Fraud Concerns in DOOH

by Amber Larkins, OOH Today

Some argue that fraud has entered the Out-of-Home (OOH) industry with the rise of Digital Out-of-Home (DOOH) and programmatic buys. One significant concern is that with the increasing use of digital platforms and programmatic advertising, there’s a risk that some ads may not actually be displayed as promised. This issue arises particularly in cases where there are no Proof of Performance (PoP) photos to verify the ad.

The Impact of Bad Actors on the Industry

While the majority of the industry operates with integrity, the actions of a few bad actors can make everyone else look bad. There have been instances where individuals have faked ad runs on their networks, tarnishing the industry’s reputation, such as in the case of Outcome Health, a digital place-based media network, whose executives were found guilty of fraud.

Ian Dallimore, Vice President of Digital Growth and Programmatic GM at Lamar, emphasizes the importance of transparency and accountability. “It’s the publisher’s responsibility to make sure that what they are actually saying that they are and they are representing,” Dallimore asserts. He explains that publishers need to ensure their billboards and screens exist where they claim to be, provide real-time play logs, and return PoP within a verified timeframe. The screen’s quality must be up to standard—ensuring legibility and overall presentation.

However, the challenges don’t end with just doing the right thing. Dallimore points out the problem of platforms that continue to sell inventory from sources that haven’t met verification standards. “These platforms continue to sell inventory where they should say, ‘Hey, your inventory is not going to be represented on our platform until you fix these things,’” he suggests. A lack of standards allows substandard inventory to persist, which can erode trust in the entire OOH ecosystem.

Industry Efforts to Combat Fraud

Some of the larger omnichannel Demand-Side Platforms (DSPs) have taken a firm stance on this issue, stating that if a publisher’s inventory isn’t verified, they will blacklist it and refuse to buy it. This approach is intended to protect brands from being associated with unverified, and potentially fraudulent, inventory. Dallimore praises these efforts, noting, “We push for verification, push for transparency, push for everything. And that’s what we as good vendors and publishers, not just Lamar, but others, strive to achieve.”

Verification processes in DOOH go beyond merely confirming whether an ad was played. They also ensure that the ad was displayed in the right environment and that the technical aspects of the screen or platform meet the required standards. Dallimore cites Vistar’s verification as a gold standard in the industry, which confirms that the ad was played, the screen was in the correct location, and that the display environment matched the description.

Setting Standards

“Inventory quality has become a larger focus in recent years, especially with more digital buyers entering the space who lack a grounding in out-of-home. It’s crucial that media owners and systems set the right guidelines for quality out-of-home screens since buyers may not have the knowledge to make accurate judgments,” Ian Brecher, Director of Supply Partnerships at Vistar Media, said.

Vistar Verify launched about a year and a half ago to establish clearer standards for what Vistar Media considers quality out-of-home screens. The goal is to assess inventory transparency for advertisers and provide clarity to media owners, helping them identify areas for improvement and ensuring their networks meet quality standards.

Vistar Media’s 43-question RFI asks about screen ownership, maintenance frequency, and outage response time. The evaluation often requires follow-up for more detailed information. Unlike digital media, where fraud detection is automated, in OOH, it’s a manual process.

“We’ve had positive conversations with media owners, many of whom have acknowledged the importance of these standards. This process has motivated some owners with large networks to take the accuracy of their inventory more seriously,” Brecher said.

Vistar compares Vistar Verified to a hard-to-earn Twitter (X) check. “The check means they have what we believe to be a sound network,” Brecher said. The process helps build trust with buyers by showing attention to quality. Not being verified may mean that a network is still in the audit process. Vistar wants to be transparent with buyers and media owners to ensure everyone is successful.

Vistar Media has audited about 60 media owners. Around 40 are verified. Over 92% of their revenue through their SSP comes from verified partners, showing the growing importance of verification in the industry.

The Importance of Transparency in DOOH

“It’s not our job as partnership people to do this, but we’ve taken on the role and become very knowledgeable,” Brecher said. He added that this has led to closer relationships with media owners, allowing for honest conversations about network quality.

Leslie Lee, VP of Marketing for Vistar Media, believes the company is uniquely positioned to set quality standards for the industry. “We operate on both the buy and sell sides, so we have deep relationships with buyers. This helps us understand what gives them confidence in out-of-home, ideally unlocking more spend in the channel,” Lee said.

Vistar Media strives to be part of a broader industry conversation on quality standards. They aim for transparency and consistency, ensuring accuracy in data from media owners. Verification is not about judging screen value but about ensuring accurate representation of screens, their locations, and the advertiser experience.

Dallimore would take merely setting standards further by making verifications mandatory, “We go through these verification processes for a reason and a purpose. You shouldn’t be given the ability to sell your space if there’s not a timeout box, like, ‘Hey, you have 90 days to fix this’, or whatever the penalty is to not participate.”