Pixalate Says 30% Of Programmatic Ad Impressions In Australia Are Invalid… So Is Online Advertising A Scam?
Best-selling author and self-declared advertising contrarian Bob Hoffman has come out this week and declared the advertising industry is involved in an “unspoken conspiracy” when it comes to online advertising.
It is a conspiracy driven by greed, he argued in his blog, that has seen the online advertising industry deliberately and knowingly deceive clients.
“By concealing their knowledge of deceit and dishonesty in online media, the ad industry has failed at one of their most consequential responsibilities – being trustworthy stewards of their clients’ money,” he said.
Whether or not what Hoffman said is true or not (he has long been extremely critical of online advertising), he does touch on the topic of ad fraud in the context of his conspiracy theory.
Research released this week by fraud management company Pixalate shows Australia to have the third-highest rate of ad fraud globally, with nearly one of every three (30 per cent) programmatic ad impressions believed to be invalid.
Only in India (39 per cent) and Colombia (35 per cent) is ad fraud more pervasive, while the US (19 per cent) and the UK (11 per cent) are significantly lower.
Pixalate’s methodology states algorithms were used to identify both “General Invalid Traffic” and “Sophisticated Invalid Traffic” across over 80 million domains, over 1.5 million apps, and over 75 million OTT/CTV devices, although it does not distinguish between the two types of invalid traffic.
So why is ad fraud such a problem in Australia?
Media agency GroupM has also recently released research on the topic, pointing to Australia’s broad market as the problem.
“In Australia, there are 264 open exchanges serving 19 billion impressions per month,” the agency said.
“However, not all of these exchanges have 100 per cent fraud-free environments.
“GroupM removed the vast majority of these sellers and decided that the key criterion for inclusion was that the operator have an office in Australia.”
GroupM’s research, however, paints a very different picture for the scale of ad fraud in Australia, compared with Pixalate.
According to GroupM, average invalid traffic in Australia is 1.4 per cent, accounting for $87m, while globally it is worth $22.4 billion.
Additionally, GroupM’s figures show Australia to have the lowest invalid traffic figure of any region.
A spokesperson from GroupM in Australia added: “We believe that with the right strategies, and with the high level of criteria and stringent brand safety guidelines we have in place, it’s possible to mitigate the risk for advertisers.”
The large disparity between the two findings is most likely due to the different methodologies used by the firms, with GroupM recognising its measurement to be “considerably lower than some of the global estimates”.
The China problem
Although the GroupM research paints a more promising picture for the Australian market, it does highlight the scale of the ad fraud problem in China.
“According to this data there is $18.7B of ad fraud in China, making it over 80 per cent of the total ad fraud market globally,” said GroupM.
The agency cited market-specific challenges such as local tech vendors that are yet to mature and unfamiliarity with the practice of brand safety.
In addition, the ‘walled’ nature of the Chinese online ecosystem leads to a very different outcome when compared to Western markets.
Social media
The two biggest online advertising players, Google and Facebook, have been criticised in the past for their role in contributing to problems around brand safety.
However, both companies have made a very public effort to improve in the space over the past 18 months, and GroupM said the results are coming through.
“Both YouTube and Facebook have improved their internal oversight and advertiser-configurable brand suitability controls,” GroupM said.
“Since 2016, our continuous pushing for improved internal controls and independent third-party verification has achieved some success.
“YouTube, Facebook, Twitter and others now maintain viewability APIs that allow human-viewable optimisation.”
Latest News
Sydney Comedy Festival: Taking The City & Social Media By Storm
Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]
Global Marketers Descend For AANA’s RESET For Growth
The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]
Is Meta’s New AI Chatbot Too Left-Wing?
Meta's chatbot accused of being left-wing after being caught wearing a Che Guevara T-shirt & listening to Billy Bragg.
TV Ratings (23/04/2024): Why Did No One Tell Angela That Farmer Wants A Wife Is Set On A Farm?
As wonderful as this headline is, let's face it, we all know an 'Angela', don't we?
PubMatic Unveils New AI Partnership To Turn Social Posts Into Ads For Any Digital Channel
Here's some nifty tech for turning social posts into ads. Assuming said posts aren't one-star character assassinations.
Intuit Mailchimp Makes A Splash With Its First Australian Brand Campaign
Ever laugh along at a gag you didn't get so as not to appear dumb? Get ready for more feigning with this new work.
GumGum’s Rob Hall: Advertisers Can No Longer “Rely On Binary Descriptions” Of Consumers
If anyone's got their finger on adtech's pulse, it's Rob Hall. He also avoids using the good paper in the office printer
Mastercard Nabs Florencia Aimo From Marriott International
Marriott International's Florencia Aimo jumps from the hotel business to the exploitative credit card one.
Bastion Agency Appoints Cheuk Chiang As New ANZ CEO
Cheuk Chiang takes the reins over at Bastion Agency. But not the rains down in Africa.
