North America 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 North America is expected to grow from US$ 88.74 million in 2021 to US$ 257.53 million by 2028; it is estimated to grow at a CAGR of 16.4% from 2021 to 2028. Due to the growing fraudulent activities on advertisements, many companies adopt advertising fraud detection/prevention tools for optimizing spending on advertisements, proactive monitoring of campaigns, and maximizing campaigns’ return-on-investment (ROI), among other benefits. As per observations, advertisers collectively lost US$ 42 billion on ad spend in 2019 due to fraudulent activities, a 21% increase from the previous year, i.e., 2018. By 2023, the total amount of loss due to ad fraud is estimated to reach ~US$ 100 billion. Thus, with an ad fraud detection solution/tools, companies can reclaim the spend that is rightfully their own, ensuring better, more accurate, and lucrative results from their campaigns. Similarly, integrating ad fraud solutions/tools with existing platforms for managing advertising campaigns makes it easier to monitor campaigns proactively. Using an integrated solution, marketers can quickly inspect advertising metrics and check ad fraud detection notifications, simultaneously. For instance, Anura Script can collect information about visitors using JavaScript to immediately capture hundreds of data points about a visitor to determine if the visitor is real or fake. Also, better marketing campaigns and optimization on spending on an advertisement helps in maximizing advertising return-on-investment for marketers. According to an article published by Anura Solutions in March 2021, past data from other Anura clients indicates that the average rate of ad fraud in affiliate marketing campaigns is ~40%. Thus, for every US$ 1 million spent, affiliate marketing campaigns are losing US$ 400,000 with no return-on-investment. The time wasted on managing fake deals, potential chargebacks, issues with brand reputation, issues with Telephone Consumer Protection Act (TCPA) compliance, and the cost of ad fraud can demolish a company’s marketing return-on-investment. An integrated ad fraud solution can identify fraud in real time, which allows companies to resolve it immediately and protects them from spending money on fraudulent impressions, clicks, or actions, thereby maximizing the advertising return-on-investment.
Based on type, the North America ad fraud detection tools market is bifurcated into website and mobile. In 2021, the mobile segment led the market and accounted for a larger share. Mobile ad frauds have become more nowadays. Mobile ad frauds occur when fraudsters and scammers drain the advertising budgets of publishers, advertisers, and online businesses via organized and systematic methodologies. The objective of fraudsters is to steal from advertising budgets. Further, fraudsters are converging their unique skills to attack the full marketing funnel. Several types of ad frauds occur on the mobile sites, including fake impressions, click injection, ad stacking, cookie stuffing, fake installs, click spam, software development kit (SDK) spoofing, bots and emulators, and device farms. Mobile ad frauds present a significant opportunity to accelerate the process of making money through illegal means. Two factors supporting mobile ad frauds are audience and advertising demands continue to grow despite the decelerated production of mobile content, creating a vacuum that can be filled by fraudsters; and a lack of industrial action in combating fraud reduces the chances of catching the criminal, for the moment, allowing them to act with impunity.
The North American market suffered considerable economic losses in the first two quarters of 2020, owing to the high count of COVID-19 cases, especially in the US. The slowdown of economic growth directly impacted the logistics supply chain across the region. In 2020, the US, Canada, and Mexico witnessed a significant rise in the number of COVID-19 patients. The pandemic has resulted in economic turmoil owing to subsequent lockdowns. It has bolstered the growth of the digital advertising industry. As the COVID-19 pandemic continues to impact North America, fraudsters have seized the opportunity to attack digital ads. According to the Federal Trade Commission (FTC), Americans have lost US$ 13.4 million to COVID-related frauds since the beginning of 2020. Multiple federal agencies are working together to analyze the complaints and investigate ongoing digital ad frauds. With the growing digital advertisements, ad fraudulent activities are also increasing. Therefore, to counter such ad frauds, ad fraud detection and prevention tools are required. Therefore, with the increase in digital advertising in North America, the demand for ad fraud detection tools is also on the rise for the last few years. Also, owing to the presence of a large number of ad fraud detection solution providers in the US and Canada, and with wide-scale internet usage, the ad fraud detection tools market experienced growth in North America in 2021.
The North America 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 North America 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 North America Ad fraud detection tools market. AppsFlyer Ltd.; Adjust GmbH; Branch Metrics, Inc.; Interceptd (App Samurai Inc.); Perform[cb], LLC; Scalarr Inc.; and Singular Labs, Inc. are among the key players operating in the market in this region.
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