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fraud-impact

Is Ad Fraud Impacting CMO’s Performance?

Leave a Comment / Blog, Ad Traffic Validation /

Is Ad-fraud responsible for shrinking CMO tenure? With digital spends cross over 50% of the total media spends, inefficiencies like ad-fraud will hit their potential as well as the performance. Recently, executive search firm Spencer Stuart revealed an interesting insight about the shrinking tenure of CMOs reaching to 40 months, lowest since 2009. In sharp contrast the tenure of a CEO reached an all time high of 80 months. So, one wonders what’s going wrong with CMOs when the ‘captain of captains’ – CEO is stable. The answer perhaps lies in the fact that Ad-fraud is not only impacting the marketing spends but also adversely affecting the performance of the CMOs as well. We have already entered into the third era of digital marketing where it is now more than 50% of the total market spends across various mediums. As the digital spending as a percentage of total media spends keeps on increasing, any inefficiency or weakness in the value chain will not only restrict but retard the growth. Overall, ad-fraud and adjacent inefficiencies waste 6-9% of the total digital spends, while on performance marketing it results in almost 30% spends without any returns. Tracing the journey of our clients, we have noticed how the digital marketing mix is switching in favor of performance marketing than brand marketing. Some 3 years back, performance marketing would constitute just 20-25% of the total digital marketing spending, which is now in many cases over 55%. So even if for argument’s sake, we say that ad fraud only happens in performance marketing, its impact on the overall digital spending is only increasing. This is nothing less than a nightmare for any marketer including the captain – the CMO. In digital, the results should be delivered in real-time. At the same time, many CEOs are still catching up with the nuances of digital. This sets off wrong expectations when they see results not coming up quickly as is inherently attached with the digital. As a result, CMO has to take responsibility. For the CMO, it will take some time for the entire CXO suite to understand that even in digital things don’t happen overnight and in real-time. However, what definitely can be plugged in is the inefficiencies that ad fraud results in. Otherwise, the CMO is going to be questioned every time inside the boardroom as well as otherwise about the return on ad spends over digital. By taking cognize of ad fraud a CMO can instantly reduce wastes on performance marketing in the range of 25-30% translating in improvement in overall return on digital marketing by another 6-8 percent points. CMO has become a change agent as well as a business officer with digital getting more prominence. A CMO today not only drives return on marketing but also brings in leads, sales, and eventually revenue. So if there is no clean and safe medium to market digitally, the results will always be interpreted as underperformance of the function as well as the individual. This is what will continue to create turbulence in the marketing functions of any organization and we will see CMOs departing the CXO suite more often than any other CXO.

Is Ad Fraud Impacting CMO’s Performance? Read More »

affiliate-marketing-fraud

Facts That Brands Need to Know About Brand Safety and Affiliate Marketing Fraud

Leave a Comment / Blog, Brand Safety & Protection /

Affiliate marketing fraud can damage brand reputation, increase advertising costs and generate client chargebacks. The last few decades have witnessed a drastic evolution in affiliate marketing, for it has matured beyond what brands and marketers would have imagined in the past. It has become the most sought-after way to advertise the brand, generate traffic, and attract customers. Affiliate marketing has methodologically evolved as a sophisticated channel backed by intelligent analytics proving its value by acting as an omnipresent channel at all customer touchpoints. But being omnipresent has its unique set of challenges when we talk about brand safety and digital fraud. With the increase in affiliate marketing popularity, the chance of encountering fraudulent activity also increases, thus damaging the brand in many ways. The trouble comes when the affiliates’ actions are being paid for are fake, but real commissions are paid out to fraudsters. This drains the marketing budget and puts a brand reputation at risk by getting involved with wrong affiliates and hurts the overall campaign for a brand. Every brand needs to ensure that brand safety is the core tenet in their partnership with their affiliates. The reason is that the customers engage with the brand through partners, but they place their ultimate trust in the brand. The partner’s wrong positioning of the brand (luring customers on the pretext of fake coupons, redirecting to adult sites, stealing information) may damage the brand considerably. Monitoring and prevention of fraud, including affiliate fraud, should be the top priority for any brand. While brands have much to gain from the symbiotic relationships with their strategic partners, monitoring the same should be an always-on process employing both automated and manual action. The How Any affiliate link which leads a consumer to unseemly domains can misrepresent the brand in the wrong limelight. The brand reputation is at risk, but other consequences also arise in terms of excessive spending because fraudsters are gaming the system and cannibalizing other channel efforts. In some cases, the court ordered a brand to pay $12 million in restitution for indulging in affiliates who intentionally promoted their products on fake sites with false claims and free offers that never materialized for users. In many cases, counterfeit actions are generated by bots that direct a computer to another site, fill a form, or even purchase a product, mimicking human behavior. This is also called Click farm, another tool used by fraudsters in affiliate marketing. Brands take them as precious affiliate partners in today’s era of social media influencers. Little do they know that not all influencers are equal or accurate. Influencer fraud means that when fraudsters have inflated their numbers (followers, engagement numbers, etc.) to portray themselves as lucrative partners. They tend to charge high premiums for promotional ads, but the outcomes are not significant because their followers aren’t real. To conclude, the only of affiliate fraud prevention is early detection and stopping fraud before it causes significant damage. Investing in fraud solutions and tools helps bridge the gap and generate insights in real-time by validating affiliates and eliminating fraud.

