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If You've Got A Problem With Fraud, You're Doing Programmatic Wrong

AdExchanger delivers a terrific column in its "Data-Driven Thinking" series by Nicolle Pangis, global chief revenue officer at Xaxis. Pangis states: "With $6.3 billion destined for illicit hands this year, according to the Association of National Advertisers, ad fraud is clearly a major problem. But rather than impacting all players in the space equally, fraud is increasingly born by those who willfully, negligently or unmindfully make poor choices in their digital advertising efforts." She argues that all players in the ecosystem must understand two "hard truths": "First, while one of the initial promises of Internet advertising was to provide a virtually limitless pool of inventory, and thus drive down prices, the amount of high-quality inventory on properties consumers actually view remains remarkably finite. Anyone can set up a website to accept ads and they do so to the tune of millions of new sites a year. The second truth is that some of the ad world’s favorite metrics, such as clicks and views, are inherently susceptible to being gamed and must be vigorously policed to have any meaning. A bot can click away at an ad all day long. What it won’t do is actually make a purchase, which can be a more accurate way of measuring effectiveness." 


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