Q2 2014 Bot Traffic Market Advisory

Solve Media study shows high levels of fraudulent traffic in CPG vertical

New York City – September 18, 2014 – Today, Solve Media released the results of its Quarterly Bot Traffic Market Advisory, revealing a healthy decrease in suspicious traffic from Q1. Global traffic showed a 16% decrease and national traffic decreased 19%. This follows the suspicious web activity trends seen throughout 2013, as reported in this former Bot Traffic Market Advisory.

An in-depth look into the CPG vertical uncovered a different trend, especially in mobile traffic. Mobile bot traffic in this vertical was 21% higher than global norms and 40% higher than US mobile traffic. According to Google’s Mobile In-Store study, eight out of ten smartphone owners research products before making a purchase. With more mobile traffic on CPG-related sites, it is no surprise that there is more fraudulent mobile traffic.

Q2 2014 Mobile Traffic SM.png

These higher bot numbers correspond with a spike in CPG mobile advertising spend. Mobile ad exchanges Smaato, Millennial Media and Nexage all saw significant increase in CPG mobile spend in Q2, especially in programmatic. Mobile advertising spend is estimated to reach $18 billion by the end of 2014, up 83% from last year, according to Gartner, Inc. Not surprisingly, CPG advertisers are taking a proactive stance in the fight against bot fraud.

As CPG ad spending grows and the threat landscape increases, it makes sense that fraud is dramatically increasing. The fraudsters are following the money as CPG advertisers begin to invest more in mobile channels,” said Justin Somaini, Chief Trust Officer at Box. “This is why, as an industry, we need to prioritize preventing these advanced attacks. Data-driven solutions that drive cognition and emphasize engagement will eliminate bot traffic altogether.”       

With Q2 generally being a slow period for advertisers, Solve Media does not expect this decrease to continue. Ad budgets will be ramping up for the holiday season and suspicious traffic will likely increase throughout the second half of the year.

About Solve Media

Solve Media was founded by veteran entrepreneurs and technologists focused on data, security solutions and innovative Internet advertising. The company’s proprietary online and mobile advertising platform, the TYPE-IN, was designed to create highly effective opportunities for brands to engage with real consumers. With this platform, Solve Media guarantees brand message delivery, brand lift and return on investment for advertisers. Additionally, the platform creates new revenue opportunities for publishers and saves time for consumers.

Solve Media is based in New York City and Philadelphia, with offices across North America and Europe. Learn more at: http://solvemedia.com/

Live from Programmatic I/O

By Ari Jacoby, CEO

We are very excited to be at Adexchanger’s Programmatic I/O today. It’s been a great conference so far, with the industry’s best and brightest coming together to discuss the future of intelligent (hyper-targeted) marketing.

It is clear from this conference that programmatic buying is becoming more sophisticated. Adoption rates are growing and all signs point to the fact that it will be the industry norm sooner rather than later. However, it is not without its challenges.

In a recent survey conducted by Solve Media, we asked 100 programmatic media buyers to list their biggest concerns with programmatic ad buying. Fraud and bot abuse was the number one response, with seven out of ten media buyers citing it as a concern. Difficulties with cross-channel attribution and a lack of quality video inventory were also major concerns, with over 50% of respondents citing these as challenges.

Not surprisingly, a big theme at Programmatic I/O has been how to address fraud within the marketplace. With all the technological advancements and changes to the advertising ecosystem, we’re glad that this issue is getting the attention it deserves.  Eliminating fraud in programmatic buying will go a long way towards reassuring hesitant marketers that it is a safe investment.

Guaranteeing a human audience will be table stakes sooner rather than later. We certainly have the data and technology to make this a reality. Bot detection and fraud prevention need to be an innate part of open exchanges and RTB.  As an example, WPP’s Xaxis has made great progress with its new offering, Xaxis Prime. Launched in early August, Xaxis Prime guarantees a 95% human audience through both pre and post campaign efforts.  We predict most of the players in their bracket will follow suit in the near-term.

Scaled first party data matters, as well.  Few have it, but it is clear that cross-screen campaigns and proper campaign attribution will follow anti-fraud as the next hot industry topic.


INFOGRAPHIC: What Advertisers Need to Know About Back to School

Back to school season is upon us! Here is what advertisers need to know about consumer buying habits. With spending estimated to reach $75 billion this year, 71% of agency media buyers are prioritizing keeping their clients’ ads free of bot traffic.