Guest post written by our partner, DataXu
Top of mind for all marketers is the quality of media their investments are able to procure. Strategic decisions continue to be made around the avoidance of fraud rather than the efficiencies of various buying patterns. Recent reports have shown close to 7.2 billion dollars globally will be lost to bot fraud alone in 2016.* Industry fraud rates, as reported by third party partners, are up near 30%, and DataXu has seen exchanges experience rates over 50%! This problem is not isolated to display or mobile inventory, as investigation has proven that fraud continues to follow new industry investments. For example, while video has seen a recent influx in investment; it has also seen an increase in fraud.
DataXu recently released The 2015 Advertising Fraud Report, recapping a year of our Fraud Free Guarantee, which was developed to help remedy this persistent industry problem. The guarantee maintains that investments made on the DataXu platform across all channels, for all clients, in all countries, inclusive of all channels, will be 97% fraud free. When this threshold is not met, DataXu will refund clients directly. In 2015, DataXu averaged fraud rates of 2.84%, well below that of the industry average.
We’ve seen various levels of action from our supply-side partners in response to fraud, ranging from distressingly little concern to significant action to clean up unsavory traffic from the supply pool. One of our partners SpotX has always devoted ample resources to provide clean inventory through various partnerships and technological advancements, going as far as to back up their technology by supporting the DataXu guarantee.
SpotX has said that when DataXu buys inventory through the SpotX platform, SpotX will adhere to the 97% fraud free guarantee and if this guarantee is not met, DataXu will recover the media spend directly from SpotX in order to refund clients directly—something we consider a great step towards full accountability and transparency to our clients.
With stringent protection from both DataXu and SpotX, clients are experiencing a fraud rate, on average, below 1%. DataXu will continue to aid clients by keeping strategic decisions focused on efficiency of media rather than the avoidance of fraud, while SpotX will continue to lead by example for all other exchanges aiming to be fraud free. This is a clear example of the Buy-Side and Supply-Side working together to help drive the industry forward, and we’re proud to be leading the way with SpotX on this issue.
*Source: White Ops and the Association of National Advertisers (ANA), The Bot Baseline: Fraud in Digital Advertising