Adtech Basic Math

Math as a kid was about counting on your fingers. I forgot which grade it was but it lasted for a few years till multiplication arrived. The good ole days.  Keep those memories fresh.

Recently we are seeing math problems that can be solved on our fingers in adtech. The Wall St Journal (WSJ) just figured out that by abandoning Google, they instantly increased their conversion analytics.  What a miracle! Eliminate bots and your conversions increase.

This is the type of value creation that advertising and marketing departments get giant bonuses for.  Simply by blocking Googles search, the WSJ was able to increase the rate of visitors converting into paying clients.  Although the WSJ dropped 44 percent of it’s fake traffic from Google, the conversions increased.  This truly shows how many bots Google has. This is basic level math.

Lets see how this works again.  By shutting off Google traffic, you increase conversions because instead of trying to convert a robot to a paying human, you eliminate the bot and only serve to real humans.  Interesting concept…

Block bots and increase conversion will be this summers model.

 

IRS Scam

Scams coming from the telephone number of 202-697-7005.  Their message is below.

This call is regarding an enforcement action which has been executed by the US treasury department regarding tax fraud against your name ignoring this would be an intentional or tempt to avoid initial appearance before the magistrate judge were exempt jury for a federal criminal offense so before this matter goes to Federal Claims Court house or before you get arrested. Kindly call us back on our number as soon as possible. The number to reach us is 202-697-7005. Let me repeat the number 8-202-697-7005 hope to hear from you soon before the charges are pressed against you. Thank you. Charges are pressed against you. Thank you.

Here is the audio of the IRS telephone scam call.

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Facebook’s Third Times a Charm

Like the movie Money Monster with George Clooney, we see similarities with the most recent “Facebook Glitch”.  Maybe this time Facebook gets it right?  But, what is right for Facebook?

Previously we saw a “Facebook Glitch” in November 2016 and in September 2016. They mentioned that these were “Glitches”.  You know, $430 billion dollar companies could have “Glitches”.  A “Glitch” is a “Glitch” but how about three “Glitches” in nine months?  What’s worse is how long did they take to figure out before they stopped billing their clients for their unknown “Glitch”?

How many more “Glitches” are we going to see from Facebook this year? As I’ve mentioned before, the digital ad fraud is only going to get worse.  I frequently call these players fake adtech because they are using such antiquated technology to authenticate their users. These attacks will change and innovate.  Most recently we saw a ransomware called “Wanna Cry” to only morph into a crypto currency botnet miner called Adylkuzz.  Will this stop here? Very unlikely.

What’s magical is these “Facebook Glitches” go unnoticed by the daily active users (DAU).

As we see Facebook’s network continue to grow and blow out earnings, the question that is asked next, are these fake social networks?  Are you continuously increasing revenues and earnings with all these Facebook users when you advertise? There’s only one way to find out.  SecureAd.

Lost Adtech World

Most of you have seen Star Wars the movie and are familiar with the term “The Force”.  It’s an analogy on how easy it is to go from good to evil.

eZanga, “The Trusted Online Marketing Firm” somehow lost its way as a digital ad agency.  Being involved in ad fraud research, eZanga went to the dark side as mentioned in a new report from Dhar Method’s titled “Ad Fraud in Our Own Backyard“.  eZanga is a contractor for US General Service Administration (GSA) without any shame.  The dark side runs deep with eZanga.

Fear is the path to the dark side.  Fear leads to anger.  Anger leads to hate. Hate leads to suffering.” -Yoda

Speaking of the dark side, ad fraudsters targeted porn sites with a newly discovered scam called “Traffic Alchemist“.  They disguised their fake traffic as views on reputable sites such as Google and Twitter to trick Google Analytics.  These scammers have scammed $7M per month since April 2016.

Also a note on the light side, Oxford BioChronometrics won an award from NATO for innovation in defense technology.  Instead of being accredited by MRC, ANA, IAB etc… we took it up a notch and won a NATO award.

