---
title: "Fight Against Ad Fraud: How RTB Companies Are Securing Their Inventory"
description: In the fighting ad fraud every player in the RTB industry needs to be vigilant. Here's a look at how the ecosystem is working to protect advertisers from fraud.
image: https://blog.fraudlogix.com/hubfs/surveillancecamera.jpg
---

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# Articles and Research

# Fight Against Ad Fraud: How RTB Companies Are Securing Their Inventory

Posted by [Fraudlogix](https://blog.fraudlogix.com/author/fraudlogix) on Feb 12, 2018 11:45:00 AM

![](https://blog.fraudlogix.com/hubfs/Fraudlogix_Favicon.png)

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Calls to secure the digital advertising supply chain have contributed in part to a growing trend of advertising technology companies making big moves to [fight ad fraud](https://blog.fraudlogix.com/smart-adserver-partners-with-fraudlogix-to-fight-ad-fraud-and-maintain-quality-inventory) and provide more transparency. The trend will continue in 2019, further shifting the onus of catching ad fraud and securing campaigns away from advertisers. From the [supply- to the demand-side](https://blog.fraudlogix.com/rtb-corner-jan-3-2019) of the chain, here’s a full-stack look at how the industry is fighting ad fraud and working to provide advertisers with a better programmatic experience.

## **From the Supply Side**

Fighting ad fraud and eliminating low-quality inventory is uniquely challenging from the supply side of the market: Ad tech providers have massive amounts of traffic to monitor and numerous publishing partners that can introduce fraud into the system. However challenging though, the companies on this side of the ecosystem can make the biggest difference in terms of improving quality within the programmatic markets, as they’re closest to the sources of fraud. To see how a supply-side player is addressing ad fraud and quality challenges, we turn to Smart, a holistic ad monetization platform.

### **Smart**

[Smart](https://smartadserver.com/) was originally founded within a premium publisher, so quality awareness is part of the company’s DNA, and inventory quality is a top priority**.** The holistic ad monetization platform has taken several steps to assure the best impressions for its buyers. Smart is proactive in addressing the challenges associated with fraud and has created a strict, no-fraud strategy by using pre-auction and post-auction mechanisms to continuously monitor the publishers and traffic on its exchange ([Smart RTB+](https://blog.fraudlogix.com/seven-forces-that-will-affect-the-rtb-programmatic-space-in-2018)).

The company’s commitment to quality is built around four key pillars: (1) having a dedicated department to spearhead quality efforts, led by a Chief Quality Officer, (2) having strong processes and strict policies around quality for all partners and customers, (3) implementing proprietary internal and leading external brand safety technology tools, and (4) having permanent, dedicated R&D and market-level initiatives to improve the ecosystem.

Smart was the first industry player to set up an internal quality team led by a Chief Quality Officer, Gorka Zarauz, whose role involves ensuring quality inventory, transparency around all transactions, and eliminating fraudulent content. Zarauz explains that to ensure the highest level of quality, Smart puts new RTB+ inventory through a strict scanning process that includes proof of a direct relationship with publishers. Every participating publisher must comply with the Smart RTB+ Quality policy. Before activating any inventory in the marketplace, Smart proactively provides the new inventory information to buyers for approval. This enables fluent communication and knowledge-sharing of any suspicious activities, which helps improve the entire ecosystem.

Smart has over 1,000 publishing partners and 150 billion monthly impressions passing through its platform. The sheer volume of fraud in the marketplace presents a challenge to Smart and similar companies.

“Fraudsters are always one step ahead as they try to ‘get the money and run’ and unfortunately, it’s very simple to commit fraud. The challenge is in identifying the best partners (both on the supply- and the demand-side) to work within a vast global ecosystem rife with fraudulent activity,” said Zarauz. “We address this by being selective about our DSP partners. Each partner has to commit to Smart’s policy. We’re 100% committed to work with Premium Publishers and Premium Sales Houses.”

On December 20th last year, Smart went a step further on its quality initiatives by blocking all bid requests that fail to meet the [ads.txt](http://wiki.fraudlogix.com/glossary/ads-txt/) standard. This policy not only ensures Smart RTB+ inventory is 100% ads.txt compliant, but also safeguards domain authenticity for Smart’s publishers and demand partners. The move guarantees publishers can safely benefit from programmatic channels, without fear of inventory misuse; arbitrage is avoided so that publishers are fairly compensated for the sale of their inventory.

“While this policy impacts Smart’s business in the short term, we remain convinced that all industry players stand to gain from a fraud-free environment.” commented Zarauz. “We will bear these costs as part of our ongoing proactive efforts to clean up the ecosystem and help ensure the highest quality standard on our platform.”

