Jeromy Sonne has transitioned from being a Facebook ad expert to specializing in fraud detection. He is the founder of Daypart, a firm that offers advice to agencies and major advertisers on the legitimacy and accuracy of their campaigns.
According to Jeromy, ad fraud can involve fake bot impressions, fraudulent offers, and even money laundering. He notes that the issue is more prevalent on programmatic networks than on closed platforms like Meta and Google.
In a recent discussion, Jeromy shed light on the current landscape of ad fraud and shared insights on how advertisers can prevent and identify it.
The complete audio recording is available below, with the transcript edited for clarity and conciseness.
Eric Bandholz: Could you explain your role?
Jeromy Sonne: I am the founder of Daypart, a company specializing in detecting ad fraud.
My background started with Facebook ads in 2011, primarily focusing on promoting mobile apps before transitioning to e-commerce.
Following that, I launched Decibel, an ad tech platform for podcast ads that unfortunately did not succeed.
I then entered the realm of combating ad fraud for agencies and other ad tech firms, which has proven to be the most successful venture for me. Our mission is to assist advertisers by thwarting malicious activities. Clients engage our services to verify the accuracy and authenticity of their ads.
Bandholz: What exactly is ad fraud?
Sonne: Ad fraud encompasses various deceptive practices. This includes charging for bot-generated impressions or automated clicks, as well as instances where advertisers pay for premium placements but end up on low-quality websites instead. At the extreme end, there are cases of money laundering, where criminals use shell companies to purchase ads.
Bandholz: Does this occur on Meta and Google platforms?
Sonne: Ad fraud is more prevalent on programmatic networks than on closed platforms like Meta and Google. While these platforms have better controls in place and are more responsive, the landscape remains complex, especially when dealing with fraudulent actors attempting to evade detection.
Fraudulent activities can range from individuals promoting scam offers with fake displays of wealth to legitimate offers evolving into fraudulent schemes over time.
The most effective way to enhance return on ad spend is by eliminating fraud. Ensuring that real ads reach real audiences is the most effective optimization strategy.
Bandholz: Given that our ad budget is predominantly allocated to Meta at Beardbrand, what percentage of clicks or impressions do you estimate are fraudulent?
Sonne: The prevalence of fraudulent activities varies. Platforms like Meta’s Audience Network present higher risks, especially with ads displayed on mobile apps. Meta may occasionally identify and eliminate around 10% of clicks or impressions attributed to bots, including AI agents or bots masquerading as human users.
Overall, Meta is proactive in addressing these issues, but the problem is more pronounced on the open web, encompassing display ads, video ads, and mobile applications. A significant portion of ad spend, potentially exceeding one-third, is susceptible to some form of fraud, particularly on programmatic networks.
Bandholz: How can advertisers differentiate between fraudulent and legitimate clicks or impressions compared to what the platforms report?
Sonne: Transparency is crucial in this regard. By analyzing sufficient data, patterns indicative of fraudulent activities can be identified.
For example, during a recent analysis of mobile ads, discrepancies emerged when examining the devices on which the ads were running. Some ads purportedly displayed on iPads with Intel chips, which is inaccurate as iPads do not use Intel chips. This discrepancy suggests device spoofing or bot-related activities. By scrutinizing such inconsistencies, advertisers can detect potential fraud.
Even platforms like Meta face these challenges. Advertisers can mitigate risks by blocking dubious apps on the Audience Network or leveraging their ad servers to compare data with the platform’s reports.
There is no foolproof solution; vigilance is key. Whenever anomalies are detected, advertisers should address them and collaborate with the platform to seek refunds.
Bandholz: When should advertisers consider engaging a firm like yours to recover losses from ad fraud?
Sonne: I typically partner with agencies investing millions in open web programmatic ads, such as connected television and audio, once they have exhausted options on Meta and Google.
Companies allocating $25 million to $50 million annually to advertising can justify the investment in our services. Advertisers exclusively on Meta and Google typically operate below this threshold.
While platforms like Meta and Google offer a relatively safer environment due to stringent monitoring, partnering with knowledgeable agencies equipped to combat fraud remains the optimal approach.
Bandholz: How can interested parties reach out to you for assistance?
Sonne: For inquiries about our services, individuals can visit our website at Daypart.ai. I can also be contacted through X and LinkedIn.
