DoubleVerify: MFA Impression Volume Increases by 19% Year-Over-Year Fueled By AI Advances

Rhea-AI Summary

DoubleVerify (DV) reports a 19% increase in MFA (Made for Advertising) impression volume year-over-year in 2023, driven by a 73% rise in 'Low-tier' MFA impressions.

The company's eighth annual Global Insights Report analyzes over one trillion impressions from 2,000+ brands across 100 markets. It reveals that 57% of surveyed advertisers view AI-generated content as a challenge, with 54% stating it negatively impacts media quality.

Despite higher click and viewability metrics, MFA sites deliver 7% less attention on display ads and 28% less on video compared to other media. The report underscores the need for dynamic tools to safeguard ad investments and improve campaign performance amid the surge of AI-generated low-quality content.

Positive

• 19% increase in MFA impression volume YoY in 2023.
• 73% rise in 'Low-tier' MFA impressions.
• Analyzed over 1 trillion impressions from 2,000+ brands in 100 markets.
• 57% of advertisers view AI-generated content as a significant challenge.
• Comprehensive attention-based measurement distinguishing exposure and engagement.

Negative

• 54% of advertisers believe AI-generated content negatively impacts media quality.
• 50% of advertisers see MFA and low-quality content as the biggest threat to the digital ad ecosystem.
• MFA sites deliver 7% less attention on display ads.
• MFA sites deliver 28% less attention on video ads.
• High-tier MFAs perform 25% below the attention baseline.

Insights

Market Research Analyst

The report by DoubleVerify highlights a significant increase in 'Made for Advertising' (MFA) impressions, driven by advancements in AI. This trend is noteworthy for advertisers and retail investors as it raises concerns about the quality of media content. Despite an uptick in MFA impressions, advertisers are increasingly wary of the media quality these sites offer. The report states that MFA sites deliver significantly lower attention metrics, which can translate to lower engagement rates for advertisers. This could lead to a reevaluation of ad spending strategies. Additionally, the report reveals that over 50% of surveyed advertisers believe AI-generated content is worsening media quality, pointing to broader industry challenges. From a retail investor's perspective, this insight suggests a potential shift in how ad dollars are spent and possible scrutiny of companies heavily reliant on MFA sites. It also indicates a growing market for advanced measurement tools like those offered by DoubleVerify, which can help advertisers navigate these challenges. Such developments could influence the stock performance of companies engaged in digital advertising and media measurement. Investors should monitor how these companies adapt to evolving market dynamics. Rating: 1

Tech Expert

The increase in MFA impressions driven by AI tools reflects how technology can be a double-edged sword in the advertising industry. While AI has the potential to optimize ad campaigns and creative processes, the proliferation of low-quality MFA content underscores the need for robust content monitoring and quality assurance solutions. Companies like DoubleVerify are positioned well to benefit from this trend as they offer the necessary tools to address these challenges. For tech-savvy investors, this serves as a reminder of the importance of innovation in maintaining content quality and integrity in the digital ad space. The reported 73% increase in low-tier MFA impressions highlights the specific areas where AI is accelerating content production without necessarily enhancing quality. This calls for advanced AI solutions that not only generate content but also ensure its compliance with quality standards. Therefore, investing in firms that develop such technologies could be advantageous. Rating: 1

Over half of advertisers globally say Gen AI is hurting media quality and performance as

MFA content delivers below-average Attention scores

NEW YORK--(BUSINESS WIRE)-- DoubleVerify ("DV"), the leading software platform for digital media measurement, data, and analytics, today announced a preview of findings from its eighth annual Global Insights Report, which analyzes media quality and performance trends across more than one trillion impressions from over 2,000 brands in 100 markets. The findings highlight the global impact of "Made for Advertising" (MFA) websites.

(Graphic: Business Wire)

In June 2023, the Association of National Advertisers (ANA) reported that MFA sites comprised 21% of all programmatic ad impressions and attracted 15% of total advertising spend amid concerns that new Gen AI tools were accelerating the production of low-quality content. DV’s latest analysis shows a 19% year-over-year increase in MFA impression volume in 2023. The growth was primarily driven by a 73% increase in “Low-tier” MFA impressions, which appear on hybrid sites that include a mix of MFA and non-MFA characteristics.

