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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