Uncovering the Flaws in the Advertising Ecosystem: Insights from Recent Research

As consumers browse through their favorite short-form video platform, they may come across poorly made ads promoting unbelievable deals like super cheap electronics or magical gadgets that claim to solve all their problems. They might also see strange ads that pop up during searches or on websites, which could potentially contain harmful software. These are known as "bad ads," and according to a recent report by Forrester, they are causing harm to good ads.

Although bad ads have been a problem for a while, the issue is getting worse because of the combination of generative AI technology and a large amount of available ad space. If not addressed, the problem of bad ads will continue to grow.

"It's a pretty dynamic thing right now," said Mo Allibhai, senior analyst at Forrester. "It's sort of a changing threat. We're in this place of playing Whac-a-Mole until we as an industry tighten up overall security, and really figure out a way to sort of punish these bad actors."

The Forrester report, titled “Bad Ads: All The Ways Ads Misbehave And How To Stop Them,” delves into the appearance and impact of bad ads on good ads. Exposure to bad ads can lead consumers to distrust good ads and even block all ads, ultimately reducing the reach for marketers.

Exploring the world of bad ads

For the review, Forrester reached out to different sources such as platforms and publishers. The goal was to gain insights into the purchasing process and identify the specific types of ads that are being blocked.

The report highlights five different types of harmful ads that marketers should be aware of. These include malicious ads, spoofed ads, scam ads, heavy ads, and miscategorized ads. At the top of the harm scale are ads that purposely deceive consumers or infect their devices with malware. Ads that are miscategorized or have trouble loading are considered less harmful.

Not all bad ads are the same. Some simply fail to load properly, while others may scam consumers or infect computers with malware. Marketers have control over some bad ads, like heavy ads that slow down websites, but many are beyond their control. Despite this, it is still important for marketers to address bad ads as they can lead to an increase in ad blocker usage, affecting the visibility of good ads.

There are various reasons for the increase in bad ads in recent years. Factors such as a surplus of ad space and advancements in AI have made it easier for bad ads to make their way to the public. One contributing factor is the reduction in ad sales personnel. These individuals typically act as gatekeepers, preventing bad ads from appearing on platforms. With their roles being automated or downsized, there is a higher chance of bad ads slipping through the cracks.

An ad salesperson plays a crucial role in ensuring the quality of ads that reach users. According to Allibhai, they not only sell ad dollars but also vet the companies behind the ads to ensure credibility.

The abundance of ad inventory is a contributing factor to the problem of bad ads. Platforms like YouTube and Instagram with large inventories may not be as selective with the ads shown to users. This can lead to low-quality ads appearing on the platforms. Allibhai suggests implementing a price floor to deter low-quality ad creators who are unwilling to invest in distribution. This measure could help eliminate such ads from the platforms.

What Marketers Should Do:

According to Allibhai, the key advantage of [ad buys] is their affordability. [Bad ad creators] typically prefer not to invest heavily in advertising, leading them to focus on platforms with extremely low CPMs.

According to the report, there are various approaches to dealing with bad ads. One way is for marketers to establish a direct relationship with publishers to ensure that ads are placed on high-quality sites, as the widespread use of automated distribution can lead to ads appearing on lower-quality sites.

Another important step is for marketers to hold their partners accountable for ad safety. This can be achieved by inquiring about the process of launching a programmatic campaign and making sure that the demand-side platform collaborates with a vendor that safeguards creative content and scans for malicious material. It is also essential to have backup plans in place in case any of these protective measures fail.

Lastly, it is important for marketers to focus on creating effective advertisements. It is crucial to make sure that the ads are suitable for the specific platforms they will be displayed on and to continuously innovate in order to stay ahead of the increasing quality of bad ads. Even marketers who are skilled at creating compelling ads should still be mindful of this issue.

According to Allibhai, large corporations are especially vulnerable to the latest wave of bad ads. The emergence of highly realistic deep fake technology poses a significant threat, as it can even manipulate trademarks just enough to bypass existing detection tools. This means that any brand with a strong reputation to protect could potentially be at risk.

Editor's P/S:

The surge in bad ads is a growing concern that undermines the credibility of legitimate advertisements. The issue is particularly alarming due to the proliferation of generative AI technology, which enables bad actors to create highly deceptive ads that can easily bypass detection. This problem is further exacerbated by the abundance of ad space, which creates an environment where low-quality ads can thrive.

To address this issue, it is essential for marketers to take proactive measures. Establishing direct relationships with publishers, holding partners accountable for ad safety, and focusing on creating effective and platform-appropriate ads are crucial steps. Additionally, the industry needs to work together to develop more robust detection tools and implement stricter penalties for bad actors. By addressing the problem of bad ads head-on, we can protect consumers from potential harm, maintain the integrity of the advertising ecosystem, and ensure that good ads continue to reach their intended audience.