Ad fraud will be costing advertisers’ brand money, hurting campaign results, leaving marketers with fewer genuine leads and poor advertising Return on Investment (ROI) by the the end of 2023. According to Juniper Research, the figure is expected to rise to $172 billion by 2028.
With the latest development, digital experts consider it worthwhile for marketers to explore fraud-blocking technology or reallocating some of their ad budget to Search Engine Optimization (SEO) strategy.
Juniper’s study analyzed digital advertising in 45 countries across 8 regions, using a dataset of over 78,700 data points from 2019 to 2028. The research found that:
- 22% of all online ad spend is lost due to ad fraud in 2023.
- 30% of mobile ad spend is lost to ad fraud in 2023.
- $172 Billion of ad spend is projected to be lost due to ad fraud by 2028.
- $23 Billion per year can be recovered by using fraud mitigation platforms.
As part of solution strategy, fraud detection technology, such as Fraud Blocker, can detect and identify fraudulent or invalid traffic, impressions, clicks, or conversions on ads, helping to protect advertisers’ campaign performance and ad budget.
Commenting, a Senior Research Analyst from Juniper Research, Elisha Sudlow-Poole, said: “Data provided by popular ad platforms, such as Facebook and Google, provide an incomplete picture of the success of advertising campaigns.”
“That is, these platforms give an optimistic view of campaign efficiency, failing to distinguish between how many clicks or views originated from legitimate users compared to click farms or fraudulent bots,” he added.