Recent research by NewsGuard has found more than 100 brands have been running programmatic advertisements on low-quality content farm websites. With more and more of these websites popping up daily, is the industry blindly moving towards a serious problem?

The advertising world is demanding to say the least. Understanding consumer behavior, ensuring brand safety, and delivering ads that convert – it’s a complicated landscape. 

Nevertheless, whether we like it or not, with the third-party cookie ban fast approaching and the arrival of widespread AI, it’s on the cusp of huge change.

With any form of transformation comes a renewed focus on strategy. This can be tough to agree on internally but, in the long run, can lead to drastic changes in the way a brand reaches its customers.

Recent research from misinformation specialist NewsGuard, however, has unveiled a troubling new trend.

What research did NewsGuard carry out?

A recent investigation was conducted by NewsGuard, a trusted source for assessing the credibility of news and information. The aim of the project was to uncover the new risk of funding AI-generated content farms through programmatic advertising.

Dubbed by NewsGuard as “unreliable artificial intelligence-generated news and information websites (UAINs),” these platforms feature thousands of articles generated entirely by AI, with little or no human oversight and no care for content quality.

Between May and June 2023, NewsGuard discovered that 393 programmatic ads from 141 brands appeared on 55 UAIN sites. Perhaps more shockingly, more than 90% of these were served by Google Ads.

Given that programmatic advertising runs autonomously through the use of algorithms and advanced auction processes, there is little to no verification process on the websites where brands’ ads are served.

The NewsGuard Misinformation Monitor discovered that these companies, which included some Fortune 500 businesses, were unknowingly wasting money promoting themselves on low-quality, AI-generated news and information sites through programmatic advertising.

One website highlighted by NewsGuard generated over 1,200 AI-authored articles daily, showing the scale of reckless, automated content production.

All of this adds up to make one thing clear: It’s more important than ever for brands to remain vigilant when looking to advertise online.

For the advertising industry specifically, UAINs highlight the need for a unified effort to redefine industry standards, uphold the principles of ethical advertising, and improve overall transparency.

Coalitions such as the Content Authenticity Initiative and associations like the IAB are doing all they can to help curb the proliferation of fake websites. However, the dependence of programmatic advertising on AI means instances such as the above will continue to happen. 

AI-generated content’s threat to revenue and trust

Content farms and UAINs are characterized by their minimal human oversight and the publication of articles primarily composed by AI bots. 

Sometimes these websites are obvious but brands can often overlook the impact of UAINs on their metrics, leading to skewed data that will ultimately impact strategic decision-making and success rates.

These fake websites have become a breeding ground for misinformation and poor-quality content, casting a dark shadow over the digital advertising ecosystem. 

The revenue generated by these ads supports sites that have zero editorial oversight and publish error-ridden content generated by AI responses.

Furthermore, where the revenue goes is another issue altogether, with risks around supporting scammers and other bad actors.

The continuous struggle to manage brand safety

Despite a brand’s best intentions, the programmatic approach can lead to several brand safety issues.

For instance, many of the brands cited in NewsGuard’s research are likely to be unknowingly advertising on UAINs that contradict their commitment to quality and authenticity.

While advertisers often maintain exclusion lists to avoid placement on websites that may compromise their brand, the surge in UAINs has clearly outpaced the maintenance of these lists. 

This mismatch allows brands to inadvertently support sites that lack credibility and risk their reputation as well as waste valuable ad money.

Metrics dilemma

While UAINs may generate high volumes of content to attract ad revenue, their lack of authenticity results in dead weight and lost money for advertisers. 

These sites artificially inflate view counts without delivering meaningful engagement or conversions. This means that the metrics advertisers rely on to gauge success become compromised, which leads to an inaccurate representation of campaign effectiveness. 

Already the industry is facing difficulties when it comes to attention measurement and the prevalence of UAINs highlights the importance of distinguishing between passive views and active, relevant engagement. 

Advertisers are increasingly advocating for more transparent and accurate metrics that reflect not just the number of impressions but also the types of interactions that lead to conversions. 

The rise of UAINs has exposed the vulnerabilities of blindly running programmatic advertising. It’s vital for the industry to evolve and prioritize ethical advertising practices that align with brand values. 

A human-verified ecosystem for advertising safely

Here at SmartFrame, we work with a network of reputable publishers that are verified firsthand by our team. This network is designed to protect brand integrity and ensure the best value for money per thousand impressions (CPM).

Ads placed through the SmartFrame platform enjoy premium placement and are seamlessly integrated into the content by overlaying the images themselves. This approach avoids cluttering websites with ads to enhance the user experience and effectiveness of campaigns. 

Moreover, SmartFrame only collaborates with established publishers to ensure that images and ads will be seen within authentic content, avoiding the pitfalls of UAINs.

However, with or without SmartFrame, it’s worth noting that brands should look to partner specifically with reputable publishers to transform the effectiveness of campaigns, as well as to champion authenticity and credible content.

Want to learn more? Read the report in full on NewsGuard’s website.

 

 

Related articles

Brand safety: Everything you need to know about brand safety and suitability

Brand protection: The problems and solutions around keeping your brand safe online

Are AI tools a threat to creativity?