Waste and Fraud in Programmatic Buying

It’s the age of automation. From the stock market to national security, algorithms seem to be running the world.

Accordingly, ad-buying has followed suit, and now marketers have their very own algorithms with which to buy ad space – and it’s become a very popular practice. The number of marketing agencies who utilized programmatic buying spiked last year: in 2014, 35% of surveyed advertisers reported that they had used automated buying, and in 2015 that number was 79%.

Alarmingly though, the whole process seems to be rife with fraud. A recent joint study by the Association of National Advertisers and Forrester Research found that advertisers wasted over $7 billion last year, largely due to bot fraud – computer programs mimicking human behavior and falsely boosting web traffic. Many in the industry have also voiced concerns about the lack of transparency on the part of media sellers.

Visit Wall Street Journal to learn more about the risks of programmatic buying.