skip to Main Content

How Cognitive Ads Tackle Ad Fraud?

Ad Fraud Problem

Programmatic advertising has become more accessible for digital marketers ⎼ more ad inventory and better targeting. However, the industry and particularly the advertisers, are still suffering from ad fraud.

Ad fraud is caused by fake clicks generated by Spambots and click farms. Accordingly a Juniper Research report, ad fraud will cost advertisers an estimated of 19 billion USD in 2018. That represents 9% of total digital advertising spend at USD$237 billion annually.

Notwithstanding banner ad growth was up 7% in 2017, the effectiveness of banner ads on the internet is not on par with the growing number of people who can access the web. The average click-through rate for banner ad is around 0.06%. The massive decline in CTRs is largely due to:

  • Viewability ⎼ banners that are never actually viewed by users
  • Click fraud ⎼ fake or accidental clicks on banners
  • Bots ⎼ automated scripts that scour the web and click on advertiser banners

How does Cognitive Ad work and solve ad fraud?

Cognitive Ad is basically a display ad but with a cognitive bot operates behind it. This kind of ad is created based on a Proof of Engagement concept to fight ad fraud and increase user engagement.

When a consumer sees a cognitive ad, the bot itself would automatically generate questions related to the ad or the advertising products. For instance, for a fashion retailer’s ad, the bot will ask what kind of clothing the consumer is looking for such as a t-shirt, what colour he likes and what size he wears. The bot will then display to the consumer a list of options which has been narrowed down by the consumer’s preferences. If the customer is ready to make a purchase, he can do it on the spot straight away.

Consumers will get a token when they interact with a cognitive ad in return to share anonymized data with advertisers and publishers who they trusted. On the other hand, cognitive ads provide advertisers with meaningful data on how their campaigns have been performing.

These customer interactions with cognitive ads are recorded over blockchain, which will provide advertisers higher transparency to user ad engagement and will furthermore increase precise targeting. Hence lowering the chance of click fraud, traffic bots or even accidental clicks.

To learn more about cognitive ads, visit NOIZ chain.

Back To Top
×Close search