Click Fraud and Its Impact on Ad Campaigns

Click fraud hits advertisers everywhere it can hurt. It bites your budget as you are paying for fraudulent clicks on your PPC ads.

What is Click Fraud?

Consider you are running a Pay-per-Click (PPC) campaign for a mobile app. PPC follows a simple payment model where you are charged for every click on the ad. What if some bots start clicking your ads instead of real users?

As you are paying for every click, fraudulent clicks on ads by the bots will be chargeable. Click fraud is among the earliest ad fraud that’s been denting the digital advertising industry. It relies on scripts to reload the web pages on which your PPC ads are running and clicks on them.

Competitors may inflict click fraud attacks on your ad campaigns as it depletes your return on ad spend and even lower the ad scores. There have been some instances where the publishers have been blamed for click fraud in the lure of higher earning.

Impact of Click Fraud on Ad Campaigns

Click fraud hits advertisers everywhere it can hurt. It bites your budget as you are paying for fraudulent clicks. Being non-human clicks, they bring no revenue for the advertisers and lower the campaign ROI.

Since you can run PPC ads across different platforms and publishers, the click fraud in the campaign can impact their attribution reports differently. Because of which, you may end up paying the media source even when they haven’t delivered the legitimate (or rewarding) results. Unaware of it, it is very likely you will invest more money with such media sources, leading to circular losses.

Meanwhile, networks and publishers also take the beating because of click fraud as it belittles their efforts. If the advertiser is concerned with conversion and ROI metrics of the campaign, they will notice that fraud-infected publisher have lower performance. Therefore, it is important to deploy a strategy that can tackle click fraud not only for the advertisers or networks but also for the publishers. This being a zero-sum game, the fraudulent source ends up eating earning of the honest one.

Source: This post is an excerpt from the blog 'Click Fraud Prevention – Identify & Reduce Bot Traffic in Your ...'.

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