Page 12 - AeM_Sept_2017

RESEARCH, ANALYSIS & TRENDS

Ad platforms need to break out of

‘Walled Gardens’

A new report from Juniper Research has found that ad- “Fraudsters will continue to heavily invest in domains,
vertisers will lose an estimated $19 billion to fraudulent user accounts and bot farms to appear genuine” ar-
activities next year, equivalent to $51 million per day. gued research author Sam Barker. “Advertising stake-
This figure, representing advertising on online and mo- holders will demand constant vigilance against the
bile devices, will continue to rise, reaching $44 billion by threat of ad fraud, which will only be achieved through
2022. the correct implementation of AI services”.

Juniper’s new research, Future Digital Advertising – AI, Furthermore, the research forecasts that platforms lev-
Ad Fraud & Ad Blocking 2017-2022, claims that the eraging AI for targeting purposes will account for 74%
‘Walled Garden’, a closed platform approach whereby of total online and mobile advertising spend by 2022.
advertising platforms restrict the flow of advertising per- However, as the adoption of AI becomes saturated,
formance data to advertisers and publishers, must be only platforms demonstrating the most effective algo-
abandoned to stimulate transparency between stake- rithms will be able to charge premium prices to adver-
holders. The report found that advertising fraud rates will tisers.
continue to increase as a result of this, further hindering
stakeholder efforts in tackling fraud. According to the study, these platforms will need to fo-
cus on new data sources to improve the proficiency of
Additionally, the research predicts that AI will be crucial their AI algorithms. Data from IoT devices, information
in analyzing the vast amounts of data generated from sharing partnerships and cross device user identifica-
advertising activities daily and minimizing loss due to tion will therefore become highly sought-after.
fraud. Fraudsters will increasingly innovate in their ap-
proaches to imitate genuine advertising activity including Feel free to download Juniper Research’s complimen-
simulated clicks, mouse movements and social network tary whitepaper Ad Fraud: How AI will Rescue Your
accounts. Budget. If you are interesting in getting more insights
on the impact of artificial intelligence (AI) on reducing
advertising fraud. ◊
By MediaBUZZ

12 September 2017 - Immersive & Engagement Marketing (AR / VR)