Investing in advertisement is a serious thing. Digital media requires much money to spend on. Many advertisers complain that ad fraud influences negatively their budget. At the same time, very few people think over how serious the problem is. We will try to single out the key proofs of the ad fraud. It will help […]
10 key proofs of the ad fraud
Investing in advertisement is a serious thing. Digital media requires much money to spend on. Many advertisers complain that ad fraud influences negatively their budget. At the same time, very few people think over how serious the problem is. We will try to single out the key proofs of the ad fraud. It will help the marketers realize how serious the problem can be.
The ad fraud has become rather widespread recently. This problem is growing rapidly. The sum of the cost connected with the ad fraud is neatly $100 billion dollars a year.
The ad fraud will reach the immense sum
Within a couple of years, the global cost of the ad fraud can reach an immense sum. Experienced marketers state that the sum can be over $100 billion dollars. The main reason here is the absence of the tools to regulate it. Besides, the sphere of e-ad is quite complex and huge.
Another problem here is that companies don’t want to spend extra money to resist this problem. At the same time, extreme loss makes people think over the problem seriously.
According to the statistics, almost half of the traffic belongs to bots. It simply means that it is impossible to work without secure means. In other words, there must be powerful tools that could analyze and protect users from the ad fraud. Big and small companies can’t be sure that the ad is shown to real people.
Important! The ad fraud is the key reason of the profit loss.
Many specialists simply think that such an ad fraud is inevitable. It is a part of an e-business. They consider the loss of profit as a normal thing. In fact, they are wrong. They can’t even imagine how much money they lose because of this trouble.
Again, let’s get down to the statistics. According to it, almost 1/10 of the budget is spent on the efforts to resist the ad fraud. Sometimes, the sums can be calculated by millions of dollars. It turns out that you waste money. You just give the money out to scammers. When they click the ad, it leads to the fact that your business is losing money. Annually, this sum can let you hire some people to work in the office.
Another problem is connected with the fact that sometimes companies have a great number of specialists to resist the risks. They spend much money on it, but the result is often poor.
It is almost impossible to reach the business goals if you spend so much money in vain.
Return on ad spend also suffers
If the company doesn’t have a system that can prevent the ad fraud, it will lead to great money loss. The statistics shows that the destructive effect can be rather serious. The decrease can reach about 11% in such companies.
Pay attention to CAC
Besides, ROAS (Return on ad spend) the ad fraud will lead surely to the increasing of Customer Acquisition Cost. The average percent of it is equal to 9. It can lead to serious consequences for the company. The effectivity of the ad companies will be negatively influenced.
The ad fraud produces a great effect on the exact data. The ad fraud influences all the digital channels and companies’ types. In fact, it turns out that it doesn’t really matter what sphere it includes. It can produce a bad effect on any sphere.
Many clicks are fraud
According to the researchers, many clicks on the Internet are fraud. The scientists have known that in the educational sphere, the number of such clicks can achieve 30%. In the sphere of business, it can reach 16%. There are no companies in the world that can’t be subjected to fraud. Though the sum can be rather small, the great impact on the sphere can be incomparable.
Paid search engines
The next problem deals with the most famous search engines. The problem won’t disappear soon. At the same time, such an approach remains one of the best ways of e-ad. It brings almost half of the profit to the companies. The most famous search engines can get immense sums. For example, one of the companies had a value of about $100 billion dollars. Every year this sum can become more and more.
Scam in Facebook
The company is working hard for enhancing the productivity of the ad. Nevertheless, it is not enough. There are more than 2 billion accounts on Facebook. You can’t even imagine how many of them are used by scammers. About 300 million of them are used as farm clicks. They are considered to be copies of real pages. They use these accounts for clicking the ad. It greatly influences the budget of the company. There is little chance that the ad will reach the real client.
LinkedIn is a victim too
If you read the user’s agreement of the website, you will know that it is forbidden to use bots or other ways of automatic scam systems. Nevertheless, the reviews proofs that click fraud takes place on the platform. The example of it can become the difference in click pricing. For example, the stated sum of the click can be $25, but in fact, it can reach the sum of $40 or even more. Sometimes it happens that there are no leads by a great number of clicks. Though, the number of them can be quite big.
It proves the fact that LinkedIn is not protected by the fraud as any other platform.
Important! The increasing of fraud clicks can be connected with seasons and trends.
The ad fraud is increasing greatly
In the last there months of the year, the tendency of increasing ad frauds is becoming stronger. It is connected with special events tool place every year. They are called sales. Besides, they can be of any kinds. The more profit a company is going to have, the more money they can lose by fraudsters.
Pandemic also produced a great influence on the sphere. It was the time when e-commerce flourished. The fraudsters couldn’t lose such an opportunity. The more ad you produce, the bigger chance of becoming a victim of the ad fraud. It is like a rule of the market.
You can learn all these signs by heart, but they will be useless if you don’t know what to do with them. One needs to take some actions to resist them. You will go on losing money without serious measures. The result will be sad – you will have low conversion and the budget will vanish soon.