Digital ad fraud, especially in the avatar of invalid traffic (IVT), has become far more than just a ’cause for advertising inefficiency’; it skews campaign data, drains ad budgets and diminishes return on ad spend.
The financial implications are staggering, with studies projecting that ad fraud will cost more than $114 billion in 2025, of which $312 million in ad spend forecasted to be wasted in the GCC in 2025.
The World Federation of Advertisers estimates that, if unaddressed, digital ad fraud could become the second-largest source of criminal income globally in 2025.
Stewart Morrison, Managing Director at independent global marketing contract compliance specialist FirmDecisions / Ebiquity MEA, emphasised that combating ad fraud is critical to maintaining campaign integrity and maximising marketing ROI.
“As advertising budgets shift towards digital and Connected TV (CTV) media, the complex supply chains increase the risk of ad fraud. Fraudulent techniques such as ad stacking, domain spoofing, and impression fraud exploit system vulnerabilities,” Morrison said.
He added, “To protect advertisers and consumers, stricter oversight is needed across the supply chain, ensuring transparency, using third-party verification tools, and deploying fraud detection technologies. These measures will help safeguard ad integrity, ensuring every purchase yields legitimate results and reducing fraud opportunities, ultimately fostering trust and maximising ad spend effectiveness.”
Scale of the ad fraud problem
Recent research from Tapper reveals the alarming extent of ad fraud within the GCC.
Drawing insights from more than 560 million clicks, the report highlights both the financial and operational impacts of IVT across multiple industries.
Key findings:
- 10.25 per cent of all paid traffic is invalid: IVT continues to plague businesses across the board, inflating costs and distorting analytics.
- E-commerce leads with 15.42 per cent IVT, followed closely by real estate at 13.95 per cent and financial services at 11.34 per cent.
- $311.95mn in ad spend is forecasted to be wasted in the GCC in 2025, with $190.95mn attributed to Google channels and $121mn from Meta platforms.
82.9 per cent of IVT in the GCC is classified as Sophisticated Invalid Traffic (SIVT): Fraudsters are employing increasingly advanced methods — such as advanced bots and geo-masking — to evade detection.
Commenting on the significant opportunity lost to ad fraud, Jad Hindy, SVP Marketing at Expo City Dubai, said, “Budgets wasted on ad fraud represent missed opportunities for brands to lead and innovate. Addressing it is critical to maximising marketing’s true potential.”
The report also examines IVT rates across major advertising channels, revealing critical vulnerabilities:
- Google Video Partners experiences the highest IVT rate at 21.89 per cent, while Meta platforms follow at 11 per cent.
- Lower IVT rates are observed in Google Search (4.21 per cent) and YouTube Video (3.5 per cent), yet these channels remain susceptible to advanced fraud techniques.
Impact of ad fraud across industries
Ad fraud presents significant challenges across various sectors, with each industry facing its own set of vulnerabilities and impacts:
E-commerce
With an average IVT rate of 15.42 per cent, bots and fake clicks drain ad budgets, distorting critical campaign metrics and reducing ROI.
Omar Zahriyeh, Director of Growth at Publicis Media, stressed the need for ad fraud prevention to maintain a competitive edge. He said, “Bots are a hidden and growing threat to all businesses marketing ROI. It’s one of my major pet-peeves, as it’s a completely wasted budget going to fraudulent traffic. I recommend all advertisers to utilise solutions to exclude bots from your paid media campaigns, essentially making your marketing dollars go further by ensuring you are targeting ‘real’ potential customers.”
Real estate
Real estate campaigns experience an average IVT rate of 13.95 per cent. High CPCs make this sector an attractive target for fraudulent schemes, impacting lead quality and wasting marketing resources on invalid inquiries.
Fahad Rai, Digital Marketing and Management Professional at DAMAC Properties, called for marketers to prioritise IVT prevention to protect ad budgets. He said, “The competitive real estate market demands precision. Without robust protections against invalid traffic, businesses risk wasting ad spend on clicks that never translate into sales or inquiries. Prioritising IVT prevention safeguards ad budgets and improves
campaign ROI.”
Financial services
The sector faces an average IVT rate of 11.34 per cent. High competition and elevated CPCs make financial services campaigns susceptible to invalid traffic, affecting campaign efficiency and ROI.
Hitesh Uchil, Digital Marketing Lead at Zand, discussed the role of clean traffic in fostering trust and delivering effective campaigns.
He said, “In a rapidly evolving digital economy, clean traffic is critical. By eliminating fraud, we can focus on building innovative campaigns that deliver real results and foster trust in the fintech space.”
Automotive
Automotive advertisers deal with an average IVT rate of 10.28 per cent. Fraudsters target premium ad placements, inflating costs while compromising performance metrics.
Chady Azar, Senior Digital Media Manager at C2 Comms, emphasises the importance of driving real engagement for automotive campaigns.
Azar said, ““In automotive advertising, generating measurable results is essential. Eliminating IVT is critical to enhancing lead quality and increasing sales conversions. By proactively tackling invalid traffic, we ensure that every marketing dollar spent translates into meaningful opportunities.”
Telecommunications
Telecom campaigns experience an average IVT rate of 8.93 per cent. Fraudulent techniques, including the use of bots and residential proxies, exploit the sector’s high CPA payouts, leading to fake leads and distorted analytics.
Tamer Alphonse, Founder and CEO of Digital Rocket, stressed the impact of fraud on the telecom industry’s ability to generate meaningful leads.
Alphonse said, “Fraudsters exploit this sector by using sophisticated bots and geo-masking techniques, such as residential proxies, to generate fake traffic at scale. These schemes inflate costs, create fake leads, and consumer complaints, undermining the efficiency of telecom ad campaigns.
He added, “The high CPA payouts characteristic of the industry make it a lucrative target for fraud, posing significant challenges for advertisers seeking genuine engagement.”
Insurance
Insurance ads see an average IVT rate of 7.12 per cent, with bots creating false inquiries and skewing key performance data, making efficient resource allocation challenging.
Hussain Fakhruddin, Chief Technology Officer at InsuranceMarket.ae™, highlighted the necessity of fraud prevention to ensure accurate performance metrics.
“Fraudsters target insurance campaigns because of their high-value leads, using bots and proxies to generate fake clicks. Addressing this with precise fraud prevention tools ensures that marketing investments drive real customer acquisition and not wasted budgets.”
These industry-specific challenges underline the importance of implementing robust ad fraud prevention measures tailored to each sector.
Brands must recognise that not all clicks and impressions are created equal. As ad fraud techniques become more advanced, the challenge of maintaining clean and reliable campaign data continues to grow. Addressing this issue is essential for businesses aiming to make informed decisions, optimise ad spend, and protect the integrity of their marketing efforts.