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burning-ad-fraud

Burning the Ad Fraud Fat from Digital Advertising

Leave a Comment / Blog, Ad Traffic Validation /

mFilterIt’s Quick Guide for Marketers Ad fraud is just like bad fat in the body. It unnecessarily makes things look ‘healthy’. At the same time, it results in other lifestyle diseases just like obesity. To manage it and make sporty campaigns, here is a quick guide from mFilterIt based on excerpts of best practices implemented by it across some of the leading digital advertisers globally. Extremely good or bad performance are both indicators of ad fraud. Analyze the performance mix of the campaigns and get a deeper audit done if the results are too good to believe or too bad to absorb. There is no single medium that is fraud-free. Do not switch from one medium of advertising to another to combat fraud. Achieve higher integrity of ads within the existing mediums of engagement otherwise, there will always be a fresh learning curve to uphill. Ad fraud is not just about losing money. Similar to obesity, it results in other ailments like Brand Safety issues. Do monitor the placement of the ads and the relevancy of channels being engaged. The quality of the campaign is also to be monitored. Changing the model of engagement will again not result in tackling ad fraud. Irrespective of the model on which campaigns are running – CPC, CPCV, CPL, CPS, etc., fraudsters can trick ad fraud. In fact, the tougher the metrics to qualify, the higher the motivation to fraud. Engage with partners who understand ad fraud. Do not go by the disclaimer that there is no ad fraud through a particular partner. Evaluate if the partners are being checked and have ad-fraud specialists who are certified for it. Encourage your teams to understand ad fraud. Organize cross-team workshops for awareness of ad fraud as this impacts digital marketing function as well as other functions. It does have an impact on revenue, sales, procurement, and others as well. Check every element of an ad. Reassure yourself about the compliances and brand guidelines being followed by partners while designing ad-creatives, content, etc. Brand infringement is not only about wrong information about your business and products. It is also about selling fake/counterfeit products and services which could result in legal hassles for your brand. Watch out for any brand infringement in the digital space in real-time. Organic stealing not only makes you pay unnecessarily someone else hijacks the attribution. It also demotivates the internal digital team as their good work goes unnoticed. Track who is bidding on your brand keywords and diverting traffic through them. The above action points will help marketers to effectively manage and curtail ad fraud, brand safety challenges, and the growing brand infringement problems. However, strategically the best practice is to address ad fraud with an open mind rather than going with the hypothesis that no ad fraud to possible. This can then be audited and validated by a mix of home exercises and a professionally run ‘gym’ to burn the fat and have a sporty, strong, and good-looking campaign, which will fetch great results.

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Data Safety: The Future of Brand Safety

