Transcripts For BBCNEWS World Business Report 20170320

And World Business report. The rise and rise of fake views. As more advertising dollars are spent on Line Companies are being warned to make sure they get what they pay for. And two of indias largest Telecoms Firms, Vodafone India and Idea Cellular, are merging to become indias Largest Telecoms operator. Welcome to World Business report. A very warm a very warm welcome. Im sally bundock. Also in the programme, the president of uber says he is leaving the company after less than six months in the job. Well have the details in a moment. But first one thing that all businesses have in common, regardless of what they do, is advertising. Making yourself known brings in customers and their cash. But advertising can also be a sizeable investment, and whatever size of business you have, you dont want to be ripped off. Thats bound to be discussed at one of the industrys big annual events starting in london in the next few hours. So, how much is spent on advertising . Worldwide, across all forms of media, its estimated to be but where companies chose to spend their ad dollars is changing. About 38 went on traditional tv adverts last year with 36 on digital platforms. This year, on line ads are set to become the biggest slice of the advertising pie. But the platforms which host the ads, like google and facebook, this comes in the form of bots and software that tricks websites into thinking more people have actually seen an ad, which means advertisers are overcharged for it. And this problem is growing, and some of the leading players in the industry are now warning that 20 of all digital ad spending is in danger of being wasted on fraud. Heres what sir martin sorrell, chief executive of the worlds biggest ad agency, wpp, told us about some of these issues earlier this month. The measurement of traditional media is the efficient. But the measurement of new media is virtually non existent. Pretty efficient. We have to expand the Measurement Capability to make sure we are getting the proper returns. Other issues like fake news, which know a fair bit about on the bbc you know a fair bit about on the bbc in terms of Subject Matter on brand safety a nd in terms of Subject Matter on brand safety and media placement on fraud, in terms of Subject Matter on brand sa of i and media placement on fraud, in terms of Subject Matter on brand sa of those nedia placement on fraud, in terms of Subject Matter on brand sa of those issues ilacement on fraud, in terms of Subject Matter on brand sa of those issues are ement on fraud, in terms of Subject Matter on brand sa of those issues are also t on fraud, all of those issues are also important as well. With me is ross barnes, chief Technology Officer at m six and partnership. 45; gigs 1555512 . 5455515 £55; is wasted on ad fraud. You will be one of the big speakers. This is a key subject of discussion. Explained how this can go on when people are paying more than they need to for advertising. Explain. This is a significant problem the industry is facing. The moment to industry is facing at the moment to be with the rising digital ad spend, we are seeing be with the rising digital ad spend, we are seeing more ways be with the rising digital ad spend, we are seeing more ways in which fraudsters are mimicking human behaviour. A huge t fraudsters are mimicking human behaviour. A huge qgge of fraudsters are mimicking human behaviour. A huge t of on behaviour. A huge proportion of on line ad spend is being wasted on fa ke line ad spend is being wasted on fake views, add fraud, as the industry calls it. Ad fraud. Fake views, add fraud, as the industry calls it. Ad fraud. How do you make sure your money is being well spent on google or whatever rather than on robots clicking with algorithms . It is not easy to solve. There is no silver bullet. Are getting more and more fraudsters are getting more and more sophisticated. We recommend to our clients they use ad verification software. Before the ad appears, it makes sure it is a human and it is an appropriate website and the ad is actually seeing on the page at all. We say that all of our clients should use this software because i 296 should use this software because i 2 of your ad spend of your budget could be saved from fraud. But the big sites you want to be on like google, they will not i happy with google, they will not be happy with Third Party Software used. Is Third Party Software being used. Is that correct . Facebook and google are unique. They are platforms and consume a large amount of digital ad spend. Because of the value of the data they create, they are what is called wall gardens. And within those wall gardens, they reluctant to open up to Third Party Verification supplies. So on some platforms we are not able to make sure their content is appropriate. sure their content is appropriatelj dont sure their content is appropriate. dont know if you are a luxury holiday resort, you could appear next to something that is not in line with your company at all. Exactly. That was talked about in the uk press this week, some advertisers were appealing against inappropriate content. Content that, certainly, as a brand, you do not wa nt to certainly, as a brand, you do not want to appear next to. This week, google and facebook among other companies will face questions about what they are doing to combat this brand safety issues bite it is so complicated, isnt it . Honestly. Thank you so much for coming in. We will see what comes out of that. Let us move on will see what comes out of that. Let us move on to a story breaking in the last hour. In the last hour, two of indias largest Telecoms Firms, Vodafone India and Idea Cellular, announced they are merging. The Newjoint Entity will become indias Largest Telecoms operator. Shares in idea rose by over 14 on the news. Recently, rival Telecoms Firm Bharti Airtel announced that it is buying norway based telenor. Going through a Consolidation Phase . The bbcs Sameer Hashmi reports from mumbai. Two decades ago, most people in india had to come to places like this to make a phone call. And now, india has the second largest mobile lfiiia his; the smfiazlgrgnzt maul market lfiiia e55 5 5 mfiazlgr§ 5t mat market in 555 555 £55 5 mfi5zl5r5 5t m515 market in the e55 555 555 5555551555; m515 market in the world, with e55 555 555 55 5fi5zl5r555t m515 market in the world, with over phone market in the world. With over billion users. And 55 are 7 H Phone Market in the world. With over billion users. And 55 are a w 7 h a billion users. And there are a Dozen Companies operating Mobile Phones in this highly competitive market. But Vodafone India and Idea Cellular merging, the industry is expected. Go through a major expected to go through a major shakeup in india. With nearly 400 million customers, the new company will become one of the Largest Telecom operators in the world. This is the second major deal in indias the communications market. Cutthroat competition has severely damaged the profitability of these phones. Jio has crossed the 100 million customer mark. Last year, jio, which was initially allowing Mobile Phones for free, has changed the market 555 l555 555555555 55. 