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Fraud problem makes Facebook more attractive to online advertisers, say ad insiders

on November 26, 2013

Gigaom

Digital marketers, weary of online scams, will start placing more ads on Facebook(s fb) rather than run the risk that their ads will be shown to robots instead of actual people.

That was one conclusion of an ad industry breakfast in Manhattan, titled Bagels and Bots, where executives last week explored the pervasiveness of botnets — networks of corrupted computers that provide an easy way for criminals and hackers to defraud big brands out of billions of dollars. Here are some new numbers, and the implications for advertisers.

Online ad exchanges a fertile ground for fraud

Scammers, who have been present since the early days of online advertising, are adept at finding new ways to cheat the ad industry. One of the latest tricks involves directing millions of bot visitors to “ghost sites” — which contain a thin scrip of “content” but few real readers — and then collecting money…

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