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PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 1The Quality Ratings StandardFor Programmatic Advertising
AD FRAUD BENCHMARKSQ1 2017
POWERED BY PIXALATE MEDIA RATING TERMINAL
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 2The Quality Ratings StandardFor Programmatic Advertising
ABOUTThe Pixalate Quarterly Ad Fraud Benchmarks report updates the digital advertising industry on the state of ad fraud in the programmatic marketplace.
Billions of dollars are lost to digital ad fraud each year. Trust and transparency are the most pressing issues in the pro-grammatic ecosystem today, and ad fraud is at the center of the discussion.
We believe creating a more transparent marketplace is a piv-otal first step in the fight against fraud. To properly tackle the problem, the industry must first fully understand the problem. Our analysis takes a deep dive into granular ad fraud statis-tics across devices, screens, and channels to paint the most accurate picture of the challenges.
The research contained in this report gives buyers and sellers alike an honest, thorough review of the state of the industry. Our data and insights can be used as a valuable resource as the ad world combats fraud together.
is a leading global data intelligence platform and real-time fraud protection provider. Pixalate is a Media Rating Council-certified vendor for display ad viewability.
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 3The Quality Ratings StandardFor Programmatic Advertising
Programmatic impression ad fraud rates varied across channels in Q1 2017. Some key top-level findings include:
• Desktop: 31% of programmatic desktopimpressions were fraudulent in Q1 2017.
• Mobile: 36% fraud rate on smartphones,17% fraud rate on tablets.
• Connected TV/OTT: 51% of connectedTV/OTT impressions were fraudulent.
0%
10%
20%
30%
40%
50%
36%Smartphone
51%ConnectedTV/OTT
31% Desktop
13%Tablet
AD FRAUD IMPRESSION RATES BY DEVICE
AD F
RAUD
IMPR
ESSI
ON
RAT
ES
3X
1.5X
3
Source: Pixalate data research, global. Data inclusive of impressions available for programmatic purchase across devices, screens, and channels, Q1 2017.
AD FRAUD BY DEVICE
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 4The Quality Ratings StandardFor Programmatic Advertising
Our insights also reveal the extent to which geography can impact program-matic ad fraud rates.
• Over one-third (35%) of programmat-ically-traded desktop ad impressionsin the U.S. were fraudulent in Q1 2017.
• Brazil (36%) and Japan (81%) were twoof the most notable countries that hadhigher fraud rates than the U.S.
• The U.K., the No. 3 country in terms ofprogrammatic impression volume, hada fraudulent desktop impression rateof 16% in Q1 — less than half of whatthe U.S. experienced
DESKTOP AD FRAUD IMPRESSION RATES BY COUNTRY
AD F
RAUD
IMPR
ESSI
ON
RAT
ES
JapanBrazil
United States
Germany
Canada
Russian Federation
Australia
United Kingdom
Mexico
FranceSpain
IndiaChina
Italy
Source: Pixalate data research, global. Data inclusive of impressions available forprogrammatic purchase, Q1 2017.
0%
20%
40%
60%
80%
100
DESKTOP: AD FRAUD BY COUNTRY
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 5The Quality Ratings StandardFor Programmatic Advertising
In the programmatic ad-buying world mobile has become king. And ad fraud rates can vary between smartphone and tablets across different countries.
• The U.S. had the fourth-highest smart-phone ad fraud rate of any country inthe entire world, at 38%.
• Greece (48%), Germany (43%), andMalaysia (40%) were the only countrieswhich saw higher programmatic mobilead fraud rates than the U.S.
• The U.S. saw tablet ad fraud at a rateof 17%
• The U.K. had nearly identical smart-phone and tablet ad fraud rates (7%).
MOBILE AD FRAUD BY COUNTRY AND DEVICE
AD F
RAUD
IMPR
ESSI
ON
RAT
ES
0%
10%
20%
30%
40%
Tablet Fraud Impression %Smartphone Fraud Impression %
RussianFederation
ItalyChina
SpainJapan
IndiaUnited Kingdom
FranceCanada
Australia
BrazilMexico
United States
Germany
Source: Pixalate data research, global. Data inclusive of impressions available for programmatic purchase across smartphones and tablets, Q1 2017.
MOBILE: AD FRAUD BY COUNTRY
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 6The Quality Ratings StandardFor Programmatic Advertising
We also uncovered revealing figures about programmatic video ad fraud rates in Q1 2017:
• In the U.S., 27% of programmatic videoimpressions were fraudulent duringQ1 2017.
• Canada (23%), France (21%), Italy (20%),Russia (19%), and Japan (19%) all hadsimilar video ad impression fraud rates,at roughly one-in-five.
