“Ad Fraud’s Now One Of The Most Profitable Criminal Enterprises In The World”

“Ad Fraud’s Now One Of The Most Profitable Criminal Enterprises In The World”
SHARE
THIS



A leading expert into global ad fraud has claimed the practice has become so commonplace that it’s become one of the most profitable criminal activities on the planet.

Dr Augustine Fou (pictured below) is a New York-based cybersecurity and ad fraud expert and says ad fraud has become so widespread because of its profitability and inability for authorities to control.

augustine-fou-200x280px

He recently uploaded a LinkedIn slideshare presentation outlining the state of ad fraud in 2018 which you can view here.

Ad fraud is basically a scam whereby the perpetrator fools advertisers into paying for something that is worthless to them, such as fake traffic, fake leads or misrepresented and ineffective ad placement.

Contrary to Dr Fou’s view, many industry bodies and agencies downplay the extent of ad fraud, believing it to be a relatively minor issue.

However, a 2017 report by data marketing firm Datalicious estimated ad fraud in Australia alone to be worth around the $100 million-mark annually. Globally, it’s been estimated at around $US7.2 billion.

However, Dr Fou argues that ad fraud is a huge problem and not simply for the affected advertiser. The problem, he says, is that money is getting siphoned out of the system and into the pockets of the bad guys. That means advertisers have lower ROI because of fake impressions, clicks and bots. While the website publisher loses out too, with Dr Fou estimating as much as a third of their revenue is being lost.

Speaking to tech marketing site In Marketing We Trust, Dr Fou said: “Literally everyone is a victim. The entire digital ad ecosystem is the biggest victim because the bad guys are siphoning a large portion of dollars out of the digital ecosystem.

“Advertisers are hurt when their digital ad dollars are not delivering a return (e.g. when their ads are shown to bots and not humans). Publishers are hurt when revenue is stolen before it reaches their pockets. Everyone else in the supply chain is hurt because the data they buy and sell is completely messed up due to fraudulent activity.

“Consumers are affected too because they have bad ad experiences (sites overloaded with ads), they suffer malware attacks – bad guys want to compromise their computers to use in botnets – and their mobile bandwidth is eaten up by ads and not by the content they want to see,” Dr Fou said.

Please login with linkedin to comment

ad fraud Dr Augustine Fou

Latest News

Dan Gregory’s Five Tips For Effective Collaboration
  • Opinion

Dan Gregory’s Five Tips For Effective Collaboration

In this guest post, CEO of The Impossible Institute, Dan Gregory (main photo), says if you’re lost for inspiration then two heads – even 100 heads – are always better than one… The implementation of effective collaboration leading the generation of results has been well documented, but there is one example that comes to mind – this […]

Opinion

by B&T Magazine

B&T Magazine
Poll Reveals What Journalists Fear the Most
  • Media

Poll Reveals What Journalists Fear the Most

A global poll of journalists from 52 countries has identified declining ad revenues as the profession’s number one concern. Staff cuts came second and the dreaded “fake news” came in at third. The poll was conducted by German press organisation Impressum and asked respondents the three questions below: In one word, what defines journalism in your […]

by B&T Magazine

B&T Magazine
Aussie Adland’s Brightest Come Together To Crystal-Ball Trends In Creative & Marketing
  • Advertising
  • Marketing

Aussie Adland’s Brightest Come Together To Crystal-Ball Trends In Creative & Marketing

A new Aussie study – based on the views of some of adland’s brightest – has concluded that data and technology is bringing agency creatives and marketers far closer together. The study, titled Joining The Dots: The Future Of Creativity, was conducted by PwC and Google and included the opinions of 15 industry thought leaders […]

by B&T Magazine

B&T Magazine
Aussie Study: Brands With An Excellent Reputation Can Charge Almost 10% More
  • Marketing

Aussie Study: Brands With An Excellent Reputation Can Charge Almost 10% More

Consumers are willing to pay more for products that not only have the features they want but also are delivered by businesses with a good reputation, a new Australian study has found. The study (which you can read in full here) was done by researchers at the University of Technology Sydney (UTS), puts a price on reputation […]

by B&T Magazine

B&T Magazine
P2P Transport Limited Becomes Australia’s Largest Taxi Advertising Network
  • Media

P2P Transport Limited Becomes Australia’s Largest Taxi Advertising Network

The acquisition of Nonstop Media by ASX-listed P2P Transport Limited will create Australia’s largest taxi advertising network. Adflow, P2P Transport’s advertising division, will take control of all acquired media assets to complement its growing fleet of digital rooftop signage, vehicle wraps and in-vehicle entertainment products across Australia. The acquisition grows Adflow’s footprint substantially by adding […]

UNSW Partners With Adobe To Transform Its Digital Ecosystem
  • Marketing
  • Technology

UNSW Partners With Adobe To Transform Its Digital Ecosystem

Computer software giant Adobe has announced a partnership with UNSW Sydney that will see Adobe Experience Cloud implemented across the university’s global digital ecosystem. The partnership with Adobe is part of a five-year overhaul of UNSW’s digital ecosystem designed to boost its reputation as a top 50 global university through improved integrated marketing capabilities and […]