Recent industry reports estimate Advertisers will spend short of $30 billion on online video this year, which means a difference of 27% up from last year. With most of this budget going to mobile, social-media platforms and other sources reporting at least 10% fraud on the same channels, brands are facing high risk for this investment.
But this is only a fraction of the entire video expenditure, which is calculated around $170 billion. How is it that brands are still compelled to move their budgets to online video when facing safer bets on TV/video advertising?
The IAB has come up with solutions such as ads.txt, a public list of authorized vendors per web property. However, nothing is perfect and it is still uncertain how much of a decrease in fraud rates can be expected.
Extreme Reach, an advertising platform, has stated that in 2017 video ad fraud represented 6.2% of all video transactions. This confirms the industry is moving in the right direction, however it is still to be seen how fraudsters fight back.
With spillage persisting, it is surprising how Advertisers increase their budgets on a year-by-year basis. This is proof of other highly important metrics taking place on the top-of-mind of brands and marketers, which are still too difficult to replicate in traditional media.