Integral Ad Science Holding Corp (NASDAQ:IAS) revealed the 16th Edition of its Media Quality Report (MQR). The report provides insights into the performance and quality of global digital media based on the analysis of billions of international data events between July 1 and December 31, 2021.

What Happened: Globally tightened privacy rules continued to reduce behavioral targeting abilities for media experts. However, ad buyers who adopted sophisticated contextual strategy methods gained an advantage in their bids for ad impressions.

Video viewability levels were the highest of any format worldwide, indicating that video will continue to drive digital media consumption.  

Consumers’ increasing use of digital media also opened up new opportunities for nefarious actors to step up their ad fraud efforts. 

Metrics: In terms of ad fraud performance, rates in Travel & Entertainment in the U.S. were 17% higher than average, following closely behind Auto at 18% higher ad fraud rates.

Viewability performance was robust, with some regional baselines only seeing a marginal dip in levels. In the U.S., most verticals overperformed, including Auto, Retail, Tech & Telco. CPG, in particular, was one of the best performing verticals worldwide, with viewability levels standing 9% higher than the respective regional average.

Tightened privacy rules worldwide continued to lessen behavioral targeting abilities for media experts. Yet, ad buyers who adopted sophisticated contextual strategy methods and transitioned away from traditional media quality assurance practices gained an advantage in their bids for ad impressions that appeared next to suitable content to drive stronger favorability and create a better user experience.

Powered by the growing adoption of sophisticated contextual solutions, worldwide brand risk averaged less than 3% across all environments and formats. Mobile web video remains the most at-risk despite a 5.9 percentage point (pp) year-over-year improvement. 

Why It Matters: The report offered an industry barometer for ad buyers and sellers to benchmark the quality of their campaigns and inventory.

“The 16th Edition of IAS’s Media Quality Report illustrates that digital media quality metrics can differ notably based on vertical or geographic location,” said Tony Marlow, CMO, IAS. 

Price Action: IAS shares closed higher by 4.32% at $15.20 on Tuesday.