Fraud In The Digital Advertising World: It Affects the Entire Industry

Fraud in the digital advertising world is abundant and is bringing in millions for people who are running bots and fake websites. However, the problem does not simply lie in the fact that millions of dollars are being ripped off. Here are some of the effects that fraud is having on the digital ad industry.

Here are two ways that fraud drives up costs. First, legitimate companies charge extra to provide guarantees that the ads are actually being seen and are converting. Second, the sheer amount of bogus online ad space means that there is actually nowhere near as much online ad space as we once thought. The laws of supply and demand also work online. A shortage will quickly drive up the price, so we can reasonably expect revelations of fraud schemes to ultimately drive supply and demand concerns.

Loss of demand for digital ad space, however, could also become a very real concern. If this happens it would place the burden on legitimate sellers instead of on buyers. After all, no one is scamming TV ad spots by running them in a 1 by 1 pixel in the corner of the screen while a different ad plays. Companies who are burned or aware of these schemes may simply move their funds back into old standbys that provide a better ROI.

Clearly, the industry is having reputation problems. When an industry makes it easy for scammers to con millions of advertising dollars from legitimate businesses, there is no way that it won’t suffer the wrath of the angry corporate world. If 4 out of 10 clicks don’t do anything for the business that paid for them, which is the reality, there’s no way to put a positive spin on the industry’s ability to protect clients.

While fraud in the digital advertising world seems to be here to stay, careful practices can help your company to avoiding getting scammed. In reality, every party involved needs to make conscious efforts to steer clear of scams.