Spotlight On Sponsors: Major Sponsorship Wins After A Disappointing Week In Sport
B&T continuing our deep dive into local sport sponsorships & that's despite not a single offer of a free ticket as yet.
Macca’s Marketing Director, Samantha McLeod On Big Mac Chant: “What Was Once Old Is Now Cool Again”
Macca's using the power of nostalgia in latest Big Mac campaign. Well, only for those who've ever eaten one sober.
World Premiere Of Midnight Oil: The Hardest Line To Open Sydney Film Festival 2024
Oil's biopic to open Sydney Film Festival. Here's hoping Molly Meldrum will take his pants down at the premiere.
Entries Are Now Open For The 2024 Brandies, IntelligenceBank’s Annual Brand Marketing Awards
The Brandies are, of course, a prestigious marketing gong and not the mystery tipple favoured by nannas everywhere.
The Fred Hollows Foundation Appoints Ardent For PR
Yes, we all like to have a joke at PR's expense. But sometimes it does important work, like this.
AI, eCommerce & Marketing Specialists Are In Increased Demand By Businesses, New Data From Fiverr Shows
Has your philosophy & anthropology degree left you with nothing but a huge HECS debt? Here's what you should've studied.
Perth’s First 3D Anamorphic Billboard Arrives Courtesy Of oOh!media
Do you love a buzzword? Now you can add anamorphic to the list as it relates to billboards, not a colleague's ears.
MasterChef Australia & Crown Resorts Launch Unique Dining Experience With ALUMNI
A pop-up restaurant staffed by MasterChef contestants! That's fine dining prices for first-year apprentice chef cuisine!
Amanda Laing Announces Resignation From Foxtel Group
Foxtel's chief commercial & content officer heads for the exits. Read nice things the bosses said about her right here.
The Lost Letters From Our Diggers: News Corp Unveils ANZAC Day Special
It's nice when brands respectfully acknowledge ANZAC Day.
Howatson+Company Acquires Akkomplice
Large indie acquires a slightly smaller indie. Much like a shark eating a tuna, just with less thrashing and blood.
Google Delays Third-Party Cookie Deprecation Again
In good news for the sale of picture library biscuit photos, Google continues to tease over the end of cookies.
Education A Low Priority For Aussies More Concerned With Cost Of Living Forethought Study Reveals
Study finds Aussies cutting back on education due to cost of living. Booze & Uber Eats sales remain largely unaffected.
“I’m Still The Same Person That I Was”: Rikki Stern Says “Fucc It” To Cancer Stereotypes
B&T always happy to promote the anti-cancer cause. Even brands that massively overdo it with the hot pink.
The Unapproved Climate Certification Allegedly Causing Mass Greenwashing
Are you left flummoxed in the canned tuna & free range eggs aisle? Just wait till this green certification gets up.
TV Ratings (22/04/2024): Fans Mock “Over The Top” Reaction To New MasterChef Judges
MasterChef returns for its 2024 season. B&T stands by putting peppercorns in Gravox & no one will be any the wiser.
Dentsu Restructure: Muddle, Harvey & Johnston Take Leadership Baton As Bass & Yurisich Exit
A large broom has swept through Dentsu's local ops this morning, taking with it some big names & the air con's cobwebs.
Industry Shares Trends Shaping The Industry This International Creators Day
B&T's asking adland creators to reveal their top trends. And it's not good news for your Jenny Kee cardigan collection.
Mable Extends HOYTS Sensory Screenings Partnership
Mable has extended its HOYTS sensory screening partnership. Vigorously defends its two-star Oppenheimer review.
Orphan Launches ‘They Need Our Help. We Need Yours’ For Children’s Cancer Institute
Anything to do with childhood cancers has B&T's 110% support. That said, we do ignore the red meat & alcohol warnings.
Smile Team Orthodontics & Keep Left Collaborate On Smile-Inducing Campaign
As parents would attest, given the cost of orthodontics you'd expect this campaign to be a lavish production indeed.
Opinion: How Video Calls Neglect Learning Diversity
Need an excuse to duck out of a video call this arvo? Show this to your boss.
DoubleVerify Achieves First-Of-Its-Kind Responsible AI Certification From TrustArc
DoubleVerify receives responsible AI certification. However, not its robotic vacuum that's been seen menacing the cat.
Smile For A Good Cause: The Social Media Campaign Giving Back To The Community
Are you known as the office Austin Powers? More for you teeth than shagability? Get snappy new fangs with this news.
Elon Musk Mocks Albo After ESafety Wins Court Injunction Against X
Albo's 2024 from hell continues - Rabbitohs in crisis, down in the polls and now feuding with world's richest man.
Real Estate Developer In Hot Water Over “Sexually Exploitative” OOH Campaign
Real estate agents again tops in the 'least trusted profession' polls, nudging used car salesmen & ad creatives.
Epsilon’s Shane Hanby: Post-Cookie Era Relies On “Teamwork” Between Brands, Marketers & Tech
This pro predicts more "teamwork" in a post-cookie era. Which spells bad news for the uncooperative or plain stubborn.