The fraud continues in the digital advertising ecosystem.  As the Jedi Master Yoda says:

“You must unlearn what you have learned.” – Yoda

 

Putin Likes Fake Adtech

April is a month of fooling the fools, especially on April 1st.  It’s funny how the “glitches” here and here keep fooling Google. In the fast changing market place of adtech, players are getting fooled.

Most people have heard of fake news.  Like fake news, we are experiencing fake adtech. Fake adtech is very similar to fake news. Fake adtech is garbage in, garbage out analytics. It’s amazing how many fake adtech companies there are out there.  I have run into quite a bit, from scams to companies creating zero value to their clients.  Look hard enough and you will find fake adtech with your partners.  Facebook and Google seem to be in a tie with their fake adtech which they call “glitches“.

“Fools make feasts and wise men eat them.”
― Benjamin Franklin

Google once dominated adtech. Then Facebook IPO’d and a duopoly emerged in adtech.  More recently we are seeing another heavy weight enter this market very aggressively.  We are starting to see a triopoly in adtech with the addition of Amazon.  Amazon could be a monster if they play their cards correctly.   Amazon’s consumers purchasing behavior is very valuable.  People making purchases is key analytics instead of trying to figure out what a consumers behavior is without a purchase. Both equate to highly valuable analytics.

Because data is so valuable, the FCC just opened up the market for competition for Google and Facebook.  This should keep them all on their tippy toes.  They now have real competition for consumer analytics from ISP’s such as Verizon (AOL/Yahoo) and AT&T.

April just started and the news keeps coming. Don’t be fooled by fake adtech!

Harder, Better, Faster, Stronger

2016 introduced us to the lethal weaponry of DDoS attacks on a scale unseen in previous years. A favorite entry tactic was the use of IoT devices like malware botnet called Mirai.  The hitlist included AirBnB, Amazon, GitHub, Spotify, Tumblr, Twitter, and Xbox.  More recently Lloyds Bank was attacked with new versions of the Mirai malware botnet.  We are seeing malware morph as seen in adtech by the HummingWhale.

Adtech cyber crimes continue HARDER, FASTER, BETTER, and STRONGER.  Most recently an adtech botnet called MethBot generated millions of dollars per day with 6,000 domains, 250,000 URLS, and 500,000 IP addresses. The MethBot was clouded in two different locations with a custom browser and random mouse movements to mimic humans.  This will morph into a newer version in 2017.

This is the tip of the iceberg of what’s going on in the adtech eco-system.  Fraud is running rampant in adtech creating major conflicts of interest seen with the Criteo and Steel House lawsuit.

Fake adtech estimates are from $7B to $18B per year.  The size of the ad fraud iceberg is closer to $100B+ per year…

Malware is on the rise and will continue. Wherever there is money to be made, fraudsters will be there.  Ad fraud affects the entire eco-system of ad tech from the advertisers, publishers, exchanges, and the adtech systems used.  The survivors will be the ones creating value for their clients with ROI.

 

The Big Fake News, Media, & AdTech

joedirtvsderickzoolander-fakemedianewsadtech

With fake news so abundant, it makes you wonder and question. Who am I?  Does that question start popping into your head?  This is a question that Joe Dirt and Derek Zoolander asked throughout their fake lives.  Although fake news is fake, a deeper level of fakeness must be asked when looking at fake AdTech analytics.  An old saying comes to mind, “Garbage in is garbage out.”

We are now seeing proof of how much fake news and media is coming out of major publishers.  Google ($GOOG) and Facebook ($FB) released news that they are going to censor fake news.  This seems like a surprise to them considering all their fake news prior to the announcement was fine.  One must ask, how long has Google and Facebook known about  their fake news and media?  What else are they hiding?  If you’re willing to jeopardize the cornerstone of your business model, there must be more secrets.

