The True Cost of Ad Fraud [VIDEO]

by Yieldbot
July 14th, 2015

Recently, Yieldbot CEO, Jonathan Mendez, spoke on a panel at InternetWeek New York to answer some very important questions about the True Cost of Ad Fraud:

What is ad fraud? How is the advertising technology industry allowing fraud to happen and, conversely, fighting it? Perhaps most importantly, how big is the problem? Much research suggests that anywhere between 30-40% of the marketplace is fraudulent. The cost of counterfeit traffic and counterfeit clicks have ballooned to an estimated $6.3 Billion problem for both advertisers and publishers. While the issue is complex, the key to navigating it, may be quite simple.

“I think you solve this issue if you look at ROI or back-end metrics,” says Mendez. “Are we selling more stuff? Are people signing up? The back-end metrics are really what advertisers are buying anyway. People aren’t really buying clicks, they’re buying the outcomes that those clicks hopefully achieve.”

According to Mendez, when it comes to fighting fraud and finding ways to prevent it, the burden falls on the supplier.

“There are ways of getting around the issue and being proactive,” Mendez explains. “But there’s no incentive to police it unless you’re a seller. It’s a never-ending battle but we have an incentive to do it because people are buying us on a performance basis.”

Watch the full panel discussion below and find out more about how Yieldbot technology fights fraud here.

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