Ad fraud remains a persistent challenge in digital advertising, siphoning billions from marketers and undermining trust in the ecosystem. While industry efforts are making significant strides in reducing fraudulent activity, bad actors continue to adapt. The next frontier in fraud prevention depends on greater transparency and stronger security measures.

The fight against ad fraud: Progress made, but billions still at risk

In 2023, the digital advertising industry reached a significant milestone, saving $10.8 billion in the U.S. by reducing ad fraud. This marks a remarkable 92% reduction in potential losses compared to a system without anti-fraud programs and standards in place, per the 2024 TAG U.S. Ad Fraud Savings report. 

Despite this progress, it’s only a fraction of what’s possible. The success so far underscores the power of a unified approach, with stakeholders across the ecosystem adopting standards and tools to combat fraud. Much work remains. 

There is still untapped potential to further reduce fraud and strengthen the integrity of the digital advertising supply chain. Advanced solutions like ads.cert, the SupplyChain object and emerging device attestation for CTV are critical to closing these gaps, helping to curb bad actors and fraudulent activities.

These tools could unlock even greater savings, but widespread adoption has yet to happen. The question is: Are advertisers, agencies and publishers ready to take the next step — or are we willing to leave billions of dollars at risk?

A persistent problem, a promising solution

Ad fraud has long been a drain on the digital advertising ecosystem. In 2015, ad fraud caused $4.6 billion in annual losses in the U.S., as the IAB and EY estimated. By 2019, global losses were projected to hit $5.8 billion.

Industry efforts to counteract fraud have resulted in key advancements, including:

• TAG certification enforces strict anti-fraud standards, including invalid traffic (IVT) across the ecosystem.
• Tools like Ads.txt and Sellers.json from the IAB Tech Lab establish trust by ensuring transparency in programmatic transactions.
• IVT detection and filtration guidelines from the Media Rating Council (MRC) offer detailed methods for filtering invalid traffic.

These efforts have made a difference, but the fight against fraud isn’t over. 

Dig deeper: The never-ending war against ad fraud

Scaling fraud prevention with next-gen solutions

Tools like ads.cert, the SupplyChain object and device attestation for CTV represent the next step toward more transparency and protection for the industry. These technologies aren’t just incremental upgrades, they’re game changers.

Ads.cert creates a secure chain of custody for ad transactions. It ensures that bid requests are from authentic entities using cryptography, helping identify who is participating in the auctions. This can significantly reduce fraudulent activities and bad actor participation.

The SupplyChain object provides detailed visibility into the programmatic supply chain, allowing advertisers to trace where their dollars go and identify trustworthy partners, including identifying all intermediaries.

Emerging device attestation technology for CTV will address device spoofing by verifying the authenticity of devices involved in the ad delivery process.

The problem: Why isn’t adoption widespread?

Despite their promise, ads.cert and the SupplyChain object haven’t reached widespread adoption. Here’s why.

• Technical hurdles remain significant: Implementing these tools requires time, investment, and expertise, which some organizations see as barriers.
• Lack of demand slows adoption: Without strong demand from advertisers and agencies, there’s little motivation for publishers and ad tech vendors to implement these tools. The buy side must lead by insisting on transparency, as no demand means no action.
• Knowledge gaps hinder action: Many stakeholders do not clearly understand how these tools work or what benefits they deliver. The lack of awareness and minimal advocacy within organizations delay adoption.
• Over-reliance on existing platforms: Many rely heavily on ad verification platforms to address fraud, leaving media teams focused on planning, buying and optimization. This “set it and forget it” mindset overlooks the proactive improvements transparency tools like ads.cert and the SupplyChain object can provide.

Dig deeper: Is there any incentive to crack down on programmatic ad fraud?

The role of advertisers, agencies and publishers

No single player can tackle fraud alone. Here’s what each group can do to take action:

Advertisers and agencies: Driving the demand for transparency

• Make fraud prevention a requirement: Include transparency tools like ads.cert and the SupplyChain object in RFPs, contracts and KPIs.
• Audit campaigns regularly: Work with third-party verification providers to assess IVT exposure and ensure partners meet transparency standards.
• Train media teams: Teach them how to evaluate transparency tools and spot risks in supply chain reports.
• Use your buying power: Choose partners that prioritize fraud prevention and encourage others to adopt transparency standards.

Publishers: Protecting inventory and building trust

• Adopt transparency tools: Implement ads.cert and the SupplyChain object to make your inventory more secure and transparent and thereby attractive to buyers.
• Monitor inventory quality. Use advanced fraud detection to identify and block IVT and other fraud in real time.
• Educate your sales teams: Help them communicate the value of transparency to advertisers and position it as a premium feature.
• Share your metrics: Highlight the percentage of inventory verified through these tools to show your commitment to trust and quality.

Adtech vendors: Providing tools and education

• Simplify adoption: Offer plug-and-play solutions or step-by-step guides for easier implementation.
• Support your clients: Provide training, ongoing assistance and case studies to demonstrate the impact of these tools.
• Offer real-time dashboards: Help clients monitor their IVT exposure and make improvements as needed.

Collaboration across the ecosystem

Collaboration is essential to making progress against fraud. Here’s how stakeholders can work together:

• Join industry initiatives. Actively participate in organizations like TAG, IAB and IAB Tech Lab to align on best practices.
• Share knowledge. Create opportunities for advertisers, publishers and vendors to exchange ideas and solve problems together.
• Hold partners accountable. Insist on certifications, audits and transparency tools from everyone in your supply chain.

Looking ahead: The case for change in 2025

The industry stands at a pivotal moment. Ad fraud continues to evolve, with its full impact likely underestimated. Advanced solutions represent the next frontier in fraud prevention — but their potential can only be realized through widespread adoption.

Advertisers, agencies and publishers must go beyond individual efforts, prioritizing transparency and accountability across the entire ecosystem to drive meaningful change. This means adopting these tools and ensuring their adtech partners, including DSPs and SSPs, follow suit.

The time to act is now. The industry can create a more secure, transparent and profitable marketplace by working together to implement and enforce these standards. The opportunity is clear — let’s not leave billions on the table.

Dig deeper: Is the digital marketing grass really greener in walled gardens?