Kubient Pre-Bid Ad Fraud Tool KAI Reveals CTV as Top Platform Attracting Ad Fraud in First Half of 2021

Rhea-AI Summary

Kubient (NasdaqCM: KBNT) released figures from its proprietary ad fraud detection tool, KAI, highlighting ongoing ad fraud issues in the digital advertising landscape. From Q1 to Q2 2021, ad fraud rates decreased by 3% across mobile, desktop, and CTV platforms, yet fraud remains prevalent, especially in CTV where rates approach 30%. The company emphasizes the importance of pre-bid fraud protection for marketers to ensure campaign integrity. Despite efforts, significant challenges persist as fraudulent traffic continues to impact marketing budgets.

Positive

• Ad fraud rates improved by 3% across mobile, desktop, and CTV from Q1 to Q2 2021.
• Kubient's KAI tool is effective in detecting fraud within 300 milliseconds during auctions.

Negative

• Fraud rates in CTV remain close to 30%, indicating ongoing vulnerabilities in high-value ad environments.
• Despite improvements, double-digit fraud rates persist, impacting overall campaign performance.

NEW YORK, Aug. 12, 2021 /PRNewswire/ -- Kubient (NasdaqCM: KBNT, KBNTW) ("Kubient'' or the "Company"), the cloud advertising marketplace that enables advertisers and publishers to reach, monetize and connect their audiences efficiently and effectively, today released figures  on the state of ad fraud as identified by the company's proprietary ad fraud detection tool, Kubient Artificial Intelligence (KAI). KAI is a pre-bid ad-fraud prevention tool that helps stop fraud before it happens through pattern recognition and device scoring. The algorithm is trained to analyze the behavior, consistency and quality to determine audience credibility – accurately flagging fraud within a 300 millisecond time frame of a programmatic advertising auction.

The figures from Q1 and Q2 2021 can be found in the accompanying chart:

 

• Ad fraud rates improve across all major platforms from Q1 to Q2: Mobile, Desktop, and CTV have all seen 3% less ad fraud quarter over quarter in the first half of 2021. Looking at the data, we can infer that the leaders in the ecosystem are prioritizing fraud detection industry wide. However, we still see fraud rates in the double digits, which shows this is a significant issue across the landscape and impacting campaign performances.
• CTV Inventory Premium Is a Myth: CTV, with its high price point is prime for fraud, has fraudsters look to cash in on the industry's race to capitalize on the highly engaged audiences. However, this space continues to experience significantly higher fraud rates at close to 30% of bid requests. The data indicates that it's critical for marketers to apply pre-bid fraud protection on these potentially high impact campaigns.
• The Need for Pre-Bid Technologies for CTV Providers: While CTV is a major aspect of most campaigns, suppliers need to do a better job ensuring their platforms are free of fraud. As we can infer from the data, we're catching a great deal of fraud occurring in these preconceived 'premium' environments, reinforcing the need for marketers to prioritize ad fraud detection, even when they think they are purchasing premium inventory.

"With brand marketing budgets being reviewed with a fine tooth comb, no CMO or brand marketing lead wants a dollar of their spend wasted on fraudulent traffic," said Leon Zemel, Chief Product Officer at Kubient. "Industry leaders have come a long way when it comes to investing in combating ad fraud, but as the data shows, there are still bad actors in the space that are wasting marketing budgets daily. For the rest of 2021, marketers should hold their sell side partners and resellers accountable, ensuring that all traffic they purchase are legitimate platforms, and not allocating funds to fraudulent traffic, because this is preventable."

To learn more about Kubient and its partner work visit www.kubient.com.

About Kubient
Kubient is a technology company with a mission to transform the digital advertising industry to audience-based marketing. Kubient's next generation cloud-based infrastructure enables efficient marketplace liquidity for buyers and sellers of digital advertising. The Kubient Audience Cloud is a flexible open marketplace for advertisers and publishers to reach, monetize and connect their audiences. The Company's platform provides a transparent programmatic environment with proprietary artificial intelligence-powered pre-bid ad fraud prevention, and proprietary real-time bidding (RTB) marketplace automation for the digital out of home industry. The Audience Cloud is the solution for brands and publishers that demand transparency and the ability to reach audiences across all channels and ad formats. For additional information, please visit https://kubient.com.

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Kubient Public Relations
Clarity PR
Will Vogel
kubient@clarity.pr

Kubient Investor Relations
Gateway Investor Relations
Matt Glover and Tom Colton
T: 1-949-574-3860
Kubient@gatewayir.com 

 

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SOURCE Kubient

FAQ

What were the ad fraud rates identified by Kubient in Q1 and Q2 2021?

Kubient reported a 3% decrease in ad fraud rates across mobile, desktop, and CTV from Q1 to Q2 2021.

How does Kubient's KAI tool work?

KAI is a pre-bid ad-fraud prevention tool that utilizes pattern recognition and device scoring to identify fraudulent activity quickly.

Why is CTV considered highly vulnerable to ad fraud according to Kubient?

Kubient's data indicates that CTV has fraud rates approaching 30%, making it a prime target for fraudsters.

What should marketers do to combat ad fraud based on Kubient's findings?

Marketers should apply pre-bid technologies and hold their partners accountable to ensure that they are purchasing legitimate traffic.

What is the significance of the Q1 and Q2 2021 ad fraud figures released by Kubient?

These figures highlight ongoing issues with ad fraud in the digital advertising space, emphasizing the need for enhanced fraud detection measures.