Rise of Fraud in Online Advertising , which is worth billions

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Rise of Fraud in Online Advertising , which is worth billions

Online advertising industry is now worth billions of dollars . Yet amid industry players to mess around with a big problem : rampant fraud .

Approximately 36 % of Web traffic rated false , according to estimates of the trade group Interactive Advertising Bureau . The fake traffic source , which is also called bot traffic , is hijacked by a computer virus . The computer then programmed to visit certain sites .

Advertisers are apparently fooled by a bot traffic . They typically pay to advertise on a particular site that crowded , although some of the " visitors " are not real .

Fraudsters create a site with the number of visitors and received counterfeit money from advertisers through intermediaries . The task of the intermediary is collecting a lot of advertising space on the site and sell it to advertisers the Internet . Identity fraudsters like this are still sketchy , but they often operate from distant countries , such as Eastern Europe , according to security experts ..

This does not reduce the fraud rampant interest of advertisers to increase the budget allocation for online advertising . However, this prompted some advertisers to increase control over their spending . Internet plays a major role for their customers , so that advertisers can not completely get away from online advertising .

Digital advertising " very important , " said Roxanne Barretto , assistant vice president of digital marketing for L' Oréal SA United States ( U.S. ) . He recently found an online ad he bought tainted by fraud and other problems . " Reducing spending [ for online advertising ] means less opportunity to connect with our main audience . "

This year , digital ad spending is projected to rise nearly 17 % to $ 50 billion in the U.S. . This has included advertising on social networks and mobile devices . Digital advertising covers about 28 % of total ad spending in the U.S. . Five years ago , digital advertising accounted for only 16 % .

Many worry about the advertising industry advertisers attitude change if fraud increasingly prevalent . Vivek Shah , CEO of Ziff Davis Inc. and head of the Interactive Advertising Bureau , an annual conference last month in the group says Internet advertising is facing a " crisis " .

According to sources , several major advertisers have found some online ads bought tainted by a fake site visitors . Advertisers are tricked include L' Oréal , General Motors Co. and Verizon Communications Inc. . This potentially reduces the effectiveness of the trust advertisers to advertise on the Internet when compared to traditional media , such as television .

" If you consider the bot , the number of fraudulent clicks , the number of visitors who saw the ad , and the lack of transparency [ in terms of purchasing auto ad ] , the total value of digital media is now questioned and really challenged , " said Bob Liodice , CEO of industry group the Association of National Advertisers in the U.S. . He also said that advertisers are now beginning to question the return on their digital ad budget increase .

" Our clients want to increase budgets to digital advertising , " said Quentin George , the founder of advertising technology consulting firm , Unbound . " But until we give them supervision and greater transparency about spending on advertising , they will continue to wonder and hold their money . "WSJ