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China Tech & Business Decoded

vol.056:China's Billion-Dollar Ad Fraud

21 Dec 2025

Description

The source, an excerpt from the e-newsletter "56まぐまぐネット広告詐欺.txt," provides an analysis of the evolving landscape of internet advertising, particularly focusing on China's digital market. The text contrasts the privacy concerns and tracking issues prevalent in Western markets, such as those addressed by Apple's anti-tracking measures and GDPR, with the different challenges faced in China, where the primary issue is rampant net ad fraud costing billions. The author details the methods of ad fraud, including click farms and attribution fraud, and then introduces new, more effective advertising models being pioneered by Bilibili and TikTok (ByteDance), which treat advertising as engaging content to be enjoyed by users rather than an intrusive nuisance. These new models, particularly ByteDance’s use of machine learning to deliver highly relevant content-ads, are shown to be significantly more efficient than traditional approaches.

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