With so much money at stake, it’s inevitable that click fraud and ad fraud are a growing sector. And adding fuel to the fire is the lack of legislation or even resources to tackle this huge problem.
If you’re running an online advertising campaign, knowledge is power. Knowing how your spend is affected by click fraud and ad fraud is one of the best ways to help you combat it effectively.
In this article, we take a look at the biggest issues and main sources of click fraud in 2019.
Ad Fraud Pixels
This is blatant source of ad fraud isn’t even visible to the human eye. An ad is placed in a 1×1 pixel on a fraudulent site and traffic is then sent through it.
Your ad can’t even be seen by genuine visitors, but can easily be clicked by bots.
There are numerous ways to collect the pay out from impressions or clicks on ads, but without displaying the ad properly. So, although your ad might be displayed on a site, chances are it isn’t visible to the human eye.
Common methods of placement fraud include:
- Stacking multiple banner ads in a single ad slot – so only the top one is visible but they still collect the payout on an impression.
- The 1×1 pixel fraud we mentioned above.
- Ads displayed outside of the visible website area, often just off screen.
This complex process involves publishers of high traffic sites with illegal or dubious content channeling adverts via an authentic site. The advertiser would only see that their ad was displayed on a ‘trusted’ or relevant site, but in fact using a bit of smoke and mirrors, the publisher has managed to divert the ad onto their site and collect the payout for impressions (usually with CPM campaigns).
This clever process is similar to the smoke and mirrors approach with impression laundering. By using malware the fraudulent advertiser gains access to an advertising slot on a genuine publisher’s site. The fraudulent advertiser then places their ad on the genuine site but collects the payout for impressions or click throughs.
Click Hijacking (clickjacking)
Instead of hijacking ad space, fraudulent advertisers can just hijack the clicks on ads, using a similar process. So if a user clicks on an ad on a genuine publishers site they can be funnelled through another (fraudulent) website, which collects the payout on the click, before being led to advertisers site.
The pop-ups shyer cousin. These ads appear behind your browser window and register as ad impressions.
There are so many bots and crawlers on the web that by some estimates around half of internet traffic is non-human. What this means is that if you’re running a PPC ad campaign, you’re very likely to receive some fake clicks on your ads.
Some bots are simple information gathering tools used by various organisations. Others have slightly more sinister backgrounds.
One of the best known fraudulent bot operations, methbot is thought to be a Russian based criminal network collecting around $5 million a day from fraudulent video ad views.
As a highly sophisticated program, Methbot simulates human behaviour, switches IP addresses and uses proxy servers to disguise its location.
This complex and clever network was shut down in late 2018, but is indicative of the processes involved in bot related ad fraud.
By infecting data centres with malware, the team behind 3ve were able to create millions of fake websites, fraudulently install ads on them and then channel bot and genuine human traffic to those sites. It’s estimated that 3ve cost advertisers around $29 million during its lifetime.
You may have heard this term banded around and thought it was an urban myth, but click farms are very real. Although the image of warehouses full of people clicking on ads isn’t to far from the truth, in reality it’s more likely to be thousands of phones and tablets networked to run repetitive clicking tasks. These can be used to inflate popularity on social media posts or click on ads on websites.
Competitor Click Fraud
After all these complex and technological processes, this one is a bit more down to earth. Your competitor (or someone who wants to damage your ad spend) sets out to maliciously click on your ad as often as possible.
Clicking on a competitors ads and depleting their adspend instantly is really easy. It’s not fair business and its morally wrong, but it is a phenomenon that happens in every industry.
A good example of this is well…thousands of our clients.
Incentivized and Crowdsourced Clicks
Although this isn’t directly fraud, it is encouraging people to click on ads just so you get a pay out. For example, calls to ‘click on these ads to support our page’ can create clicks where the user has no intention of buying or using a service.
Publishers might also offer discounts, upgrades or other incentives for site users who interact with ads on their site. So the advertiser have to pay for that click (or view) but receive no leads or sales.
This simple summary of the main sources of click fraud in 2019 is just the tip of the iceberg. For advertisers and publishers, click fraud and ad fraud can be a costly and damaging problem.
ClickCease offers a cost effective way to minimise your exposure to most of the biggest forms of click fraud and ad fraud. Take a look at our blog for more information.