Sahm Adrangi is a graduate of Yale University with a degree in the field of economics. In 2009, Mr. Adrangi founded Kerrisdale Capital Management, and he now holds the position of chief investment officer with that firm.
Kerrisdale Capital Managment works in the area of short selling in order to obtain positive economic results for its clients. Currently, Kerrisdale holds over $180 million in assests.
Recently, Sahm Adrangi addressed the Kase Learning Conference in regard to a number of different topics. One of the topics that he discussed in depth was the problem of ad fraud on the internet and other sources. Mr. Adrangi has a background in investigating fraudulent investment activity as he was instrumental in exposing certain companies that were fraudulently identifying themselves as legitimate corporations when in reality they were fake businesses.
During his presentation at the conference, Sahm Adrangi helped the attendees to understand how ad fraud works and why it is such a problem for businesses. One way that ad fraud occurs is when corporate ads are placed on websites that have no real content. The advertisements are never going to be seen by an actual person. The company may believe that their ad is a success because they see statistics that the ad has been viewed. As Sahm Adrangi points out, these are not the types of views that companies really want. This are just views from other computers and from bots. In essence, it is a total waste of advertising dollars.
What Sahm Adrangi states is a troubling aspect of ad fraud is that some ad agencies are part of the problem. They may know that ads are on an illegitimate site, but they don’t do anything about it because they are paid a commission based on the number of clicks that an ad receives.
Sahm Adrangi stresses that if online advertising is not able to address the ongoing problem of fake ads, businesses will become more and more hesitant to invest in this type of advertising. No business wants to just throw their money away. They want to reach actual people.