The Hidden Costs of Ad Fraud: Insights from SmartNews’s Ad Quality Team
By Jon Mota, US Ad Quality Lead
In the advertising landscape, ad fraud is a significant concern for marketers and publishers. Recent research from Confiant suggests that over 80% of ad fraud incidents involve non-human traffic, complicating efforts to ensure quality ad placements. At SmartNews, we take an aggressive approach to ensuring high ad quality.
The Scale of the Problem
Ad fraud, particularly in the form of invalid traffic (IVT), has long affected the advertising industry. The Trustworthy Accountability Group (TAG) has reported significant losses from IVT in U.S. mobile display and video advertising. However, collaborative efforts across the industry have led to a notable reduction in these losses, demonstrating the effectiveness of established anti-fraud practices.
Malicious actors are increasingly using sophisticated bots to mimic human behavior, making detection more difficult. In the first half of 2024, reports indicated that one in every 454 impressions on mobile devices posed a user security risk, while one in every 88 impressions showed significant security or quality issues. This underscores the need for vigilance in managing ad quality. The operations team at SmartNews continuously monitors mobile traffic patterns to identify and mitigate potential fraud, helping advertisers effectively reach their target market.
Embracing Technology and Innovation
At SmartNews, we leverage advanced technologies and AI specifically tailored for mobile environments to enhance our fraud detection capabilities. Our systems analyze extensive mobile data to spot anomalies indicative of fraudulent behavior. By employing sophisticated algorithms and machine learning models, we can effectively differentiate between legitimate user engagement and non-human traffic.
Confiant’s research also highlights that Firefox users experienced the highest rate of security issues in the first half of 2024, emphasizing the need for robust detection mechanisms on mobile platforms. SmartNews prioritizes safeguarding our advertisers while delivering a seamless user experience. By investing in comprehensive safety measures, we connect advertisers to their audiences confidently, minimizing risks in the dynamic mobile ad landscape.
Commitment to Transparency and Quality
With over 90% of U.S. ad spend now directed through channels with anti-fraud certifications, transparency in mobile advertising is more important than ever. At SmartNews, we are committed to open and accountable advertising practices.Our ad quality team actively monitors mobile campaigns, providing advertisers with insights into their ad spend and audience engagement. This transparency builds trust and enables advertisers to make informed decisions. While we continuously prioritize security, we remain committed to upholding best practices.
Moving Forward
While progress in reducing ad fraud is encouraging, challenges persist. The mobile landscape is continually evolving, as are the tactics employed by fraudsters. SmartNews remains dedicated to maintaining a high-quality advertising ecosystem through ongoing investment in research, technology, and anti-fraud initiatives.
Insights from Confiant and reports from TAG highlight the importance of collaboration, innovation, and transparency in the fight against ad fraud. Our operations and ad quality teams are committed to ensuring that advertisers achieve meaningful results while preserving the integrity of our platform.
Together, let’s build a more trustworthy digital advertising environment. Stay tuned for updates from the SmartNews team as we navigate the complexities of ad quality and fraud prevention.