Investment Opportunities in Fraud Mitigation and Programmatic Ad Tech: Navigating the CTV Advertising Ecosystem's Rapid Growth and Risks

The connected TV (CTV) advertising ecosystem has emerged as a cornerstone of modern digital marketing, driven by shifting consumer preferences toward streaming platforms and the proliferation of smart devices. However, this rapid growth—from $30 billion in 2023 to over $35 billion in 2024 [1]—has been shadowed by escalating fraud risks, with non-human traffic accounting for nearly half of all web traffic by 2025 [2]. For investors, the intersection of CTV’s explosive potential and the urgent need for fraud mitigation presents a compelling yet complex opportunity.

Market Growth and Fraud Challenges

The CTV advertising market’s ascent is underpinned by technological advancements and a $1,496.2 billion AdTech industry projected to grow at a 14.5% CAGR through 2030 [3]. Yet, this expansion has coincided with a surge in sophisticated fraud schemes. In 2023 alone, $84 billion—22% of global online ad spend—was lost to bot-driven traffic and synthetic identities [4]. Fraudulent activities now include fake CTV devices and manipulated viewability metrics, eroding trust in campaign performance data [5].

Programmatic Ad Tech as a Solution

Programmatic ad tech has become a critical defense against these threats, offering real-time fraud detection and scalable targeting. Companies like DoubleVerify have pioneered AI-driven solutions, reporting $657 million in revenue in 2024 after acquiring Rockerbox to enhance attribution capabilities [6]. Similarly, El Toro’s IP-based targeting technology ensures ads reach verified human audiences by delivering content directly to household IP addresses, aligning ad spend with measurable business outcomes [7].

The Trade Desk has further solidified its leadership by launching Ventura, a smart TV OS, and integrating with retail media networks to refine targeting [8]. Meanwhile, partnerships like Amazon and Roku’s 2025 collaboration at Cannes Lions signal a paradigm shift in CTV’s competitive landscape [9]. These innovations underscore programmatic ad tech’s role in restoring transparency and ROI for advertisers.

Emerging Investment Opportunities

Beyond established players, emerging startups are addressing niche gaps in the CTV fraud mitigation space. Protected Media and HUMAN Security (WhiteOps) leverage machine learning to detect invalid traffic (IVT) in CTV environments, while GeoEdge and Fraudlogix offer real-time scanning solutions [10]. Attekmi’s integration of tools like Pixalate and Forensiq highlights the industry’s move toward pre-bid fraud detection, a critical advantage in preventing wasted ad spend [11].

Investors should also consider the global expansion of CTV. In the Middle East and Africa, the programmatic advertising market is projected to grow at a 7.98% CAGR through 2030, driven by mobile-first consumers and shoppable overlays in streaming content [12]. Startups that prioritize privacy-compliant strategies and first-party data integration—such as telco-led identity graph initiatives in Africa—are well-positioned to capitalize on this growth [13].

Risks and Strategic Considerations

Despite the promise, risks persist. Fraudsters are increasingly deploying AI to mimic human behavior, challenging traditional detection methods [14]. Regulatory shifts, such as GDPR and CCPA, also demand robust privacy compliance, complicating data-driven targeting. Additionally, infrastructure gaps in emerging markets—such as patchy 5G coverage in Africa—limit the reach of high-bandwidth ad formats [15].

For startups, securing investment hinges on demonstrating measurable ROI and seamless integration with existing ad tech stacks. As noted in a 2025 investor guide, startups must prove outcomes through verified conversions and sales lift while navigating fragmented supply chains [16].

Conclusion

The CTV advertising ecosystem represents a $35+ billion opportunity, but its success hinges on mitigating fraud through programmatic innovation. Investors who prioritize companies with advanced AI capabilities, global scalability, and privacy-first strategies will be best positioned to navigate this dynamic landscape. As the AdTech market surges toward $1.5 trillion by 2030, the ability to balance growth with fraud resilience will define the next era of digital advertising.

Source:
[1] Connected TV advertising in the U.S. - statistics & facts [https://www.statista.com/topics/8075/ctv-advertising-in-the-us/]
[2] The Case of Advertising Fraud, Non-Human Traffic [https://eltoro.com/case-advertising-fraud-non-human-traffic-viewability-need-know/]
[3] AdTech Market Size, Share, Industry, Growth, Latest Trends [https://www.marketsandmarkets.com/Market-Reports/adtech-market-135513139.html]
[4] The Case of Advertising Fraud, Non-Human Traffic [https://eltoro.com/case-advertising-fraud-non-human-traffic-viewability-need-know/]
[5] Ad Fraud Detection Integration [https://attekmi.com/ad-fraud-detection]
[6] DV Stockholder/Shareholder Letter (DoubleVerify Holdings, Inc.) [https://www.stockholderletter.com/dv/]
[7] The Case of Advertising Fraud, Non-Human Traffic [https://eltoro.com/case-advertising-fraud-non-human-traffic-viewability-need-know/]
[8] Blog [https://wmediaresearch.com/blog/]
[9] Blog [https://wmediaresearch.com/blog/]
[10] Ad Fraud Detection Integration [https://attekmi.com/ad-fraud-detection]
[11] Ad Fraud Detection Integration [https://attekmi.com/ad-fraud-detection]
[12] Middle East And Africa Programmatic Advertising Market Size and Share [https://www.mordorintelligence.com/industry-reports/middle-east-and-africa-programmatic-advertising-market]
[13] Middle East And Africa Programmatic Advertising Market Size and Share [https://www.mordorintelligence.com/industry-reports/middle-east-and-africa-programmatic-advertising-market]
[14] Programmatic Advertising Forecast and Ad Tech Trends [https://www.emarketer.com/content/programmatic-advertising-forecast-and-ad-tech-trends-h1-2025]
[15] Middle East And Africa Programmatic Advertising Market Size and Share [https://www.mordorintelligence.com/industry-reports/middle-east-and-africa-programmatic-advertising-market]
[16] How to Fund Your Advertising Startup: Investor Guide 2025 [https://visible.vc/blog/top-advertising-investors/]