A study by ad fraud verification company Cheq finds the amount of money lost will overtake credit card fraud in 2020. They expected digital ad fraud would hit $35 billion this year.
They are not only one who says this. The WFA predict ad fraud will become the biggest market for organised crime by 2025, worth $50 billion. The total cost of ad fraud is in debate, but the general idea is that the digital ad fraud will increase.
The Type of Digital Ad Frauds
Fraud has raged as digital ads developed. Click fraud started in 2000s and hit ad campaigns in until 2010s. Until recently, bots or device farms are among the most prevalent forms of ad fraud.
- Bots/emulators – using the same principle as device farms, except using devices which are not real, making the resetting process easier, though leaving behind a similar suspicious pattern.
- Device farms – the use of real devices to click on ads and install apps, after which they are reset and the process begun again. This creates a suspicious pattern, which can result in ad fraud detection.
However, as Mobile Measurement Partner(MMP) — an independent third-party platform that tracks and analyzes attribution data – was introduced and started to gain popularity, simple frauds like device farm were detected.
Since then, fraudsters started to make a interception manipulate a real user’s data, instead of using bots or device farms. Now the fraud techniques became more complicated and they often act like a real user.
Types of mobile ad fraud include:
- Click spamming (click spamming, big click) — simulating a high number of clicks from real devices in order to get the credit for organic installs then made legitimately. It generally creates long CTIT (click-to-install-times), high CTR (click-through-rate) and low CVR (conversion rate).
- Click injection — a fraudulent app creates fake clicks when app installs are taking place, claiming the attribution for the install. In this case, it generates short CTIT , high impression and low CTR.
- SDK (software development kit) spoofing — fraudsters create a bot within an app which then sends clicks, installs, and engagement to the MMP (mobile measurement partner) which registers them as if they were genuine.
- Pixel stuffing — When fraudsters use pixel stuffing, they’re presenting a larger ad in a space so small it’s undetectable. And even though visitors don’t see it, the fraudsters get credit for the impression. What’s worse, this method can be repeated countless times on a single page
- Cookie stuffing — Cookies are text files that store information about a visitor’s browsing behavior. These cookies can be hijacked and filled with incorrect information about the visitor. It’s common in affiliate marketing, where marketers partner with a brand to advertise their product.
- Domain spoofing — a common form of phishing, occurs when an attacker appears to use a company’s domain to impersonate a company or one of its employees. This can be done by sending emails with false domain names which appear legitimate, or by setting up websites with slightly altered characters that read as correct.
- Display fraud (display impression fraud) — a class of fraud where criminals defraud advertisers and networks running CPM media- usually CPM and Video view campaigns. Common types of display fraud include ads on pop-unders and ad stacking.
- Incent abuse — inducing users to click and install apps. To help hide the high click-to-install conversion rate that results from this, fraudsters might send a high level of fake clicks to help mitigate the suspicion.
- Geo masking — Geoblocking technology that restricts access to Internet content based upon the user’s geographical location.
Warning Signs of Fraud Ads
- Abnormally high CTRs
- Abnormal CTIT Distribution
- Suspicious site lists
Why Fraud Ads are Harmful?
Some say fraud ads lower down the cost. As they expect fraud being priced in, they justify buying digital media, despite knowing there is ad fraud. They’re OK with there being ad fraud, because they got lower prices. But fraud ads not only waste money, but they also dilute the performance analysis. Clicks, CTR, impressions, installs, conversion or any other metrics can be manipulated.
Although the agencies can guarantee the volume, fraud ads are worthless to the marketer. Instead, they are highly lucrative for the fraudster, because the cost is very low(A 2013 study by the Digital Citizens’ Alliance documented just how lucrative ad-supported piracy sites were: 83 – 99% profit margins and millions of dollars)
How to Prevent or Detect Fraud Ads?
Some say accredited social media such as Facebook could be alternatives as they provide custom ads and give you credible results as you can target specific audience. However, occasions happen when a marketer has to reach the audience out from walled garden. In these cases, a marketer should execute ads anyway.
- Use automated detection apps
Sometimes, it is said that fraud ads can be prevented with advertiser diligence. Finding the list of IP addresses who are visiting your website or social media pages, “manually”. However, it’s still overwhelming and impossible job for a marketer to detect fraud; what a waste of human resources! Instead, a marketer can use automated apps to optimize installs, in-app events, or in-app purchases, then one can focus wholly on strategy development itself.
And you can find “Top Ad Fraud Detection Tools (2020)” here(Business of Apps).
- Work with trusted companies
Verify the partners or publishers with a good repute in the field, before making a contract. Take time to find the right partner that has valid traffic pool, and if you found one, ask them to provide the data transparently.
- Use MMPs and deep dive into the traffic
MMP tracks attribution of a campaign or advertising and tells you what ad a user saw or clicked to make a conversion(app installs, app open, registration, subscription, or product purchase). Here are representative MMP services : Singular, AppsFlyer, Branch, Adjust, Kochava
Find and use an MMP (Mobile Measurement Partner) that fits your business model. Look into the data regularly and detect abnormal signals. If you found signals, make adjustment with your attribution setting.
Source
- Brittney Ihrig, 4 Trustworthy Tips for Advertisers to Avoid Ad Fraud, Interceptd, https://interceptd.com/4-trustworthy-tips-for-advertisers-to-avoid-ad-fraud/
- Dr. Augustine Fou, A Marketer’s Guide To Ad Fraud Detection Companies, Forbes, https://www.forbes.com/sites/augustinefou/2020/08/14/my-review-of-ad-fraud-detection-technology-companies/
- Ratko Vidakovic, Ad fraud detection: A guide for marketers, Marketing Land,https://marketingland.com/ad-fraud-detection-guide-marketers-214928
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