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Fraudulent Ads See 20% Increase in Financial Impact, Reaches $120 Billion Losses in 2022

The online advertising industry has been a boon for certain small businesses, but it has also created a lot of opportunities for fraud and scams. ANA just released its Marketing 360 newsletter, which highlights some of the damages that were incurred by ad fraud because of the fact that this is the sort of thing that could potentially end up putting the issue into the right context.

With all of that having been said and now out of the way, it is important to note that various fraudulent ad practices have cost the industry upwards of $120 billion dollars in 2022. This represents a concerning 21% increase from the approximately $95 billion that it cost last year, and when you consider that 18% of all traffic online is comprised of bots this number is unsurprising if alarming.

Another analysis by Juniper Research was a bit more conservative, estimating $100 billion losses annually by 2023. It still recorded around $50 million in lost revenue and wasted charges for ad companies, and nonhuman bots are playing a major role in this.

The prevalence of ad fraud coupled with the sudden removal of third party data access from several sources spells trouble for the ad industry with all things having been considered and taken into account. Click injection, install farming and ad stacking are all being used frequently, but in spite of the fact that this is the case industry leaders have not been able to come up with an effective solution for it yet.

The ad industry relies on efficiency, so every penny that is wasted on fraudulent ad buys results in less growth for the product. Such ads also massively detract from the user experience, so this is clearly a problem that impacts everyone equally. Numerous other publications like the Atlantic and Forbes have commented on this issue as well, so we might see it becoming mainstream which would likely speed up the finding of a solution. Until then, the ad industry and all that rely on it will simply have to hope for the best.


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