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Ad-Fraud to grow in all dimensions – Research

A research study powered by mFilterIt shows that average ad-fraud rate is likely to peg between 45-55% as Digital Advertising gets ‘Essentials’ tag in the new normal business setup. 

Market researcher techARC, announced yesterday ‘The Ad-Fraud Report’ revealing some interesting insights about how Digital Advertising is becoming essential element of businesses and the broad level impact of this reorientation on Ad-Fraud. 

Some of the key insights are enumerated below: – 

  • The ad-fraud average for Digitally Mature organisations will continue to be in the range of 25-35%.  However, the absolute numbers will grow as marketers are shifting more and more budget towards Digital Advertising.  This means the money wasted due to ad-fraud will increase. In this case, marketers would require to have a holistic and advanced solution which gives the maximum protection.  Even if an ad-fraud solution gives 1% better results than the competition, it would mean a lot of money. 
  • The New Entrant sectors and organisations have a learning curve journey to aboard.  With almost no internal capabilities and industry benchmarks available, the SIVT percentage, hence ad-fraud rate is going to be much higher, estimated to be 45-50% of the spends.  For these advertisers, it is a must to have an ad-fraud protection solution in the digital tools’ checklist. 
  • The Digital Advertising has become essential for every organisation in the new normal business practices.  As a result of Covid-19 pandemic, marketers have curtailed 30-50% of the overall marketing spends.  However, at the same time, many have doubled the digital spends. 
  • Performance Marketing techniques are taking precedence in the Digital Marketing mix for organisations.  No organisation, even the lesser knowns, are taking the long route of investing in building brand and then expecting to create a pull.  It is an aggressive push strategy at the moment. 
  • Investing in Keyword and Search marketing is becoming more relevant and important. It helps brands, especially the new ones to improve their discoverability as consumers – business and end user, are looking for new products and solutions to cope up with new normal in their respective domains.  Brands must not allow this spending to go unchecked.  There is average 30-35% wastage for some of the digitally mature brands in keyword spends.  This also hurts the organic evolution of brands over digital. 
  • Marketers are moving towards more immersive engagement which means increasing dependence on video advertisements.  Being available on relevant channels and not getting associated with postures which are completely against the brand philosophy is among major concerns of advertisers. 
  • The tools presently used to ‘handle’ ad-fraud are primarily coming from Brand Marketing orientation and prove to be ineffective.  Performance Marketing needs advanced machine learning capabilities which can penetrate deep into the digital advertising ecosystem to follow the trail and decipher what’s fraud and what’s not.  

The report based on mFilterIt’s data analysis and primary research findings prescribes a robust set of best practices for marketers to follow so that they can extract most out of this new normal and get their fundamentals right to have a real early mover’s advantage.  To learn in detail about the best practices and other industry insights, simply fill up the below form and get access to the report absolutely free. Read more: Ad-fraud in re-targeting campaigns.