## **From the Demand Side**

From the demand side of the [RTB](http://wiki.fraudlogix.com/glossary/rtb/) spectrum, [DSPs](http://wiki.fraudlogix.com/glossary/dsp/) are faced with many challenges as well, including large amounts of traffic to filter and advertisers with different quality expectations. We turn to AcuityAds, an advertising technology provider with a proprietary demand-side platform solution, for an overview of how it handles fraud and is able to “trade in trust” within the [programmatic](http://wiki.fraudlogix.com/glossary/programmatic/) market.

### **AcuityAds**

[Acuity’s](https://www.acuityads.com/) DSP offering approaches the issue of fraud from three angles. First, it has taken steps to build fraud prevention features right into its technology. Second, it encourages advertisers to work with third-party verification providers and finally, it works together with platform users to supply best practices for avoiding [fraudulent traffic](http://wiki.fraudlogix.com/glossary/fraudulent-traffic/).

Within the technology, fraud measures are taken at every step of a campaign, including pre-campaign, in-flight, and post-campaign. Things like the ability to implement white/black lists for campaign targeting and content scoring tools are available to users. In addition, the Fraudlogix technology has been built directly into the Acuity Platform, and works to manually observe and identify unusual patterns in traffic. To go a step beyond, the company’s developers have automated the identification of some commonly occurring suspicious patterns that they’ve found over the years delivering digital campaigns.

“An ongoing challenge that our platform faces, and as do others, is constantly changing inventory,” said Dr. Nathan Mekuz, Co-Founder and CTO, of AcuityAds. “To the best of our ability we work to ensure that we have fraud measures in place that are always at work reviewing all inventory that passes through our system so that our advertisers are protected.”

## **From a Verification Company**

[Ad verification](http://wiki.fraudlogix.com/glossary/ad-verification/) companies often partner with advertisers and agencies to protect their programmatic spending and help optimize campaigns. The insight helps ensure advertisers get what they pay for. Vigilance on this this side of the spectrum is expected since campaign budgets are directly affected by fraud. Further up the chain though, there’s still no shortage of companies working to prevent fraud, but the tactics and solutions look a bit different.

### **Fraudlogix**

[Fraudlogix](http://www.fraudlogix.com/) is a verification company that works with ad tech companies to help them secure the programmatic space. The company specializes in fraud prevention for the supply side and DSPs, devising solutions for the monitoring of all inventory – not just sampling – for ad fraud, [viewability](http://wiki.fraudlogix.com/glossary/view-ability/), [domain spoofing](https://blog.fraudlogix.com/domain-masking-publishers-losing-ad-revenue-and-reputation-without-realizing), and [brand safety](http://wiki.fraudlogix.com/glossary/brand-safety/).

Fraudlogix uses pixel-based technology and machine learning to collect data from billions of monthly impressions and then delivers that data to clients so they can quickly see how publishers, sellers, domains, and campaigns are performing and exactly where suspicious traffic is coming from. Insight tools allow clients to present evidence to sellers if there are discrepancies and a real-time [block list](http://wiki.fraudlogix.com/glossary/blacklisting/) allows for [pre-bid fraud prevention](http://wiki.fraudlogix.com/glossary/pre-bid/). Additionally, Fraudlogix recently launched [ads.txt reporting](https://blog.fraudlogix.com/blog/fraudlogix-adds-adstxt-reporting-to-verification-suite) within its dashboard for its clients, allowing them to track file matches and publisher implementation.

“We like to think of ourselves as an extension of our clients’ quality teams,” said Hagai Shechter, CEO of Fraudlogix. “The solutions that we develop are based on the very specific needs and requests of our supply-side clients and DSPs. These companies are trying to do the right thing – they know that they have to be proactive in preventing fraud on their platforms -- and we’re happy to provide the tools for them to do it.”

## **Action in 2018**

In 2017 there was a call to do more to clean up the programmatic space. The industry saw key initiatives launched, like ads.txt, to do just that. In 2018 increased vigilance, solid anti-fraud policies like the ones mentioned here, and proactive companies within the chain will bring more action to the battle against fraud, helping to make for a more secure, transparent supply chain.

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 Topics: [Programmatic RTB](https://blog.fraudlogix.com/topic/programmatic-rtb)

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```json
// <![CDATA[
{						
"@context":"http:\/\/schema.org",						
"@id":"ad-fraud",						
"@type":"Thing",						
"description":"Any time engagement with an online ad has been forged to generate revenue.",	
"mainEntityOfPage":"http://wiki.fraudlogix.com/glossary/ad-fraud/",											
"name":"ad fraud",						
"alternatename": ["ad fraud","invalid traffic"],						
"sameAs":"https://en.wikipedia.org/wiki/Ad_fraud"						
					
