Just Over $10bn Saved From Ad Fraud Thanks to Cross-Industry Efforts

TAGUSSavingsKeyFindings-min

Summary

The 2024 US Ad Fraud Savings Report quantifies the financial savings achieved as a result of cross-industry efforts to reduce ad fraud in the digital advertising ecosystem. This first-of-its-kind report demonstrates that the advertising industry’s anti-fraud initiatives resulted in $10.8 billion in savings in the US in 2023 – a 92% reduction compared to the likely losses due to Invalid Traffic (IVT) without those standards and programs in place.

Ad fraud was historically a persistent and intractable issue in digital advertising, with a 2015 study by the Interactive Advertising Bureau (IAB) and Ernst & Young finding that $4.6 billion was lost to ad fraud in the U.S. during the prior year. The 2018/2019 Bot Baseline study from the Association of National Advertisers (ANA) and White Ops (the most recent of four studies done jointly by these two organizations), the cost of ad fraud in 2019 was projected at $5.8 billion globally. 

Key findings include:

  • Ad Industry Would Have Lost $11.78 Billion to IVT in 2023 Without Anti-Fraud Standards
    Without the ad industry anti-fraud programs currently in place, the IVT rate for all display and video advertising in the US would likely be approximately 9.96%, translating to potential losses of approximately $11.78 billion to ad fraud in 2023, based on a blended IVT rate for unfiltered inventory from four MRC-accredited vendors.
  • Broad Adoption of Anti-Fraud Standards Reduced Actual 2023 IVT Losses by 92%
    The implementation of broad anti-fraud standards significantly reduced IVT losses in 2023. As a result, the industry’s losses due to IVT were reduced by 92% to just $979 million, a stark contrast to the $11.78 billion that would have been lost without those standards in place.
  • Industry Savings Were $10.8 Billion in 2023 Thanks to Anti-Fraud Programs
    The difference between potential losses ($11.78 billion) and actual losses ($979 million) resulted in an estimated $10.8 billion in savings in 2023 and highlighted the dramatic bottom-line benefit from industry-wide cooperation around the adoption of anti-fraud standards.
  • More Than 90% of US Ad Spend Flowed Through Channels With Standards 
    The vast majority of US digital ad revenue for video and display advertising in 2023 flowed through companies that had earned TAG’s Certified Against Fraud Seal, which recognizes compliance with multiple industry anti-fraud standards. The ten largest digital platforms, which control most US digital ad revenue, were key contributors to this reduction in fraud.

 

Full Report

To download the full 2024 US Ad Fraud Savings Report, click below. 

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Press Release

To read the full press release, click below.

Press Release