UNDERSTANDING IQ: THINKING BEYOND BOTS

Cristian Coccia, Regional Director, Southern Europe, PubMatic

November 13, 2018

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A SHIFT TO QUALITY

ADWEEK 9 March 2018 Programmatic

Advertising Failed to Meet Expectations

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CHALLENGES AROUND ADVERTISING QUALITY

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THESE CONCERNS HINDER CONTINUED GROWTH OF PROGRAMMATIC

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#1Media buying

transparency &

accountability

#2Ad fraud & website

traffic validation

#3Ad misplacement

REASONS THAT SENIOR MARKETERS WORLDWIDE DON’T

PROGRAMMATICALLY BUY DIGITAL DISPLAY ADS

Source: CMP Council and Dow Jones, “Brand Protection from Digital Content Infection,” Seot 2017

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MYTHS ABOUT QUALITY IN DIGITAL ADVERTISING

QUALITY IS A

100% SOLVABLE

PROBLEM

FRAUD

DETECTION TECH

ALONE WILL

PROTECT ME

RISK ACROSS

EVERY SSP IS

THE SAME

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UNDERSTANDING INVENTORY QUALITY: THINKING BEYOND BOTS

NON-HUMAN

TRAFFIC

LOW-VALUE

HUMAN TRAFFIC

PRACTICES THAT

DECEIVE &

OBFUSCATE

MOBILE IN-APP

INVENTORY QUALITY

NON-HUMAN TRAFFIC

HOW NON-HUMAN TRAFFIC WORKS

* Source: TAG Fraud Benchmark Study, December 2017

STEP 1:

SETUP

▪ Botnet Setup

▪ Cloud-Based

Setup

STEP 2:

REFINE

Build cookie

profiles to

mirror

coveted

consumers

STEP 3:

MONETIZE

Sell bot

impressions in

programmatic

auctions

12%+Average IVT

rate in the US* (display and video)

<2%IVT rate for

premium pubs (PubMatic Data)

$6.5BBrand loss

due to IVT

in 2017*

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LOW-VALUE HUMAN TRAFFIC

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HOW IT WORKS

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CLICK BAIT

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TRANSIT HUBS

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FAKE AUTHORS

TRUST APPROACH TO SITE REVIEWS:PRIVACY REGISTRATON

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LEVERAGING ‘TRUST SCORES’

CHARACTERISTICS

OF LOW TRUST SITES

▪ Fast ramp up in traffic to the

domain

▪ Lack of originality of content

▪ No ability to determine who

operates the domains.

▪ Domain registration hidden

behind privacy proxies

▪ No strong back-link profile.

▪ Lack of an organic audience

60

75

58

41

46

36

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?

?

?

HIG

H T

RU

ST

LO

W T

RU

ST

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ADS.TXT

AUTHORIZED UNDECLAREDUNAUTHORIZED

?

Supply partners

CAN monetise this

inventory on our

platform

Supply partners

CANNOT monetise

this inventory on our

platform

Continue to

monetise but work to

ensure ads.txt

implementation

ADS.TXT FILEPRESENT

NO ADS.TXTFILE

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PUBMATIC’S APPROACH

▪ PARTNERSHIPS: PubMatic partners with various MRC-

accredited inventory quality vendors for brand-safety

checks and inventory screening across multiple formats

and platforms

▪ IQ TEAM: We have a dedicated team that reviews all fraud reports, and

investigates all fraud complaints

▪ MITIGATION: If fraud is detected on our platform, demand partners don’t

have to pay for it

▪ ACCREDITATION: by leading fraud certification companies

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BEST PRACTICES TO PROMOTE QUALITY

RECOMMEND TO PUBLISHERS RECOMMEND TO BUYERS

✓ Partner with accredited vendors to

reduce risk (i.e. TAG)

✓ Recognize the importance of content

and audience

✓ Know where your ads are running

✓ Don’t pay for fraud

✓ Incorporate third-party fraud

detection

✓ Focus on building a loyal audience

✓ Build out IQ policies and practices

✓ Promote transparency across your

business

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FINAL ADVICE

▪ Think quality not just revenue

▪ IQ not just about fraud/bot traffic

▪ It’s fine to be paranoid

▪ Download our White Paper from www.pubmatic.com

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FINAL ADVICE

§ Think quality not just revenue

§ IQ not just about fraud/bot traffic

§ It’s fine to be paranoid

§ Download our White Paper from www.pubmatic.com

THANK YOU & QUESTIONS