Global Study Finds an Ecosystem-based Strategy Lowers Fraud Levels in Programmatic Advertising

Global Study Finds an Ecosystem-based Strategy Lowers Fraud Levels in Programmatic Advertising
One-third of marketing and advertising technology professionals are willing to move applications to a new data center to reduce latency time and fraudulent activities



REDWOOD CITY, Calif. – April 12, 2016 – Equinix, Inc. (NASDAQ: EQIX), the global interconnection and data center company, today unveiled the findings of a report done in collaboration with ExchangeWire which explored attitudes toward fraud in programmatic advertising. The survey found that marketing and advertising technology professionals are realizing that preventing fraudulent activities earlier in the bid process reduces the chance for fraudulent behavior in subsequent phases and are increasingly looking to better maintain the integrity of their digital supply chains.
Executive Summary
The digital marketing and advertising industry constantly experiences issues of fraudulent behavior, both on the buy-side and sell-side of programmatic online advertising trading. As a result, marketing and advertising technology professionals are looking for solutions to reduce fraud and create a secure ecosystem. The survey indicated a significant drive towards clean inventory data ecosystems within the next 12 months, as digital marketing and advertising professionals strive to reduce fraud levels at the pre-bid stage with 60 percent of respondents indicating that it is very important to detect fraud even before impressions are sent to be traded. Furthermore, one-third of respondents said they are willing to move applications to a new data center for an 11-30 percent reduction in latency time in an effort to reduce fraudulent activities.
Interconnection Reduces Ad Fraud
An interconnection first strategy and implementation of an Interconnection Oriented Architecture™ via Equinix’s carrier neutral data centers with secure ecosystems can accelerate the bidding and trading of ad inventory through an optimized infrastructure. Equinix is home to leading business ecosystems which include participants such as leading ad exchanges, media buyers, data platforms, data aggregators and major networks. As the result of trading within a neutral data center, the possibility of fraud is significantly reduced at each stage of the bidding process.
Highlights / Key Facts
·         The global study of 129 marketing and advertising technology professionals from around the world analyzed attitudes towards programmatic advertising fraud and the benefits of a neutral data center with secure business ecosystems.
·         Media buying efficiency was cited as the main advantage to using a neutral data center with secure ecosystems by marketers in EMEA (73 percent), APAC (69 percent) and the US (62 percent). Within LATAM, reduced fraud levels (58 percent) were cited as the main advantage, while APAC (44 percent) and the US (47 percent) cited reduced fraud levels as the second greatest advantage.
·         83 percent of LATAM and 80 percent of EMEA respondents believe that the detection of fraud before ad impressions are sent to be traded is either essential or very important. Results were slightly lower within the US (61 percent) and APAC (74 percent).
·         Marketing and advertising technology professionals have differing views on the main advantage to moving to a neutral data center with secure ecosystems solution with those in EMEA (73 percent), APAC (69 percent) and the US (62 percent), viewing media buying efficiency as the main advantage. Marketers within LATAM see reduced fraud levels (48 percent) as the main advantage to this type of ecosystem.
·         As the leading interconnection provider, Equinix is adding anti-fraud managed services to its strategic ad exchanges around the world to create data center environments with secure business ecosystems to bring together buyers and sellers and drive interconnection.

Quotes
·         Lou Najdzin, senior director, Global Market Development:
“We are experiencing an increasing demand for reduced latency times in order to combat the growing sophistication of cyber criminals. Equinix provides customers with a secure platform to interconnect with leading ad exchanges, media buyers, data platforms, data aggregators and major networks. As a result, latency times are reduced and the risk of fraudulent activities are mitigated.”



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