Advertisers will lose an estimated $19 billion to fraudulent activities in 2018, about $51 million daily, estimates Juniper Research.
Juniper expects invalid traffic from fraudsters to become the biggest threat to advertising budgets during the next five years, with the loss from ad fraud rising to $44 billion by 2022.
The firm suggests artificial intelligence (AI) will become the most efficient way -- through the analysis of bid requests, impressions and advertising click-through rates (CTRs) -- to detect and stop ad fraud.
The report -- released by the analyst firm on Tuesday, along with a whitepaper -- focuses on the loss in advertising for the Web and on mobile devices.
An accompanying whitepaper, Ad Fraud: How AI will Rescue Your Budget, suggests artificial intelligence will become the technology to detect ad fraud as the number of advertisements placed on digital platforms makes it impossible to manually identify fraudulent transactions.
The research predicts that the integration of self-learning technologies like AI for ad targeting will account for 74% of total online and mobile advertising spend by 2022. Platforms will focus on new data sources to improve the proficiency of AI algorithms.
AI technology is being utilized to more quickly identify fraudulent activity by analyzing traffic, conversion rates, served ads, geographical location and IP addresses. As a self-learning technology, these platforms will become increasingly efficient over time as accumulative ad transaction data is collected.
Juniper analysts, however, expect self-learning AI processes to require a large degree of human interaction to achieve expected results.
The whitepaper also scores the top five companies in AI as follows: Alphabet, IBM, Facebook, Salesforce, and Dynamic Yield.