The biggest online advertising fraud has just been revealed and i don’t know how that affects you but you need to know about it.. if you were an advertiser, then you would not mind too much but if you a client buying ad impressions then you need to see this… Biggest Online fraud on Moz.

According to the report, the ad networks, exchanges and the tech companies have been defrauding advertisers by selling bot traffic to publishers.. Only about 8% of the ads are viewable and about 92% are non-viewable ads.

So in a nutshell publishers as well as ad networks make money while the advertisers lose big time…

Every year for example online marketers spend more than $140 billion on digital advertising globally, but billions are always siphoned off by clever fraudsters, who make money by falsely claiming advertisements have been seen by consumers.. Its reported that about 30% of this money is lost to fraudsters.

Here’s how the fraud works:

Networks of bots are designed to look like real humans, often by installing themselves on people’s personal computers. By surfing around the Web the way a real human might, and being associated with that computer’s human browsing habits, those bots start to look like the real consumers that advertisers pay to reach.

This fraud And view-ability metrics are affecting Ad performance and pricing.. This is because of the digital supply chain which is now very hard to trust… Overall there have definitely been  decreases in campaign performances.

If you are an advertiser like me, then you need to prevent this and reduce the amount of money you lose to these fraudsters.

How do advertisers help fight this fraud and increase their ad performances?…

1. Buy ads during the day:

The study found higher overall bot traffic during daylight hours, bots weren’t smart enough to go to sleep when humans do – the percentage of bot traffic online spikes dramatically between midnight and 6 a.m. So target your ads to run in the active day time..

2. Target ad campaigns to people using newer browsers.

Older browsers are more vulnerable to bot traffic (such as Internet Explorer versions 6 and 7, which demonstrated 58 per cent and 46 per cent bot impressions, respectively).. If you don’t know how this is done, then you better learn it.

3. CPC over CPM

CPM payment models in online advertising campaign mean that you’re paying for impressions of your ad – whether it’s in the most effective placement or not. Shifting to a CPC model ensures that you’re only paying for clicks on that ad. This shifts some responsibility to the network to show that ad at the right time to the right person in order to earn your advertising dollars. This also helps to minimize the monetary impact of impression fraud, though of course, some click fraud is still a possibility.

4. Avoid Ad Networks Who Don’t Verify Traffic

There are networks that consistently generate fraudulent click traffic. Avoid them at all costs. Historically, Bing Ads’ search partner networks have generated a high volume of fraudulent clicks and form fill-outs as well. While Bing has some other great services, you’ll want to avoid the Bing search partner network and Bing content network like the plague. Google is much better at catching and refunding fraudulent click costs, so invest in their search partners and content networks.

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