Ad fraud in online advertising space is increasing rampantly. It’s an alarming issue that needs to be addressed. With rapid digital growth across the globe world has now become a smartphone first economy. New age brands are getting more brand adoption by consumers. Hence more demand for mobile/ App growth.

 

Types of Ad fraud

 

To generate more revenue affiliates use unfair means of driving conversions such as –

1. Bots : Invalid traffic or non human traffic is termed as bots. They are designed to operate like humans. Bots & crawlers are most commonly used for these activities. Example – recording 100 registrations with same email.

2. Click Injection : One of the most common forms of fraud. Usually happens with last click attribution models. A false click is injected by fraudster while the App download attribution request is sent to respective MMP. Since attribution goes to the source which has resulted in last click, the actual attribution is stolen and reflected in the conversion of fraudster.

3. Click Spamming/Organic hijack : Also known as organics poaching, click spam is a type of advertising fraud that happens when a fraudster executes clicks for users who haven’t made them. Unless preventative measures are in place, this allows fraudsters to claim credit for fake clicks.

4. SDK Spoofing : This is a bot based fraud which happens when user has downloaded compromised App/software which enables fraudster to simulated ad click, install, and other engagement signals to an attribution provider on behalf of another app.

5. Ad Masking : In this type of fraud, the fraudster can mask Geo, IPs, impressions etc. Your ad would be receiving impression request but would be served on a blank page. Similarly fraudster can switch IPs & geo to give fake installs.

Why ad fraud arises?

Every marketer needs higher ROIs in controlled spends. But we seldom forget that there is a justified cost to everything. Affiliate marketing becomes a crucial channel for customer acquisition for marketeers, beyond Google and Facebook. It comes as a saviour for them, as marketeers pay the affiliate partner on end conversion.  (Sale, subscription, transaction, deposit etc)

But is it that easy to drive end funnel conversion at scale? Many reasons give publishers right to practice fraudulent means knowingly or unknowingly.

1. Negligence by marketeer : To achieve end numbers advertisers sometimes overlook the minor mischievous activities which later brings big trouble.

2. No transparency : Advertisers tend to not question the affiliate that where his ad is actually getting published. Since publishers get paid on end conversion, their core objective becomes to drive numbers.

3. Un-justified pricing : To reduce their CAC, advertisers tend to give lower prices to affiliates. Which reduces the scope of reaching to quality users. Most advertisers ends up getting incentivised one time users. Hence it becomes responsibility of advertiser to value the media correctly.

   

To avoid fraud advertisers need to be increasingly smart to avoid wasting their ad budgets on placements, impressions, and clicks that lack any value. Also work with trusted partners that could give transparency.

Join hands with Tapcrunch to fight Ad fraud in digital ecosystem and drive clean and meaningful users for your business!