5 75|55 further. This is left companies to look for ways to combat this. Jio is Offering Data at dirt cheap prices, forcing others to it as well. Forcing others to offer it as well. We will adopt digitisation and fig; life 5 we will adopt digitisation and j 7 ; life faster we will adopt digitisation and 7 7 77 life faster than we will adopt digitisation and 2 life faster than anyone j we will adopt digitisation and 2 life faster than anyone else digital life faster than anyone else in the world. This optimism extends from the fact that india is one of the fastest to the communication growing markets in the world. They will switch to it completely by 2020. And there is more consumption of data because of this. Many people are using far less Efficient Technology. As we get more and more used to Efficient Technology, all the factors will g 5 together the factors will combine together with a low cost smartphone using Efficient Technology at their fingertips. And, again, price points, which will points, which affordable, will expand. India is a tough market for india telecommunication firms. It will be customers and not Service Providers which will remain the winners in this competitive market. In other news uber president jeffjones is leaving the company after less than six months. A source at the taxi booking app told the bbc the resignation was completely unexpected. They said mrjones was frustrated the company was hiring a new Chief Operating Officer and that he was not among the candidates. Because of ubers continued struggle with issues around sexism and sexual harassment. Greece is still waiting to secure a provisional agreement with creditors for another instalment of the countrys 92 billion bailout. So far, there have been many encouraging noises from the imf in germany. Without an agreement, greece could run out of money as early as july. A greece could run out of money as early asjuly. A quick look at the market. A brand new trading week up up in asia. Japan up in asia. Japan is close opening up in asia. Japan is close for a holiday. The price of oil is going the last deal. I will see you 0011. Lower still. In a rare move, mps from four committees across transport, health and the environment are coming together to look at the issue of air pollution. Theyll scrutinise whether government plans aimed at tackling the problem go far enough, as andy moore explains. This bus looks clean enough, but Technology Shows that it is very polluted. Much of this pollution comes from Nitrogen Dioxide and tiny particles. Diesel vehicles once thought to be part of the solution are thought to be part of the solution am now seen thought to be part of the solution fig now seen fis thought to be part of the solution am now seen as the worst offenders. Are now seen as the worst offenders. The problem is one that cuts across many branches of government. The House Of Commons believes it is best to use resources to analyse what is being done. A total of four sessions will be held jointly by these efififiieessi will be held jointly by these we. The will be held jointly by these gpfifigppp the Environmental Audit committees. The Environmental Audit committee, the Environment Food and Rural Affairs committee, health and transport. Theirjob will be to look at plans to tackle urban air pollution. Last 555m2 . The high pollution. Last december, the High Court Said the government must come up court said the government must come up with a plan to tackle air fisiiiftisfi up with a plan to tackle air gamma |n up with a plan to tackle air 5. 5. In the up with a plan to tackle air 7 in the cities fi up with a plan to tackle air m in the cities by up with a plan to tackle air m in the cities by the 23rd pollution in the cities by the 23rd of april. A full plan must be in place by the end ofjuly. Last month, the European Union said 16 parts of the uk were breaching equality directives. It is giving the government to come up with a scheme to defeat the problem or face multimillion ound crime. A multi Million Pound crime. Find. Air quality. They recently announced a further £200 million in funding to tackle the problem. Andy fundingrte tacklerthe prehlem; andy bbc news. Coming up at 6am on breakfast, we will have all the days news, business, and sport. There will be more on line Home Care Companies say they are in crisis because they cannot recruit enough staff to meet growing demand. Panorama suggest nearly one in four vinnies are at risk of insolvency. Suggests. This is bbc world news. Survivors of so called Islamic State are facing a shortage of food in western mosul, as iraqi troops 55fitufi55 555 . 555. 55 to retake the city. As many as half a Million People have no running water, electricity or access to medical supplies. The investigation into possible russian interference in the us president ial election is gathering pace today, with much anticipated evidence from fbi Directorjames Comey and admiralmike rogers, director of the National Security agency. The Social Democrats in germany have elected the former European Parliament president Martin Schulz as party leader. Hell now face chancellor Angela Merkel in septembers election. Brazils president has tried to reassure Foreign Countries that the countrys meat is safe. It follows allegations that meat packing plants had been selling rotten produce for years. Now it is time for our news review. We begin with the china daily and us Secretary Of State Rex Tillerson who is seen on the front meeting president xijinping. Xi called for improving high level exchanges and proper handling of sensitive issues between china and the united states. The International New york times says the fbi chief and the head of the National Security agency will both appear today before the House Intelligence Committee in washington, which holding its first public hearing 5 ,5. J,,. J, . 7575. 55 5 555 interference in last years american president ial election. The ft reportsfion comments made , suez. Jean Louis Chaussade said water will become more valuable than oil as rising demand from people and agriculture puts pressure on supplies. World famous astrophysicist professor Steven Hawking says the five most powerful people in britain are now all women. Naming among others uk Prime Minister theresa may and scotlands first Minster Nicola sturgeon, he said there had been a Seismic Shift in Gender Equality in the uk. And finally, tributes all over the world have been paid to chuck berry, one of the true greats of rock and roll. He died at the age of 90. Joining us is rolake akinkugbe, whos head of energy and Natural Resources at fbn capital. Good morning, rolake. Lovely to see you. Rex tillerson had, before arriving in