ad fraud in mobile research by augustine fou

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“is ad fraud higher or lower in mobile?” April 2017 Augustine Fou, PhD. acfou [@] mktsci.com 212. 203 .7239

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Page 1: Ad Fraud in Mobile Research by Augustine Fou

“is ad fraud higher or lower in mobile?”

April 2017

Augustine Fou, PhD.

acfou [@] mktsci.com

212. 203 .7239

Page 2: Ad Fraud in Mobile Research by Augustine Fou

“it’s more lucrative and less measurable… hmm,

what do you think?”

Page 3: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 2marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

NONE of the bot lists work

user-agents.org

bad guys’ bots

2% and “on the wane”Source: GroupM, Feb 2017

bot list-matching

4% Source: IAB Australia, Mar 2017

400 bot names in list

“not on any list”disguised as popular browsers – Internet Explorer; constantly

adapting to avoid detection

10,000bots observed

in the wild

Page 4: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 3marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

NONE of current js detection worksIn-Ad

(ad iframes)On-Site

(publishers’ sites)

• Used by advertisers to

measure ad impressions

• Limitations – tag is in foreign iframe, cannot look outside itself

ad tag / pixel(in-ad measurement)

javascript embed(on-site measurement)

In-Network(ad exchange)

• Used by publishers to

measure visitors to pages

• Limitations – most detailed and complete analysis of visitors

• Used by exchanges to

screen bid requests

• Limitations – relies on blacklists or probabilistic algorithms, least info

ad served

bot

human

fraud site

good site

Page 5: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 4marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

Bad acting apps load more ad impressionsApp Name

Source: Forensiq

Page 6: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 5marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

Fake mobile devices install appsDownload and Install

Launch and Interact

Page 7: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 6marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

Suspicious apps (CTRs too high)

suspicious mobile apps

Page 8: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 7marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

Magnitude of the ad fraud problem

websites

Source: Verisign, Q4 2016

329Mdomains

mobile apps

159 million“sites that carry ads”

11 milion“sites you’ve heard of”

WSJESPNNYTimes

EconomistReuters

Elle

10,000“apps you’ve heard of”

FacebookSpotifyPandora

ZyngaPokemonYouTube

96%“apps that carry ads”

3%

no adsno ads

7Mapps

Source: Statista, March 2017

Page 9: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 8marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

Top 25 apps used by humans

Page 10: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 9marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

Top 10 apps by time spent by humans

Page 11: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 10marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

Top apps used by humans by category

Page 12: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 11marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

Half of humans download 0 apps /mo

Page 13: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 12marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

Apps have 1/3rd uniques, 20X time spent

Page 14: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 13marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

Primary mobile revenue is from ads

In-App Advertising

App Store

Page 15: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 14marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

Mobile ad revenue mostly from games

Page 16: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 15marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

Top apps April 2017

Page 17: Ad Fraud in Mobile Research by Augustine Fou

“do you think bad guys will install your fraud detection SDK in their apps?”

“your CPI campaigns are not immune to fraud”

“it’s not lower in mobile, you just can’t measure it.”

Page 18: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 17marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

About the Author

Page 19: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 18marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

Dr. Augustine Fou – Independent Ad Fraud Researcher

2013

2014

Follow me on LinkedIn (click) and on Twitter @acfou (click)

Further reading:http://www.slideshare.net/augustinefou/presentationshttps://www.linkedin.com/today/author/augustinefou

2016

2015

Page 20: Ad Fraud in Mobile Research by Augustine Fou

April 2017 / Page 19marketing.scienceconsulting group, inc.

linkedin.com/in/augustinefou

Harvard Business Review

Excerpt:

Hunting the Bots

Fou, a prodigy who earned a Ph.D. from MIT at 23, belongs to the generation that witnessed the rise of digital marketers, having crafted his trade at American Express, one of the most successful American consumer brands, and at Omnicom, one of the largest global advertising agencies. Eventually stepping away from corporate life, Fou started his own practice, focusing on digital marketing fraud investigation.

Fou’s experiment proved that fake traffic is unproductive traffic. The fake visitors inflated the traffic statistics but contributed nothing to conversions, which stayed steady even after the traffic plummeted (bottom chart). Fake traffic is generated by “bad-guy bots.” A bot is computer code that runs automated tasks.