Association of National Advertisers

Lawmakers Question FTC About Ad Fraud

Posted by admin on July 19, 2016
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Two senators, Mark Warner (D-Virginia) and Charles Schumer (D-New York), have recently addressed the Federal Trade Commission in an attempt to regulate fake Web traffic, an issue that impacts not only advertisers but consumers as well. According to a study by the Association of National Advertisers, “online ad fraud will cost advertisers $7.2 billion globally this year”. Unfortunately, these losses will be offset by the consumer in the form of higher prices for goods and services.

In a letter to FTC Chairwoman, Edith Ramirez, the senators said, “Bots plague the digital advertising space by creating fake consumer traffic, artificially driving up the cost of advertising”. Despite the fraudulent nature of these bots, the senators also added that “many are advanced enough to analyze consumer web activity in order to re-target advertisements based on individual browsing preferences.”

It is important for both consumers and advertisers to be cautious of online ad fraud. Digital technologies have advanced quickly but reform will be necessary “to protect consumer data and mitigate fraud within the digital advertising industry”.

To learn more, read the MediaPost article here.

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