}
// ]]>
```

```json
// <![CDATA[
{						
"@context":"http:\/\/schema.org",						
"@id":"RTB",						
"@type":"Thing",						
"description":"In the online advertising space, RTB is the way programmatic ads are bought and sold on a per-impression basis – it’s the instantaneous auction of ad space that happens every time a user views a webpage that monetizes programmatically. Very basically, a user visits a website, which generates a bid request for the ad space on that page. The bid request contains information on that user (e.g., IP address, user agent, location, cookie information, etc.). Advertisers bid on the impression based on the information from the bid request and the winner of the auction gets their ad served to that user. This all happens in a fraction of a second. ",						
"mainEntityOfPage":"http://wiki.fraudlogix.com/glossary/rtb/",						
"name":"RTB",
"alternatename": ["real time bidding"],						
"sameAs":"https://en.wikipedia.org/wiki/Real-time_bidding"						
					
}
// ]]>
```

```json
// <![CDATA[
{						
"@context":"http:\/\/schema.org",						
"@id":"SSP",						
"@type":"Thing",						
"description":"The technology platform on the sell side of the programmatic RTB system that allows publishers to sell their ad inventory in real time.",						
"mainEntityOfPage":"http://wiki.fraudlogix.com/glossary/ssp/",						
"name":"SSB",
"alternatename": ["supply side platform","sell side platform"],						
"sameAs":"https://en.wikipedia.org/wiki/Supply-side_platform"						
					
}
// ]]>
```

```json
// <![CDATA[
{						
"@context":"http:\/\/schema.org",						
"@id":"traffic",						
"@type":"Thing",						
"description":"The viewers, visits and interactions with online media (e.g., websites, ads, videos, etc.)",						
"mainEntityOfPage":"http://wiki.fraudlogix.com/glossary/traffic/",						
"name":"traffic",
"alternatename": ["ad traffic"]						

					
}
// ]]>
```

```json
// <![CDATA[
{						
"@context":"http:\/\/schema.org",						
"@id":"DSP",						
"@type":"Thing",						
"description":"The technology platform on the buy side of the programmatic system that allows advertisers to bid on and purchase online ads in real time. They also allow advertisers to target specific online audience segments with their ads.",						
"mainEntityOfPage":"http://wiki.fraudlogix.com/glossary/dsp/",						
"name":"DSP",
"alternatename": ["demand side platform"],						
"sameAs":"https://en.wikipedia.org/wiki/Demand-side_platform"						
					
}
// ]]>
```

```json
// <![CDATA[
{						
"@context":"http:\/\/schema.org",						
"@id":"Ads.txt",						
"@type":"Thing",						
"description":"An initiative brought forth by the Interactive Advertising Bureau (IAB) that allows publishers to specify which ad tech companies are authorized to sell and resell ads on their pages. This was put in place to help stop domain spoofing.",						
"mainEntityOfPage":"http://wiki.fraudlogix.com/glossary/ads-txt/",						
"name":"Ads.txt",						
"alternatename": ["Authorized Digital Sellers"],						
"sameAs":"https://en.wikipedia.org/wiki/Ads.txt"						
					
}
// ]]>
```

```json
// <![CDATA[
{						
"@context":"http:\/\/schema.org",						
"@id":"programmatic",						
"@type":"Thing",						
"description":"Automated buying of online ad inventory where algorithms are used to identify website viewers and serve them relevant ads using the real-time-bidding (RTB) process.",						
"mainEntityOfPage":"http://wiki.fraudlogix.com/glossary/programmatic/",						
"name":"programmatic",
"alternatename": ["programmatic ad traffic","programmatic advertising"]						

					
}
// ]]>
```

```json
// <![CDATA[
{						
"@context":"http:\/\/schema.org",						
"@id":"fraudulent-traffic",						
"@type":"Thing",						
"description":"Ad traffic that’s been generated by bots, malware, compromised devices, or other fraudulent means and is falsely masquerading as human traffic by visiting, viewing, and interacting with online ads.",						
"mainEntityOfPage":"http://wiki.fraudlogix.com/glossary/fraudulent-traffic/",						
"name":"fraudulent traffic",
"alternatename": ["fake traffic","invalid traffic","non-human traffic"]						

					
}
// ]]>
```

```json
// <![CDATA[
{						
"@context":"http:\/\/schema.org",						
"@id":"Ad-Verification",						
"@type":"Thing",						
"description":"Services/companies that report on and/or ensure that online ads appeared on the intended websites or to the intended target audience. They may also measure view-ability and rate website placements for brand safety. ",						
"mainEntityOfPage":"http://wiki.fraudlogix.com/glossary/ad-verification/",						
"name":"Ad Verification"						
					
