Major mainstream brands inadvertently appear on illegal sites across Asia

Major mainstream brands inadvertently appear on illegal sites across Asia
Study reveals that the complex ad ecosystem is not doing enough to protect brand integrity online

Hong Kong, 26th October – Ad networks, major global brands and other players across the online advertising industry need to take more concrete steps to ensure their adverts are not appearing on illegal or criminally exploitative internet sites in Asia, concluded a study released today by Dr. Paul A. Watters of New Zealand’s Massey University. The findings from the study were revealed at an international conference ‘Making Online Advertising Click’ in Hong Kong’s Sheraton hotel today. Hosted by CASBAA, in partnership with the Motion Picture Association and the U.S. Chamber of Commerce, the conference focused on some of the critical legal and safety issues facing the internet today and how brands can inadvertently be associated with crime online.

“Dr. Watters’ study flags some worrying trends in the Asia online advertising landscape,” said John Medeiros, Chief Policy Officer at CASBAA. “Due to the opaque nature of multi-level transactions through online advertising networks, often brands can appear on illegal sites without their knowledge, which not only damages their reputation but brings them perilously close to criminal networks online.”

Speaking through a video to the conference, John Montgomery, Chairman of GroupM Connect North America, commented that online ad risk “really worries our clients, and is eroding confidence in the digital channel. The same people are perpetrating piracy, spreading malware, stealing users’ identities, and launching “botnets” to defraud advertisers through fake clicks. All of what is being discussed is linked. It’s the whole evil thread that runs through the net.”

Medeiros added, “CASBAA hopes that by highlighting how brands are inadvertently exposed to these risks and by sharing best practices from organizations across the world that are taking steps to prevent this, mainstream brands in Asia will have a more comprehensive understanding of how they can protect their integrity online, and governments will understand what they can do to help.”

As part of the conference’s focus on best practices, Det. Chief Supt. David Clark from the City of London Police discussed the formation of the Police Intellectual Property Crime Unit (PIPCU) and its work to develop an Infringing Website List that helps advertisers and agencies differentiate between legal and illegal internet content sites. Illegal sites are placed on the list by the police, which is made available to brands and online advertising networks who have pledged not to advertise on these sites. “It is an ongoing process,” he commented. “With new internet sites springing up all the time, it is a challenge to keep the list of illegal sites current and updated. However, we see this as imperative, not only to protect brands’ integrity, but, more importantly, to prevent the public’s exposure to risk when interacting with illegal sites.”

Chief Inspector Sean Lin from the Hong Kong Police underlined the very real risks to the public from clicking on illegal sites, where ads frequently contain malware, viruses and fraud “phishing” attempts.

The research described by Dr. Paul Watters revealed a selection of online advertising networks that have been placing mainstream ads on the top piracy sites across the region – along with ads for pornography, malware and illegal gambling. His researchers inspected the code of mainstream ads that appeared online to determine which advertising network they came from. The ads came from banks, food suppliers, fashion retailers, oil companies, airlines – a broad range of legitimate industries. “Given the attention to this issue in other parts of the world, we have been surprised to find major Asian advertising networks continuing to place ads on rogue sites,” he commented. “It seems to be a much bigger problem in Asia.”

While there was much discussion about the best way for brands to limit their exposure on illegal internet sites, the conference concluded that an emulation of the UK approach, such as the development of an Asian list of infringing sites, would be a significant first step that would be as useful to advertisers in Asia as it is in Europe.

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Videos for reference

Digital Citizens Alliance video “Good Money Gone Bad” – https://youtu.be/EasHgWfoOck

Internet Advertising Bureau HK video “The Evolution of Online Display Advertising” – http://www.iabuk.net/video/the-evolution-of-online-display-advertising#51eYAfttw9xYGKqz.97

John Montgomery, Chairman of GroupM Connect North America Video Interview – https://youtu.be/1V0lyAsolgU

About CASBAA

CASBAA is the Asia Pacific region’s largest non-profit media association, serving the multi-channel audio-visual content creation and distribution industry. Established in 1991, CASBAA has grown with the industry to include digital multichannel television, content, platforms, advertising, and video delivery. Encompassing some 500 million connections within a footprint across the region, CASBAA works to be the authoritative voice for multichannel TV; promoting even-handed and market-friendly regulation, IP protection and revenue growth for subscription and advertising, while promoting global best practices. For more information, visit www.casbaa.com

—For enquiries, please contact:

Cynthia Wong
Member Relations & Marketing Director
CASBAA
Tel: +852 3929 1711
Email: cynthia@casbaa.com

Amy Chan/ Lucilla Lo
Ogilvy Public Relations
Tel: +852 2884 8421/ +852 2884 8651
Email: amy.chan@ogilvy.com / lucilla.lo@ogilvy.com