The 39th Biannual IPP Symposium

Competition & Fraud in Online Advertising Markets

Steve Weis, Google

Advertising fraud, particularly "click fraud," is a growing concern to the online advertising industry. This talk will present an economic model of the online advertising market, with a focus on the effect of ad fraud. The central question is whether advertising networks have an incentive to combat fraud. The main outcome of the model presented in this talk is to answer this question in the affirmative. The economic model predicts that ad networks have an interest in fighting fraud and can obtain a competitive advantage with better filtering technology.