plays an important role in combating ad fraud since it prevents fake locations and spoofing by verifying users' actual locations. Advertisers pay a premium for their ad to be served in a particular region, but fraudsters will send false location information so the ad can be served elsewhere. For example, users might surf the web on their mobile device in New Delhi and see ads for last-minute tours of Kashmir, at the other end of the country,” says Laura Quigley, SVP, APAC, Integral Ad Science.

According to her, ad fraud can be challenging to identify as it comes in many shapes and impacts each market differently. She adds that the fraud landscape is ever-changing, and every traffic source requires continuous re-evaluation. Since a brand can have more than one digital campaign, running on multiple devices and platforms, it poses an added challenge for verification measurement. By working with measurement and ad verification firms, brands and advertisers can access a new level of transparency, which validates that the ad impressions are fraud-free, reaching real people, and brand safe. To proactively prevent ad fraud, advertisers can take the following steps:

Use verification and fraud solutions that can confirm ads were delivered to the desired place. Make sure you are always using blocking technologies instead of monitoring
Use fraud solutions that have been accredited for both General and Sophisticated IVT
Ensure the agency has agreed to contractual terms with Publishers on make goods for IVT
Use pre-bid filtering to avoid fraud in programmatic buys
Focus less on low CPMs and more on KPIs tailored to campaign goals
Look to use exclusion lists for fraud, managed by the agency

Rakesh Mittapelly, Media Head, BCWeb Wise

Emerging solutions like monitoring invalid clicks and geolocation tracking are pivotal in combating ad fraud, says Rakesh Mittapelly, Media Head, BCWeb Wise. According to him, the emerging solutions are:

Invalid click monitoring: ClickCease, ClickGUARD, Improvely & AdTectorm Tools capable of detecting and filtering out invalid clicks, such as click farms or bot-generated clicks, ensuring ad engagement is genuine.
Geolocation tracking: Utilizing geolocation data to verify the legitimacy of user locations, ensuring ads are reaching the intended audiences in specific regions.

Leveraging tools and collaborative approaches:

Real-time analytics: Marketers can employ real-time analytics to monitor click patterns and behaviours, swiftly identifying anomalies indicative of fraudulent activities.
Fraud detection platforms: Leveraging fraud detection platforms using AI and machine learning can automate the identification and prevention of fraudulent activities.
Collaborative data sharing: Collaboration among advertisers, platforms, and industry bodies for sharing insights and data on fraudulent activities, enhancing the collective ability to identify and prevent fraud.

According to Tej Naidu Kota, the emerging solutions are:

Monitoring invalid clicks - Real-time detection of fake clicks based on user behaviour and geolocation data.
Geolocation tracking - Identify and block traffic from known bot-hosting regions.
Collaborative approaches - Marketers can share data and insights to collectively identify and target fraudsters.

The Challenges:

Data privacy compliance - Balancing fraud detection with data privacy regulations.
Standardization across regions - Implementing consistent solutions across diverse advertising ecosystems.
Resource limitations - Smaller businesses may lack the resources to invest in advanced solutions.

Standardised industry certifications

What is the importance of standardised industry certifications, and what role can data analytics play in ensuring the effectiveness of such certifications in mitigating ad fraud?

The problem in India is that there is no regulatory framework as such unlike The Online Safety Act in the UK. For starters, points out Laura Quigley, the lack of a regulatory body governing ad fraud in India makes it easier for fraudsters to operate without being detected.

“Also, ad fraud mitigation strategies vary from advertiser to advertiser and across platforms. Since different vendors specialise in various aspects of adtech, such as ad serving, targeting, analytics, and fraud detection, brands and advertisers must work with multiple third-party vendors to access specialised features. Introducing standardised industry certifications will reduce the need for brands and advertisers to work with multiple third-party vendors. As content consumption grows, marketers need to know what is working and what isn’t — the solution is not more data but more actionable data. When data is comprehensive, enriched, and in real-time, it will help marketers take control of their digital campaigns to drive superior results. With the help of actionable data, marketers can safeguard their brands, boost Return on Ad Spends (ROAS), and improve efficiency,” says Quigley.

Certifications typically establish a groundwork for trust and best practices within the advertising industry, says Andreas Naumann. According to him, the effectiveness of these certifications is heightened by the application of data analytics, facilitating real-time monitoring, pattern recognition, performance evaluation, and adaptability to evolving fraud tactics.

