Business man pointing to transparent board with text Advertising

Ad Fraud Insights

Click Fraud

4 Ways Click Fraud Sabotages Conversion Campaigns

close
    Written by Richard Kahn
    on September 04, 2019

    Pay-per-click (PPC) advertising is widely regarded as one of the best investments a digital marketer can make. Google estimates an average $2 return for every $1 spent on Google Ads, while a recent study found that PPC website visitors are 50% more likely to make a purchase than organic visitors.

    PPC advertising can improve a campaign’s reach, while providing valuable real-time data and analytics allowing spend monitoring, and immediate adjustments in response to the information garnered from advertising clicks.

    However, click fraud – the fraudulent clicking of PPC advertisements to generate charges – is a growing problem for advertisers and marketing professionals. Click fraud can come from many different sources. Sometimes a rival company will hire a click farm, where people click on a competitor’s advertisements all day; in other instances, click fraud is generated automatically by malware such as botnets or ad injections to generate revenue.

    Regardless of the method used, click fraud is serious business. In 2017, an estimated 25% of clicks were determined to be falsified, impacting conversion campaigns in several ways.

    1. Fraudulent charges. The most immediate impact of click fraud is that of falsified charges to the advertiser. Fake charges drain the advertiser’s budget, with significant costs to the business. In fact, one estimates the cost of click fraud at $42 billion in 2019, a number that could grow over $100 billion by 2023.

    2. Distorted data. Click fraud costs companies in more ways than their current budget, however; it also misrepresents marketing data, changing the information that marketers use for data-driven decision making. Clicks without conversions skew conversion data, which affects campaign metrics as well as current and future strategy.

    3. Wasted future spend. Not only does click fraud lose companies money out of their current advertising budget, the fact that data is distorted causes waste in future spend as well, as marketers change campaign strategies in response to counterfeit data.

    4. Daily limit reached. If an advertiser has placed a daily limit on clicks with a PPC ad, click fraud can cause that limit to be reached very quickly, leading to a competitor’s advertisement surfacing in place of the original ad. This could have long-term effects on a company’s customer base.

    There are steps that can be taken to protect your company – and your budget – from click fraud. Because click fraud can take many forms, and is hidden inside of legitimate data, it can be difficult to detect. This is why many companies join forces with an ad fraud detection partner. A company that specializes in ad fraud detection can help to identify and eliminate fraud and separate valid from invalid leads, improving data accuracy and integrity, not to mention current and future marketing spend and strategy.

     

     

    New call-to-action

     

    Speak with an ad fraud expert at Anura and start optimizing resources for effective and secure advertising campaigns. 

    You may also like:

    Click Fraud

    4 Tips to Protect Your Agency and Clients From Click Fraud

    Click fraud is one type of pay per click internet fraud that isn’t slowing down. Fueled by bots or users who click on a ...

    Click Fraud

    What’s Really Happening Down on the Click Farm

    Sure, we’re a little obsessed with bots on this blog. But we definitely keep tabs on another major ad fraud culprit: hum...

    Click Fraud

    The Trouble With Click Fraud on Facebook

    Introduced by Facebook in 2009, the like button quickly became a standard social media feature, with iterations popping ...