Why marketers think they don't need an antifraud solution

Editorial Team
Editorial Team September 10, 2020 11:27:30 AM CEST

According to Juniper Research, $42 billion is the estimated budget that digital advertisers and agencies lost to fraudulent activities via online, in-app and mobile advertising in 2019. So while incorporating a layer of protection against digital fraud would seem like an obvious choice, most marketing teams still hesitate to make the investment. 

As a company specialized in digital fraud protection, we’ve had thousands of conversations about ad fraud with all sorts of businesses advertising online. Hence, we would like to use this article to address the most common reasons why marketing teams decline using ad fraud solutions. As we strongly believe an ad fraud solution is no longer a want, it’s a need. 


  1. They think ad fraud doesn't affect their industry

Some marketers trust their traffic channels and think ad fraud doesn’t affect their funnels. However, the performance marketing industry is based on impressions, clicks, and engagements such as leads, which can all be corrupted by ad fraud. That marketers don’t see the red flags, doesn’t mean fraud is not lurking in the background. 


Related Post: The top 5 affiliate fraud indicators 


Ad fraud is not easy to identify. An unexpected improvement in campaign performance is not always good news. An increase in traffic with no conversions doesn’t benefit anyone. A surge in signups leading to higher complaint rates drains business capacity.  


  1. Their managers or clients are satisfied


Some marketers simply don’t want to stir the pot. So when their managers or clients are happy with the amount of leads, clicks or acquisitions being delivered, they tend to sit back and relax. Unfortunately, the amount of leads is not equivalent to qualitative business opportunities. 

Just because a signup campaign seems to be performing well at present, doesn’t mean real users are submitting their contact information. In our experiences, sophisticated bots and human click farms are often behind well performing affiliate channels. Which leads to businesses experiencing short-term gains followed by long-term pains in the form of chargebacks or legal issues.  


Related Post: Inside ad fraud, everything marketers need to know    


  1. They haven’t taken into consideration the long term impact on ROI

Fraud detection as a means to boost revenue has become part of the digital growth strategy. And ROI, or return on investment, is a crucial part of assessing the success of fraud operations. The broad term “fraud management” takes into account metrics like approval rates, complaint rates, and chargebacks. But accurately calculating ROI goes well beyond these numbers. Customer lifetime value (CLTV) should also be considered to assess traffic source quality, for example. 

Accurately calculating the ROI of a fraud detection tool depends on the access and evaluation of the important parameters for each type of business. To learn how Cookies Digital, one of Europe’s fastest growing companies, uses Opticks antifraud solutions to halt fraudulent ad spend and achieve a staggering annual ROI of 1,200%, follow the link below.


Click here to learn how an advertising agency used an ad fraud solution to achieve an annual ROI of 1200% 


  1. They work with in-house antifraud systems

Ad fraud hits big and small businesses alike, and in-house efforts have their pros and cons. The pros are that the system is tailored to the organization and can adapt according to its needs. The cons include extensive use of resources such as time, highly specialized employees, and budget. Using an in-house system can potentially not be as effective in tracking and blocking highly sophisticated fraud, as the recent Uber case reveals. 


To conclude

Marketers will step up their game when they realize an  antifraud solution doesn’t only protect their campaigns from ad fraud but in fact boosts their success rates by allowing only the highest quality clicks, leads and conversions through. And businesses would enormously benefit from higher returns on investment in the long run. To hear more about the benefits and any enquiries, don’t hesitate to get in touch with our expert team.  

Topics: Ad Fraud Blog