Asia Pacific Ad Fraud Detection Tools Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Type (Website and Mobile) and End User (E Commerce, Travel, Finance, Gaming, and Others)
The ad fraud detection tools market in APAC is expected to grow from US$ 68.27 million in 2021 to US$ 218.50 million by 2028; it is estimated to grow at a CAGR of 18.1% from 2021 to 2028.
The use 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 systems follow an ML algorithm that helps the systems learn from suspicious activities (clicks and 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. An AI- or ML-based fraud detection system can analyze more than 80 dimensions at a time, on average, and can detect even the most sophisticated ad frauds, such as the Methbot ad fraud. Moreover, AI helps in saving fraud expenditure and time. According to Capgemini data, AI reduces the fraud investigation period by 70% and improves detection precision by 90%. In this way, artificial intelligence optimizes the fraud detection and prevention process. Moreover, several companies—including Adjust GmbH, AppsFlyer Ltd., and Scalarr Inc.—are adopting AI/ML-based technologies in their ad fraud detection systems. Also, many other companies are looking for the implementation of AI/ML-based fraud detection technology in the coming years.
Based on end user, the APAC 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. The finance segment comprises banks and other financial institutions. According to the Investopedia website data, the banking sector accounts for 14% of the APACan economy. Therefore, with the rapidly flourishing finance industry, the ad fraudulent activities in this sector are also increasing. For instance, as per 2019 Mobile Ad Fraud Report of Interceptd, the overall finance fraud traffic is ~29% in iOS systems. The types of frauds found in iOS systems were SDK spoofing (20%), device farm (28%), bot or emulator (11%), click spamming (25%), incent abuse (14%), and others (2%). Similarly, on Android systems, the overall finance fraud traffic is ~35%. The types of frauds found in Android systems are incent abuse (14%), bot or emulator (21%), device farm (29%), click spamming (18%), click injection (16%), and others (2%).
In APAC, India is the worst-hit country by the COVID-19 outbreak. APAC caused a notable decline in several economic activities as the government authorities imposed strict lockdowns, travel bans, and business shutdowns. In 2020, with stringent regulations in APAC, the COVID-19 pandemic propelled the adoption of ad fraud detection solutions among advertisers/marketers because of rising advertisement fraudulent activities. Further, with the increasing number of start-up companies, the use of ad fraud detection and prevention tools is increasing because of shifting focus toward online marketing for small businesses, which creates a huge opportunity for ad fraud detection tools market players, for the prevention of ad fraudulent activities. As per the INTERPOL’s Website data of August 2020, the impact of COVID-19 on cybercrime has shown a significant increase in small businesses. Also, the increased online dependency for people across APAC is also creating new opportunities for adopting online advertising methods, which leads to digital ad frauds. Thus, the demand for ad fraud detections tools is likely to increase in the region during the forecast period.
The APAC ad fraud detection tools market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the APAC ad fraud detection tools market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights. The participants typically involved in this process include industry experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants—including valuation experts, research analysts, and key opinion leaders specializing in the APAC Ad fraud detection tools market. AppsFlyer Ltd.; Adjust GmbH; Branch Metrics, Inc.; Interceptd (App Samurai Inc.); Singular Labs, Inc.; and TrafficGuard Pty Ltd are among the key players operating in the market in this region.
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