In the crazy world of Connected TV (CTV) advertising, the latest saga to unfold is one that reads like a thriller, yet it’s all too real for the industry veterans and the brands whose dollars fuel the digital ecosystem.
The protagonist of this tale is not a hero but a nefarious bot named CycloneBot, an adversary with a capacity for deception so vast it could fill novels. However, unlike fiction, the stakes here involve real dollars—millions of them, to be exact.
DoubleVerify (“DV”) has thrown the gauntlet down on CycloneBot, exposing one of the most audacious CTV ad fraud schemes to date. With AI as its weapon and a vigilant eye, DV has laid bare the workings of a bot capable of generating up to 250 million fabricated ad requests daily, while masquerading as 1.5 million devices.
The financial toll? A staggering potential loss of up to $7.5 million monthly for advertisers venturing unprotected into the tempest.
At the heart of CycloneBot’s modus operandi is its uncanny ability to mimic the viewing habits of genuine human beings, extending CTV sessions in a manner that would make any observer believe they were witnessing true engagement. This chicanery enables CycloneBot to blend seamlessly with legitimate traffic, making detection a formidable challenge.
Indeed, the devices it impersonates churn out traffic at quadruple the rate of previous schemes, marking a new epoch in the sophistication of digital ad fraud.
Frank Dekker, a luminary in the realms of telecom and media investment, provides a sobering perspective on the implications of such fraud. “Ad fraud is a significant ESG and SDI risk for CTV,” he asserts, underscoring the systemic underestimation of this peril, particularly by entities such as The Trade Desk. Dekker’s critique extends beyond mere recognition of the problem; he highlights a pervasive lack of nuanced understanding and the absence of a long-term outlook within the investment community—both of which he deems critical for navigating the treacherous waters of CTV advertising.
In the digital advertising world, where numbers are the gospel and data is the deity, Dr. Augustine Fou stands out not just as a believer but as a high priest. With a keen eye for the absurd and a penchant for the truth, Fou approaches the labyrinth of Connected TV (CTV) ad fraud with a mix of skepticism and relish. “As you know, I love data,” he declares, almost as if he’s about to share a secret that could either make you laugh or cry, depending on how much you’ve invested in CTV advertising.
Fou, a scholar and a stalwart in the fight against digital deceit, lends his voice to the discourse with a data-driven exposé that lays bare the magnitude of the challenge. Fou’s analysis reveals a staggering volume of bid requests—6.72 trillion over a 30-day period in the U.S. alone, a significant portion of which originates from devices with no app or domain association.
When narrowed down to CTV, the numbers remain stupefying, with 2.3 trillion requests emanating from so-called set-top boxes and connected TVs.
Dr. Fou’s deep dive into the data uncovers the staggering scale of bid requests for a single bundle ID associated with SamsungTV, highlighting the implausibility of such volumes in the context of real human viewing patterns. His findings cast a long shadow over the CTV advertising ecosystem, challenging stakeholders to question the veracity of what’s presented as genuine engagement.
Fou’s analysis doesn’t just stop at revealing the staggering volume of bid requests; he puts it into a perspective that’s both relatable and utterly jaw-dropping. Consider this: in 2022, the U.S. was home to an estimated 111 million connected TVs. Now, if you do the math, as Fou undoubtedly has, you’re looking at about 740 CTV bid requests per connected TV per day. Break that down further, considering most of us binge-watch our favorite series or movies between dinner and the witching hour of 1 a.m., and you’re staring down the barrel of more than 100 CTV bid requests per hour, per TV. “Let me know if you think that’s plausible, based on your own CTV/streaming habits,” Fou challenges, a hint of incredulity in his tone. And just for kicks, remember that these numbers exclude the behemoths of streaming—YouTube, Netflix, Amazon Prime. The numbers, as Fou wryly observes, are “bonkers,” especially when you layer on the fact that fraudsters were churning out 12 billion faked CTV bid requests daily using nothing more than some clever JavaScript in ad slots. It’s a scenario that borders on the absurd, a testament to the wild west nature of CTV advertising, where the line between reality and fiction is as thin as the screen you’re watching it on.
The saga of CycloneBot, as dissected by DoubleVerify and illuminated by experts like Dekker and Fou, serves as a clarion call to the industry. It underscores not only the evolving complexity of ad fraud schemes but also the imperative for collective vigilance and innovation in combatting them. As the narrative unfolds, it becomes evident that the battle against digital deception is perennial, demanding a fusion of technological acumen, strategic foresight, and an unyielding commitment to integrity.
In this ongoing war against ad fraud, tales of entities like CycloneBot are but chapters in a much larger story—one that the digital advertising industry must continue to write with both caution and courage. The revelations brought forth by DV and Roku, enriched by the insights of Dekker and Fou, are not merely narratives of detection and prevention; they are blueprints for a future where the digital ecosystem thrives, anchored in transparency, security, and trust.
