Anti-fraud programmes ‘saved US advertisers $10.8 billion in 2023’

Advertisers were saved $10.8 billion in 2023 thanks to cross-industry anti-fraud efforts from TAG in partnership with the 4A’s (American Association of Advertising Agencies), Association of National Advertisers (ANA) and Interactive Advertising Bureau (IAB). 

According to the 2024 US Ad Fraud Savings Report, US display and video ad channels benefitted from a 92% reduction in the adspend losses that would have occurred due to invalid traffic (IVT) without those industry standards in place.

The study evaluated the savings resulting from the implementation of anti-fraud programmes by determining the total amount that would have been lost to IVT in 2023 in video and display advertising channels without the programmes in place, then subtracting the amount of remaining IVT-related spending in channels with robust anti-fraud standards. 

"Ensure we remain ahead of the bad guys"

Mike Zaneis, CEO of TAG, said "Over the last decade, industry anti-fraud efforts have succeeded in reducing IVT rates to a low, predictable, and manageable level, but until now, we haven’t known exactly how valuable those programs have been. 

"By working together to fight fraud, the digital advertising industry successfully saved more than $10 billion in 2023 alone, taking money from the criminals who used to prey on our supply chain and reinvesting it in innovative and impactful advertising strategies. Despite that success, we must continue to remain unified and vigilant in this effort to ensure we remain ahead of the bad guys."

The implementation of broad anti-fraud standards held US IVT losses to $979 million in 2023, compared to the potential losses of $11.78 billion, per the report. 

Notably, 2023 saw more than 90% of US adspend go through channels with anti-fraud standards in place, flowing through companies that had earned TAG’s Certified Against Fraud Seal, which recognises compliance. 

Losses reported in the study pale in comparison to previous years, with ad fraud having been a thorn in the side of digital advertising for decades. 

A 2015 study by the IAB and Ernst & Young finding that $4.6 billion was lost to ad fraud in the US during the prior year. Separate analysis in the 2018-'19 Bot Baseline study from the ANA and White Ops projected the cost of ad fraud in 2019 to be $5.8 billion globally. 

David Cohen, CEO of IAB, said: "Since the inception of digital advertising, eliminating ad fraud has been a top priority. We have made a lot of collective progress, and this study quantifies the progress accomplished through industry standards and collaboration.The tools and frameworks developed by IAB Tech Lab and codified as part of TAG’s certification programmes are the foundation of our industry’s anti-fraud success, and these results show that our collective efforts are paying off. 

"Of course, there is always more to do, and industry adoption of IAB Tech Lab standards including ads.cert and Supply Chain Object would go a long way towards further securing the digital supply chain from fraud."

The approach to mitigating ad fraud was multi-pronged, with elements including the development and implementation of the “IVT Detection and Filtration Guidelines” by the Media Rating Council (MRC); the launch and expansion throughout the industry of the TAG Certified Against Fraud Programme by the 4A’s, ANA, and IAB; and the dissemination of innovative tools and standards such as Ads.txt and Sellers.json by IAB Tech Lab.

Bob Liodice, CEO of ANA, said: "Real savings mean real results, and this report demonstrates the impact of our industry’s anti-fraud programmes in redirecting billions of wasted dollars from criminals and fraudsters to effective and productive ad campaigns. Thanks to those efforts, a far greater marketing investment now goes to its intended purpose of building our members’ businesses."

Marla Kaplowitz, President and CEO of 4A’s, added: "While the industry has come a long way, fraudulent activities continue and evolve to take on new forms. It requires the ongoing diligence of groups like TAG to identify and minimise fraud in the advertising ecosystem."

This story first appeared on Campaign's sister publication Performance Marketing World.