• The U.K. had a programmatic video adfraud rate of 12% — roughly half of theU.S.’s figure.
• Among leading countries in terms ofprogrammatic supply, only Brazil (9%)and Australia (4%) had programmaticvideo ad fraud rates below 10%.
VIDEO AD FRAUD IMPRESSION RATES BY COUNTRY
AD F
RAUD
IMPR
ESSI
ON
RAT
ES
IndiaUnited States
Canada
FranceItaly
Russian Federation
JapanSpain
Mexico
Germany
United Kingdom
ChinaBrazil
Australia
Source: Pixalate data research, global. Data inclusive of impressions available forprogrammatic purchase, Q1 2017.
0%
5%
10%
15%
20%
25%
30%
35%
VIDEO: AD FRAUD BY COUNTRY
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 7The Quality Ratings StandardFor Programmatic Advertising
MOBILE: IN-APP
The ad industry often uses the word “mobile” to describe both smartphone and tablet inventory. But, at least in the ad fraud world, mobile is truly a tale of two devices.
• Smartphones: Over one-third (36%)of in-app programmatic inventorywas fraudulent..
• Tablets: 12% of in-app programmaticinventory was fraudulent.
This large, notable difference in in-app ad fraud rates could have a profound impact on any media buyer who approaches smartphone and tablet fraud equally.AD
FRA
UD IM
PRES
SIO
N R
ATES
APP AD FRAUD IMPRESSION RATES BY DEVICE
0%
5%
10%
15%
20%
25%
30%
35%
Smartphone 36% Tablet 12%
Source: Pixalate data research, global. Data inclusive of in-app impressions available for programmatic purchase across smartphones and tablets, Q1 2017
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 8The Quality Ratings StandardFor Programmatic Advertising
The discrepancy between smartphone and tablet ad fraud rates extends beyond in-app environments as well.
• Smartphone app display inventory is1.2x more likely to be fraudulent thansmartphone web inventory.
• Tablets, meanwhile, have equal app andweb fraud rates, at 12%.
• Upwards of one-in-three ad dollars spenton display advertising on smartphonesare wasted, and upwards of one-in-tenare wasted on tablet display ads.
• Overall, for mobile display advertising,smartphone inventory is up to 3xmore likely to be fraudulent thantablet inventory.0%
10%
20%
30%
40%
12%Tablet App
1.2X
37%SmartphoneApp
12% Tablet Web
30%SmartphoneWeb
AD F
RAUD
IMPR
ESSI
ON
RAT
ES
SMARTPHONE VS. TABLET DISPLAY AD FRAUD RATES
Source: Pixalate data research, global. Data inclusive of impressions availablefor programmatic purchase across smartphones and tablets, Q1 2017.
MOBILE: DISPLAY
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 9The Quality Ratings StandardFor Programmatic Advertising
Our research reveals that device type can also have an immense impact on mobile video ad fraud rates.
• Tablet app video ad fraud was 17%
• Tablet web video was fraudulentroughly 13% of the time.
• Smartphone web video inventory wasfraudulent 56% of the time
• Smartphone app video ad fraud rateswere 37%
• Smartphone app video inventory wasroughly 3x more likely to be fraudu-lent than tablet app inventory
• Smartphone web video was roughly5x more likely to be fraudulent thantablet web video.
AD F
RAUD
IMPR
ESSI
ON
RAT
ES
SMARTPHONE VS. TABLET VIDEO AD FRAUD RATES
0%
10%
20%
30%
40%
50%
60%
37%SmartphoneApp Video
17%Tablet App Video
13% TabletWeb Video
56%SmartphoneWeb Video
1.5X
1.3X1 3X
Source: Pixalate data research, global. Data inclusive of video ad impressions available for programmatic purchase across smartphones and tablets, Q1 2017
MOBILE: VIDEO
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 10The Quality Ratings StandardFor Programmatic Advertising
MOBILE: AD FRAUD BY DEVICE AND OPERATING SYSTEM
We also uncovered the differences in ad fraud rates across major mobile oper-ating systems, including Android, iOS, and Windows.
• Android: Smartphone ad inventory is2x more likely to be fraudulent thantablet inventory
• iOS: Smartphone app video inventoryis 3.7x more likely to be fraudulentthan tablets
• Windows: Smartphone ad inventoryis 10x more likely to be fraudulentthan tablets
Additionally, our study found:
• Android’s smartphone ad fraud rateof 38% is 1.8x higher than Apple’s rateof 21%.
