Pixalate Reports Unauthorized Sellers in Programmatic Ads
Insights on Programmatic Advertising and Unauthorized Sellers
In the ever-evolving landscape of digital advertising, safeguarding against fraud is becoming increasingly critical. As brands allocate more budget to programmatic advertising, understanding the integrity of the supply chain is vital. Pixalate, a leader in ad fraud protection, has unveiled its Q2 2024 Supply Path Optimization (SPO) Reports, which raises alarms about unauthorized sellers lurking in the programmatic ad space.
Q2 2024 Supply Path Optimization Findings
The recent analysis by Pixalate reveals that a substantial portion of global mobile app open programmatic ads is influenced by unauthorized sellers. With a staggering 35% of mobile app traffic and 29% of Connected TV (CTV) traffic failing verification due to these unauthorized sellers, there is an undeniable need for heightened vigilance in the advertising ecosystem.
Web Traffic Vulnerabilities
The findings aren't limited to mobile and CTV; they extend to web traffic as well. Pixalate discovered that 16% of web traffic, associated with a SupplyChain Object (SCO), could not pass their rigorous verification process. This indicates a troubling trend where unauthorized sellers can infiltrate even reputable supply paths, exacerbating the risks associated with digital advertising.
Impact of Unauthorized Sellers
Unauthorized sellers not only compromise the integrity of ad impressions but also inflate invalid traffic (IVT) rates considerably. For instance, web paths with unauthorized sellers report a 26% higher IVT rate compared to verified paths. This alarming statistic is echoed in the mobile app sector, where alleged complete chains containing unauthorized direct sellers report over 100% higher IVT rates, showing a clear vulnerability in the system.
The Importance of SupplyChain Objects
To combat the threat of unauthorized sellers, Pixalate employs the SupplyChain Object system, which offers clear visibility into all parties involved in the programmatic advertising chain. By utilizing data from the OpenRTB bid stream alongside IAB Tech Lab's standards, the platform strives to reveal the intricacies of the digital ad landscape. This is crucial for ensuring that brands can confidently invest in programmatic placements without falling victim to fraud.
Recommendations for Advertisers
Advertisers must take proactive steps to safeguard their investments. Emphasizing transparency in supply chains, establishing robust verification processes, and working with accredited partners can significantly reduce the chances of unauthorized sellers bleeding into advertising strategies. As the digital marketplace becomes more complex, these measures are essential for maintaining the health of digital investments.
Future Trends and Insights
The ad tech industry is witnessing rapid innovations, and with that, the methods used by fraudsters are evolving as well. Companies like Pixalate are at the forefront of fighting back by continuously analyzing large sets of data to uncover these trends. In Q2 2024, over 11 billion ad impressions were examined, showcasing Pixalate's commitment to providing accurate and actionable insights into the digital ad space.
Conclusion
Pixalate’s SPO reports serve as a clarion call for agencies and brands to scrutinize their supply chains closely. The digital advertising ecosystem thrives on trust, and ensuring that every player in the chain adheres to high standards of integrity is crucial. Companies need to equip themselves with the right tools and partnerships to combat the menace of unauthorized sellers and uphold their reputation in an increasingly competitive market.
Frequently Asked Questions
What are SupplyChain Objects in advertising?
SupplyChain Objects are used to provide transparency regarding who is selling or reselling programmatic advertising inventory, helping to identify unauthorized players in the supply chain.
How does unauthorized selling affect advertisers?
Unauthorized selling can inflate invalid traffic rates, resulting in wasted ad spend and reduced effectiveness of marketing campaigns.
What were the key findings in the Q2 2024 reports?
The reports highlighted that 35% of mobile app traffic and 29% of CTV traffic failed verification due to unauthorized sellers, indicating significant vulnerabilities in the supply chain.
Why is Pixalate important in digital advertising?
Pixalate provides critical insights and tools to combat ad fraud, enhancing transparency and trust in the programmatic advertising ecosystem.
What measures can advertisers take against unauthorized sellers?
Advertisers should prioritize transparency, adopt strong verification processes, and collaborate with accredited partners to protect their digital investments from unauthorized selling.
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