Recent studies have linked Gen AI with an increase in online spam, misinformation, and low-quality content sites. In addition to leveraging its own data, DV commissioned Sapio Research to survey 1,000 advertisers globally regarding the impact Gen AI has on the online digital ecosystem. The results of this study revealed that 57% of the advertisers surveyed view AI-generated content as a key challenge for the digital ecosystem, 54% believe Gen AI has negatively impacted media quality and 50% believe an increase in MFA and low-quality content was “the biggest threat” to the digital ad ecosystem.

"It’s no surprise that advertisers are concerned," said Mark Zagorski, CEO of DoubleVerify. "Gen AI has incredible potential for the ad industry in areas like creative development and media optimization, but it can also be weaponized against it. Ultimately, brands need dynamic tools to help them safeguard investments and maximize campaign performance."

MFAs may appear high-performing when looking at specific isolated KPIs, such as clicks and viewability, that they are designed to boost. Despite this, DV found that MFA sites deliver 7% less overall attention on display ads and 28% less on video than other media. "High-tier" MFAs, sites that exhibit the most extreme MFA criteria, were 25% below the attention baseline.

This below-average attention performance is driven by poor exposure (e.g., intensity, viewable time, share of screen, presentation, audibility, etc.), rather than engagement (user touches, screen orientation, video playback, audio control interactions, etc.). MFAs are explicitly designed for certain engagements, further underscoring the need for comprehensive attention-based measurement that considers both exposure and engagement.

"MFA content, powered by AI, has surged," added Zagorski. "Additionally, the worst offenders perform very poorly in terms of attention—an increasingly important metric for brands. It's critical for advertisers to identify, measure, and avoid problematic MFA content in real-time to drive better, authentic performance."

Method: The report employs DV technology to analyze more than one trillion impressions from over 2,000 brands in 100 markets, both pre and post-bid, and offers a detailed market-by-market analysis for North America, LATAM, EMEA, and APAC. It covers video and display impressions from January to December 2023 across desktop, mobile web, mobile app, and connected TV (CTV). The study also includes a global survey conducted by Sapio, polling 1,000 advertisers across North America, LATAM, EMEA, and APAC. DV introduced tiered MFA categories in 2024, and applied that methodology to 2022-2023 impressions to determine year-over-year analysis.

For more information about DV’s Global Insights Report, visit: https://doubleverify.com/global-insights-2024-trends/

Join DV’s “Back to Basics: Demystifying Made for Advertising Sites” webinar on Thursday, June 27th at 12 pm EST. Register here: https://doubleverify.com/back-to-basics-demystifying-made-for-advertising-sites/

About DoubleVerify

DoubleVerify (“DV”) (NYSE: DV) is the industry’s leading media effectiveness platform that leverages AI to drive superior outcomes for global brands. By creating more effective, transparent ad transactions, DV strengthens the digital advertising ecosystem, ensuring a fair value exchange between buyers and sellers of digital media.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240614930660/en/

Media Contact

Chris Harihar

chris@crenshawcomm.com

Source: DoubleVerify

FAQ

What is the year-over-year increase in MFA impression volume reported by DoubleVerify (DV)?

DoubleVerify reports a 19% year-over-year increase in MFA impression volume in 2023.

How much have 'Low-tier' MFA impressions increased according to DV's report?

'Low-tier' MFA impressions have increased by 73% according to DV's report.

What percentage of advertisers view AI-generated content as a challenge for the digital ecosystem?

57% of advertisers view AI-generated content as a challenge for the digital ecosystem.

How does AI-generated content impact media quality according to the PR?

54% of advertisers believe AI-generated content negatively impacts media quality.

What is the impact of MFA sites on attention metrics for display ads?

MFA sites deliver 7% less attention on display ads compared to other media.

How much less attention do MFA sites deliver on video ads according to DV?

MFA sites deliver 28% less attention on video ads compared to other media.

What percentage of advertisers see MFA and low-quality content as the biggest threat to the digital ad ecosystem?

50% of advertisers see MFA and low-quality content as the biggest threat to the digital ad ecosystem.