Mobile Applications News

Mobile advertising fraud: an emerging threat

Mobile Application Blog

How your organization would focus on different aspects to grow a business if it’s dealing with mobile advertising fraud? Would it able to build a better relationship with clients, focus on developing mobile apps or better products, or perhaps more happy hours with its coworkers? The answer is No.

Regardless of your role in mobile marketing, it is not possible to escape from fraud. With the growing dependency on mobile advertising for a successful business, fraudsters have been bringing forth different ways to scam marketers, mobile app developers, ads, agencies and attribution partners.

Detecting these scams is seems to be easy, but the reality is the other way around. To understand its seriousness, have a look at the given statistics:

• There was 102% increased on Smartphone click fraud from January to April 2017.

• 1 in 5 pay per clicks was fraudulent in January 2017.

• The video click fraud was 26% higher in April 2017 as compared to January 2017. 

• It was analyzed that 50 percent of ad impressions served on Internet Explorer were artificial or non-human traffic.

• This fraud has been increased by 30% in 2018, as per a report by AppsFlyer.

 Apart from these given figures, there are many more that are hard to ignore. 

Types of Fraud

1. Ads that Have No Chance to be Viewed (CPM)

Cost-per-mile payment or CPM means the advertiser pays one thousand impressions, but they can be deceived by serving the impressions on ads, having no chance to be viewed. This type of fraud includes:

  • Stacked Ads: Various advertisements are layered one on the other, where users only see one ad, but every advertiser is charged for the impressions.
  • Invisible Pixels: It shows ads as an invisible pixel in the display screen and users unable to see them, but advertisers need to pay the amount for the impressions.
  • Unstoppable Apps: Ads are continuously loaded, even if the user is not accessing your web or mobile app.
  • Video Auto-Play: Unnoticeable videos or automatically played video in the background, costing advertisers to pay the money, even if users are not watching it.

2. Low quality or Fake Clicks (CPC)

Those advertisers who work on a CPC basis are generally at risk as cost-per-click or CPC payment system means that an advertiser pays for clicks the users do upon the ads. However, fake clicks do not help to achieve the desired results.

CPC fraud may include:

  • Misleading Ads: Ad creatives that pop-up on the screen as a warning or system alert and tricks users into clicking on it falls into this category of fraud. In fact, sometimes when users try to close the ad, by clicking on X sign, the ad does not close, compelling users to see it. 
  • Auto-Redirect: A fraudster obstructs the normal flow of ad, redirecting a user to the landing page of an ad, without performing a click action.

3. Fake or Poor Quality Installs (CPI)

Cost per install or CPI means when an advertiser pays a publisher for the delivered app installs, however with low quality installs no productivity can be attained by any business. This type of fraud includes:

  • Install Farms: Sometimes, although rarely, human-run install fraud is being created via an install farm, where 20-50 people with various mobiles install the applications in a manual manner.
  • Attribution Fraud: Pre-clicking is very much similar to ‘cookie-stuffing’ on desktop traffic. In this case, users do not make a click on seeing an ad, however with the help of artificial devices or user details, it looks like that a user completed the click.

How to Prevent Ad Fraud?

These are some prevention tips using which marketers, publishers, and ad networks can fight together against this fraud.

  • Advertisers: They need to level up their knowledge about different types of fraud, and make sure that they have proper volume or performance expectations while working with publishers and ad networks. Advertisers can involve C-level executives, in order to align incentives so that, it becomes easy to identify fraud. Apart from this, they can even encourage conversations with attribution organizations to address the fraud.
  • Attribution Organizations: They can work with ad networks and marketers to fight against fraud by moving towards standardizing tracking all around the supply sources. These organizations can provide clients with different ways to identify the fraud and the method to deal with it.
  • Networks: They can work to get more transparency from the publishers about their traffic. Make a relationship with their publishers so that they can talk about the issues when they appear.
  • Publishers: Publishers can take action to clean up the traffic, as well as reciprocate building relationships with ad networks. 

Wrapping it up

Mobile advertising fraud is growing day-by-day without any sign of slowing down. Hence, to combat this, mobile app developmentcompanies, ad tech providers, and ad networks have begun analyzing and cataloging mobile fraud.

They have done it to identify patterns for flagging potential fraudsters, layout strategies to block fraud, and develop methods, in order to prevent fraudulent traffic.

News From

Fluper - Android & iOS App Development Fluper
Category: Mobile App DevelopersCompany about: Fluper Ltd. is an authentic, certified and top rated mobile application design and development company with engineers expertising in native application development, customized applications provisioning end-end 360degree mobile app solutions. We have specilized in Android, iOS, iPad, Tablets and Wearable App Development Services. We have been working in the IT Mobile App Domain and Verticals since 2013 providing following services: #Enterprise Applications: Business, Banking, Finance, Human Reso ...
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