A new study, published by mobile ad tech company, AppLift, finds that 34% of mobile programmatic traffic is at risk of fraud, with 12% of traffic rated high risk.
34% of mobile programmatic traffic is at risk of fraud
The “Fighting Mobile Fraud In The Programmatic Era” found that mobile ad campaigns running on both a CPC (Cost per Click) and CPI (Cost per Impression) basis were less prone to ad fraud than CPM (Cost per Thousand) campaigns.
CPI fraud levels were more stable than ads on CPM basis
Fraud levels increased at night, when traffic dropped. This can be attributed to fraudulent bot techniques being unable to account for mobile usage variations in the day.
Given the growing size of the programmatic market (eMarketer predicts that US mobile programmatic media spend will reach $20.45bn by 2017), fraud detection is becoming a core concern for many advertisers.
Tim Koschella, CEO and Co-founder, AppLift, explains:
“The cost of advertising plays a significant role in mobile marketers’ budgets. The rise in fraudulent activity not only undermines the integrity of the advertising industry, but it is extremely costly for advertisers. By benefiting from the fraud detection system such as that offered through our platform DataLift, marketers can better understand their mobile programmatic data, detect fraud prior to bidding, and therefore salvage a significant portion of their ad spend.”
AppLift has also highlighted ways to combat mobile ad fraud. Real-Time-Bidding (RTB) systems, such as AppLift’s Datalift, are one such method, by “listening” to programmatic bid requests without bidding, in order to detect fraudulent patterns prior to any spending. Advancements in ad technology are also making it harder for bots to go undetected. First-party data integration, blacklisting IPs and new pattern integration are recommended steps to help advertisers fight fraud.
Recommended ways to fight fraud
David Sendroff, CEO and Founder of Forensiq, says:
“As the negative impact of fraud continues to affect today’s mobile programmatic world, it has never been more important to utilize available data to better understand fraud risks and develop proactive and preventative measures. By using our tools to identify instances of fraud and to interpret fraud insight at a global level, AppLift was able to detect fraudulent activity across all aspects of the programmatic mobile ecosystem.”
Whilst fraud remains perhaps an unavoidable issue, AppLift’s study confirms that with rising awareness, marketers can implement solutions to halt or avoid it.