Online advertising is one of the biggest businesses in the world. Thanks to technology, a large percentage of people are now always online across various devices. Whether it’s on individual or corporate websites or on social media, the digital platform is best for advertising. You can reach more people and increase your conversions. This isn’t news. It is also probably why click fraud has become a serious problem when it comes to online advertising.
Ad fraud for pay per click is one of the most common types of advertisement fraud on the internet. It can easily destroy your business if you don’t pay attention. For Chief Marketing Officers, the primary goal of any marketing strategy is to minimize the cost of your marketing budget while maximizing your profits. You want to allocate your funds to the channel or campaign that best achieves this goal. Unfortunately, advertisement fraud undermines this goal by:
Driving Up Costs
Click fraud is perpetuated by two groups of people: publishers and competitors. For publishers, the goal is rather obvious: to increase their income. This is achieved by hiring people whose work is to click on your ad. This gives the illusion that a lot of traffic is being directed to your site. Furthermore, since you pay per click, your marketing costs are through the roof. On the other hand, competitors will do the same thing but with absolutely no intention of generating income. Their goal is to inflate your costs so as to reduce your profits. The result is that they do better than you or even run your business into the ground.
Yielding No Conversions
The second way that pay per click ad fraud undermines your goal is by yielding no conversions. Sure, you have people directed to your site but they’re not viable leads. They have no interest in what you have to offer. Their job is to click on the ad and nothing more. If you don’t have lead generation and/ or conversions, this means that your investment isn’t yielding returns.
Additionally, this could be bad for your SEO. If people come to your site and leave within seconds or minutes of being there, it negatively affects your SEO rankings.
Promoting Ineffective Marketing Strategies
When you come up with a marketing strategy and incorporate pay per click advertising, you must have a goal in mind. Most marketing strategies are made up of various approaches. This is part of why efficiency in marketing is important. Every marketer wants to appropriately apportion the available funds to the various channels and campaigns. Ad fraud creates the illusion that the pay per click campaign is working because of the high traffic. You might end up increasing the budget for the campaign not knowing that it doesn’t actually yield conversions. This is why you need to have a marketing attribution model. It will help you to assign credit to every channel or campaign for every conversion. This way, you are still able to have an effective marketing strategy for your business.
Click fraud had at one time threatened to cripple pay per click advertising. However, Google found a way to unearth it. This has helped to reduce the occurrences of this type of fraud. Websites that promote these practices have suffered the consequences through penalization that most cannot recover from. Additionally, even when such fraud occurs, the advertiser is safeguarded and not charged. This saves you all the money you would have used to pay for fraudulent advertising activity.
It’s best to educate yourself on advertisement fraud in the digital sphere. This will equip you so that you can avoid falling prey. It will also help to have a clear and effective marketing strategy whose end goal is to minimize cost and increase profits.
p.s.: Image Source: welivesecurity.com, https://www.welivesecurity.com/wp-content/uploads/2015/07/ad_fraud_640-623×4101.jpg