Growing Ad Fraud – Top 6 Countries
Because of the impact of Coronavirus, most marketing projections and predictions have failed and growing ad fraud is a big problem. During these difficult times, however, some industries, such as training and health, homeschooling, digital services, and mobile apps, have exploded. With the surge in app usage, ad fraud rates have risen as well. According to Statista, between 2018 and 2022, digital ad fraud will increase by a factor of four, from 19 billion to 44 billion dollars.
The rise of ad fraud comes as international trustbusters work to clean up online ad transparency, highlighting unscrupulous actors snatching up ad expenditure and the consequences for the business and society. By 2025, according to the World Federation of Advertisers, ad fraud will be the largest industry for organized crime, worth $50 billion.
Why is ad fraud increasing
Ad fraud evolves in tandem with technological advancements. Apart from the technology, the Coronavirus Pandemic, as previously indicated, contributed to an increase in ad fraud. During the year 2021, fraud is predicted to grow at a steady rate. One of the most problematic aspects of digital ad fraud is that no one knows how significant an issue is, with estimates ranging from low to high.
How to prevent
It is advised that you keep up with new trends in all types of fraud regarding ad fraud prevention. That way, you’ll get informed about fraudsters, fraudulent affiliates, sites, activities, and locations, among other things. Ad fraud is more common in the following countries.
Top 6 countries
The United States is, unsurprisingly, the top victim of ad fraud. In 2020, the world’s largest spender on digital advertising spent $135 billion on digital advertising, but a major portion of that ($11.4 billion) was lost to ad fraud. Political campaigns in the United States, in particular, will be a big digital outlay in 2020.
According to GroupM, the world’s top media investment firm, fraud rates in China have been estimated to be as high as 30.7 percent. Carlson Block’s short seller, Muddy Waters, placed its sights on alleged ad fraud in the case of Chinese-based YY Live being purchased by Baidu for $3.6 billion in 2020.
Companies in the United Kingdom that have been victims of various frauds have demanded more be done to combat the problems. In 2020, ad fraud cost the UK £1.2 billion ($1.6 billion). The Financial Times was victimized by domain spoofing, with the publisher estimating the value of fake inventory across ten ad exchanges at $1.3 million a month.
In Japan, the problem of ad fraud is being addressed slowly. In 2020, digital advertising will account for 31% of all advertising in Japan, totaling $15.7 billion, with $1.3 billion lost to fraud. Outliers like Dentsu-owned Cyber Communications Inc (CCI) have marketed this, claiming that fraud rates on campaigns were about 7% before using cybersecurity ad verification.
Due to ad fraud, Australian marketers would lose $803 million in 2020. To give you an example, click fraud rates in Australia increased from 18 percent to 28 percent during COVID-19. Click fraud is perpetrated by either direct competitors or organized criminals who employ a complicated infrastructure to defraud several firms, typically using fake websites and automated bots.
Arne Kirchem, Media Director for Unilever in DACH (Germany, Australia, and Switzerland), who sits on the German Advertisers Association, says he thinks the losses to ad fraud will continue to climb. Germany is set to lose $730 million to digital ad fraud in 2020. And this rate will increase in the following years because fraudsters continue to add new ways to do ad frauds.
Ad fraud is a serious issue that impacts advertisers across the board, and it doesn’t look to be going away anytime soon. As a result, you can’t afford to overlook the problem. With global mobile ad expenditure reaching about $230 billion last year, up more than 20% from the previous year, businesses, publishers, and advertising behemoths face a severe challenge that must be addressed as soon as possible. Until this worldwide issue is discussed at all world forums, digital marketing expos and conferences, global business summits, and other venues will real, and beneficial effects are observed. Preventing fraud in real-time with Interceptd, you can protect your ROI and get rid of fraud. Ask now for a demo!