How Bots Steal Your Online Advertising Budget

How Bots Steal Your Online Advertising Budget

Are you wasting your ad budget? According to another study done by Imperva Incapsula, bot-driven ad fraud costs businesses $7 billion dollars annually. Advertisers are committed to eliminating wasteful digital ad spend. In fact, one such advertiser, Procter & Gamble, started cutting its budget mid last year by reducing it’s digital ad spend by more than $100 million dollars. To cut bots out of the chain, use an ad fraud detection tool to monitor your AdWords and Bing Ads campaigns with AI. Related: How AI Is Addressing the Fraud in Advertising: Here's What You Need to Know 2. Audience reach is only 30 percent; targeting inaccuracies stand at 27 percent; and anonymous ad targeting anounts to 26 percent The study, which sought to analyze the limits of using cookies in digital advertising, featured 250 marketers. To eliminate wastage of advertising resources, advertisers need to deliver the right message to the right people at the right time. In one recent CLV study, 81 percent of U.K. marketers attributed sales spikes to their CLV measurement practices, and 79 percent said they were able to implement marketing initiatives in a more timely fashion after tracking CLV. With CLV, you can tell how much your business can afford to spend when acquiring new customers and set the budget accordingly.

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The digital ad space is rife with fraud and bots, stealing your precious marketing dollars.

How Bots Steal Your Online Advertising Budget

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Are you wasting your ad budget? Studies suggest that a lot of advertisers are. The Association of National Advertisers reports that only a quarter of all digital ad spend reaches real people. According to another study done by Imperva Incapsula, bot-driven ad fraud costs businesses $7 billion dollars annually.

But they aren’t taking it anymore.

Advertisers are committed to eliminating wasteful digital ad spend. In fact, one such advertiser, Procter & Gamble, started cutting its budget mid last year by reducing it’s digital ad spend by more than $100 million dollars. JPMorgan Chase, another angry advertiser, decided to have its ads appear on only 5,000 sites, cutting off 395,000 other sites. Interestingly, this only had “little change in the cost of impressions or the visibility of its ads on the internet.”

For a long time, the high ROI of digital advertising has been able to distract businesses from the massive waste involved. But that’s changing fast as advertisers are demanding more transparency, seeking to reclaim their lost budgets.

Here are some ways you may be wasting away your budget, and some solutions that can help you minimize that waste.

1. Serving bots instead of humans

The business of web advertising can be a lucrative one, especially when you just need to deliver an illusion of what you promise. This is done by the portion of the internet that has built itself on fraudulent advertising. A study by White Ops revealed that ad-fraud sites constitute about 20 percent of all ad sites on the internet — it’s a billion-dollar industry.

These sites don’t even invest in human labor; they rely entirely on traffic bots that mimic human behavior, the result of which is revenue generated for the advertising platforms but no revenue for the advertiser because there was no potential customer in the first place. It’s not a win-win like it’s supposed to be. And that’s just the problem with banners on content sites, search advertising and social media platforms have been known to face similar woes.

Unfortunately for advertisers, much of the fraud goes undetected. They keep investing, and every year they expect to increase their spend.

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