Google acquires ad-fraud detection specialist Spider.io

Internet giant Google Inc has acquired London-based Spider.io, a specialist in ad-fraud detection technology, in order to instill confidence among its advertisers that the money they are spending on online ads are reaching real people and the results are based on actual interest and not spurious numbers generated through fake ad clicks.

Google did not disclose the terms of the deal, but said that it plans to integrate Spider.io's service into its own display and video ads.

Spider.io, a three-year start-up, prevents online advertisers from being defrauded by networks of hijacked PCs, tablets and phones that generate billions of fake ad views, according to its website

Spider.io, which was founded in 2010 by Douglas de Jager, came into the limelight in early 2013 when it identified a botnet called Chameleon, which is said to have cost advertisers around $6 million in revenues.

Such botnets create fake clicks and advertisers are charged for these clicks, believing them to genuine.

Google's VP at Display Advertising, Neal Mohan, said that his company has invested in technology and talent to prevent fraud and create greater accountability online and put extensive resources towards ''keeping bad actors out of our ad systems.''

Last year alone, Google had turned down millions of applications from sites looking to join its network because of suspected fraudulent activity.

''Also, by including spider.io's fraud fighting expertise in our products, we can scale our efforts to weed out bad actors and improve the entire digital ecosystem,'' he added.

Mohan said in a blog post, "Advertising helps fund the digital world we love today -- inspiring videos, informative websites, entertaining apps and services that connect us with friends around the world. But this vibrant ecosystem only flourishes if marketers can buy media online with the confidence that their ads are reaching real people, that results they see are based on actual interest. To grow the pie for everyone, we need to take head on the issue of online fraud.

"This is a fight we've taken seriously from the beginning. Over the years, we've invested significantly in the technology and talent to prevent fraud and create greater accountability online. For example, we put extensive resources towards keeping bad actors out of our ad systems -- last year alone, we turned down millions of applications from sites looking to join our network because of suspected fraudulent activity. We also introduced new measurement tools, like MRC-accredited Active View, which lets advertisers buy only those ads that are viewable on a page. Active View offers greater peace of mind to all media buyers, but is especially important for brand marketers who want to know, first and foremost, that their ad has a chance to be seen.

"Today we're announcing our latest investment: we've completed an acquisition of spider.io, a company that has spent the past 3 years building a world-class ad fraud fighting operation.

"Our immediate priority is to include their fraud detection technology in our video and display ads products, where they will complement our existing efforts. Over the long term, our goal is to improve the metrics that advertisers and publishers use to determine the value of digital media and give all parties a clearer, cleaner picture of what campaigns and media are truly delivering strong results. Also, by including spider.io's fraud fighting expertise in our products, we can scale our efforts to weed out bad actors and improve the entire digital ecosystem.

"Of course, this is not an issue we're fighting alone. We applaud industry efforts like the IAB'sTraffic of Good Intent (TOGI) task force, which also play a critical role, as well as major commitments from others in the space. As an industry, we can address this issue and block those who seek to game the system. We can make digital the platform of choice for all marketers -- including brands -- to invest. And we can offer accountable media for all; we're excited to take this big next step."