Online advertising is facing a crisis and is likely to hit $5.8 billion in lost advertising revenue by 2020 if online ad fraud continues, according to a new report.
Key points:The report found online advertising fraud is on the rise with some businesses losing tens of millions of dollars online every year, and some are losing their advertising contracts entirelyThe report also warns the online advertising industry is still in transition and is not immune to the risksOnline advertising fraud involves stealing ad data from legitimate advertisers to create a false impression.
The report, commissioned by the Australian Competition and Consumer Commission (ACCC), looked at how Australian businesses are being attacked online.
The number of cases has risen significantly over the past five years, with the number of businesses reporting to the Australian Taxation Office, the ACCC and the AFP increasing from 2,600 in 2013 to 5,000 in 2015.
Key findings:The ABC is exploring the risks and opportunities in the industry.
In a nutshell, the report said online ad companies are at risk of losing billions of dollars in advertising revenue if online advertising remains the default choice for online advertising.
The ACCC has launched a crackdown on online ad theft and fraud in the past year, including the introduction of new rules to curb the illegal practice of stealing data from advertisers.
But the report also highlighted some companies are facing serious financial consequences when they are caught and punished.
It said the number one cause of online ad losses was fraud.
“Fraudulent advertisers can take millions of online advertising dollars without ever being charged with a crime, so fraudulently using data from an advertiser is a serious problem,” the report’s author, Mark Johnson, said.
The ABC’s Paul Johnson spoke to a number of online advertisers who said they were being targeted by fraudsters.
Mr Johnson said fraudsters often target businesses in areas where there is an existing trust relationship, such as online retailers, hospitals and hospitals.
“If an individual does not trust the advertiser to conduct an online transaction, then they are at increased risk of fraudulent activity,” he said.
“There are very few things that can happen to a business or an individual that could cause them to lose money.”
The report was based on a study of online sales data from more than 400 online companies, including brands like Airbnb and Airbnb, as well as online brokers and ad networks.
The research was done in partnership with online advertising analytics firm AdEspresso.
Mr Hill said the problem is not unique to Australia, and that it is being faced across the world.
“It is not just one country, it is worldwide, and it’s the same problem that is occurring in the United States, Canada and Europe,” he told ABC News.
“We are seeing an increase in the number and type of fraudsters that are trying to exploit the trust relationships that we have built around the internet and steal ad data and create false impressions.”
That is happening across the globe and it is happening in Australia.
“This is just the tip in the iceberg.
The problem is going to get worse and worse.”‘
This is not the future’It’s not just Australia, he said, but many countries across the developing world.”[It is] not just an issue in Australia, it’s happening all over the world,” Mr Hill said.
“This is a problem that we cannot control, it will continue to grow.”
Mr Johnson warned of a need for action from governments.
“In this day and age of online fraud, if a company doesn’t have the right legal basis to take advantage of this, they are not going to be able to survive,” he explained.
“The next generation is going be the ones who are going to start taking control of the digital economy, they’re going to build their own digital infrastructure, they’ll be the next generation of leaders.”
He said there were lessons for businesses to learn from the recent US election and the Australian Government’s Digital Economy Review.
“Australia was lucky in that we had a robust and well-developed digital economy in the 1990s, and now the country is starting to rebuild,” he concluded.
“But we need to be looking at this from a different angle and the problem we’re facing now is a combination of a lack of infrastructure, of regulation, and of awareness about what’s happening in the world of digital advertising.”
Topics:business-economics-and-finance,consumer-protection,consumer,internet-culture,advertising,consumerism,community-and‐society,advertising-and_finance-industry,internet,internetadvertising,fraud,internetmedia,law-crime-and-(prosecution)-agreement,internetaustraliaContact:Paul Johnson, [email protected]