Well, as we found out, Facebook has another “Glitch”.  Similar to the movie Money Monster with George Clooney and the high frequency trading “Glitch”.  The last “Glitch” Facebook had was in September.  Their new “Glitch” in November shows Facebook fake metrics miscalculated analytics to their marketing clients again.  This can also be seen as fake AdTech analytics.  Again, they are proving how fake they are to their clients and their money mongering mindset.

Because of their continued conduct of fakeness, a bullshit detector plugin has appeared for Google Chrome.  Publishers haven’t learned any lessons with ad blockers and now we see bull shit detector plugins which will block their fake news and media.

We are now living in a world of fake news, media, and AdTech.  To eliminate this problem, it’s now suggested to have 3rd party vendors verifying ad traffic.  The trust of these behemoths is forever lost.

 

Digital Advertising Candy

When going trick-or-treating on Halloween as a kid, everyone remembers the house that gave out the full-size candy bars! That was usually your favorite house in the neighborhood, you knew really nice people must live there. My Mother was a nurse, so the only candy we ate all year was whatever we could acquire on Halloween. I hid my stash in a special hiding place and would ration it out to myself all year! In the digital advertising market, how can you be that full-size candy bar?

Digital advertising fraud is a proliferating massive market of fraudulent activity within organized crime. By 2050 it can exceed $50B per year.   Keep in mind that is from current estimates that may be far under representing the fraud.

organized-crime-ad-fraudThe digital advertising market is like a pie.  The dollar amount of the pie is cut into various types of advertisers, exchanges, publishers, and Ad-tech.  The pie can be cut and shifted by dollar amount depending on who has the best edge.

digital-advertising-pie

Having an edge in the advertising market is very similar to Wall St., whoever has edge wins.  But how do you get edge?

The newest edge in the digital advertising market is seen by arbitraging your competitors.  Each participant in the digital advertising ecosystem has a competitor.

One simple method used is advertisers arbitraging their competitor by buying ads at a lower price than competitors or converting sales at a higher rate than competitors at the same dollar amount.  This can drive up the price of markets. In turn, your competitors will be at a disadvantage with them spending more or having lower sales conversions. This is all done at the expense of your competitors.  This will actually wipe out your competitor with long lasting stomach aches.

Because the entire digital advertising market has fraud propagating daily, you must have an edge against your competitors.  Learn how to get digital advertising market edge and get coveted full candy bars, setup an appointment HERE.  Have a safe & Happy Halloween 🙂

AdTech Disruption

Wall St Tombstone

AdTech is undergoing massive changes lately.  One of the biggest casualties of this disruption are digital publishers.  We recently saw Yahoo sell for $4.6B to Verizon ($VZ) which in 2008 was offered $44B from Microsoft ($MSFT).  Disruption can also create winners.  It creates opportunities for value seen only by visionaries.  AdTech is still advancing with changes in this early market structure.

  • Market efficiencies are still needed in this defragmented market.
  • Fraud continues to be a major part of the ecosystem.
  • Inefficient players will be wiped out.
  • Ad blockers are a sign of a broken system.
  • Lack of transparency is a problem.
  • Decreasing CPM.

Innovation and creating value in the ecosystem is a must for survival.  The players that continue to lack value will be purged from the ecosystem.  This can be seen very clearly with the Yahoo sale.  This market is ready for massive disruption.  It happened on Wall St and it will happen in AdTech.  Message me if you want to learn more.

Juiced Up Clicks

I hope everyone enjoyed the long 4th of July weekend!!  While you were watching fireworks, bot fraud was also exploding. Check out the Chinese ad agency Yingmob and their new mobile botnet “HummingBad” similar to “BreakingBad” raking in $300k in revenue per month by clicking ads.  I wonder what Heisenberg would think of this?  As mentioned last month, in “Who’s Your Daddy”, you better know your fraud bots and who they are coming from.

Also, I wanted to invite you to a new Ad group I organize.  If you want to meet other Ad Professionals and throw back some cocktails like Mad Men/Women please join LA Ad Pros here.