Companies could be unknowingly wasting their time advertising online due to planned promotions ending up on low-quality websites, according to research from Peel Hunt Ltd (AIM:PEEL).
As the use of AI widens, more “made for advertising” websites are being found displaying ads from blue-chip brands.
These websites typically include plagiarised news stories, click-bait headlines and unofficial health claims, the investment broker said.
Brands looking to create media campaigns often use programmatic advertising to distribute promotions across digital spaces.
Businesses will use this technology to reach a wide selection of areas on the internet.
However, 15% of ads placed on these AI-generated pages and 23% end up on bad websites, according to research from the Association of National Advertisers.
“This situation has raised concerns not only about the effectiveness of digital ad budgets but also about brand safety,” said analysts at Peel Hunt.
Last week, Google was found in violation of its promises to companies wishing to distribute video adverts.
A report from Adalytics accused the tech giant of misleading clients into thinking adverts would end up on high-level YouTube videos when they instead were distributed to low-quality websites.
In the UK, a new way to measure advertising across all media channels is being developed by the Incorporated Society of British Advertisers (ISBA).
The solution, called ‘Origin’, attempts to measure, and compare data from linear TV, digital video, and digital display.
It has been backed by companies such as EE and L’Oreal and has raised £32mln so far.