The release of iOS 16 has made it more difficult for data companies to track mobile users, leading to an increase in ad fraud.
Data companies have been selling invalid data to advertisers as new, in an attempt to recoup lost revenue. This data is often recycled, meaning that it is not actually new. As a result, advertisers are reaching the wrong audience, wasting ad spend, and seeing decreased ROI.
In the past, data companies could track mobile users by collecting their device IDs and other data. This data could then be used to target users with ads. However, iOS 16 makes it more difficult to collect this data, as users must now opt in to tracking. As a result, data companies have begun to recycle old data or generate invalid data. This data is then sold to advertisers as new, leading to ad fraud.
The problem is compounded by the fact that fewer and fewer mobile devices are addressable, due to Apple’s privacy changes. Ad platforms and identity graph providers need to develop new techniques to combat ad fraud. These techniques should incorporate more comprehensive data and authentication mechanisms. Advertisers can protect their campaigns and enhance their targeting decisions by adjusting to the current realities of ad fraud.
Consequently, data companies have faced the potential loss of revenue. To recoup lost revenue, some data companies have begun generating invalid data and selling it to advertisers as new. This data is often recycled, meaning that it is not actually new.
A recent investigation by the Association of National Advertisers (ANA) found that up to 80% of the identity data being sold as new to major ad platforms is invalid. This alarming figure highlights the extent of ad fraud resulting from the recycling of outdated data.
Ad fraud can have several negative consequences for advertisers, including:
- Reaching the wrong audience
- Wasted ad spend
- Reduced return on investment (ROI)
The increase in ad fraud is having a negative impact on advertisers. When advertisers reach the wrong audience, they are wasting ad spending. This can lead to decreased ROI and a loss of confidence in the advertising industry.
In addition, the decrease in addressable mobile devices is making it more difficult for advertisers to reach their target audiences. This is because fewer and fewer mobile devices can be tracked. As a result, advertisers are having to rely on less accurate targeting methods, which can lead to even more wasted ad spending.
Ad platforms and identity graph providers need to develop new techniques to combat ad fraud. These techniques should incorporate more comprehensive data and authentication mechanisms. By doing so, they can help to ensure that advertisers are reaching the right audience and getting the most out of their ad spend.
The future of ad fraud is uncertain, but it is clear that the problem is not going away. As data companies continue to find new ways to circumvent privacy restrictions, advertisers will need to be vigilant in protecting their campaigns from fraud.
- The increase in ad fraud is a result of the tension between data companies’ need for revenue and users’ desire for privacy.
- Ad fraud is a global problem, and it is estimated to cost advertisers billions of dollars each year.
- There are a number of different techniques that can be used to combat ad fraud, but there is no silver bullet.
- Advertisers need to be aware of the risks of ad fraud and take steps to protect themselves.
In the face of iOS updates and the resulting ad fraud trends, advertisers must proactively adapt to the modern realities of ad fraud to safeguard their campaigns and make informed targeting decisions. By acknowledging the challenges posed by limited tracking capabilities and the recycling of outdated data, advertisers can work towards implementing evolving identity resolution techniques. This includes reevaluating metrics, incorporating comprehensive data and authentication mechanisms, and addressing the decline in addressable mobile devices. By embracing these changes, advertisers can navigate the complex landscape of ad fraud, mitigate risks, and optimize their advertising strategies for better outcomes.