On 05/03/18 Sahm Adrangi did a presentation on ad fraud at the Kase Conference. Adrangi says his reason for speaking about ad fraud is because it shows certain situations how billions of dollars in fraud can be perpetrated in short order.
Sahm Adrangi uses a widely-known brand such as Kellogg as an example of how companies pull off such advertising frauds and reap in massive amounts of money. If the company spends $25,000 on advertising and its placed all on fake sites that are monitored by only robots, the site isn’t getting real Internet traffic. Instead, hackers are getting the money via bots that are used rather than buyers.
Since advertising fraud is going on in record levels, many companies are now steering clear of advertising online, according to Sahm Adrangi. But, at the same time, there are companies that benefit greatly from the fraud. These are usually the ones very reluctant to do anything about it.
Adrangi estimates that at least 25% of advertising traffic is the result of bots. He also explains the many different types of ad fraud such as click fraud, where you have fake sites without content, and ads that tag and stuff. These ads are where you may visit an advertising site with a video. On the same page, you may see additional videos being played. The fraudulent part is that the advertiser is paying for those videos but no one is actually seeing them.
At the end of the day, hackers are reaping the benefits of such schemes. In fact, it is estimated that world-wide, hackers are earning billions of dollars. Sahm Adrangi insists that more fool-proof methods should be used to outsmart hackers. But as long as some of the brands are making money off the fraud, little will likely be done to curtail it.