$5 billion in vain. Streaming services are no longer fraud-free

03 January 2020

Due to fraud, spending on over-the-top advertising in the US is to reach $5 billion by 2020

Investments in advertising on streaming services are constantly growing, and so does the number of those who want to snatch a piece of the cake, writes the Digiday.

MadHive, one of the leaders in advertising solutions for video services, believes that 20% of requests for streaming videos are fraudulent. For comparison, in March 2019 it was at 18%.

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The non-profit association AdLedger that develops blockchain standards for online advertising, predicts that in 2019 marketers will spend about $ 1.4 billion on fraudulent advertising.

According to Magna Global, the cost of OTT advertising in the United States will grow by 39%, to $3.8 billion, by the end 2019, and to $5 billion by 2020.

The term over-the-top is used in relation to any gadget or service for delivering digital content to TV or similar devices: game consoles, smart TVs, embedded apps like HBO Go, Apple TV, Netflix, etc. In addition to scammers in this area sharing their other skills – from manipulating advertising auctions on the Web to streaming services – there are additional difficulties. According to AdLedger, the problem is that almost half (about 40%) of OTT ads are shown using the server side insert, and it is not always possible to track it.

“The costs of over-the-top advertising are huge, and for quite some time we lacked resources. Over the past couple of years, the demand has increased, and prices are still high. This makes media platforms an easy target for scammers, ”commented Christiana Cacapuoti, AdLedger CEO and Vice President of Partnerships at MadHive.

Some advertisers believe that there is no illegal advertising on streaming platforms. According to Cachapuoti, in addition to working with third-party tracking services, one of the best protection methods for advertisers is to force their customers to provide transparent reports.

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