Combating mobile advertising fraud is a top challenge for majority for enterprise marketers

Mobile is fast becoming an important channel for enterprise marketers with 70% of them planning to increase their mobile ad budgets over the coming year. However, just 19% of them have a systematic fraud prevention system in place. That’s according to a survey by Forrester Consulting, commissioned by AppsFlyer, among 250 marketers whose companies are spending at least $1 million on digital advertising.

Among the top objectives for mobile advertising are the growth of direct revenue and sales for 88% of marketers, followed by promotion of a company app (84%) and lead generation (83%).

However, many of the respondents admitted that they failed to measure and optimize their ad campaigns effectively for mobile. Lack of visibility is still a core issue plaguing the industry. 40% of respondents said that they were finding the lack of visibility a challenge in defining audiences, whilst 33% noted a lack of inventory transparency to be a problem.

Mobile fraud is another dominant theme and one that is regularly detected and discussed in the industry. It is highlighted as one of the top challenges marketers are facing nowadays. 32% of respondents identify fraud as a top challenge that stifles their progress in mobile advertising.

For 48% of marketers, tackling mobile ad fraud is a high priority whilst 44% consider it a critical priority. Meanwhile just 8% see it as a low priority.

The study also found that 43% of marketing executives consider fraud to have increased over the past 12 months, whilst 34% estimate that half of their mobile ad budgets are subjected to ad fraud both in-app and mobile web.

Forrester acknowledges that the issue will require meticulous attention from marketers. The report states:

Marketers will have to develop an obsessive scrutiny over the allocation and performance of ad dollars in a mobile advertising industry plagued by fraud. However, as mobile ad budgets grow, so too will the willingness of fraudsters to grow and capitalize on the market, which is why it’s mission critical for marketers to combat mobile fraud rigorously and systemically – those that succeed will have a competitive advantage over the rest of the market.

Indeed, just 19% of respondents said that they had the tools in place to monitor and even prevent ad fraud. Meanwhile, most marketers continue to rely on legacy tools as well as ad verification vendors.

45% admit that the shortcoming in detecting ad fraud is largely due to their lack of understanding of all types of ad fraud. Another 38% said that they lacked an understanding of existing solutions.

The survey further demonstrated that many marketers lacked an understanding of even the simplest types of advertising fraud.

In order to continue to be effective in mobile advertising, marketers need to address the shortage of knowledge that exists across marketing teams when it comes to mobile advertising fraud. Education will be key in finding the right solutions. In addition, independent mobile-first tools may offer a good approach to help detect fraud.

For more information on ad fraud, AppsFlyer has previously published an informative report:

The Marketer’s Guide to Mobile Fraud: Everything You Need to Know