Indian marketers spend nearly 20% of their ad budget on ad fraud: MMA report
MUMBAI: Even as digital advertising is growing by leaps and bounds, mobile ad fraud remains a serious concern for advertisers. According to ‘Ad Fraud Benchmark Report’ released by Mobile Marketing Association (MMA), Indian marketers spend nearly 20% of their advertising budget on ad fraud.
The report revealed facts about the level of fraud, and its awareness in the country and aims to help marketers benchmark their exposure to various kinds of fraud.
With a rate of 62%, mobile ad fraud remains as one of the biggest challenges in India, the report stated. If further noted that 9/10 marketers feel there is scope for improvement in ad fraud prevention methods.
95% respondents feel that lack of penalties and transparency in industry regulations give rise to ad fraud. Further, 95% respondents agreed that lack of data sharing and large number of middlemen are also a cause to ad fraud risks.
The report pointed out that the major types of ad fraud are Cookie Stuffing (74%), Adware Traffic (65%), Data Fraud (61%), Ad Injection (54%). Only 37% respondents are aware of Blockchain and its application to fraud prevention, the report said.
The report has been published in collaboration with a research firm Decision Lab, with the objective of understanding the current industry practices around ad fraud and the methods adopted by marketers. It also highlights the rising and prevalent issues such as adware traffic, ad stacking, domain spoofing, that aim to help marketers understand organisational challenges and combination of various measures to tackle the problems effectively.
MMA India country head Moneka Khurana said, “In India, the awareness on ad fraud risks is very low with almost a fifth of the marketers being unclear of their ad fraud budget and majority of them believing that fraudulent activities will only increase. Brand safety on mobile is the biggest concern today and this benchmark report clearly demonstrates that this needs immediate addressal. Marketers will need to be extra cautious to attacks such as ad injections, data fraud, cookie stuffing, etc. Marketers must understand the potential of technologies such as Blockchain that can help solve issues related to fraud and create security and transparency in mobile marketing ecosystem.”