“Ideally, this combination contributes to a more sturdy and adaptable framework for combating ad fraud. However, the current reality diverges significantly: certifications in the present landscape are often ineffective, and even if a reputable one were to be introduced, it would likely be swiftly exploited. The challenges arise from the constantly evolving nature of ad fraud, the absence of universally embraced standards, insufficient enforcement, resource constraints, and the enduring financial incentives for fraudsters. Addressing these challenges requires a concerted and collaborative effort from the advertising industry, regulatory bodies, and technology providers to create a more resilient and effective framework for combating ad fraud,” he concludes.

Sharath Madhavan points out that standardised industry certifications play a vital role in establishing trust and consistency. “Data analytics can enhance the effectiveness of certifications by providing real-time monitoring, identifying irregular patterns, and improving overall fraud detection. The collaboration between industry stakeholders and data-driven insights is key to ensuring the credibility of certifications in mitigating ad fraud.”

According to Tej Naidu Kota, the importance of standardised certifications is:

Ensuring trust and transparency - Certifications demonstrate adherence to industry best practices.
Facilitating collaboration - Enables businesses to recognize and trust certified partners.
Data analytics’ role - Analyzing certification data can identify gaps and areas for improvement.

Role of data analytics:

Identifying fraudulent patterns - By analyzing vast datasets of ad impressions, clicks, and conversions, data analytics can identify anomalies and patterns indicative of fraudulent activity. This allows for the development of more targeted and efficient detection methods.
Evaluating certification effectiveness - Data analytics helps track the performance of certified providers and platforms, highlighting weaknesses and areas for improvement in the certification process. This feedback loop enables continuous improvement and adaptation to evolving fraud tactics.
Monitoring compliance - Data analysis can monitor certified entities' adherence to standards and regulations, ensuring they maintain their commitment to mitigating fraud. This fosters trust and transparency within the industry.
Predicting and preventing future fraud - By analyzing historical data and emerging trends, data analytics can predict and prevent future outbreaks of ad fraud. This proactive approach significantly reduces the financial and reputational damage caused by fraudulent activity.

Standardised industry certifications hold immense importance in the realm of ad fraud mitigation, says Rakesh Mittapelly. According to him, certifications will help in:

Establishing trust: Certifications set a benchmark for industry best practices, fostering trust among advertisers, platforms, and consumers.
Uniform guidelines: They provide uniform guidelines and standards, ensuring a consistent approach to fraud prevention across the industry.
Validation of competence: Certifications validate the competence of individuals or organizations in implementing effective fraud prevention measures.
Risk mitigation: They contribute to reducing the risk of fraudulent activities by promoting adherence to recognized and proven methodologies.

Role of data analytics in certification effectiveness:

Validation and verification: Data analytics can be instrumental in validating the effectiveness of certified fraud prevention measures by analyzing campaign data for discrepancies or irregularities.
Continuous monitoring: Analytics enable continuous monitoring of ad performance metrics, helping to detect anomalies that may signal fraudulent activities, and ensuring adherence to certification standards.
Enhanced insights: Data analytics provide deeper insights into user behaviour, traffic patterns, and engagement metrics, supporting the refinement of certification criteria for better fraud prevention strategies.
Improving Certification Criteria: Analysis of historical data can aid in refining certification criteria to adapt to evolving fraud tactics, ensuring certifications remain relevant and effective.

“By leveraging data analytics, certification bodies can assess the efficacy of certified practices, continuously refine standards, and provide more robust guidelines for fraud prevention. This, in turn, enhances the credibility and effectiveness of standardized certifications in mitigating ad fraud across the advertising industry,” Rakesh Mittapelly adds. According to Mittapelly, the certification examples as:

Trustworthy Accountability Group (TAG):TAG offers certifications like "Certified Against Fraud" for companies adhering to specific anti-fraud guidelines. Advertisers partnering with TAG-certified companies experience reduced ad fraud rates and increased trust in their ad placements.
Interactive Advertising Bureau (IAB):IAB updates its guidelines based on data insights and emerging fraud tactics. Leveraging data analytics, IAB adapts certification criteria to better equip advertisers against newer fraudulent methods.
Media Rating Council (MRC):MRC sets standards for audience measurement and ad verification. Its certification ensures that companies comply with stringent guidelines for accurate and reliable measurement practices, enhancing trust and credibility in the industry.

These certifications, backed by data analytics, establish credible standards, validate best practices, and constantly evolve to combat ad fraud effectively across the advertising industry, concludes Mittapelly.