The report and its key findings are based on over 60, 000 domestic digital advertising campaigns Miaozhen Systems measured in 2018. Over 2,000 advertisers across all industry sectors including FMCG, mom & baby, automobile, finance and IT, covering more than 1,200 publishers on PC and mobile platforms.
Calvin Chan, operating partner & head of international business of Miaozhen Systems comments:“Invalid traffic has become a global issue. Some advertisers in US have shifted their advertising budget back to the traditional media due to this challenge. The significance of transparency for digital advertising has never been higher, that’s why we issue IVT report every year and keep introducing innovative technologies and effective solutions to counter ad frauds and non-human traffic.”
As the major third-party marketing data and technology solution provider in China, Miaozhen Systems is dedicated to identifying IVT and preventing advertisers from it with a series of detection & filtration solutions supported by advanced technologies and comprehensive database. Earlier this year, Miaozhen Systems together with Tencent Beacon also issued a white paper on anti-ad-fraud.
“Addressing IVT issue is vital to the sustainable and healthy development of China digital advertising. We look forward to working with all industry partners to fight against invalid traffic and hold the digital advertising industry more accountable so as to give advertisers more confidence to invest in digital media.” Calvin added.
Related Story from China Daily:
Invalid traffic causes $3.8b in advertising losses
Invalid traffic affecting the internet advertising market has directly caused 26 billion yuan ($3.8 billion) in losses for advertisers in China in 2018, according to Miaozhen Systems, a third-party provider offering data technology and measurement science-based enterprise solutions.
According to Calvin Chan, operating partner and head of the international business of Miaozhen Systems, invalid traffic means traffic not generated by humans, such as fraudulent impressions and clicks manipulated by robots or artificial intelligence. This has not only led to huge losses for advertisers, but also damaged the credibility of the industry as a whole.
Miaozhen Systems has done in-depth studies and statistical analysis of advertising activity monitoring data in the past year, and compiled the 2018 Annual Report on China Digital Advertising Invalid Traffic in order to provide an effective reference for advertisers.
In the report, vertical sites led in invalid traffic, with invalid impressions at 39.7 percent, which is nearly 2 percent higher than the previous year.
Video sites saw the least non-human traffic at 21.6 percent. However, as Miaozhen Systems found, 28.1 percent of ads that advertisers had originally purchased were not served to the specific variety shows or drama series.
By industry, maternity and baby products were hit the worst, with invalid impressions increasing sharply, from 29.5 percent in 2017 to 37.7 percent in 2018.
According to Chan, this is because vertical publishers or content providers are usually commissioned to get a larger audience base to help their clients (with transactions based on a CPM, or cost per thousand, buying model), while the advertisers aim for customer conversion, which can pose a dilemma. As a niche market segment, the number of mothers or expectant mothers in China is relatively limited compared to the entire population of netizens.
"People will always find an end-run around the rules. The underground economy saw a more lucrative business model and, with evolving fraudulent technology, poses greater economic and technical challenges for combating ad fraud," said Chan.
Despite this, Chan also expressed optimism regarding the future of providing more effective solutions to ad fraud. To fight against the problem, industry regulators and players such as the China Advertising Association, Mobile Marketing Association China, Miaozhen Systems and Tencent have jointly rolled out universal measurement standards, including digital advertising measurement and verification software development kits. These can improve the oversight and evaluation of mobile advertising in a move to promote the healthy development of the industry.
Zhang Hanzhi contributed to the story from China Daily.
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About Miaozhen Systems
Miaozhen Systems is China’s major third party provider offering data technology and measurement science-based enterprise solutions to drive smart decision-making and fuel business growth. We provide enterprises with omni-channel digital measurement, evaluation and optimization solutions covering advertising, marketing and business operations by virtue of big data and artificial intelligence technologies. Founded in 2006, with proven experience and innovative technologies in the anti-fraud area, we are committed to helping enterprises build mutual trust both internally and externally, make smart decisions and drive business growth based on authentic and comprehensive data.
Dedicated in promoting continuous innovation and healthy development of the industry, Miaozhen Systems pioneered in the creation of the iGRP methodology, and participated in the creation of mobile SDK measurement standard, digital advertising basic standard, mobile internet advertising standard, interactive advertising standard, as well as viewability and other industry standards. For more information, please visit Miaozhen Systems’ official website www.miaozhen.com.