According to Monday Note, the rise of ad blocking software and the realisation by the industry that many of the clicks they receive are by bots will mean "a huge impact on the digital economy." However, the authors remain positive: after the fallout, the "current abuses could clear up the landscape," favouring micro-payments, paywalls, and non-intrusive advertising.
In a digital advertising sector that has been facing a long, relentless devastation, adblockers are only a part of the problem. In a worth-reading investigative piece, Bloomberg Business Week exposes the scope of the fake traffic industry. The article mentions this research on fraud’s impact on advertising. To sum up: Bots accounts for 11% of display ads impressions, 23% of video ads impressions, 17% of programmatic inventory, 19% of retargeted ads, and 52% of in-source traffic (traffic acquired through third parties). The most affected categories are Finance, Family and Food sites (between 16% and 22% of ad impressions come from bots). News sites, usually less ad-loaded, see 4% of their ad clicks coming from robots. Four percent of fake ad impressions might not seem much, but the loss of revenue is much higher because the highest CPM-carrying formats are the ones that suffer the most.
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