Programmatic Ad Seller Misrepresentation in Mobile Apps Q3 2024: Pixalate Estimates $814 Million of Global Open Programmatic Mobile App Ad Spend Routed Through Unauthorized ‘Direct’ Sellers

According to Pixalate’s latest Supply Path Optimization (SPO) research using SupplyChain Object (SCO) data, 14% of mobile in-app traffic with SCOs marked as ‘complete’ is sold by unauthorized “direct” sellers

/EIN News/ -- London, Nov. 27, 2024 (GLOBE NEWSWIRE) --  Pixalate, the global market-leading ad fraud protection, privacy, and compliance analytics platform, today released the Q3 2024 Programmatic Ad Seller Misrepresentation Report for Mobile Apps. The report uses SCO data to examine unauthorized sellers in the open programmatic advertising supply chain across mobile apps. Pixalate also released desktop and mobile web and Connected TV (CTV) versions of this report.

The SupplyChain Object (SCO) enables buyers and intermediaries to view all parties selling or reselling open programmatic advertising inventory. Numerous partners are often involved in open programmatic supply paths, which causes fragmentation and makes the ecosystem vulnerable to ad fraud attacks. Pixalate's latest report highlights the occurrence of unauthorized selling within the global programmatic supply chain despite ads.txt or app-ads.txt implementation.

Key Findings

• $814 million in spend through unauthorized “direct” sellers: 12% of all mobile app open programmatic ad impressions (14% of traffic with an SCO marked as ‘complete’) are sold by unauthorized “direct” sellers, representing an estimated $814 million in global open programmatic mobile in-app ad spend
• Higher Ad Fraud Rates: 65% higher IVT, including ad fraud, in traffic with an unauthorized direct seller
• Unauthorized direct sellers and resellers: 38% of traffic with SCOs on mobile apps fail Pixalate verification due to an unauthorized seller (including direct or resellers)
  
  

Pixalate’s analysis includes a set of SCO verification checks as defined by Pixalate, utilizing IAB Tech Lab’s ads.txt/app-ads.txt standards, along with SCO data from the OpenRTB bid stream to evaluate the accuracy of declared supply paths in the ad bid stream. Learn more about Pixalate’s SCO verification and validation.

Pixalate's data science team analyzed 9 billion open programmatic ad impressions containing the OpenRTB SCO during Q3 2024 to compile the research in this series. The data science team analyzed more than 290k CTV and mobile apps.

Download the reports

Download the complete Q3 2024 Supply Path Optimization (SPO) Reports:

• CTV
• Mobile Apps
• Desktop and Mobile Web
  
  

About Pixalate

Pixalate is a global platform specializing in privacy compliance, ad fraud prevention, and digital ad supply chain data intelligence. Founded in 2012, Pixalate is trusted by regulators, data researchers, advertisers, publishers, ad tech platforms, and financial analysts across the Connected TV (CTV), mobile app, and website ecosystems. Pixalate is accredited by the MRC for the detection and filtration of Sophisticated Invalid Traffic (SIVT). pixalate.com

Disclaimer

The content of this press release, and the Programmatic Ad Seller Misrepresentation Reports (the “Reports”), reflect Pixalate's opinions with respect to factors that Pixalate believes can be useful to the digital media industry. Pixalate's opinions are just that, opinions, which means that they are neither facts nor guarantees. Pixalate is sharing this data not to impugn the standing or reputation of any entity, person or app, but, instead, to report findings and trends pertaining to programmatic advertising activity across mobile apps in the time period studied. As used herein, and per the MRC, “'Invalid Traffic' (IVT) is defined generally as traffic that does not meet certain ad serving quality or completeness criteria, or otherwise does not represent legitimate ad traffic that should be included in measurement counts. Among the reasons why ad traffic may be deemed invalid is it is a result of non-human traffic (spiders, bots, etc.), or activity designed to produce fraudulent traffic.”

Nina Talcott
                    ntalcott@pixalate.com