When ad fraud seemed unstoppable, an antidote emerged less than a decade ago to neutralize its nefarious plans and give new hope to publishers and advertisers. The name of that antidote is Ads.txt, a file that fosters a transparent ecosystem within the digital advertising industry.
Although ads.txt is not new, there are still people in the digital advertising space who have doubts about how it works or, worse, are completely unaware of its existence.
What is ads.txt, and why should we know how it works? We’ve prepared this article to provide a comprehensive overview of ads.txt and its adaptation for mobile apps (app-ads.txt), as well as to offer a guide to help you navigate ad fraud unscathed.
What is App-ads.txt?
In 2017, the Interactive Advertising Bureau (IAB Tech) introduced the Authorized Digital Sellers (ads.txt), a file designed to combat ad fraud and allow publishers to see where impressions are bought and resold.
We call it the antifraud antidote because it allows publishers to publicly list the authorized sellers of their inventory, thereby preventing unauthorized sales that lead to fraud.
On the flip side, ad buyers also benefit from ads.txt by validating sellers and ensuring secure transactions. This, as you might expect, minimizes the possibility of engaging in fraudulent practices.
With this evolution in place, the mobile app adaptation called App-ads.txt emerged in 2019, which works almost the same and provides information about authorized sellers and their identifiers.
Each app-ads.txt file is publicly available and can be tracked on supply-side platforms (SSPs) and ad exchanges.
Why Use App-ads.txt? Some Good Reasons
Unless you want to be an easy target for fraud, you’d be better off installing app-ads.txt. However, if you’re reading this article, it’s likely because you’re fed up with ad fraud and want to learn more about how to avoid it.
Let’s start by saying that using this file helps you identify who is authorized to sell your ad inventory, ensuring you integrate quality advertisers with true and relevant content. This is crucial for increasing the value of each publisher’s inventory.
Additionally, this file is useful for buyers to track publisher domains, ensuring transparent and legitimate relationships.
And there’s one last aspect we don’t want to overlook: using app-ads.txt demonstrates the commitment of publishers and advertisers in their fight against fraud, thereby facilitating compliance with in-app advertising industry standards.
How Does Ads.txt Work? A Step-by-Step Guide to IAB’s Gem
Let’s say it’s an easy process. In WordPress, you can add it with a plugin—Ads.txt Manager—just log in, install, and activate the plugin to start working immediately.
After that, you need to go to “Ads.txt Settings” to configure it and insert the essential data your website requires. Be sure to separate each field with a comma to avoid errors.
Then, save changes, and voila, you now have a strong defender against ad fraud for your website.
How App-ads.txt Works
For integration into a mobile app (app-ads.txt), the process is very similar. The main thing is to register your app on the Play Store or App Store (you must include a developer website in the app store listing).
#Step 1:
The first thing you should do is host the file on an accessible web server.
#Step 2:
Now, you need to use a text editor to create the file named “ads.txt.” Ensure the file has the exact name and, of course, the “.txt” extension.
#Step 3:
As you might guess, the file content created by IAB consists of text lines that declare the authorized sellers to sell your app’s ad inventory. But not just any lines—they must follow the format specified by IAB’s ads.txt standard; otherwise, you’ll fail in your attempt.
An example of a line could be this:
example.com, 67589, DIRECT, abcdef67589
In this example line, “example.com” is the domain of the authorized seller, “67589” is the seller ID, “DIRECT” indicates the direct sale method, and “abcdef67589” is the seller’s unique certificate identifier.
#Step 4:
A useful step is to use a File Transfer Protocol (FTP) or a similar tool to transfer files between networked computers.
#Step 5:
The fifth step is to implement the logic in your app to query the file and read its content. Not all logic is the same, as it varies depending on the programming language you use in developing your app.
#Step 6:
Now, what remains is to verify and validate the authorized sellers you provided. At this point, you’re protected against fraud and ensure that legitimate ads are displayed.
