How to spot TV ad fraud, how to detect it and protect yourself
Posted On June 15, 2021
FOX Sports is reporting that advertisers may be more susceptible to TV ad tampering, which could lead to fraud.
A study by research firm Kantar found that in 2015, nearly one-third of all TV advertising was faked, with an average of two-thirds of fake ads being fraudulent.
That means that an ad was nearly impossible to spot because it’s either fake or it didn’t have enough information to know it was fake.
This is just the tip of the iceberg, however.
KPMG, which works with advertisers on ad fraud detection, says that one-fifth of the TV advertising industry may have at least one fake ad or misleading advertisement, with a high percentage of fake advertising on networks like AMC, Discovery, Food Network and MTV.KPMG says that fake ads have been found in more than 80 percent of the ad-supported channels that it monitors.
The report points to a lack of transparency about how ad fraud occurs in the industry.
For example, advertisers may use “schemes to hide their identities or to hide the content of ads.”
And advertisers may hide ads with misleading messages.
“We know that these types of fraud are incredibly common, so it’s important to educate consumers,” said Adam Jaffe, senior vice president of digital media at KPMg.
“We want to make sure that they are aware of what they are buying and what is happening.”
In a statement to Fox Sports, a spokesman for AMC Networks said the network has a zero-tolerance policy against deceptive ads and will investigate any evidence of fraud.
“If an advertiser shows us a fake ad on their site, we immediately remove it,” the AMC spokesman said.
“If we are alerted, we take action.”
According to a KPMig report, “Fake TV ads have increased in frequency in the last two years, but fraud is still a very difficult and challenging problem.”
The report found that while fraud in the TV ad space is becoming more prevalent, the average amount of money stolen is less than 0.5 percent of total revenue, meaning there is no way to stop the fraud.
The fraud is usually traced to a person who buys an ad on the same channel or in the same area, who then installs the fake ad, or who uses a website that directs viewers to the same ad.
Kampf, which was founded in 2015 by Jaffe and his colleagues, has been working with TV ad buyers and media buyers on the issue.
They believe that fraud is being carried out by people who are trying to profit from fake ads.
“The real issue is that there is a huge amount of fraud, so there is not enough data to know what is going on,” said Kampf.
“There is a lot of overlap between these two issues.”
Kampb is not alone in the fight against TV ad fraudulent activity.
In 2016, KPMog found that ad fraud in a sample of more than 600 advertisers totaled $1.2 billion.
The study found that the average cost of fraud in 2017 was about $25 million.
The number of fraudulent ads was about 40 percent higher than the number in 2016.