DoubleVerify, a digital media measurement, data, and analytics platform, has released its latest study detailing a substantial 23% rise in new fraud schemes and variants in 2023 compared to the previous year. A key driver behind this surge is the increasing role of generative artificial intelligence (GenAI) in the digital advertising landscape.
The 2024 Trends Report from DoubleVerify identifies GenAI as a major contributor to the escalation of ad fraud worldwide. The study indicates that unprotected advertisers globally faced sophisticated invalid traffic (SIVT) rates reaching up to 17% in 2023.
The Asia-Pacific (Apac) region, in particular, showed significant vulnerabilities, with connected TV (CTV) platforms exhibiting the highest fraud rates among all devices. Also, 37% of fraud/SIVT incidents in APAC were linked to mobile apps, which were responsible for 92% of adware and malware SIVT cases in the region.
Generative AI
Generative AI’s role in media transformation and advertising is multifaceted, extending beyond just fraud to influence other areas such as campaign optimization. According to the report, 60% of Apac marketers believe that AI-driven campaign optimization positively impacts media quality. This indicates a broad recognition of AI’s potential benefits, even as the industry grapples with its darker side.
Brand safety and suitability also emerged as significant themes in the report. While Apac as a whole saw a 6.4% decline in brand suitability violations, Southeast Asia (SEA) bucked this trend with a 14% increase. This spike was largely attributed to a tumultuous year filled with unexpected news cycles, especially in countries like the Philippines. Despite these regional challenges, DoubleVerify advertisers experienced a 17% global decrease in brand safety and suitability violations. This improvement is linked to a 41% increase in the adoption of custom pre-bid protections designed to safeguard brand integrity.
Low-quality content
Another area of concern highlighted in the report is the proliferation of low-quality content and Made-For-Advertising (MFA) sites. These sites are designed to appear high-performing based on metrics such as clicks and viewability, but they often fall short of delivering genuine engagement. The study found that MFA sites delivered 7% less overall attention on display ads and 28% less on video compared to other media. The most problematic MFA sites, labeled “high-tier,” performed 25% below the attention baseline.
The report suggests that advances in GenAI are likely to make MFA sites even more sophisticated, presenting new challenges for advertisers trying to maintain brand integrity. Globally, MFA impression volumes increased by 19% year-over-year, reflecting the impact of recent AI advancements.
Retail Media Networks (RMNs) were identified as a bright spot in the report, noted for their superior media quality. RMNs had fraud rates nearly one-third lower than DoubleVerify’s overall fraud benchmark and experienced 10% fewer brand suitability violations. Although retail sites and apps generally have lower viewability, broader attention metrics indicate a more substantial impact on user engagement.