Internet Ad Fraud Totals More Than $8B Annually

December 3, 2015

Internet-related fraud has become a significant revenue hole for advertisers and publishers.

It's especially eye-opening when you add up all the ways fraudsters are able to drain money from the digital ad ecosystem, which is what the New York City-based Interactive Advertising Bureau (IAB) just did in a report released this week.

The bottom line: Malvertising, fraudulent impressions and infringed content are costing the US digital ad industry $8.2 billion... every single year.

This represents a significant bite out of overall revenues. In another IAB report on Internet advertising revenue, the trade association found that Internet ad revenues in the US reached $27.5 billion in the first half of 2015.

But if you were to focus on one problem, let it be an industry-accepted standard for identifying the bad bots, said Charlie Minesinger, director of Solution Sales at Distil Networks, a San Francisco-based provider of bot detection and mitigation software.

Right now, he told CMSWire, "there is no agreed upon standard to certify that bots cannot access a certain website, that the only traffic on that site is legitimate human traffic, which is the grand vision of publishers when they talk about this problem." Once such standard is established, if that is possible, then a 'good guy' supply chain can be developed.

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