The global market for ad fraud detection tools is projected to expand from US$ 252.92 million in 2021 to US$ 762.89 million by 2028, reflecting a compound annual growth rate (CAGR) of 17.1% during the period from 2021 to 2028.
Market Overview
In response to the rising incidence of fraudulent activities in advertising, many organizations are adopting fraud detection and prevention technologies to optimize ad spending, monitor campaigns proactively, and enhance return on investment (ROI).
In 2019, advertisers faced a 21% increase in losses related to fraudulent activities, totaling approximately US$ 42 billion in ad spend. Projections suggest that these losses could reach around US$ 100 billion by 2023. By utilizing ad fraud detection solutions, businesses can recover their advertising expenditures, improve campaign outcomes, and monitor their campaigns more effectively. Integrating ad fraud detection tools with existing advertising management systems allows marketers to analyze advertising metrics and receive alerts about potential fraud simultaneously. An example of such a tool is Anura Script, which employs JavaScript to collect numerous data points about a visitor to determine their authenticity. Furthermore, effective marketing strategies and optimized ad spending can significantly enhance marketers' advertising ROI. According to a March 2021 article by Anura Solutions, affiliate marketing campaigns have an average ad fraud rate of approximately 40%, based on data from previous clients. This translates to a loss of US$ 400,000 for every US$ 1 million spent without yielding any ROI. Ad fraud can severely impact a company's marketing ROI by diverting resources to manage fake transactions, leading to potential chargebacks, damaging brand reputation, complicating TCPA compliance, and incurring additional costs associated with ad fraud. An integrated ad fraud solution can detect fraudulent activities in real-time, enabling companies to address these issues immediately and optimize their advertising ROI by avoiding expenditures on fraudulent impressions, clicks, or actions.
Impact of COVID-19
The COVID-19 pandemic and the resulting lockdowns in 2020 have accelerated the growth of the ad fraud detection tools market for digital technologies. With more individuals relying on digital platforms for remote work, online banking, and mobile payments, there has been a corresponding rise in advertising fraud, which can lead to substantial revenue losses for companies with just a single fraudulent click. Data from Matchseries.com indicates that ad fraud resulted in global losses of US$ 35 billion in 2020, while a December 2020 report from Campaign Asia revealed that ad fraud constituted 20% of global online ad spending. These statistics highlight the critical nature of the ad fraud issue for businesses. Additionally, the variety of ad platforms available means that the extent of wastage can differ significantly. Both small and medium-sized enterprises (SMEs) and some of the largest corporations worldwide are experiencing substantial amounts of fraudulent traffic. Consequently, there has been an uptick in the adoption of ad fraud detection tools, leading to positive growth in the global market for these solutions in 2020.
In 2021, the increased dependence on digital marketing, along with a rise in spending and engagement in online video and connected TV (CTV), has resulted in a notable surge in fraudulent traffic since mid-October 2021, as reported by DoubleVerify. The company identified two specific streaming fraud schemes, LeoTerra and CelloTerra, which saw increased activity in the fourth quarter of 2021. For instance, CelloTerra is a mobile fraud scheme that generates background ads and fake CTV traffic, tripling its false CTV devices and impressions during Q4 2021. This underscores the ongoing necessity for ad fraud detection tools in 2021 and beyond.
Segmental Overview
The ad fraud detection tools market is divided into segments based on type, specifically website and mobile. In 2021, the mobile segment dominated the market, holding the largest share. Additionally, the market is segmented by end user into categories such as e-commerce, travel, finance, gaming, and others, with the finance sector leading the market and holding the largest share in 2021. Geographically, the ad fraud detection tools market is segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). North America accounted for a significant portion of the global ad fraud detection tools market in 2021.
Key Companies
Prominent players 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 size of the ad fraud detection tools market is assessed using both primary and secondary sources. The research process begins with extensive secondary research to gather qualitative and quantitative data from various internal and external sources regarding the market. This approach provides a comprehensive overview and forecast of the ad fraud detection tools market across all segments and the five major regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America. Primary interviews with industry experts and stakeholders are also conducted to validate data and obtain further analytical insights. Participants in these interviews include VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the ad fraud detection tools market.
LIST OF TABLES
Table 1. Ad Fraud Detection Tools Market - Revenue and Forecast to 2028 (US$ Million)
Table 2. North America Ad Fraud Detection Tools Market, Revenue and Forecast To 2028 - By Type (US$ million)
Table 3. North America Ad Fraud Detection Tools Market, Revenue and Forecast To 2028 - By End User (US$ million)
Table 4. North America Ad Fraud Detection Tools Market Breakdown, by Country
Table 5. North America Ad Fraud Detection Tools Market, Revenue and Forecast To 2028 - By Country (US$ million)
Table 6. US Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 7. US Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 8. Canada Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 9. Canada Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 10. Mexico Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 11. Mexico Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 12. Europe Ad Fraud Detection Tools Market, Revenue and Forecast To 2028 - By Type (US$ million)
Table 13. Europe Ad Fraud Detection Tools Market, Revenue and Forecast To 2028 - By End User (US$ million)
Table 14. Europe Ad Fraud Detection Tools Market, Revenue and Forecast To 2028 - By Country (US$ million)
Table 15. Germany Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 16. Germany Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 17. France Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 18. France Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 19. Italy Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 20. Italy Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 21. UK Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 22. UK Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 23. Russia Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 24. Russia Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 25. Rest of Europe Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 26. Rest of Europe Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 27. APAC Ad Fraud Detection Tools Market, Revenue and Forecast To 2028 - By Type (US$ million)
Table 28. APAC Ad Fraud Detection Tools Market, Revenue and Forecast To 2028 - By End User (US$ million)
Table 29. APAC Ad Fraud Detection Tools Market, Revenue and Forecast To 2028 - By Country (US$ million)
Table 30. Australia Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 31. Australia Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 32. China Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 33. China Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 34. India Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 35. India Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 36. Japan Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 37. Japan Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 38. South Korea Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 39. South Korea Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 40. Rest of APAC Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 41. Rest of APAC Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 42. MEA Ad Fraud Detection Tools Market, Revenue and Forecast To 2028 - By Type (US$ million)
Table 43. MEA Ad Fraud Detection Tools Market, Revenue and Forecast To 2028 - By End User (US$ million)
Table 44. MEA Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Country (US$ million)
Table 45. Saudi Arabia Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 46. Saudi Arabia Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 47. UAE Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 48. UAE Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 49. South Africa Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 50. South Africa Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 51. Rest of MEA Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 52. Rest of MEA Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 53. SAM Ad Fraud Detection Tools Market, Revenue and Forecast To 2028 - By Type (US$ million)
Table 54. SAM Ad Fraud Detection Tools Market, Revenue and Forecast To 2028 - By End User (US$ million)
Table 55. SAM Ad Fraud Detection Tools Market, Revenue and Forecast To 2028 - By Country (US$ million)
Table 56. Brazil Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 57. Brazil Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 58. Argentina Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 59. Argentina Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 60. Rest of SAM Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By Type (US$ million)
Table 61. Rest of SAM Ad Fraud Detection Tools Market, Revenue and Forecast to 2028 - By End User (US$ million)
Table 62. List of Abbreviation