Guide to Prevent Ad Fraud with Support from App-ads.txt
Ad fraud is a monster that keeps growing, and it’s everyone’s job to fight it. In 2021 alone—according to Statista data—ad fraud was around $65 billion, and although it seems alarming, by 2023, the figure rose even higher, estimated at $100 billion.
What role does Ads.txt play in this scenario? We’ve already said it, but it doesn’t hurt to repeat it: advertisers can verify sellers and avoid wasting money on fake inventory. And no, it’s not mandatory to use it, but it is a personal duty of every publisher and advertiser to ensure transparent transactions.
So, what should you do to use App-ads.txt correctly, and what other practices can you apply to combat ad fraud? Let’s see:
#1 Familiarize Yourself with Ads.txt
It’s pretty hard to know how to use a weapon if you haven’t handled it before. Therefore, your primary task is to understand the basics of ads.txt and its structure, as well as the meaning of the various seller identifier values.
This will help you know what waters you’re navigating.
#2 Keep Your Ads.txt Updated
It’s not just about hosting the ads.txt file on your website or app and calling it a day; it also requires constant monitoring to ensure that the file is up-to-date or has the capability to update continuously.
This ensures that the ads.txt file stays ahead of any potential “mutations” of ad fraud.
#3 Monitor Ads.txt Data
Make sure that the app-ads.txt file accurately details authorized sellers and that you can make changes to your advertising partnerships based on updates.
Constant monitoring will allow you to remove any references to unauthorized sellers, protecting your revenue and brand reputation.
#4 Pay Attention to Your App’s Traffic
Installing ads.txt isn’t the ultimate solution to defeating ad fraud. It’s like everything else—we can have the perfect tool, but we need to take action. In this case, we need to use analytics tools to check the traffic of our mobile app and get an indication of the inventory quality.
Why? Reviewing our app’s traffic can alert us to any suspicious activity or “inflated” metrics that signify fraud.
#5 Stay Updated on Advertising Industry Trends
When we say ad fraud mutates, we’re not exaggerating. It’s constantly evolving and finding ways to affect ad campaign performance in various ways: fake clicks, fake impressions, ad stacking, and conversion fraud.
Staying updated on the latest industry trends will help you combat it effectively. That’s why we suggest talking to colleagues, attending data security and advertising events, participating in virtual forums, reading articles, and more.
Ads.txt Limitations: A Look at Its Weaknesses
Nothing is perfect in this world, and the ads.txt file is no exception. It’s fantastic and very useful, but it has its limitations that, of course, you should know to understand its scope. Let’s start:
#1 Difficulty Reselling Inventory:
Normally, a provider buys inventory from another platform and sells it on their own, but with this file, this is very difficult to do as publishers are not in contact with resale platforms, which obviously exclude them from their ads.txt file, making it impossible to complete transactions.
#2 Hard to Protect Against Real-Time Ad Fraud:
Although it can provide information about authorized sellers, this file does not have the capacity to detect fraud instantly. This opens gaps for fake ads or inventories to slip through, harming both publishers and advertisers.
#3 Dependency:
The key to the effectiveness of ad fraud protection lies in regular updates. If the publisher simply integrates it and never checks on its operation again, its effectiveness diminishes. In other words, it becomes obsolete.
#4 Not Very Effective Against Bots:
While it prevents domain spoofing and has other important benefits, this file becomes almost ineffective against ad fraud related to paid impressions or pay-per-click (bots).
#5 Possibility of Counterfeits:
There’s a chance that some fraudsters might try to create fake versions of the file or include misleading information to harm publishers and advertisers.
#6 More Effective on Websites:
It’s proven that the IAB file is more effective on websites than on mobile apps, as the latter present challenges in terms of seller verification and authentication.
Is It Worth Using the Ads.txt File?
Don’t let the weaknesses you’ve just read about make you think it’s a bad idea to use the ads.txt file. It’s always a good idea to incorporate tools that help fight ad fraud and other threats.
One good reason is that ads.txt builds trust and credibility between publishers and advertisers. It’s like a seal of quality that says: “Hey, look at me, I don’t engage in fraud; I like to play fair.”
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