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Q2 2019 AD FRAUD UPDATE
Q2 2019AD FRAUD UPDATE
AD FRAUD UPDATE | Q2 2019
ABOUT PIXALATE
Pixalate is an omni-channel fraud intelligence company that
works with brands and platforms to prevent invalid traffic and
improve ad inventory quality. We offer the only system of
coordinated solutions across display, app, video, and
OTT/CTV for better detection and elimination of ad fraud.
Pixalate is an MRC-accredited service for the detection and
filtration of sophisticated invalid traffic (SIVT) across desktop
and mobile web, mobile in-app, and OTT/CTV advertising.
www.pixalate.com
TABLE OF CONTENTS
Key takeaways………………..………………………………. 3
Latest ad fraud stats…….…………………………………. 4
OTT/CTV………………………………………………………….. 8
Android vs. iOS…………………………………………..…... 10
App categories…………………………………………..…... 21
2
TABLE OF CONTENTS
AD FRAUD UPDATE | Q2 2019
22% OTT/CTV invalid traffic rate
25% mobile in-appad fraud rate
3
Ad fraud remains high, with roughly one-in-five of all U.S. programmatic ads determined to be invalid traffic (IVT).
19% average fraud rate (U.S.)
KEY TAKEAWAYS
2x increase in iOS ad fraud YoY
29% iOS socialapps IVT rate
AD FRAUDAROUND THE WORLD
AD FRAUD UPDATE | Q2 2019
US AD FRAUD RATE AT 19%invalid traffic (IVT) by country; top 15 countries in terms of programmatic ad volume shown; Q2 2019
5
U.S. has the ninth-highestad fraud rate in the world,
at 19%
AD FRAUD UPDATE | Q2 2019
DISPLAY: MOBILE IN-APP OVER 20% IVTglobal; data represents invalid traffic (IVT) rates; programmatic display advertising; Q2 2019
6
Smartphone & tablet in-app both had IVT
above 20%
AD FRAUD UPDATE | Q2 2019
VIDEO: IN-APP FRAUD 3X HIGHER THAN WEBglobal; data represents invalid traffic (IVT) rates; programmatic video advertising; Q2 2019
7
About one-third of
mobile in-app programmatic
video is IVT
AD FRAUD UPDATE | Q2 2019
ADS.TXT HELPS REDUCE IVTglobal; data represents programmatic display invalid traffic (IVT) rates on sites with vs. without ads.txt; Q3 2018 - Q2 2019
8
Sites with ads.txt
had 8.4%less IVT
OVER-THE-TOP (OTT)& CONNECTED TV (CTV)
AD FRAUD UPDATE | Q2 2019
OVER 20% OF OTT/CTV IS INVALIDglobal; programmatic OTT/CTV video advertising invalid traffic (IVT) rates; H1 2019
10
Over 22% of programmatic
OTT/CTV video
advertising is invalid
AD FRAUD UPDATE | Q2 2019
SERVER-SIDE AD INSERTION (SSAI) IS COMMONPLACEglobal; programmatic OTT/CTV video advertising; Q2 2019
11
SSAI is used 39% of the
time in OTT/CTV
programmatic video
AD FRAUD UPDATE | Q2 2019
SSAI IS INVALID 28% OF THE TIMEglobal; programmatic OTT/CTV video advertising invalid traffic (IVT) rates when SSAI is used; H1 2019
12
When server-side ad
insertion (SSAI) is used,
it’s invalid 28% of the
time
ANDROID vs. iOS
AD FRAUD UPDATE | Q2 2019
IN-APP AD FRAUD REACHES NEW HEIGHTSglobal; programmatic in-app advertising invalid traffic (IVT) rates; Q3 2018 - Q2 2019
14
22.5%Q1 2019
25.2%Q2 2019
In-app ad fraud is as pervasive as
ever … and the threat is growing,
rising above 25% in Q2 2019.
AD FRAUD UPDATE | Q2 2019
Global mobile IVT rates
eclipsed 25% for the first
time
IN-APP AD FRAUD JUMPS 47%global; programmatic in-app advertising invalid traffic (IVT) rates; Q3 2018 - Q2 2019
15
AD FRAUD UPDATE | Q2 2019
Q2 201925.9% 24.7%
iOS, ANDROID IN-APP FRAUD RATES BOTH AT 25%global; programmatic in-app advertising invalid traffic (IVT) rates; Q2 2019
16
Historically, Android devices have had significantly higher in-app invalid traffic (IVT) rates compared to iOS devices, but in Q2 2018, the gap narrowed to about a 1% percent.
