The Ad Fraud Issue May Be Twice As Big As First Thought — Advertisers Stand to Lose $16.4 Billion
The global online ad fraud problem could be costing advertisers more than twice as much as first estimated, according to new research released on Tuesday.
A study commissioned by WPP ad agencies The&Partnership and conducted by ad verification company Adloox estimates advertisers could be wasting $16.4 billion to fraudulent traffic and clicks manufactured by bots in 2017.
That is more than double the $7.2 billion the Association of National Advertisers estimated would be lost to ad fraud in 2016. The World Federation of Advertisers, meanwhile, predicted last year that ad fraud will cost advertisers $50 billion by 2025, describing the malpractice as an organized crime "second only to the drugs trade."