Ad fraud and non-viewable ads are main problem areas for the digital ad industry, resulting in wasted time, effort, and money, according to new research released by Forrester today. The research quantifies advertising problems with data on the types of advertising that cause the most problems, and it predicts the ways Forrester sees them evolving over the next five years.
Forrester forecasts that advertisers are wasting billions by underestimating true costs, determining that as much as 56% of all display ad dollars were lost to fraudulent or unviewable inventory in 2016. According to our forecast, that means upwards of $7.4 billion was wasted on display ads alone. What’s more, Forrester estimates that this number will grow to $10.9 billion by 2021 if no steps are taken to address this problem.
Forrester data also reveals that video and programmatic are main causes of ad fraud spending wastage: While video accounts for 44.7% of spending, it’s responsible for 63.8% of ad fraud. Programmatic video is a particular problem area, as Forrester data estimates that it accounts for 66.5% more fraud than direct video.
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Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We work with business and technology leaders to develop customer-obsessed strategies that drive growth. Forrester’s unique insights are grounded in annual surveys of more than 500,000 consumers and business leaders worldwide, rigorous and objective methodologies, and the shared wisdom of our most innovative clients. Through proprietary research, data, custom consulting, exclusive executive peer groups, and events, the Forrester experience is about a singular and powerful purpose: to challenge the thinking of our clients to help them lead change in their organizations.