Home AdExchanger Talks The Changing Economics Of Ad Fraud, With White Ops President Michael Tiffany

The Changing Economics Of Ad Fraud, With White Ops President Michael Tiffany

SHARE:
Michael Tiffany, president & co-founder, White Ops

Subscribe to AdExchanger Talks on iTunes, Google Play, Spotify, Stitcher, SoundCloud or wherever you listen to podcasts.

The fight against ad fraud is not over, but progress has been made, says Michael Tiffany, president and co-founder of bot detection and cybersecurity company White Ops.

For example, back in the day, around 2012 through 2014, purchasing site traffic was as easy as whipping out a credit card. “You could just buy visitors as if visitors were on tap,” Tiffany says.

The problem was pervasive and it was widely perceived that there’d be no way to truly solve it because of the perverse incentives that were ingrained across the supply chain.

But fast forward to today, and those shady purveyors are mostly gone.

“The trade in traffic hasn’t been eliminated, but it is substantially harder to buy fake traffic and it’s substantially more expensive to buy realistic-looking fake traffic that will actually get the buyer paid,” Tiffany says. “What that means is that ad fraud to those players … is a substantially less attractive crime, because it’s harder to do and you make less money doing it.”

Part of the challenge, though, is that when one part of the internet gets a little more difficult to defraud, the bad actors move over to where the going is still good.

We’re looking at you, CTV.

In April, White Ops uncovered an ad fraud scheme called ICEBUCKET that impersonated more than 200 million people and 300 connected TV publishers.

The main driver of fraud innovation in CTV is the increase in spending in that channel, plain and simple. “An increase in spending naturally attracts people who want to fake inventory,” Tiffany says. “And in ad fraud, the game, fundamentally, is to increase inventory.”

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

“Lately,” he says, “we’ve been shutting down some frankly really creative CTV fraud operations that almost all work by increasing the apparent viewership of something.”

Also in this episode: More on CTV fraud and whether publishers and advertisers are doomed to repeat the mistakes they made in the display world; why Goldman Sachs makes sense as a parent company for White Ops; what Michael Tiffany’s “Human” t-shirts are made out of these days; and his personal connection to the guy who founded natural toothpaste brand Tom’s of Maine.

Must Read

Criteo Lays Out Its AI Ambitions And How It Might Make Money From LLMs

Criteo recently debuted new AI tech and pilot programs to a group of reporters – including a backend shopper data partnership with an unnamed LLM.

Google Ad Buyers Are (Still) Being Duped By Sophisticated Account Takeover Scams

Agency buyers are facing a new wave of Google account hijackings that steal funds and lock out admins for weeks or even months.

The Trade Desk Loses Jud Spencer, Its Longtime Engineering Lead

Spencer has exited The Trade Desk after 12 years, marking another major leadership change amid friction with ad tech trade groups and intensifying competition across the DSP landscape.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

How America’s Biggest Retailers Are Rethinking Their Businesses And Their Stores

America’s biggest department stores are changing, and changing fast.

How AudienceMix Is Mixing Up The Data Sales Business

AudienceMix, a new curation startup, aims to make it more cost effective to mix and match different audience segments using only the data brands need to execute their campaigns.

Broadsign Acquires Place Exchange As The DOOH Category Hits Its Stride

On Tuesday, digital out-of-home (DOOH) ad tech startup Place Exchange was acquired by Broadsign, another out-of-home SSP.