According to a report in The Wall Street Journal (WSJ), Google is providing refunds to some advertisers that used DoubleClick Bid Manager in conjunction with ads that were placed on sites with fraudulent or invalid traffic:
In the past few weeks, Google has informed hundreds of marketers and ad agency partners about the issue with invalid traffic, known in the industry as “ad fraud.” The ads were bought using the company’s DoubleClick Bid Manager.
Google’s refunds amount to only a fraction of the total ad spending served to invalid traffic, which has left some advertising executives unsatisfied, the people familiar with the situation said.
Google has offered to repay its “platform fee,” which ad buyers said typically ranges from about 7% to 10% of the total ad buy.
DoubleClick represents that it offers “industry-leading fraud protection.” While that may be accurate, traffic fraud is a growing problem on programmatic exchanges.
A recent report from The, m/SIX and Adloox estimated that invalid traffic and fraud would waste $16.4 billion in ad budgets this year globally.