Global ad fraud detection tools industry to reach $762 million by 2028, report
The global ad fraud detection tools market is expected to grow from $ 252.92 million in 2021 to $ 762.89 million by 2028; it is estimated to grow at a compound annual growth rate, CAGR, of 17.1% during 2021-2028 according to a report by Research and Markets.
Due to the growing fraudulent activities on advertisements, many companies adopt advertising fraud detection/prevention tools for several benefits, such as optimizing spending on the advertisement, proactive monitoring of campaigns, and maximizing campaign return on investment (ROI).
As per observation, advertisers collectively lostS$ 42 billion on ad spend during 2019 due to fraudulent activities, a 21% increase from the previous year, i.e., 2018. It is also predicted that by 2023, the total amount of loss due to ad fraud will reach approximately $ 100 billion.
Thus, with an ad fraud detection solution/tools, companies can reclaim the spend that is rightfully their own, ensuring better, more accurate, and lucrative results from their campaigns. Similarly, integrating an ad fraud solution/tools with existing platforms for managing advertising campaigns makes it easier to monitor campaigns proactively. Using an integrated solution, marketers can quickly inspect advertising metrics and check ad fraud detection notifications simultaneously.
Impact of COVID-19 Pandemic on Global Ad Fraud Detection Tools Market
In 2020, with the COVID-19 outbreak scenario, the national lockdown of each and every country has increased the market span of digital technologies. More number of people are now using one or many digital platforms for several reasons, such as work from home (WFH), online transactions via their banks' digital apps, or via mobile/digital money wallets. And with this, advertising frauds are also increasing through just a single click. It had led to various revenue losses for the company.
For instance, data from matchseries.com shows that global losses from ad fraud in 2020 reached a total of US$ 35 billion, while a Campaign Asia report published in December 2020, found that ad fraud is stealing 20% of the world's online ad spending. These figures help illustrate the extent of the problem that ad fraud creates for businesses, and the vast array of different ad platforms and options that are available to firms means the level of wastage can vary considerably. It is not only SMEs that fall victim to such significant amounts of fraudulent traffic, many of the world's biggest companies are also being affected. Therefore, ad fraud detection tools were also been adopted by more businesses. Thus, the global ad fraud detection tools market had positive growth in 2020.
In 2021, however with the increased reliance on digital marketing and with a spike in spending and engagement on online video and connected TV(CTV), there has been a significant rise in fraudulent traffic since mid-October 2021, according to the latest data released by DoubleVerify. DoubleVerify identified two specific streaming fraud schemes (LeoTerra and CelloTerra) that have increased activity over this quarter Q4 in 2021. For instance, CelloTerra is a mobile fraud scheme that runs background ads and fakes CTV traffic which has tripled its false CTV devices and impressions in Q4 2021. Therefore, the need for ad fraud detection tools will be there in 2021 and in the coming years.
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