If you thought that ad fraud happened on classical digital platforms and would never impact TV, it may be time to think again.

Integral Ad Science (IAS), a vendor of digital ad verification software services, has this year beta-tested a new tool aiming to apply similar processes to connected TV ads. Now the new system is gearing up for a full launch.

Earlier this year, IAS began working with Verizon to detect fraudulent ads across eight connected TV ad suppliers including CBS Interactive and NBCUniversal.

“We’ve since opened up that beta to more advertisers here in the US for the remainder of the year, and then start of Q1 of 2020 we’ll be opening up for a full product both with advertisers and then also opening up the supply to programmatic,” says IAS CEO Lisa Utzschneider in this video interview with Beet.TV.

What is connected TV ad fraud?

In ad fraud, fraudsters trick advertisers in to buying inventory that does not really exist. That tends especially to happen when demand for new ad inventory out-strips supply, is exacerbated due to a lack of standardization in the various delivery mechanisms and apps for OTT services, and is potentially more lucrative due to the higher rates commanded for TV exposure.

“It’s similar to what we’ve seen in the digital landscape over the past 10 years that IAS has been around,” says IAS’ CEO. “Where the consumers go, marketers go, and where the marketers go, the money goes –  that’s where the fraudsters are.

“Given the enormous opportunity ahead of us with connected TV, when you open up the supply, and especially when the supply gets open up via programmatic, there will be fraud.

“A good example of that is device spoofing where fraudsters come and they mimic as a device just to sort of mess around with both the consumer, marketer and publishers.”

In a Q3 2018 study, Pixalate found that 19% of worldwide OTT impressions were invalid

This video is part of a series of interviews conducted during Advertising Week New York, 2019.  This series is co-production of Beet.TV and Advertising Week.   The series is sponsored by Roundel, a Target company.  Please see more videos from Advertising Week right here