Ad Fraud Detection Tools Market Comprehensive Analysis 2028

According to our latest market study on "Ad Fraud Detection Tools Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Type and End User," the ad fraud detection tools market was valued at US$ 252.92 million in 2021 and is projected to reach US$ 762.89 million by 2028; it is expected to grow at a CAGR of 17.1% from 2021 to 2028. 

The ad fraud detection tools market is categorized by type into website and mobile segments. In 2021, the mobile segment held the largest market share and led the ad fraud detection tools market. The ad fraud detection tools market is also segmented by end user into e-commerce, travel, finance, gaming, and others, with the finance segment leading the ad fraud detection tools market and holding the largest market 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 held a significant share in the global ad fraud detection tools market in 2021.

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Key Companies:

The ad fraud detection tools market includes key players such as 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).

Market Segmentation:

The ad fraud detection tools market is divided by type into website and mobile, with the mobile segment holding the largest market share in 2021. The market is also categorized by end user, including e-commerce, travel, finance, gaming, and others, with the finance segment leading the market in 2021. Geographically, the market is segmented into North America, Europe, APAC, MEA, and SAM, with North America having a significant share in the global market in 2021.

TABLE OF CONTENTS

1. Introduction 1.1 Study Scope 1.2 The Insight Partners Research Report Guidance 1.3 Market Segmentation 2. Key Takeaways 3. Research Methodology 3.1 Coverage 3.2 Secondary Research 3.3 Primary Research 4. Ad Fraud Detection Tools Market Landscape 4.1 Market Overview 4.2 PEST Analysis 4.2.1 North America 4.2.2 Europe 4.2.3 APAC 4.2.4 MEA 4.2.5 SAM 4.3 Ecosystem Analysis 4.4 Expert Opinion 5. Ad Fraud Detection Tools Market - Key Market Dynamics 5.1 Market Drivers 5.1.1 Surge in Digital Advertisement 5.1.2 Growth in Managing & Monitoring Advertising Campaigns 5.2 Market Restraints 5.2.1 Complexities in Using Ad Fraud Detection Tools 5.3 Market Opportunities 5.3.1 Rising Use of Ad Fraud Detection in SMEs 5.4 Future Trends 5.4.1 Increase in Use of AI and ML to boost Ad Fraud Detection 5.5 Impact Analysis of Drivers and Restraints 6. Ad Fraud Detection Tools Market - Global Analysis 6.1 Ad Fraud Detection Tools Market Global Overview 6.2 Ad Fraud Detection Tools Market - Global Revenue and Forecast to 2028 (US$ Million)

Impact of COVID-19

The COVID-19 outbreak and subsequent national lockdowns in 2020 have expanded the ad fraud detection tools market for digital technologies. As a result, more people are using digital platforms for remote work, online banking transactions, and mobile/digital wallet payments. However, this trend has also led to an increase in advertising fraud, which can result in significant revenue losses for companies with just a single click. Matchseries.com data indicates that ad fraud caused global losses of US$ 35 billion in 2020, while a December 2020 Campaign Asia report found that ad fraud accounts for 20% of the world's online ad spending. These figures demonstrate the severity of the issue of ad fraud for businesses. Furthermore, the range of ad platforms and options available to firms means that the level of wastage can vary significantly. Not only SMEs but also many of the world's largest companies are falling prey to such large amounts of fraudulent traffic. Consequently, more businesses are implementing ad fraud detection tools. As a result, the global market for ad fraud detection tools experienced positive growth in 2020.

In 2021, increased reliance on digital marketing and a surge in spending and engagement on online video and connected TV (CTV) have led to a significant increase in fraudulent traffic since mid-October 2021, according to recent data from DoubleVerify. DoubleVerify identified two specific streaming fraud schemes, LeoTerra and CelloTerra, that have experienced heightened activity in Q4 2021. CelloTerra, for example, is a mobile fraud scheme that produces background ads and fake CTV traffic, tripling its false CTV devices and impressions in Q4 2021. As a result, the need for ad fraud detection tools remains crucial in 2021 and beyond.

To combat the increasing occurrence of fraudulent activities in advertisements, numerous companies are implementing fraud detection and prevention tools to enhance ad spending optimization, proactive campaign monitoring, and maximize ROI.

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Advertisers experienced a 21% increase in fraudulent activity-related losses on ad spend in 2019, collectively amounting to US$ 42 billion. It is projected that ad fraud losses will hit about US$ 100 billion by 2023. With ad fraud detection solutions, companies can recover their ad spend, achieve better campaign results, and proactively monitor their campaigns. By integrating ad fraud tools with existing advertising management platforms, marketers can easily scrutinize advertising metrics and receive fraud detection notifications simultaneously. Anura Script is an example of a tool that uses JavaScript to gather hundreds of data points about a visitor and identify whether they are genuine or fake. In addition, effective marketing campaigns and optimized ad spend can aid marketers in maximizing their advertising ROI. Anura Solutions' March 2021 article reports that affiliate marketing campaigns have an average ad fraud rate of about 40%, based on data from previous Anura clients. This implies a loss of US$ 400,000 for every US$ 1 million spent, without any ROI. Ad fraud can harm a company's marketing ROI by wasting time on managing fake deals, potential chargebacks, brand reputation issues, TCPA compliance issues, and incurring ad fraud costs. An integrated ad fraud solution can identify fraud in real-time, allowing companies to eliminate it immediately and maximize their advertising ROI by avoiding spending on fraudulent impressions, clicks, or actions.

Market Dynamics

Various industries have been shaken by the COVID-19 pandemic, with strict restrictions on vehicles and human movement imposed by governments worldwide in response to the rapid spread of the virus. The resulting travel bans, mass lockdowns, and business closures have had a negative impact on economies and numerous industries in different countries. Additionally, lockdowns have led to reduced production of commodities, goods, and services. Matchseries.com reported that ad fraud caused global losses of US$ 35 billion in 2020, while a Campaign Asia report from December 2020 found that 20% of the world's online ad spending is lost to ad fraud. These figures highlight the extent of the problem ad fraud poses for businesses, and the wide variety of ad platforms and options available means that the level of wastage can differ significantly. Large companies, as well as SMEs, are being affected by fraudulent traffic, which has led to increased adoption of ad fraud detection tools. As a result, the global ad fraud detection tools market experienced positive growth in 2020.

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