Ad fraud is a serious threat to digital marketing. Today, it affects a significant part of the advertising budget, especially in the form of fake impressions, bot traffic, and fake applications. The losses from this phenomenon continue to grow, and in 2024, advertisers will lose about $100 billion due to fraud…
This is due to increasingly advanced techniques, including the use of AI and sophisticated bots, which now account for up to 43% of web traffic.
Ad fraud thrives on several types of actors, each with their own goals. Most often, these are competitors trying to drain each other’s budgets, as well as specialized groups and bot farms that create massive fake activity to make money. Low-traffic web publishers can also artificially inflate their numbers to attract advertising revenue. Finally, cybercriminals and some “gray” companies use advertising schemes to launder money and collect data, creating the appearance of legitimate activity.
Such fraudulent schemes seriously damage advertising america cell phone number list budgets and reduce marketing effectiveness, forcing businesses to overpay for false clicks and impressions.
The main types of advertising fraud and their consequences
Fake shows
14-22% of all clicks on search ads can be fraudulent, depending on the region and the specifics of the advertising campaign. The data confirms the research of ClickCease and the TrafficGuard report on clicks in NEXD search engines. This means that an advertiser can lose up to a third of the budget on paid clicks and impressions that do not provide real audience engagement.
Fake clicks
Approximately 38-43% of internet traffic is generated by bots, of which up to 24% are so-called “bad bots” — used for ad fraud and other abuses. This data is supported by reports from NEXD and TrafficGuard, as well as research from Business of Apps on the rise of bot activity across regions and platforms.
Attribution theft and substitution
In this case, the attackers receive income for clicks or purchases made through honest advertising channels, which leads to data distortion and additional losses on the payment of clicks on affiliate links.
Advertising budgets are burning: how to protect yourself from fraud?
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