Let’s talk about the three words no one in OTT wants to say out loud: ad fraud exists.
Yes, even if your vendor uses DoubleVerify. Even if IAS gave you a shiny report. Even if your dashboard says “1 million impressions” in big, confident letters.
OTT ad fraud is everywhere. And the truth is, a lot of platforms don’t want you looking too closely at what’s really going on behind the scenes.
So we’re going to break down the biggest types of OTT ad fraud in plain English, and explain what you can do to avoid wasting your budget on fake views and misleading reports.
First, the Elephant in the Room
📊 Where does that number come from?
While estimates vary depending on methodology, Juniper Research reported that global digital ad fraud losses reached $68 billion in 2022, and are projected to exceed $100 billion annually in the coming years as fraud tactics become more sophisticated [source]. That means even with top-tier verification tools in place, the cracks in the system are still costing advertisers dearly.
Big verification companies like DoubleVerify and IAS are under scrutiny. Lawmakers and analysts are asking hard questions, and for good reason.
Despite these tools being in wide use, ad fraud is still a $100 billion problem. You read that right. Billion.
So if someone tells you their campaigns are bulletproof just because they use third-party verification, it’s worth asking more questions.
Type 1: Invalid Traffic (a.k.a. Fake App Names)
If your report says your ads ran on ESPN, you should be confident they ran on ESPN.
But sometimes, they didn’t.
Invalid traffic, or IVT, happens when apps mislabel themselves in the bid stream. A random horror movie app from nowhere can rename itself as Peacock, and suddenly buyers are snatching up inventory thinking they’re getting premium placements.
It’s the oldest trick in the OTT book. And it works because most buyers don’t look past the surface.
Type 2: Unrendered Ads
Ever seen “1 million impressions” in a report and thought, wow, great job team?
We hate to break it to you, but that number might not mean what you think it does.
Enter render rate. It tells you whether your ad actually loaded and appeared on screen. Not just whether it was served into a system. We rarely see this stat in OTT reports. Which is wild, because it’s one of the most important metrics there is.
Without render rate data, you could be paying for impressions that never even showed up.
Type 3: Device Spoofing
There are thousands of devices in the market. TVs, phones, tablets, laptops, all with different models, operating systems, and years.
Testing across every device would take an army of interns. But companies have figured out a shortcut.
Server farms can now simulate any device at scale. This is great for testing apps. But it also opens the door for device spoofing in ad fraud.
Fraudsters can make it look like your ad ran on a brand new Roku TV in Austin, when really, it was served to a simulated device in a warehouse somewhere.
If a CPM seems too good to be true, this might be why.
What You Can Actually Do About It
Ad fraud in OTT is more common than most people realize. That doesn’t mean you’re powerless.
Here’s what we recommend:
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Ask your OTT provider about render rate. If they don’t track it, ask why not.
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Look past the app name. Ask how inventory is verified.
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Be skeptical of suspiciously cheap CPMs. Price almost always tells a story.
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Vet your vendors. Don’t be afraid to ask difficult questions. Good partners won’t dodge them.
At Adduro, we’re going to keep calling this stuff out. Not because we like being the loudest voice in the room, but because this industry needs more transparency.
If we want OTT to work better for everyone, it starts with honesty.
Stay tuned, and keep streaming with clarity.
