On December 3,
2015, I posted a blog about a new
Interactive Advertising Bureau (IAB) study, which found that
advertising fraud, piracy websites, and “malvertising” costs the U.S. digital
marketing, advertising, and media industry $8.2 billion annually in potential
revenue. The study also specifically found that illegal content costs advertising
companies and digital marketing firms $2.4 billion annually in potential
revenue.
This week, on
December 8, the Trustworthy Accountability Group (TAG) announced a list of major
advertisers who have pledged to require their advertising partners to take
aggressive steps to help fight the $2.4 billion annual loss. Some of the big
names include Allstate, American Express, Comcast, and Walmart. (See my February 2015 blog on TAG’s Brand
Integrity Program Against Piracy.)
Also, on December
9, the Digital Citizens Alliance (DCA) released a new report entitled “Digital Bait.” The report
found that one out of every three piracy websites contains malware. Additionally,
consumers are 28 times more likely to receive malware from a website with
illegal content than from a website with licensed content providers. The report
also found that 45 percent of malware is delivered by “drive-by downloads,” which
invisibly download malware onto a user’s computer without the user clicking on
anything. Lastly, the report found that advertising revenue and sales of user
information on piracy websites amounted to $70 million in revenue in 2015.
If it was not
already clear, the IAB and DCA reports show that advertising fraud, piracy, and
malware-related advertising are serious problems costing companies billions of
dollars in potential revenue. However, it is encouraging to see voluntary
initiatives from TAG and major advertisers that stand up against websites which
facilitate illegal content.
It is necessary to
diminish ad-supported piracy and advertising fraud to help ensure that content
providers, artists, innovators, and marketers can earn a return on their
creative works – thereby incentivizing more innovation, investment, and
economic growth.