With the Rise of Mobile app economy, Fraudulent ads in apps increase by 159% in just one year

Last year mobile Ad Spending surpassed the TV ad spending for the first time.

According to eMarketer, Mobile ad spending -- which changed into expected to be $87 billion in 2019 -- will account for more than two-thirds of average digital ad spend in the US.

The main reason for this tremendous growth is because of the enormous investments in mobile app ad, which is assumed to reach $201 billion in spend globally by 2021.

With the increase of mobile ad spending, the frauds continue to take advantage of this digital trend.

Many businesses are losing money as about 50% of ads go unseen as the mobile application Sophisticated InValid Traffic (SIVT) impressions have increased year after year.

 The overall number of fraudulent and misleading apps has grown by 159% only in one year.

Games or Tools and Utilities contains most of the fraudulent and misleading apps (57%).

According to DoubleVerify measurement and analytics provider, the most common type of mobile app fraud includes ad activity, hidden ads, app parody (also known as spoofing) and measurement(impressions) manipulation.

Most of the apps contain a standard mobile display ad display slot, and if the advertising company plays the video ad player instead of putting a banner ad in display slot, it can cause a sophisticated scheme that can generate extra revenue for the company.

These type of ads are used by the fraudsters to generate revenue.

These ads could run from multiples sources in a loop without providing any control of stopping them to the users.

According to a report by Singular, 63% of the marketers don't use any technique to prevent mobile fraud.

The hidden ads cost a lot of money for the company.

If an ad is viewable, it certainly gives better results, but in the case for best results, the ad needs to be viewed by a human, not a bot, and correct geography for the brand target.

If the ad is getting viewed in an area where the product will never go, the business loses money from its marketing budget.

According to a report by Scalarr, marketers will lose approximately $13 billion (a notable increase from $7.3 billion in 2018) to mobile app install fraud in 2019.

The Head of DoubleVerify's Fraud Lab, Roy Rosenfeld said, with the advertisers frequently concentrated on the mobile app, the fraudsters are also increasing their efforts to take advantage. Brands should concede these risks to spend accordingly and install appropriate safeguards for their digital properties.

Watch what you instal on your smartphone: Fraudulent ads in apps increase 159% year on year

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