With the growing number of internet users, the demand for digital advertising is increasing due to several digital platforms for advertisement. Digital advertising is now more sophisticated, personalized, and relevant. Consumers spend more time online than ever before, and digital advertising offers an ideal way to reach multi-device and multi-channel consumers. Marketers are also able to target consumers with laser-focused precision as never before. Brands are no longer limited to just demographics and firmographics but can target the exact audience most likely to purchase based on thousands of lifestyle, personality, behaviors, and purchase intent segmentation variables. Mobile is the main driver of growth in digital advertisement nowadays, accounting for over 70% of digital and more than one-quarter of total media outlays, according to the V12 website data. Furthermore, Americans spend over 10 hours a day on screens, and about five of those hours are spent on their smartphones.
The advent of digital advertisement leads to an increase in digital advertising fraud and has also caused many revenue losses for the companies. For instance, digital ad fraud is estimated to cost brands around US$ 44 billion to fraudulent activities by 2022 and reach up to 45% of the total spent, according to mFilterIt data of November 2021. Furthermore, fraudsters are continuously developing technologies to cheat the ecosystem, whereas tech companies are constantly evolving to find ways to stop these fraudsters. Therefore, to prevent such ad frauds from happening with brands and advertisers, companies such as mFilterIt provide comprehensive solutions for digital ad frauds. The solution uses complex algorithms to monitor surface as well as dark web spaces actively and then, using artificial intelligence and machine learning to convert them into meaningful and actionable reports helping brand custodians and community owners to proactively safeguard from any potential harm to the identity and privacy of their community members. Thus, with the growing digital advertisements, the digital ad fraudulent activities are increasing, which drives the need for ad fraud detection tools globally.
In 2020, with the COVID-19 outbreak scenario, the national lockdown of each and every country has increased the market span of digital technologies. More number of people are now using one or many digital platforms for several reasons, such as work from home (WFH), online transactions via their banks’ digital apps, or via mobile/digital money wallets. And with this, advertising frauds are also increasing through just a single click. It had led to various revenue losses for the company. For instance, data from matchseries.com shows that global losses from ad fraud in 2020 reached a total of US$ 35 billion, while a Campaign Asia report published in December 2020, found that ad fraud is stealing 20% of the world’s online ad spending. These figures help illustrate the extent of the problem that ad fraud creates for businesses, and the vast array of different ad platforms and options that are available to firms means the level of wastage can vary considerably. It is not only SMEs that fall victim to such significant amounts of fraudulent traffic, many of the world’s biggest companies are also being affected. Therefore, ad fraud detection tools were also been adopted by more businesses. Thus, the global ad fraud detection tools market had positive growth in 2020.
The usage of artificial intelligence (AI) and machine learning (ML) helps tackle the latest kinds of ad frauds due to self-learning capabilities. AI-powered fraud detection system follows a ML algorithm that helps the system learn from suspicious activities (clicks, ad placements) and builds layers of protection. This type of system not only improves and adapts itself to tackle the latest kinds of ad frauds, but it can also recognize patterns in a much more extensive set of data points than traditional systems. On average, an AI (ML)-based fraud detection system can analyze more than 80 dimensions at a time and can detect even the most sophisticated ad frauds, such as the Methbot ad fraud.
Based on type, the ad fraud detection tools market is bifurcated into website and mobile. In 2021, the mobile segment led the ad fraud detection tools market and accounted for a larger market share.
Based on end user, the ad fraud detection tools market is segmented into e commerce, travel, finance, gaming, and others. In 2021, the finance segment led the ad fraud detection tools market and accounted for the largest market share.
Players operating in the ad fraud detection tools market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:
The regional trends and factors influencing the Ad Fraud Detection Tools Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Ad Fraud Detection Tools Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 252.92 Million |
| Market Size by 2028 | US$ 762.89 Million |
| Global CAGR (2021 - 2028) | 17.1% |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2028 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Ad Fraud Detection Tools Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Ad Fraud Detection Tools Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
Growth in Managing & Monitoring Advertising Campaigns Surge in Digital Advertisement
Ad fraud detection tools are increasingly adopted by SMEs due to the growing number of small and medium businesses are shifting focus toward online marketing, such as social media marketing. Fraudsters are seeing an influx of new and often unaware digital properties as prey, with more small-to-medium enterprises (SMEs) shifting marketing efforts toward digital platforms. Further, the number of start-ups is increasing across the globe. Therefore, the rising number of SMEs across the globe focusing toward online marketing creates a lucrative opportunity for ad fraud detection tools market players..
On the basis of type, the ad fraud detection tools market is segmented into website and mobile. Ad frauds are the act of generating revenue using fraudulent digital advertising techniques. Usually, this is categorized into two broad terms: desktop (website) and mobile ad frauds. With an increasing number of mobile users globally and less protection on mobile devices, fraudulent activities are more observed on mobile devices. And with larger mobile ad fraud detection & prevention tools, the mobile segment dominates the market.
Key companies in the ad fraud detection tools market include Adjust GmbH; AppsFlyer Ltd.; Branch Metrics, Inc.; FraudScore; Interceptd (App Samurai Inc.); Machine Advertising Limited; Perform[cb], LLC; Scalarr Inc.; Singular Labs, Inc.; TrafficGuard Pty Ltd; and ADEX (Samoukale Enterprises Limited).
The usage of artificial intelligence (AI) and machine learning (ML) helps tackle the latest kinds of ad frauds due to self-learning capabilities. AI-powered fraud detection system follows a ML algorithm that helps the system learn from suspicious activities (clicks, ad placements) and builds layers of protection.
North America held the largest market share in year 2020, along with the notable revenue generation opportunities in Europe and APAC.