As Real-Time Supply Expands, Prices Crash: Report Uncovers Rampant Net-Bot Fraud
While the supply of exchange-based impressions grew at a more moderate rate in North America, rising only 9% vs. the third quarter of 2012, that likely reflects the fact that North America is a more mature and developed real-time trading marketplace than developing media markets around the world.
Nonetheless, demand failed to keep pace with expanding supply, and the average cost of buying impressions through exchanges declined 41% in North American markets during the third quarter.
The report also includes Accordant's first-ever analysis of the impact of so-called “bot-net traffic” on the real-time bidding marketplace, which are impressions generated not by actual online users, but by machines. Working with online ad verification company White Ops Media, Accordant found that the RTB marketplace contains as much as 10.3% “fraudulent traffic,” or non-human audience impressions attributed to machines.
Accordant said that utilizing active monitoring and “blacklisting” sites enabling bots can “cut down on fraud nearly 85%.”
“The programmatic industry is shifting towards an emphasis on quality of media and breadth of marketing solutions,” stated Accordant Co Founder-CEO Art Muldoon, estimating that the marketplace now generates 50 billion ad impressions daily, and that advertisers are “understandably concerned about the quality of media where their ads appear.”“This quarter, through controlled testing environments with White Ops Media, we found randomly sampled run-of-exchange inventory to contain just over 10% suspicious activity,” he explained.
Source: Accordant Media's "Real Time Media Buying Market Pulse"