As advertising technology advances, so do the ways that ad campaigns are targeted for fraud. Today, more than 25% of the actions taken on digital ads are fraudulent, and that number is on the rise. With billions of advertising dollars being wasted every year, there’s too much at stake to ignore the issue. Businesses are now using technology to prevent ad fraud before it even happens. In this article, we’ll cover the impact of ad fraud on digital marketing so you can effectively combat it.
How Does Ad Fraud Impact Advertising Campaigns?
There are numerous direct and indirect consequences of ad fraud on advertising campaigns of all sizes. Let’s cover each next.
Damage to Brand Reputation
For starters, ad fraud can cause damage to a brand’s reputation. If a company becomes known for contacting people without their consent, that’s never good. When leads and customer emails are acquired through fraudulent traffic, there’s a major risk to the image of the brand.
Higher Customer Acquisition Cost (CAC)
Media buyers are ever-aware of their customer acquisition cost, or CAC. While the initial cost of a click or impression is an important metric, it’s really the sum of these prospect interactions that matter most. When you’re paying for multiple interactions with fraudulent traffic, it drives up the overall CAC of ad campaigns.
Reduced Return on Ad Spend (ROAS)
Another metric that’s central to digital marketing performance is return on ad spend, or ROAS. If 25% or more of the interactions with digital ads are fraudulent, that can cause the ROAS of an ad campaign to take a massive dive. This is one measurement that can make it crystal-clear how important combatting ad fraud is.
Wasted Sales Team Resources
Finally, the impact of ad fraud reaches beyond the border of the digital advertising world as well. When sales teams receive leads filled with stolen personal information or fake phone numbers, their precious time is wasted. Not only will their sales conversions drop, but so will their morale. No salesperson likes getting low-quality leads, so keeping them out of the lead flow is essential.
What Can Be Done?
While the threats of ad fraud are significant, the good news is, there are solutions to reduce and prevent it from impacting your business. What are some of the methods you can implement?
Demand Industry Transparency From Ad Vendors
One way advertisers can combat ad fraud and its impacts on their business is by working to improve transparency within the industry. This starts with reaching out to the ad vendors that enable the challenges of ad fraud detection. Improved education for advertisers about the threats of ad fraud is another much-needed measure.
Put A Fraud Detection Solution In Place
Policy changes always take time, and you have ads to run now. To combat ad fraud today, the best solution is ad fraud detection from Anura. Through intense analysis of the traffic to your digital ads, Anura can spot 200-300% more ad fraud than the competition. Avoid false positives and missed fraud traffic that drain your ad spend by integrating Anura’s ad fraud detection solution.
Guard Your Advertising Campaigns Against Ad Fraud
Ad fraud is a serious problem that isn’t going away any time soon. Fortunately, businesses can prepare themselves to continually fight against it.
Anura provides a powerful solution for the many challenges faced by companies affected by ad fraud. Our technology doesn’t just detect ad fraud, it empowers you to take action in real-time. Start your free trial today.