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Cybersecurity company Cheq has issued a scathing report with gloomy predictions for all advertisers when it comes to ad fraud.
According to Cheq, and in contrast to other reports on the topic, advertisers across the globe stand to lose more than $23 billion to ad fraud this year. Also, according to the report, for every ad dollar spent, roughly 10 to 15 percent goes toward paying companies that protect marketers from bad actors.
Other reports paint a much better picture, for example White Ops and ANA recently also published a report, which said advertisers could lose $5.8 billion in 2019 to ad fraud, which would represent a drop from $6.5 billion loss reported in 2017.
The difference, according to AdAge, comes from the convoluted digital advertising ecosystem with too many black boxes and shady areas that make it impossible to have a concrete and precise insight into the entire ad ecosystem.
The Cheq report finds that as marketers pour billions into digital ads, up to 30 percent are affected by fraud, amounting to 21 trillion digital ads each year! However, the study argues that not all instances cost the same, and in many cases, fraud disproportionately affects low level campaigns with cheaper CPMs.