• Android’s tablet ad fraud rate of 19% isover 3x higher than Apple’s rate of 6%
MOBILE AD FRAUD RATES BY DEVICE AND OPERATING SYSTEM
5%
10%
15%
20%
25%
30%
35%
40%
AD F
RAUD
IMPR
ESSI
ON
RAT
ES
2X
10X
Source: Pixalate data research, global, data for smartphone and tablet users across operating systems. Data shows difference in ad fraud rates between devices and OS, Q1 2017.
3%WindowsTablet
30%WindowsSmartphone
6%IOS Tablet
21%IOS Smartphone
19%Android Tablet
38%AndroidSmartphone
3.7X
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 11The Quality Ratings StandardFor Programmatic Advertising
Each web browser is susceptible to ad fraud in its own way. Here are some of our key findings for the world’s most popular web browsers.
• Google Chrome, the most popularbrowser, had an ad fraud rate of 28%.
• Internet Explorer had an ad fraud rateof 42%, most of all major browsers.
• Safari, the third of the “big three”browsers, had a significantly lower pro-grammatic ad fraud rate, at 10%.
• Firefox (37%) had the second-highestad fraud rate of the five biggestbrowsers.
• Opera’s ad fraud rate of 28% was equiv-alent to Chrome’s.
42% Internet Explorer
10% Safari
28% Chrome
28% Opera
37% Firefox
Source: Pixalate data research, global. Data inclusive of impressions available forprogrammatic purchase across common web browsers, Q1
AD FRAUD RATES BY BROWSER
DESKTOP: AD FRAUD BY BROWSER
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 12The Quality Ratings StandardFor Programmatic Advertising
The most popular web browsers have dif-ferent ad fraud rates on mobile devices as well:
• Chrome’s mobile-only ad fraud ratewas 38%, higher than its desktop adfraud rate.
• Safari’s (9%) mobile-only ad fraud rateis significantly lower than all of theother major browsers.
• Safari (9%), Firefox (39%), and Opera(23%) all have similar mobile-only adfraud rates compared to their desktopad fraud rates.
36% Internet Explorer
38% Chrome
39% Firefox
23% Opera
9% Safari
Source: Pixalate data research, global. Data inclusive of impressions available forprogrammatic purchase across common web browsers, Q1 2017.
MOBILE AD FRAUD RATES BY BROWSER
MOBILE: AD FRAUD BY BROWSER
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 13The Quality Ratings StandardFor Programmatic Advertising
VIDEO: BY DEVICE & CHANNEL
One of the many perks of the increas-ingly cordless world of entertainment is the ability to watch videos on a variety of devices and screens. For marketers and publishers hoping to avoid ad fraud, however, it only increases the number of factors they have to pay attention to. Video ad fraud rates can vary consider-ably based on device and channel.
• Smartphone web video inventory wasfraudulent over half (56%) of the time.
• Smartphone app video inventory hada fraud rate of 37%.
• Connected TV/OTT had a 39% fraud rate.
• Desktop app and web had nearly iden-tical video ad fraud rates, at 24% and23%, respectively.
VIDEO AD FRAUD IMPRESSION RATESBY DEVICE & CHANNEL
0%
10%
20%
30%
40%
50%
39%Connected TV/OTT
56%Smartphone Web
37%Smartphone App
24%Desktop App
23%Desktop Web
17%Tablet App
13%Tablet Web
AD F
RAUD
IMPR
ESSI
ON
RAT
ES
Source: Pixalate data research, global. Data inclusive of video ad impressions available for programmatic purchase, Q1 2017.
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 14The Quality Ratings StandardFor Programmatic Advertising
320 X 480
MOBILE APP VIDEO AD FRAUD RATES BY AD UNIT SIZETABLET APP FRAUD RATES
33% 16%
6%320 X 250
480 X 320
Source: Pixalate data research, global. Data inclusive of ad impressions available for programmatic purchase, Q1 2017.
%
MOBILE: TABLET APP VIDEO FRAUD BY AD UNIT SIZE
Tablet apps feature several different common ad units for video buyers and sellers, and each ad unit is targeted by fraudsters in its own unique way:
• The 320x480 tablet video ad unit wasfraudulent 33% of the time in Q1 2017.
• The 480x320 ad unit had an ad fraudrate of 16% on tablets.
• The 320x250 video ad unit was fraud-ulent 6% of the time.
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 15The Quality Ratings StandardFor Programmatic Advertising
1920 X 1080
MOBILE APP VIDEO AD FRAUD RATES BY AD UNIT SIZESMARTPHONE APP FRAUD RATES
320 X 480
56%
35%
23%
320 X 250
480 X 320
38%
Source: Pixalate data research, global. Data inclusive of ad impressions available for programmatic purchase, Q1 2017.