}
// ]]>
```

```json
// <![CDATA[
{						
"@context":"http:\/\/schema.org",						
"@id":"Domain-Spoofing",						
"@type":"Thing",						
"description":"A form of ad fraud that occurs when a publisher fraudulently declares a domain name in a bid request that’s different from where the ad will actually be run (e.g., the publisher declares “cnn.com” in the bid request but the ad will actually be served on “fakewebsite.com”). This is done to trick advertisers into running their ads on sites where they normally wouldn’t and/or to increase the amount the advertiser will pay for the ad placements. It opens advertisers up to brand safety issues, wastes ad dollars by placing ads on low-quality domains, and can be harmful to legitimate publishers whose domain names are being spoofed.",						
"mainEntityOfPage":"http://wiki.fraudlogix.com/glossary/domain-spoofing/",						
"name":"Domain Spoofing",
"alternatename": ["domain masking"]					
					
}
// ]]>
```

```json
// <![CDATA[
{						
"@context":"http:\/\/schema.org",						
"@id":"view-ability",						
"@type":"Thing",						
"description":"Online advertising metric that measures how long an ad was in view (if at all) for the end user.",						
"mainEntityOfPage":"http://wiki.fraudlogix.com/glossary/view-ability/",						
"name":"view-ability"

					
}
// ]]>
```

```json
// <![CDATA[
{						
"@context":"http:\/\/schema.org",						
"@id":"Brand-safety",						
"@type":"Thing",						
"description":"In online marketing, advertisers must be cognizant of ad placements and a brand safety strategy is used to avoid having their ads appear on websites or pages that may be harmful to a brand’s image.",						
"mainEntityOfPage":"http://wiki.fraudlogix.com/glossary/brand-safety/",						
"name":"brand safety"						
					
}
// ]]>
```

```json
// <![CDATA[
{						
"@context":"http:\/\/schema.org",						
"@id":"Blacklisting",						
"@type":"Thing",						
"description":"In terms of ad fraud, it’s a way to block ad traffic from high-risk sources (i.e., high-risk IP addresses). They may be used to prevent a company from bidding on ad impressions that have a high probability of being fraudulent in the RTB environment. They may also be used to prevent fraudulent actions such as views, installs, clicks, and sales.",						
"mainEntityOfPage":"http://wiki.fraudlogix.com/glossary/blacklisting/",						
"name":"blacklisting",						
"alternatename": ["blacklist","blocklist"]					
					
}
// ]]>
```

```json
// <![CDATA[
{						
"@context":"http:\/\/schema.org",						
"@id":"pre-bid",						
"@type":"Thing",						
"description":"In the RTB market, the part of the bidding process that occurs before bids are placed by buyers. In the pre-bid environment, buyers are presented with information within a bid request regarding the ad placement. This includes information such as the IP address, domain, and cookie information. Using information in the bid request buyers can determine whether or not they want to bid on the ad placement and how much they’re will to pay. In terms of ad fraud and pre-bid fraud blocking, key variables in the bid request (e.g., the IP address, publisher, or domain) may be compared to what is currently known about each variable to determine the likelihood of the ad placement being fraudulent. In pre-bid ad fraud detection, bid requests from high-risk sources are identified and blocked in the pre-bid environment, thus preventing ad fraud from happening.",						
"mainEntityOfPage":"http://wiki.fraudlogix.com/glossary/pre-bid/",						
"name":"pre-bid"
						

					
}
// ]]>
```

```json
// <![CDATA[
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		"datePublished":"2018-02-12",
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				{"@id":"http://blog.fraudlogix.com/smart-adserver-partners-with-fraudlogix-to-fight-ad-fraud-and-maintain-quality-inventoryhttp://blog.fraudlogix.com/smart-adserver-partners-with-fraudlogix-to-fight-ad-fraud-and-maintain-quality-inventory"},
				{"@id":"http://blog.fraudlogix.com/rtb-corner-jan-3-2019"},
				{"@id":"http://blog.fraudlogix.com/seven-forces-that-will-affect-the-rtb-programmatic-space-in-2018"},
				{"@id":"http://wiki.fraudlogix.com/glossary/ads-txt/"},
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				{"@id":"https://www.acuityads.com/"},
				{"@id":"http://wiki.fraudlogix.com/glossary/fraudulent-traffic/"},
				{"@id":"http://wiki.fraudlogix.com/glossary/ad-verification/"},
				{"@id":"http://www.fraudlogix.com/"},
				{"@id":"http://wiki.fraudlogix.com/glossary/view-ability/"},
				{"@id":"http://blog.fraudlogix.com/domain-masking-publishers-losing-ad-revenue-and-reputation-without-realizing"},
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				{"@id":"http://wiki.fraudlogix.com/glossary/blacklisting/"},
				{"@id":"http://wiki.fraudlogix.com/glossary/pre-bid/"},
				{"@id":"http://blog.fraudlogix.com/blog/fraudlogix-adds-adstxt-reporting-to-verification-suite"}
				
				
				
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```