Fraudulent advertisements see their financial impact increase by 20% and reach $120 billion in losses in 2022 / Digital Information World

The online advertising industry has been a boon for some small businesses, but it has also created many opportunities for fraud and scams. ANA has just released its Marketing 360 newsletter, which highlights some of the damage caused by ad fraud due to the fact that it’s the kind of thing that could potentially end up putting the issue in the right context.

With all of that said and now dismissed, it’s important to note that various fraudulent advertising practices have cost the industry over $120 billion in 2022. That’s a worrying 21% increase from the roughly $95 billion than it cost last year, and considering that 18% of all online traffic is comprised of bots, that number is not surprising, if not alarming.

Another analysis from Juniper Research was a little more conservative, estimating annual losses of $100 billion by 2023. It still recorded around $50 million in lost revenue and unnecessary costs for ad companies. , and non-human robots play a major role in this regard.

The prevalence of ad fraud coupled with the sudden removal of access to third party data from multiple sources is creating issues for the advertising industry, all considered and considered. Click injection, install farming, and ad stacking are all frequently used, but despite this being the case, industry leaders have yet to be able to find an effective solution for this.

The advertising industry is all about efficiency, so every penny wasted on fraudulent ad purchases results in less revenue growth. Such ads also massively harm the user experience, so this is clearly an issue that affects everyone equally. Many other publications like Atlantic and Forbes have also commented on this problem, so we could see it becoming mainstream, which would probably speed up the search for a solution. Until then, the ad industry and everyone who depends on it will just have to hope for the best.

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