According to Forrester, 20 percent of marketers’ budgets has been wasted on fake traffic.
Given the web advertising boom in the current digital age, businesses should try to learn to allocate their marketing dollars wisely. Unfortunately, there’s a big challenge to meeting that goal: Advertising fraud and lackluster email address details are rife in the digital ad space.
Telltale Signs You Have an Ad Fraud Problem
As a business proprietor, digital manager and entrepreneur, you’ve likely already experienced these issues, via paid Instagram ads that didn’t achieve their intended results, or paid services like Google Adwords that had no conversions. In order to avoid such outcomes, it is advisable to ensure that your ads stick out and you are spending your hard earned money on actual results — not bot traffic.
To clarify my Instagram example: Suppose that you paid Instagram to market your post, and, suddenly, you start gaining a couple of followers who, according with their account information, reside in India and have no more than five pictures each on the individual profiles.
I’m no ad-fraud detective, but judging from the looks of this sort of new traffic, you would be smart to question these followers’ validity. While Instagram gains an advantage by earning your ad money, you will need clicks from people more likely to purchase your product — not "followers" from some faraway land with profiles that appear fake.
Those individuals won’t benefit you as a business proprietor.
That is why you need to make certain you’re together with your ads, because they’re a lot of money nowadays: Nearly $170 billion was allocated to digital advertising in 2015, in line with the statistic portal Statista. By 2021, Statistic has predicted, this figure can will rise to a lot more than $330 billion.
The problem is, digital advertising is a constantly changing game. And organizations are struggling to respond effectively. To adjust to the countless changes happening, many companies are preparing to increase their investments in advertising technology. They’ll be concentrating on solutions that are more result-driven and customer-centric. Some tips about what you have to know:
The main newest wave of advertising tech utilizes artificial intelligence (AI). Advertisers are focusing their efforts on AI to supply potential customers with a personalized experience tailored with their wants and needs. AI might help advertisers avoid pushing irrelevant messaging and instead use consumer data to create customized campaigns that are relevant and engaging.
YOU HAVE TO BE Protecting Your Business from Phony Leads
That’s all perfectly. But, as Jon Gillham, founder and CEO of Adbank, recently told C rypto Analyst , “Over 50 percent of online traffic are bots.
"An unknown percentage of digital advertising dollars are wasted on fraudulent traffic and sites," continued Gillham , whose internet marketing platform is rolling out patent-pending blockchain technology for fraud detection.
Specifically, progressively more advertising companies are inflating their results with ad clicks from computer-based bots, rather than real potential consumers. These businesses use bot traffic to exaggerate their data and inflate charges for customers.
Similarly, many websites use those bots and inflate their traffic figures to entice potential advertisers to put ads with them.
That is the website situation. Mobile advertising fraud, meanwhile, in addition has become commonplace, so much in order that many companies expect a particular degree of it, according to a fresh report by Forrester Consulting. Forrester surveyed 250 marketers whose companies spend at least $1 million per month on digital advertising. And, the effect, Forrester reported, was that 69 percent of the marketers said that at least 20 percent of their budgets had been eaten up by fraud on the mobile web.
Basically, 20 percent of their budgets had been wasted on fake traffic.
Not surprisingly problematic landscape, 70 percent of the marketers in the survey said these were actually increasing their budgets for mobile advertising over another 12 months. That is clearly a problem because, as 43 percent of the marketers said, the volume of fraud that they had been put through had increased over the prior 12 months.
Simultaneously, only 19 percent by the date of the survey had implemented systematic fraud prevention programs, and that figure was likely to upsurge in 2018.
So, the overriding question was whether these prevention programs will be enough: Fully 92 percent of the marketers reported that combating mobile fraud will be a high or critical priority of their companies for another 12 months, in 2018.
Forrester wasn’t alone in its doom-and-gloom forecast. A recently available report from the digital general market trends firm Juniper, predicted that advertisers would lose around $19 billion to fraudulent activities in 2018.
The Juniper report, Future Digital Advertising — AI, Ad Fraud & Ad Blocking, 2017-2022, said that that $19 billion exercised to $51 million each day and could be likely to go up, reaching $44 billion by 2022.
The report also specified that advertising fraud would increase because of the insufficient transparency between advertisers and publishers. The big problem, Juniper said, is that publishers aren’t providing campaign result reports, because of the fact that they don’t contain the right tools for these reports. Without more transparency, Juniper warned, successfully tackling fraud will be difficult to perform.
Regardless of the gloomy nature of its report, Juniper did identify some answers to ad fraud — like AI. Through the use of AI to investigate data generated from advertising activities, Juniper said, advertisers could minimize financial losses.
Of course, that subsequently would demand innovation and the development of new ways of fight fraudsters, due to the fact they’ll just adapt their methods and discover various ways to imitate genuine advertising activity. This activity, typically completed by bots, includes simulated clicks, mouse movements and the creation of fake social networking accounts that engage (via likes and comments.).
Juniper’s research indicated that platforms utilizing AI to focus on specific markets would take into account 74 percent of total online and mobile advertising expenditures by 2022.
With AI-powered technology and innovations now focusing in on advertising fraud, some studies predict that that fraud could become less rampant in coming years. According to a written report on ZDNet from the security company White Ops, companies lost $6.5 billion because of ad fraud in 2017. That’s a loss of ten percent from the estimated $7.2 billion fraud took from companies in 2016.
These email address details are probably as a result of increased awareness about deceptive advertising practices and the efforts companies are taking to handle them, using AI and other technological advancements. With an increase of information, companies will know where and how their advertising dollars are being spent and become more likely to achieve the results they need.
4 Ways Advertising Agencies Can Protect Themselves From Click Fraud
Then, hopefully, your company will gain new Instagram followers from Milwaukee, versus Mumbai.