DoubleVerify $DV CEO Mark Zagorski - the $100B war against digital ad fraud
Jan 14, 2025
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Mark Zagorski, CEO of DoubleVerify, opens up about the daunting $100B landscape of digital ad fraud. He discusses the alarming tactics exploited in advertising, particularly in Connected TV, and the financial consequences. With the decline of cookies, he navigates the evolving ad tech space and emphasizes the need for adaptable leaders in the industry. Zagorski also highlights the balance between technological progress and the necessity for human creativity, stressing that independent verification is key to fair advertising.
The $100B digital ad fraud economy threatens legitimate advertisers through deceptive practices that inflate perceived ad value and engagement.
AI tools offer potential solutions to enhance data quality and audience targeting, but human creativity remains essential for effective advertising.
Deep dives
Types of Ad Fraud in the Industry
Fraud in the advertising technology sector has become a multi-billion dollar issue, with various forms affecting different devices and platforms. Common instances include spoofed URLs that mimic legitimate advertising inventory, fake applications that hide malicious ad placements, and even connected devices like refrigerators being hijacked to display unauthorized ads. For example, fraudsters can run ads on screens that appear turned off or generate impressions from fake views that audiences do not see, significantly inflating the perceived value of impressions sold. These deceptive practices not only compromise the integrity of advertising but lead to substantial losses for legitimate advertisers.
Challenges of Data Accuracy
The integrity of data in advertising remains a critical concern, with much of it influenced by user-generated inputs and various privacy regulations. Digital advertising accuracy tends to stem from environments where users knowingly provide their information, often leading to better data fidelity. However, moving beyond these controlled settings usually results in algorithm-driven estimates that can lack reliability. The advent of AI tools is seen as a potential solution for improving data quality, enabling marketers to define audiences more effectively while navigating complex privacy landscapes.
The Power of Walled Gardens
Walled gardens, such as those created by major tech companies, have increasingly consolidated power and control over first-party data, limiting the opportunities for advertisers to access broader audiences. These platforms not only dictate how data can be used but also create an ecosystem in which they are both rule makers and beneficiaries, complicating fair competition. As such, independent verification of advertising metrics becomes vital, ensuring that the measurement of impressions and engagements aligns with the true effectiveness of ads. The reliance on these platforms poses challenges not only to advertisers but also to the integrity of the broad digital advertising landscape.
Future Innovations and Creativity in Advertising
The integration of AI into advertising holds promise for streamlining operations, yet there is ongoing debate about its potential to replace human creativity. Momentum continues to build around the notion that while AI can enhance the efficiency of content production, it lacks the inherent inspiration derived from human experience and emotion. For instance, advertisements still require a compelling creative hook to resonate with audiences, creating an enduring demand for genuine human creativity. As companies navigate this evolving terrain, they must focus on marrying technological advancements with the unique insights that only people can provide.
Mark Zagorski is the CEO of DoubleVerify (NYSE: DV), a $3.4B market cap company that provides digital media measurement and verification software to major advertisers and platforms.
In this episode of World of DaaS, Mark and Auren discuss:
The $100B digital ad fraud economy
Why marketing data is wrong but works
The death of cookies and what's next
Building sustainable independent adtech companies
This episode of World of DaaS was brought to you by Alkemi. Check out alkemi.ai to learn how Alkemi can help you unlock the AI market.
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You can find Auren Hoffman on X at @auren and Mark Zagorski on LinkedIn.