Generative AI linked to Australian ad fraud rate increases

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The ad fraud rate in Australia and New Zealand has increased 14%, according to DoubleVerify’s latest annual insights report

The Global Insights: 2024 APAC Report found that ANZ overall fraud rate increased 14% to reach 1.3%, the second-worst in fraud rate in APAC.

Globally, a 23% surge in new fraud schemes and variants compared to the previous year was reported, and unprotected advertisers saw a fraud/SIVT (Sophisticated Invalid Traffic) violation rate as high as 17%.

These violations include incidents of bot fraud, site fraud, app fraud, hijacked devices, data centre traffic and injected ad events, all of which illegitimately inflate online advertising impressions or data events to generate revenue.

Generative AI was found to be a key factor for the increase, due to the ease with which it can falsify data patterns.

A global survey by Sapio Research of 1,000 advertisers found that 57% view misinformation spread by AI-generated content as a key challenge for the digital ecosystem

Half (54%) believe Generative 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. Gen AI has incredible potential for the ad industry in areas like creative development and media optimisation, but it can also be weaponised against it,” said Mark Zagorski, CEO of DoubleVerify.

“Ultimately, brands need dynamic tools to help them safeguard investments and maximise campaign performance.”

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