ATW 106: A new ad fraud scheme is sweeping the industry 🤖

Picture of Melina Panitsidis

by Melina Panitsidis on February 27, 2020 - 2 minute read

Move over cookies, identity gardens are taking over.

The newest scheme in ad tech, how AI will power privacy compliance technology, understanding differential privacy, programmatic’s hold on digital ad spend in the US, and how the industry is confronting its identity crisis.

404bot Underscores the Ever-Evolving Threat of Ad Fraud

Fraudsters have found a loophole in IAB’s ads.txt initiative with a scheme called 404bot. According to Adweek “the scheme generates fake browser data by creating fabricated URLs.” IAS Threat Lab estimates this scheme is costing the industry upward of $15 million.

Over 40% of Privacy Compliance Technology Will Rely on AI in the Next Three Years

According to Gartner, AI will play a big role in compliance technologies. AI-powered tech tools will allow businesses to keep up with consumer demands and better address privacy concerns which will ultimately lead to increased trust. Spend on compliance and privacy tools is expected to rise $8 billion in the next couple of years.

Why Every Ad Tech Company Must Understand Differential Privacy

Differential privacy, a safe model for data analysis originally created by Microsoft, will likely impact the ad tech ecosystem in terms of data privacy. But while differential privacy randomizes large data sets, it’s not a perfect privacy guarantee.

Programmatic Now 85% Of All U.S. Digital Advertising

The IAB released their Brand Disruption 2020 report that revealed 85% of US digital advertising is programmatic with a total spend of around $79 billion. The company predicts that number will increase 15% for a total spend of $90.1 billion in 2021.

With Cookies Set to Expire, Ad Industry Confronts Its ‘Identity Crisis’

Industry players from all sides are trying to solve the identity crisis. Merkle, Vox Media, and the Trade Desk are just a few companies in the industry who have introduced first-party data solution platforms. It is still too early to tell if these solutions will be beneficial to marketers or not.

Brands Are Probably Paying Multiple Times For The Same Data

The average marketer works with 28 technology companies. With so many partnerships, it’s possible that marketers are paying for the same data multiple times. Getting organized and getting your data to work in multiple cases can help you avoid this altogether.