Get Comfortable With It—Click Fraud is Here to Stay

Click fraud is bad for advertisers and potential customers alike. It wastes money and therefore indirectly increases the cost of the product or services the online advertisement seeks to sell. However, it has been a problem that will likely continue. It is believed that the online advertising industry will not win the battle against click fraud if “winning” means that click fraud is entirely eradicated. However, there are a few suggestions that can perhaps help a little bit towards limiting the damage and money wasted. For companies that see a large number of click-thrus but few conversions, there is little comfort in the fact that it happens to everyone. According to TradeMob about 40% of mobile clicks are either fraudulent or accidental (22% accidental while 18% were fraudulent). In reaching this conclusion, the study looked at more than 6 million clicks on ten of the top ad networks.

Of the accidental clicks, most can be decreased by thoughtful ad placement or ad verification techniques. The recent popularity of tablets and larger device screen sizes has helped to diminish this part of the problem. On the negative side, fraudsters are also making adjustments as quickly as the mobile space does—where there is money to be made, the fraudsters will adapt quickly.

While it is important to be financially responsible with your online advertising budget, companies and advertisers should avoid the cheapest online advertising option, as it may be more prone to fraudulent behavior and results. Additionally, merely being educated about click fraud can allow you to be realistic about your online advertising efforts—you likely will encounter click fraud issues, but you can employ click fraud prevention technology and watch your campaign carefully. Being observant and educated on this issue can lead to a more successful campaign because you can fully analyze click-through rates, trends, and industry standards when choosing where to spend your advertising dollars and through which vendors.

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Source: http://www.bizreport.com/2012/09/trademob-40-of-mobile-clicks-fraudulent.html

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