Trust in Tatters: Can Ad-Tech Players Fix Open Web’s Ad Fraud Problem? - Part 1

For years, the open web has been the backbone of digital advertising, offering unmatched reach and scale. But its ‘openness’ has come at a cost—rampant ad fraud, click farms, low-quality MFA (Made-for-Advertising) sites, and a lack of transparency are eroding advertiser trust. With Indian brands losing substantial amount of their ad budget to ad fraud, the need for a more curated, accountable, and fraud-resistant marketplace has never been greater.

According to Statista Research Department (Jan 15, 2025), global losses from digital advertising fraud are projected to nearly double from $88 billion in 2023 to $172 billion by 2028, growing at an annual rate of approximately 14%. Despite this surge, the share of fraud-related losses in overall digital ad spending is expected to remain relatively stable.

As we look ahead to 2025, supply-side platforms (SSPs) and ad-tech players must take the lead in rebuilding confidence through stringent publisher vetting, AI-driven fraud detection, and real-time transparency. In this two-part feature, industry leaders share insights on the evolving digital ad ecosystem and the innovations shaping a more sustainable future.

Indian advertisers can lose up to 20% of their ad budget to fraud—meaning a chunk of their digital spends goes into a black hole of bots, fake impressions, and click farms, points out Amyn Ghadiali, Country Head, Gozoop Creative Digital.

And during peak shopping seasons like Diwali or Big Billion Days, Ghadiali adds, this number can spike even higher. According to him, that’s not just wasted money; it’s a trust deficit in programmatic advertising. He feels that Supply-Side Platforms (SSPs) must stop being passive inventory managers and actively vet publishers, integrate blockchain-backed verification, and enable real-time auditing. Ghadiali states that transparency will come from log-level data access, stricter ads.txt adoption, and DSP-SSP alliances that prioritize quality over scale.

Tejas Rathod, Founder & Chief Operating Officer, Mobavenue, observes that ad fraud and diminishing quality control are eroding advertiser confidence in the open web. Rathod states that the future of digital advertising depends on building a more transparent and curated ecosystem where every ad placement delivers genuine value. He believes SSPs and ad-tech players must take the lead in enforcing stringent verification, optimizing supply paths, and prioritizing high-quality inventory.

“At Mobavenue, we address these challenges by leveraging AI-driven fraud detection, direct publisher partnerships, and performance analytics to ensure brand-safe environments. Advertisers need more than just impressions and require meaningful engagement with real audiences. Strengthening data-backed decision-making and ethical monetization will create a sustainable advertising landscape. Trust is built when brands see a measurable impact from their campaigns. The right blend of technology, transparency, and accountability will redefine success in digital advertising and restore confidence in programmatic investments,” he adds.

Sajid Shaikh, Group Account Manager – Media, SoCheers, compares the open web to the Wild West—full of opportunities but also riddled with bad actors!

Concurring with Amyn Ghadiali, Shaikh also feels that SSPs need to step up their game by vetting publishers more strictly, ensuring ads run on quality sites and actively weeding out fraud. He observes that right now, a lot of ad dollars end up in the wrong hands because of poor inventory checks. “Imagine booking a five-star hotel but ending up in a shady motel—that’s what happens when advertisers land on low-quality sites,” he quips.

So, what is the solution?

“In order to fix this, SSPs should implement better identity verification for publishers, filter out suspicious traffic and provide clear reporting on ad performance—viewability, brand safety, and fraud levels. Advertisers need full transparency to make smarter, data-driven decisions. If we get this right, brands can advertise with confidence instead of worrying about wasted budgets,” says Sajid Shaikh.

Caitlin Borgman, Chief Commercial Officer, ID5, suggests universal IDs which provides a unified and privacy-compliant solution for precise targeting and personalized advertising, ensuring consistency across platforms and devices. According to her, they enhance data security, reduce ad fraud, and improve transparency by enabling secure data sharing.

“By streamlining identity resolution and optimizing ad delivery, they boost campaign efficiency and ROI while minimizing waste. Additionally, universal IDs support a sustainable ad ecosystem by reducing redundancies and the carbon footprint of digital campaigns. This holistic approach balances personalization, privacy, and sustainability, transforming the digital advertising landscape,” Borgman says.

Separately, Borgman adds, the programmatic bidding process is incredibly taxing to the environment given the volume of data and speed at which decisions are being made on whether and how to serve an ad.

“A study by Sincera and ID5 that evaluated more than 63,000 domains found that almost 23% of network traffic is used for cookie syncing. By removing the need for this unnecessarily energy-intensive process, universal IDs help minimize carbon footprints, acting as a funnel for information used in the bidding process. If buyers are only bidding on audiences associated with a universal ID, they are minimizing the volume of data needed to discern whether to bid on an impression or not to begin with, thereby minimizing the energy used in the bidding process and subsequent carbon footprint,” Borgman explains.

Ankush Vij, Vice President, Media, Hashtag Orange, points out that a supply-side platform (SSP), also known as a sell-side platform, is a technology that helps websites and apps sell their advertising space based on impressions. It plays a key role in the ad tech ecosystem, working alongside demand-side platforms, agency trading desks, ad servers, and ad networks. As the open web faces challenges like ad fraud, low-quality content, and lack of transparency, SSPs and ad-tech players play a critical role in rebuilding trust, he adds.

According to Vij, given the rapid growth of technology and our increasing reliance on AI for everyday tasks, these platforms must prioritize advanced fraud detection tools. By harnessing machine learning and AI, they can effectively identify and block malicious activities in real-time.

“To build transparency with customers and ensure their security in the digital world, it is essential to communicate openly about how their data is being used. Start by providing clear information about data collection practices, including what data is collected, why it’s needed, and how it will be protected. For instance, if a customer signs up for a service, they should easily find a straightforward privacy policy that explains these details. Regularly updating customers about any changes in data handling or security measures is also helpful. This can help them feel more secure and informed. It is also important to encourage feedback and questions from customers, making them feel involved and valued in the process. By taking these steps, businesses can foster trust and create a safer digital environment for everyone,” he adds.

Ankush Vij suggests that creating more transparency through clearer reporting on ad performance and where ads are placed will help boost advertiser confidence. A more curated ecosystem will be achieved through better vetting of publishers, focusing on content quality and compliance with industry standards. By working closely with trusted partners, SSPs can create a sustainable ecosystem that benefits both advertisers and users by providing relevant and high-quality ad experiences, Vij adds.

Meher Patel, Founder of Hector AI, believes that the next phase of digital advertising will require a stronger focus on trust and collaboration.

According to Patel, SSPs and other ad-tech players will be pivotal in creating a more curated and transparent advertising ecosystem. This can be achieved through greater accountability and proactive measures like real-time ad verification, stricter inventory vetting, and transparent auction dynamics.

“By fostering a direct connection between advertisers and premium publishers, ad-tech players can drive a shift towards quality over quantity. Moreover, advancements in AI and machine learning can enable more sophisticated fraud detection, ensuring that advertisers invest in genuine, high-impact inventory,” he states.

(Tomorrow: As the battle against MFA sites grows, advertisers are refining strategies to ensure ad spend supports quality, brand-safe environments. Part 2 of this special report will explore innovations tackling MFA dominance and how first-party data and contextual advertising can drive effective, privacy-friendly targeting in the evolving open web landscape. Stay tuned.)

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