Share this on:
 E-mail
11
VIEWS
0
COMMENTS
 
SHARES
About this iReport
  • Not verified by CNN

  • Click to view ozzysharif's profile
    Posted March 29, 2014 by
    ozzysharif

    Abney and Associates on Crisis in Online Ads

     

    One-Third of Traffic Is Bogus

    Billions of dollars are flowing into online advertising. But marketers also are confronting an uncomfortable reality: rampant fraud.

    About 36% of all Web traffic is considered fake, the product of computers hijacked by viruses and programmed to visit sites, according to estimates cited recently by the Interactive Advertising Bureau trade group.

    So-called bot traffic cheats advertisers because marketers typically pay for ads whenever they are loaded in response to users visiting Web pages—regardless of whether the users are actual people.

    The fraudsters erect sites with phony traffic and collect payments from advertisers through the middlemen who aggregate space across many sites and resell the space for most Web publishers. The identities of the fraudsters are murky, and they often operate from far-flung places such as Eastern Europe, security experts say.

    The widespread fraud isn't discouraging most marketers from increasing the portion of their ad budgets spent online. But it is prompting some to become more aggressive in monitoring how their money is spent. The Internet has become so central to consumers, that advertisers can't afford to stay away.

    Digital "is too important," says Roxanne Barreto, assistant vice president for U.S. digital marketing at L'Oréal SA, which recently uncovered evidence that an online ad purchase was affected by fraud and other problems. "Slowing down spend represents a missed opportunity to connect with our core audience."

     

    Spending on digital advertising—which includes social media and mobile devices—is expected to rise nearly 17% to $50 billion in the U.S. this year. That would be about 28% of total U.S. ad spending. Just five years ago, digital accounted for 16%.

    What do you think of this story?

    Select one of the options below. Your feedback will help tell CNN producers what to do with this iReport. If you'd like, you can explain your choice in the comments below.
    Be and editor! Choose an option below:
      Awesome! Put this on TV! Almost! Needs work. This submission violates iReport's community guidelines.

    Comments

    Log in to comment

    iReport welcomes a lively discussion, so comments on iReports are not pre-screened before they post. See the iReport community guidelines for details about content that is not welcome on iReport.

    Add your Story Add your Story