Digital ad fraud is more rampant than ever. Big brand advertisers are just starting to realize the extent of it and are starting to deploy countermeasures. But these countermeasures, deployed individually may not be sufficient to fight the entire ecosystem that bad guys have set up.
2. “Digital ad fraud is well known and well
documented. However, the magnitude of it may
not yet be well understood. Furthermore,
‘industry constituencies [may be] insufficiently
motivated’ (Source: IAB) to act ferociously to
deter and reduce these fraudulent activities.”
-- Dr. Augustine Fou
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Augustine Fou
3. Blacklisting Sites
Value
Exclude sites from
serving your ads
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Caveat
For every site
excluded, bad guys put
up more (because they
don‟t have to play by the
rules).
Augustine Fou
4. Enforcing Viewability
Value
Caveat
Only pay for ads which
are viewable (i.e. above
the-fold)
Bad guys have already
defeated “viewability” by
stuffing ads in hidden
layers, all above-the-fold.
Source: Spider.io May 2, 2013
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5. Bot Detection
Value
Caveat
Good guys use algorithms
to detect unusual
behaviors indicative of
bots (rather than humans)
It’s an arms race between
good and bad; bots are more
sophisticated and can fake
mouse movements and keep
cookies.
Source: Spider.io March 2013
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6. Using CAPTCHAs
Value
Caveat
Captchas deter bots from
filling in forms and stealing
content and cookies.
Some bots can now solve some
captchas, most captchas don’t
protect content pages.
Source: Solve Media Dec 31 2013
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“Startup called Vicarious
automatically solves
CAPTCHAs.” Oct 2013
http://bit.ly/1bFo9lZ
Augustine Fou
7. “The above countermeasures are all good, and
advertisers should continue using them. But they are not
enough. If the good guys fight the fight individually,
there is little chance they can overcome the entire
ecosystem of the bad guys. The good guys need to band
together into their own ecosystem and put the bad guys
on a „digital ad fraud equivalent to the National Sex
Offenders Registry‟.”
-- Dr. Augustine Fou
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9. Why Now?
“As more ad inventory is bought and sold
programmatically on ad exchanges, bad
guys are finding it far easier to commit
fraud because few agencies and advertisers
actually check in detail the hundreds of
thousands of sites on which the ads are run.
It‟s easier to hide in a far larger haystack.”
-- Dr. Augustine Fou
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Augustine Fou
10. Waste Due to Fraud
• Display ad fraud is the easiest to commit and bad guys
sell tons of “junk” inventory into ad exchanges; ad buyers
are goaled on number of impressions so that perpetuates
the problem.
30-75%
• Video ad fraud is the new area of focus because video ad
impressions are 10x more lucrative than display; ad
buyers are goaled on “tonnage” of impressions and
therefore perpetuate the problem.
50-80%
• Search ad click fraud is harder to commit and usually
occurs on “search partner network” sites; but high
spending categories like insurance and high CPC
categories like pharma are favorite targets of the bad guys
who can earn $78 per click.
20-40%
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Augustine Fou
11. Types of Ad Fraud
Impressions
Clicks
Leads
Sales
(CPM fraud)
(CPC fraud)
(CPL fraud)
(CPA fraud)
Bot or low
wage workers
fill in lead
forms with real
addresses and
get paid bounty
per lead.
Fake sites set
up to do cookie
stuffing or trick
users to click
on affiliate
links to earn rev
share.
Botnets
generate fake
pageviews
which produce
ad impression
“inventory” that
is sold into ad
exchanges.
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Bots type
search queries
to bring up
search ads and
then click on
the ads to earn
share of CPC.
Augustine Fou
13. Bad Guys Put Up Sites
site = analyzecanceradvice .com
site = missomoms.com
19 blocked ads on page
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Augustine Fou
14. Load Tons of Ads on Pages
http://modernbab y.com/
http://interiorcom plex.com/
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15. Fake their “Viewability”
Ads are above the
fold of the page
But their pixel
opacity can be set
to zero (invisible)
Entire web pages
stuffed into ad
iframe; ads counted
as viewable
Source: Spider.io May 2, 2013
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16. Use Bots to Load the Pages
Source: Google
Source: Wired
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17. Sell Bulk Impressions
“Modernbaby.com and Interiorcomplex.com
Each of these sites peddles enormous traffic on the
exchanges. For example, on a recent day Modern
Baby was offering 19 million impressions via one
exchange (quite the baby boom) and Interior
Complex 30 million [ad impressions PER DAY] (the
roaring housing market must be back).”
Source:
Adweek – Suspicious Web Domains Cost Online Ad
Business $400m per Year
By Mike Shields
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Augustine Fou
23. Related Articles
Digital Ad Fraud Briefing
By: Augustine Fou December 2013
Fake YouTube Videos
By: Augustine Fou, December 2013
Ad Fraud Fighting Techniques
By: Augustine Fou October 2013
Fake Linkedin Profiles
By: Augustine Fou, December 2013
How Display Fraud Works
By: Augustine Fou, May 2013
Fake Facebook Profiles
By: Augustine Fou, Dec 2013
How Click Fraud Works
By: Augustine Fou, November 2013
Fake Twitter Accounts
By: Augustine Fou, August 2013
The Magnitude of Digital Ad Fraud
By: Augustine Fou, November 2013
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Augustine Fou
24. Dr. Augustine Fou – Digital Consigliere
“I advise clients on optimizing
advertising across all channels. One
main area of focus is reducing ad waste
due to fraud – fake impressions, clicks,
leads, and sales – in order to raise ROI.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
ClickZ Articles: http://bit.ly/augustine-fou-clickz
Slideshares: http://bit.ly/augustine-fou-slideshares
LinkedIn: http://linkd.in/augustinefou
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@acfou
Augustine Fou