56%
MOBILE: SMARTPHONE APP VIDEO FRAUD BY AD UNIT SIZE
Our research found that fraudsters go hard after the most common ad unit sizes for video ads within smartphone apps:
• The 320x480 video ad unit withinsmartphone apps was fraudulent 56%of the time.
• The 480x320 ad unit was fraudulent38% of the time.
• The 320x250 video unit had an inappad fraud rate of 35% on smartphone.
• The 1920x1080 unit (full-screen) hadan ad fraud rate of 23%.
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 16The Quality Ratings StandardFor Programmatic Advertising
320 X 480
MOBILE DISPLAY AD FRAUD RATES BY AD UNIT SIZETABLET APP FRAUD RATES
18% 16%
15%
9%
3%
320 X 50
728 X 90
4%728 X 90
320 X 250
TABLET WEB FRAUD RATES
320 X 250
Source: Pixalate data research, global. Data inclusive of ad impressions available for programmatic purchase, Q1 2017.
18%%
MOBILE: TABLET FRAUD BY AD UNIT SIZE - APP & WEB
Fraudsters target different ad units across tablet web and app inventory:
• The 320x50 ad unit was fraudulent 18%of the time within tablet apps in Q1 2017.
• The 320x480 tablet app display ad unithad an ad fraud rate of 16%.
• The 320x250 app unit had a fraud rateof 15%, while the 320x250 web unit hada lower ad fraud rate, at 9%.
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 17The Quality Ratings StandardFor Programmatic Advertising
MOBILE DISPLAY AD FRAUD RATES BY AD UNIT SIZE
5% 5%320 X 250
37%320 X 50
SMARTPHONE APP FRAUD RATES
SMARTPHONE WEB FRAUD RATES
480 X 320
Source: Pixalate data research, global. Data inclusive of ad impressions available for programmatic purchase, Q1 2017.
HONE WEB FE WE AUD SATER
MOBILE: SMARTPHONE FRAUD BY AD UNIT SIZE - APP & WEB
Interestingly, despite the high overall ad fraud rate for mobile web display inven-tory, there isn’t one common ad unit that’s specifically targeted by fraudsters.
• The 320x50 ad unit was fraudulent 37%of the time within smartphone apps inQ1 2017.
• The 320x250 smartphone web unit wasfraudulent 5% of the time.
• The 320x50 mobile web ad unit had anad fraud rate of 4%.
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 18The Quality Ratings StandardFor Programmatic Advertising
DISPLAY: AD FRAUD RATE BY DOMAIN CATEGORY
According to our research, fraudsters are much more active in certain domain categories compared to others. Some key findings:
• Just over half (50%) of programmaticad impressions in the “Society & Cul-ture” domain category were fraudulent.
• The Business & Economy vertical is alsohit hard by fraudsters, with a 39% adfraud rate.
• Programmatic ads within the Govern-ment vertical were fraudulent 27% ofthe time.
• The Education (18%), Arts (17%), andScience (13%) verticals had the lowestad fraud rates.
As publishers and marketers strike more programmatic deals, the potential impact a vertical has on ad fraud should not be overlooked.
AD F
RAUD
IMPR
ESSI
ON
RAT
ES
0%
10%
20%
30%
40%
50%
PROGRAMMATIC AD FRAUD RATES BY DOMAIN CATEGORY
13% Science
17% Arts
18% Education
21% Computer & Internet
22% Health
23% News & Media
24% Entertainment
27% Government
34% Recreation
39% Business & Economy
50% Society & Culture
Domain CategorySource: Pixalate data research, global. Data shows programmatic ad fraud rates by Yahoo-defined publisher verticals, Q1 2017
PIXALATE’S Q1 2017 AD FRAUD BENCHMARKS REPORT ©2017 PIXALATE, INC. 19The Quality Ratings StandardFor Programmatic Advertising
METHODOLOGY Pixalate’s team of data scientists analyzed billion ad impressions throughout Q1 2017 utilizing proprietary
analytics tools to compile this research. The data was aggregated based on unfiltered sold impressions throughout the programmatic ecosystem. Devices were detected based on user agent provided in the bid stream that were then categorized by using the wurfl device detection system.
DISCLAIMER The research and insights contained within this report represent Pixalate’s data and opinions as it pertains to the informa-tion Pixalate believes will be most relevant to the digital advertising industry’s battle against ad fraud. The data has not been audited or reviewed by a third party, but the research and insights are grounded in Pixalate’s proprietary technology and analytics, which Pixalate is continuously evaluating and updating.
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