Sahm Andrangi’s Thoughts on Ad Fraud
Sahm Adrangi founded Kerrisdale Capital nine years ago and they handle approximately 180 million dollars. Kerssidale is in the business of short selling. They began this in 2010 when they started posting their research. They decided to move in this direction because of all of the short sales that were occurring in fake Chinese businesses. This is also why Sahm Adrangi has steered Kerrsidale towards mostly US businesses.
Kerssidale Capital does research on these short sales and offers their findings through many different mediums such as on their website, through Seeking Alpha, on their Twitter page, and on programs on CNBC or Bloomberg. Kerrsisdale also has an email subscription service and those who are interested in the research can receive it through email after subscribing.
Recently, Kerrsidale Capital and Sahm Adrangi have been working on short sales and ad fraud. Ad fraud is defined as fake news that is represented through online advertisement that generates fake clicks and traffics for companies to generate revenue. This means that the advertisement that companies are paying websites to display are not being shown to actual customers. The only traffic that visits these sites and sees the advertisements that are being paid for are other computers and bots. These fake websites do not contain any content; they are filled with advertisements that no one sees.
The more and more this occurs, the less and less companies will be willing to pay for ads, and this hurts the publishers and others who are actually displaying ads on their websites. There are also instances when real customers are visiting websites and clicking and viewing videos and ads and fraud is still happening. Behind these videos and ads are more videos and ads that are not being seen by anyone.
Sahm Adrangi believes this is a real problem, but it can be corrected. He says that the clicks and views that advertisers pay for can be looked at more carefully. By dissecting who, or what, is watching the videos and adds or clicking on them, there can be transparency in the world of online content and media.