Films are made about drug cartels and stories are told of famous bank heists. But why aren’t we talking about one of the biggest organised crimes in the world: online ad fraud? It may not seem as dramatic as many other crime stories, but the elusiveness of digital fraud is one of the many reasons it’s not stopping and we think it’s worth talking about.
By 2025, the World Federation of Advertisers (WFA) estimate that ad fraud is likely to exceed $50 billion, making it second only to the drugs trade in terms of income. The web is turning into the wild west; every advertiser, publisher and adtech company for themselves. Ad fraud is relentless and jeopardising free online content.
But not to worry, there’s a new sheriff in town.
Coull have come a long way since our humble beginnings, we quickly realised how huge ad fraud was and we had to change this. Since then, we have been trying to tackle fraud in the wild wild web.
First of all, what should we all be looking for?
Automated traffic: Otherwise known as non-human traffic (NHT), it is the most common form of ad fraud. These bots can come from software applications which run automated tasks over the internet to simulate human activity.
Invalid traffic: Traffic running through a domain being undesirable, this does not mean the domain itself is bad and therefore would not require blocking. However, the source of the traffic needs to be found and removed.
Ghost sites: Ghost sites are made to resemble real web sites, but have no value and instead host a multitude of advertisements.
Proxy traffic: A proxy allows anonymous access to the internet and can browse the internet without leaving a footprint. This means all ad requests will go through a proxy, so for those monitoring the requests, the only thing visible is the proxy – there’s no way to know who’s behind it.
Cloaked domains: This is when an imbalance between the domain where the ad appeared and the referring domain. This practice enables undesirable properties such as pirate and adult portals to sell inventory under a high-CPM category such as cars or travel.
Spoofing: A malicious party impersonates another device (or user) on a network in order to show ad requests from more reputable sources.
Ad injection: The ad is loaded by ad injection software, often bundled with other software like games and toolbars. This artificially inflates the number of ads on a page and can lead to negative user experience.
With a free and open Internet dependant on ad revenues, it’s important that the entire chain, along with industry associations, work together to ultimately strike out the risk of advertising fraud.
Here’s Coull’s advice and ethos:
Being able to be completely open and honest with everyone in the industry means that, things like invalid traffic and ghost sites are easier to detect. Without transparency, it’s like finding a needle in a haystack…in the dark.
Coull strives to be a transparent and trusted company to work with, which is why we’ve put a huge amount of time, effort and investment into eradicating invalid traffic from our platform. For example, we have added features to our publisher dashboard to enable our publisher partners to see when we detect any invalid traffic coming from them and our compliance team stamp it out.
We don’t have to tackle this crime alone, using the best third party vendors to verify traffic is much more effective. At Coull, we work with MRC accredited 3rd party verification tools to track all inventory and act accordingly.
Also, we have our very own fraud detecting hero, Nicola, Coull’s compliance manager. Every day, Nicola manually scans traffic and domains to cut out the pesky bots and *inappropriate* websites. This enables us to have a multi-level process targeting ad fraud and eliminating it from our platform.
We have introduced our Traffic Quality Assurance program to help publisher partners reach the quality required to partner with Coull and to help our advertisers buy media with confidence.
No double standards
Much like the wild west, online advertising doesn’t have many set rules, turning the internet into a western shootout – fraudulent traffic coming from every direction. One way to stop fraud is by measuring genuine ad impressions and true viewability.
Although industry bodies like the International Advertising Bureau (IAB) and the Trustworthy Accountability Group (TAG) are setting guidelines, not everyone follows them. There are a huge number of ad tech vendors running their own measurement of these standards. This means each vendor's results will be different, affecting expected CPMs, creating a lack of expected inventory and mistrust.
Coull has been working on pre-bid viewability technology. We can detect where the ad unit is on the page before it’s served, enabling advertisers to decide what inventory to purchase based on whether their ad would likely be in view. The biggest advantage is that this minimizes wasted ad spend, giving demand partners real-time data to help them make the best buying decision.
Coull’s queen of compliance, Nicola says, “Educating people about the different types of fraud is one of the most important things at the moment. Unfortunately, law enforcement is still behind on tackling ad fraud, so we need to learn how to defend ourselves.” So that means, helping publishers recognise any fraudulent traffic and the different forms it comes in. Also, helping buyers achieve efficient and valuable return on campaigns by evading traps and not buying blind.
With the hundreds of partners, networks and exchanges out there it makes it easier for fraud to creep in. Whereas, having direct partnerships can eliminate the risk. According to Integral Ad Science, nearly 9% of digital ads delivered via programmatic channels are fraudulent, compared with only 2% of ads delivered through direct deals with publishers.
Coull cut out the middlemen by hosting our own exchange, connecting demand partners directly to publishers’ ad servers. And our formats, OverStream and Double:UP are direct publisher integrations, for a simpler, diluted environment.
Many companies are working on anti-fraud techniques, particularly the buy side. However, this year will hopefully see more supply side and exchange take the lead.
Publishers: Fraudulent activity can compromise your business model and can damage the brand’s reputation. You need to be able to identify the different forms of invalid traffic and be transparent about inventory.
Advertisers: Fake views on your online campaign is wasting money and creates inaccurate data about the ad’s performance. Make sure you know exactly what inventory you’re buying to protect brand image and have a more valuable return on campaigns.
Ad tech suppliers: If fraud is being hosted by your technology, you will be liable for rebates or refunds to your advertisers and their agencies – and may even be removed from media plans. Work on keeping up standards and abiding by guidelines. Also, direct relationships with partners result in more trust and transparency.
It’s all about teamwork and education to banish the fraud cowboys from the wild wild web, for good.