1.2%difference
AD FRAUD UPDATE | Q2 2019
iOS v. ANDROID: CLOSER THAN EVER BEFOREglobal; programmatic in-app advertising invalid traffic (IVT) rates; Q2 2018 - Q2 2019
17
Android usually has higher IVT,
but the gap is closer than ever before
AD FRAUD UPDATE | Q2 2019 18
iOS devices have seen a 96% increase in IVT (nearly 2x) over the last year, rising from 12.6% to 24.7%
96% increase in one year
iOS: INVALID TRAFFIC ON THE RISEglobal; programmatic in-app advertising invalid traffic (IVT) rates on iOS devices; Q2 2018 - Q2 2019
AD FRAUD UPDATE | Q2 2019
Android (26%) and iOS (25%) smartphones
had nearly equal high IVT
rates
SMARTPHONES: IVT AT 25%global; programmatic in-app advertising invalid traffic (IVT) rates; Q2 2019
19
AD FRAUD UPDATE | Q2 2019
TABLETS: IVT AT 23%global; programmatic in-app advertising invalid traffic (IVT) rates; Q2 2019
20
Android tablets had
slightly higher IVT
compared to iOS tablets
AD FRAUD UPDATE | Q2 2019
Android (26%) had more
display in-app IVT compared
to iOS (18%)
DISPLAY: ANDROID 46% HIGHER IVT RATESglobal; programmatic display in-app advertising invalid traffic (IVT) rates; Q2 2019
21
AD FRAUD UPDATE | Q2 2019
VIDEO: iOS HAS SIGNIFICANTLY HIGHER IVTglobal; programmatic video in-app advertising invalid traffic (IVT) rates; Q2 2019
22
iOS had a high 36% IVT
rate for in-app video in Q2’19
AD FRAUD UPDATE | Q2 2019
ANDROID vs. iOS: THE WHOLE ECOSYSTEMglobal; programmatic in-app advertising invalid traffic (IVT) rates; Q2 2019
23
Android has more display
IVT & iOS has higher video
IVT
AD FRAUD RATES BYMOBILE APP CATEGORY
AD FRAUD UPDATE | Q2 2019
Social apps (29%) have
over 2x more IVT than other
top iOS app categories
iOS DISPLAY: SOCIAL APPS HAVE 29% IVTglobal; programmatic in-app display advertising invalid traffic (IVT) rates; top 5 app categories in programmatic display ad volume shown; Q2 2019
25
AD FRAUD UPDATE | Q2 2019
iOS VIDEO: ENTERTAINMENT HAS MOST FRAUDglobal; programmatic in-app video advertising invalid traffic (IVT) rates; top 5 app categories in programmatic video ad volume shown; Q2 2019
26
Entertainment apps had the
highest video IVT (20%)
among top iOS categories
AD FRAUD UPDATE | Q2 2019
Productivity (18%) apps
had the 2nd-highest display IVT
rate
ANDROID DISPLAY: PHOTO APPS WITH 30% IVTglobal; programmatic in-app display advertising invalid traffic (IVT) rates; top 5 app categories in programmatic display ad volume shown; Q2 2019
27
AD FRAUD UPDATE | Q2 2019
ANDROID VIDEO: MAJOR CATEGORIES OVER 25%global; programmatic in-app video advertising invalid traffic (IVT) rates; top 5 app categories in programmatic video ad volume shown; Q2 2019
28
Entertainment (28%) had the highest video
IVT rate on Android; same
as iOS
AD FRAUD UPDATE | Q2 2019 29
KEY (IN ORDER OF APPEARANCE)
SMARTPHONE APP
TABLET WEB
SMARTPHONE APP DISPLAY
TABLET APP
OTT/CTV
DESKTOP WEB
TABLET APP DISPLAY SOCIAL NETWORKING
PHOTO & VIDEO GAMES
ENTERTAINMENT
WEATHER NEWS & MAGAZINES
MUSIC PRODUCTIVITY LIFESTYLE
SMARTPHONE APP VIDEO
SMARTPHONE WEB
TABLET APP VIDEO
COMICS
AD FRAUD UPDATE | Q2 2019
The research and insights contained within this report, including IVT rates and other
such designations, represent Pixalate’s opinions (i.e., they are neither facts nor
guarantees). The data has not been audited or reviewed by a third party, but the
research and insights are grounded in Pixalate’s proprietary technology and
analytics, which Pixalate is continuously evaluating and updating. Such Pixalate IVT
opinions are derived from Pixalate datasets, which consist predominantly of open
auction programmatic traffic sources.
Per the MRC, “‘Fraud’ is not intended to represent fraud as defined in various laws,
statutes and ordinances or as conventionally used in U.S. Court or other legal
proceedings, but rather a custom definition strictly for advertising measurement
purposes.” Also per the MRC, “‘Invalid Traffic’ is defined generally as traffic that does
not meet certain ad serving quality or completeness criteria, or otherwise does not
represent legitimate ad traffic that should be included in measurement counts.
Among the reasons why ad traffic may be deemed invalid is it is a result of
non-human traffic (spiders, bots, etc.), or activity designed to produce fraudulent
traffic.”
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METHODOLOGY & DISCLAIMERMETHODOLOGY DISCLAIMER
Pixalate’s data science and analyst team analyzed billions of
programmatic advertising impressions across over 80 million
domains, over 1.5 million apps, and over 75 million OTT/CTV
devices, utilizing proprietary analytics tools to compile this research.
The research contained herein represents data collected by Pixalate
from April 1, 2018 through April 31, 2019 (“Q2 2018 - Q2 2019”).
Pixalate utilized its proprietary algorithms to measure invalid traffic
(“IVT”) levels across devices and channels, including General Invalid
Traffic (“GIVT”) and Sophisticated Invalid Traffic (“SIVT”). Geography
is based off of the User Pool (IP) and not the region of the domain or
app. App category information is derived from the official Google
Play Store and Apple App Store; “walled garden” apps, such as
Facebook, are not included.
