In the wake of the coronavirus pandemic, there’s been an acceleration in online purchasing. As more folks have started searching for items to have delivered, it’s increased the value of using pay per click ads.
As businesses expand their online reach, fraudsters see opportunities for exploitation. For example, 25% of digital marketing now is attacked by ad fraud, with click fraud being one of the most prevalent methods. Let’s look at 5 ways click fraud impacts businesses.
What Are the Consequences of Click Fraud for Your Business?
From generating leads for home loans to selling funny t-shirts, click fraud can affect your pay per click ads. What are the consequences of click fraud for your business?
How much money is lost to click fraud each year? According to Juniper Research, Click Spam and Click Injection accounts for nearly 60% of the $100 billion in ad fraud projected for 2023. These fraudulent clicks drain ad campaign budgets, preventing future sales and hurting profit margins.
Daily Limit Reached
Businesses that use paid search channels often set a daily limit on their PPC ad campaigns to prevent blowing their budget prematurely. Click fraud sends fake clicks that cause the limit to be reached quickly. Then, competitor ads take the place of the original company’s ads, cutting into sales.
Another way click fraud impacts businesses is dragging conversion rates down to unacceptable levels. At a certain point, an ad campaign can’t justify its cost if it doesn’t convert visitors into sales. This type of click fraud can make it hard to gain traction or meet sales quotas.
One of the key benefits of pay per click advertising is that it’s measurable in numerous ways. The data a business can gather about its customer base is simply unparalleled. But when these ad campaigns are struck by click fraud, the data becomes poisoned with inaccuracies. This makes it hard to target audiences correctly with future PPC ad campaigns.
Inefficient Future Ad Spend
Although click fraud wastes money on current campaigns, even more harm comes on later campaigns. When audiences aren’t properly targeted and feedback on engagement with creatives isn’t accurate, it’s difficult to optimize future PPC ads for success.
How to Combat Click Fraud
Combatting click fraud isn’t easy, as fraudsters have tons of different motivations for committing ad fraud. Of course, starting with close monitoring of campaign metrics for signs of fraud can help. But most marketing professionals have other things to do throughout the day than watch their PPC campaigns.
With the aid of a click fraud detection solution like Anura, businesses can detect and prevent their PPC campaigns from being tampered with. Using machine learning, the visitors that click on your ads are analyzed on hundreds of data points. This ensures your clicks are genuine, boosting the performance of every ad campaign.
Stop Losing Money to Click Fraud
Anura provides powerful click fraud detection. With our superior integration, you’ll be able to detect and prevent click fraud in real time, saving you thousands in wasted ad spend. Get started with your free trial today.