OTT ad fraud is projected to cost marketers $4 billion globally this year, says cybersecurity company CHEQ. OTT spend will reach $23.8 billion in 2020, according to the report, with ad fraud levels reaching 17%. The most common OTT ad frauds involve networks of bots generating massive amounts of fraudulent traffic.  “Marketing budgets are steadily flowing to OTT, offering a mouthwatering proposition of brands being able to reach consumers on their screens with relevant messages at the right time,” said Guy Tytunovich, founder and CEO of CHEQ. “However, as with other nascent markets online, ad fraud and fakery follow, and every day we are seeing new and sophisticated attacks attacking the OTT ecosystem. The challenges of ad fraud must be tackled if we are to create trust, transparency and efficiency in this fast-growing market.”

Said professor Roberto Cavazos, University of Baltimore, who participated in the study, “As we see more global OTT growth in 2020 with almost weekly announcements of services, and a larger ad-based inventory, economic detriment is inevitable. Ultimately, OTT advertising is still a very fragmented territory with lack of transparency and high payoffs, making it a breeding ground for deception and fraud.”