Liar, Liar, Clicks on Fire!

“Fraud.” A word that is starting to permeate the conversations on blogs and news sites covering the digital advertising industry. As people start to dig deeper into online response rates, more and more startling findings are beginning to emerge.

According to a new study produced by Invesp Consulting, Ad Fraud Accounts for $1 of every $3 Spent! That means a THIRD of advertising spend online is completely wasted. If marketers moved that budget to print, they could turn those wasted ad dollars into qualified, verifiable new leads. The infographic below outlines the online advertising fraud findings in more detail:

ad-fraud
Infographic provided by Invesp Consulting

What can marketers do to combat this?

Our recommendation, of course, is to move a portion of the budget back towards traditional channels where there is a lower risk of fraudulent activity.

However, if you have a large spend online, it is worth the investment to enroll the help of a fraud-prevention service. There are third-party verification firms such as Adloox , Forensiq and Simility that take a deep look at traffic sources to weed out potential fraudulent activity and publishers. This info can help you negotiate refunds from your advertising service providers, as well as prevent further fraudulent activity.

If you’re an SMB, Google Analytics can show you where your referral traffic is coming from, and you can comb through the data to try and evaluate fraud sources to block their traffic or remove them from your advertising plan.

Other recommendations can be found by visiting the  Alliance for Audited Media – a group that focuses on validating the audience of media properties

This is a major issue – expect to read much more about it in weeks to come.

Post by Jess Greiner

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