Speaking in a conference, a Capital Management founder Sahm Adrangi explains how they built their business around short activism. They began their research publishing in 2010 and have been operating for nine years managing around 180 million dollars. They focus mostly on United States names especially those in complex sectors. They share their research by posting on their website, twitter and sometimes doing a live presentation of one of their shorts.
Mr. Sahm Adrangi outlines that they always try to incorporate social aspects into their short activism and that is why he likes the topic of ad fraud. In most cases, they are always publishing names of stock prices that should be lower than their current trading and technology companies that use ad fraud on their platforms to benefit themselves. Ad fraud is simply the practice of representing online advertisement fraudulently to generate revenue for example through data events and clicks conversions.
Ad fraud happens in many ways. Sahm Adrangi explains that advertisement display ads could be put in a fake site that is only viewed by computers and not receiving any actual human traffic. Such an ad is only clicked by bots designed by hackers and not actual humans that could be potential customers. The hackers, therefore, end up pocketing the advertisement budget. This hurts the online advertising industry badly. Ad fraud discourages online advertisement users from spending on online ads, and therefore many genuine publishers are denied a chance for legitimate revenue.
Sahm Adrangi believes that sometimes various ad companies benefit from ad fraud and are therefore reluctant to develop ways of preventing it. Click fraud is another form of ad fraud whereby automated bots and script enter the clicks instead of real human beings clicking on the business ads. Mr. Sahm Adrangi explains further that ad fraud also encompasses fake sites with no content which attracts huge amounts of traffic and then fake ads. The ads are put up by bad actors to generate revenue through fake impressions.