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Fraud Detection Filter Effectiveness Study

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Marketers often rely on fraud filters to detect fraud and prevent their ads from being shown to bots. But in this study, it is clear that none of the fraud filters work and in some cases the fraud was higher when the fraud filter was ON (because bad guys are specifically targeting filtered inventory to earn more money.)

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Fraud Detection Filter Effectiveness Study

  1. 1. September 2017 / Page 0marketing.scienceconsulting group, inc. Fraud Filter Effectiveness Study KEY FINDINGS 1. Rate of fraud (bots, naked ad calls, other obvious abnormalities) was higher in ALL cases when fraud filters were turned ON. 2. Viewability was not studied because the fraud filters did not/could not account for it. 3. Costs for using fraud filters were 44 – 67% higher on an eCPM+ basis than not using. RECOMMENDATIONS 1. Simple blacklists of sites and apps worked better in all cases; but note that on some exchanges blacklists don’t work very well – i.e. fraud sites can easily trick lists. 2. Exchangewide win rates should be in the 5 – 15% (avg ~10%); blacklist sites and apps that have egregious win rates (e.g. >70%) Marketing Science studied impressions across 27 exchanges with and without the four most common fraud filters, all set to exclude NHT. Entire set reproduced three times. All app inventory was manually excluded because none of the filters work filter fraud apps. We expected the fraud filters to reduce some fraud; but the actual outcomes were the exact opposite – when fraud filters are ON, the fraud is HIGHER, in ALL cases. Filter 1 eCPM Cost: +44% Fraud: +17-24% Filter 2 eCPM Cost: +67% Fraud: +17-18% Filter 3 eCPM Cost: +56% Fraud: +36-43% Filter 4 eCPM Cost: +44% Fraud: +12-29% On Off On Off On Off On Off Isolating NHT • NO reduction when fraud filter is ON (same height) Isolating Naked Ads • MORE naked ads w/ fraud filter is ON (ON is higher) NO Fraud Filter