Sahm Adrangi, the manager at Kerrisdale Capital, was a speaker at a Manhattan conference dubbed The Art, Pain, and Opportunity of Short Selling. The full-day conference aim was to discuss on the future of short selling. Whitney Tilson, an industry icon organized the conference.
Sahm Adrangi was the first on the stage to give a speech about, ‘Ad Fraud Opportunities’. He was the right person to give this speech after he revealed several fraudulent Chinese stocks. The conference participants found the topic inviting since ad fraud has been increasing and it is affecting the future value of a company.
Sahm Adrangi started off by introducing himself and the company he works for. He then talked about the Chinese stocks fraudulent case and what Ad Fraud is.
Sahm Adrangi used two companies to explain what Ad Fraud is—Kellogg’s and Coca-Cola. He explained that, If ads are placed on a fake website and not getting real human traffic but just computers and later successfully launches on the ad exchange platform. Bots designed by hackers will only click it. The online advertising budget of twenty-five thousand dollars will be paid to them rather than legitimate publishers who have no real users.
If ad fraud persists, it will be a loss to the online advertising buyers and legitimate publishers. Ad companies and intermediaries benefit from ad fraud making them slow in the invention of detecting and preventing the fraud. This happens due to the increasing number of impression and clicks occurring on online ad fraud.
Sahm Adrangi further talked about how 25 percent of the traffic in the exchange is made up of bots and Botan and how it can be beneficial for a short term. He gave brief examples of particular types of ad frauds such as paper clicks online advertising, fake sites, ads tagging and stuffing situations. He said that in all those situation intermediaries benefit as impressions increases click on the ranking and the person who loses at the end of the day is the online advertisement buyer.