Breaking down IVT: Ad annoyance or malicious traffic?

Elon Musk may have said that X, formerly Twitter, will no longer be troubled by bots, but recent data suggests that this is far from the case. Indeed, bots continue to proliferate the digital ecosystem leading marketers to have an unwanted familiarity with IVT (Invalid Traffic). 

In the digital advertising ecosystem, fake or non-human traffic is referred to as "Invalid Traffic". IVT can result in wasted advertising spend and decreased campaign efficacy, which is a major drawback for advertisers, publishers, and ad networks. According to Cheq, 27% of organic and direct traffic consists of bots and fake users, and approximately $42 billion of ad revenue is lost due to IVT each year.

“It may be difficult for marketers to establish fruitful connections with their readers and sponsors if they experience invalid traffic (IVT). Readers and advertisers are, after all, the ones who aid the bottom line by bringing in money from the content. Since one of the most common forms of IVT is ad fraud, the two are frequently conflated,” says Swati Nathani, Co- Founder and CBO, Team Pumpkin.

IVT is divided into General Invalid Traffic (GIVT) and Sophisticated Invalid Traffic (SIVT). GIVT includes unintentional, non-malicious activities like accidental clicks or routine bot traffic, which are relatively easy to identify. SIVT, on the other hand, involves more deceptive practices such as ad injections or hijacked devices and requires advanced detection methods.

“Ad fraud, a subset of invalid traffic, is intentionally malicious, aiming to generate fake ad engagements for financial gain using methods like malware or sophisticated bots. While ad fraud is always deliberate and profit-driven, forming a part of invalid traffic, not all invalid traffic is fraudulent. Some instances of invalid traffic, especially in GIVT, occur without malicious intent. The key difference between invalid traffic and ad fraud lies in the intent and methodology: ad fraud is inherently deceptive and financially motivated, whereas invalid traffic can be either intentional or accidental and not necessarily profit-driven,” notes Karan Anand, SVP – Strategy, Interactive Avenues (the digital arm of IPG Mediabrands India).

IVT significantly impacts online advertising by skewing performance metrics and data, leading to inflated impressions and engagement figures. This distortion results in wasted ad spend, as advertisers pay for non-genuine interactions, and complicates the analysis of campaign effectiveness and audience behaviour.

“Consequently, IVT can misguide strategic decisions and potentially harm the reputation of websites, damaging user experience. To combat IVT, continuous monitoring and analysis are essential to detect anomalies. Implementing advanced fraud detection tools that utilize AI and machine learning helps in identifying and filtering IVT,” adds Anand.

Indeed, as bots, powered by AI, increase and continue to fool measurement tools, evaluating and vetting traffic sources, collaborating with ad networks with robust IVT prevention measures, adhering to industry standards, and obtaining relevant certifications are crucial steps.

Anand adds, “Fostering transparency and communication across the advertising chain, including publishers and ad networks, is key to a collaborative effort against IVT. These strategies collectively help in mitigating IVT's impact, leading to more accurate advertising performance assessments and efficient budget utilization.”

Mitesh Kothari, Co-founder and Chief Creative Officer, White Rivers Media says it’s also important to note not all IVT is malicious. “For example, some IVT may be caused by search engine crawlers or other legitimate bots. But there are ways to fight back / mitigate its impact. These solutions use a variety of techniques to identify invalid traffic, such as analyzing IP addresses, user behaviour, and device characteristics. When placing their ads, it is also important to choose reputable ad networks and avoid paid traffic services as they are more likely to generate invalid traffic.”