Fraud has become an epidemic plague for programmatic advertisers. It hit some big players hard in 2017 when fake traffic bloated ad performance and decimated budgets for brands like JPMorgan Chase, Visa, Amazon, and KFC. It seems no brand is safe; fraud is packing quite the punch across all industries.
While many advertisers rely on third-party solutions (like comScore and DoubleVerify) to identify and circumvent fraudulent activity, these companies can’t obliterate fraud on their own. Their success depends on correctly identifying malicious activity, which is notoriously inconsistent, erratic, and elusive. Not to mention that many fraudsters actually use third-party solutions to troubleshoot and learn, so they can make bots even smarter and trickier to sniff-out. And even when these solutions do find malevolent activity, it can only be after the fact (i.e. after it’s wreaked havoc on campaigns).
Fraud will continue to threaten programmatic ad buying unless marketers mitigate it immediately, within the first stage of campaign execution.
Fortunately, that’s now possible; with machine learning and AI, advertisers can identify and circumvent fraud before pre-bid solutions are even applied.
In fact, proactive fraud mitigation is one of the many things that Magnetic’s AI Platform automates. It continuously monitors patterns in inventory supply, bid opportunities, and the behavior of 320 million individuals to quickly discover malevolent threats and take proactive measures – like blacklisting sites, filtering non-human activity, and shaping supply – to cleanse our bid stream and protect your campaign.
And because our AI is constantly learning, it can also identify and evade budding fraud practices not yet accounted for by pre-bid solutions to provide the timeliest protection unavailable elsewhere.
The advertising industry finally stands a chance against fraud, which is pretty good news to everyone, especially brands and publishers. Advertisers get better campaign performance, their ROI improves, and they can put some much-needed money back in the pockets of publishers to create more top-notch content. Not bad if you ask us.
Source 1: Programmatic Ad Fraud Rates by Industry, Statista, Pixalate ID 778689 Source 2: Cost of Digital Ad Fraud in the US, Statista, Borrell Associates; Radio Ink ID 778733
Magnetic is an artificial intelligence company that uses machine learning to deliver smarter, faster, and more effective advertising. Our powerful AI platform continuously analyzes the attributes of over 350 million live user profiles alongside real-time inventory supply and bid opportunities to deliver highly performant audiences and profitable campaigns for our clients.