Leave a Comment / Blog, Brand Safety & Protection /

We are living in a digitized era where trust and transparency have recently become the bone of contention, demanding an evolution in online protection. Advances in technology, internet penetration, and the proliferation of social media have revolutionized advertising and marketing, but also opened the door to a barrage of dangers. From ad fraud to counterfeit products to impersonation, they are all impacting market reputation, declining consumer trust, and hurting the bottom line. Marketers have been working hard to build brands in their consumers’ minds for it is the brand that ignites emotion and leads the consumer to make a decision. From brand awareness to brand protection, marketers and brands are now realizing the importance of taking care of the whole pie and not just a part of it. An extension to brand safety now is ‘data safety’ because brands are now at the risk of facing reputational damage if their customer’s data are not being used appropriately. Toxic data, the shadowy threat which stares right into the brand’s eyes and plans a kill in one stroke. The killer whale: Toxic data Toxic data is the data collected and used without the explicit consent of the consumer. Since time immemorial, the data-driven ad-tech industry has been tracking consumer behavior and collecting personal information without permission. Under the pretext of personalization and accurate targeting, the ad-tech industry today is marred by toxic data. But with changing times, consumers are evolving and are aware of data breaches, understanding data safety, and expect brands to respect their privacy and uphold the trust. The evolved consumer understands that their data is being stolen and when they are served with ads without being asked for permission, this leads to a decline in trust between the consumer and the brand, thus hurting a brand’s reputation. In countries like Europe where GDPR rules are stringent and in India where data privacy laws are being worked upon, it may be safe to say that stealing someone’s data without consent and permission is illegal? Now, is your brand safe if you are indulging in illegal activities? No chance in hell. The basic tenets of brand safety are making sure that the brand is not involved in fraudulent and criminal activities. Customer is king and they should have full control over the data they own and the choice of whether to experience digital advertisement. Not just consent, it should be a trusted and traceable path that does not hamper the relation of the brand with its consumers. Marketers and brands should carefully choose their ad-tech partners and publishers for transparent delivery of ads. Just like it is important to make sure that the ad is seen in a safe environment, it is imperative for brands to ensure that the data they use is safe for advertising purposes. Data safety ensures that the brand is safe from legal, reputational challenges.

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identity-theft

Explainer: Identity Theft and How Does it Target the Banking Sector?

Leave a Comment / Blog, Ad Traffic Validation /

With a rise in internet penetration and the adoption of digital means, sophisticated forms of crimes have taken shape in the banking sector. Scammers and fraudsters leverage a plethora of schemes to conduct financial fraud. One of the most pervasive forms of fraud is ‘Identity fraud’, which equally affects customers and banks. A study estimates that 45% of adult internet users in India faced identity theft in one way or the other in 2020. Identity theft does more than compromise customers’ bank accounts. It costs them untold hours that force the customers to change their account passwords meticulously and contact customer care to have the charges revoked. The sophistication of such fraud attempts has forced financial institutions to address identity theft as a top priority. There are varied forms of identity theft and fraud in an online ecosystem that can wreak havoc on the financial status from both the bank and customer’s perspective. Let us understand them in detail and how it targets the banking sector. Types of Identity Theft Fraud 1. Phishing Scammers often send emails and pop-ups that appear from legit banks and credit card companies. The content of the message contains a link that, when clicked, directs the user to a fictitious site created to convince the users to reveal their personal information and banking details. The links direct to an exact-look alike site of the official bank site. 2. Account Takeover Fraud This type of fraud entails when someone else gains access and takes control of your accounts without your knowledge/permission. It can then be used for fraudulent transactions, gain access to other accounts and vital information, transfer money, undertake scrupulous exchanges. Research cites that account takeover fraud accounts for 53% of total frauds online. 3. Senior Identity Theft One of the most prevalent forms of fraud, the scammers target the elderly citizens (most vulnerable to cybercriminals) and trick them into divulging crucial information. The scammers call to ask for passwords and personal details to access the accounts by posing as bank officers and trustworthy allies. 4. Biometric ID Theft Another sophisticated form of fraud, Biometric ID theft, involves stealing or spoofing a user’s physical or behavioral traits to unlock a device- for instance, voice recognition or facial recognition to unlock the device or tap into other devices. This form of theft is a goldmine for hackers, for they get access to digital wallets and additional important information. 5. Synthetic Identity Theft One of the faster-growing forms of fraud, Synthetic Identity theft, is a highly sophisticated crafted fraud that uses personal consumer data (Aadhar card numbers, PAN card, birthdays, addresses) to create new fictitious identities designed to look like actual users with good credit history. The scammers opt-in for numerous financial frauds, opening new bank accounts, applying for loans, defaulting on credit card bills, all on account of a real user’s name, birthday, and address (among others). There is a big playground for hackers and scammers to steal identities and commit identity theft fraud on the pretext of a real user. Apart from opting for fraud solutions, it is imperative to keep a check and monitor the accounts for any suspicious activities.

Explainer: Identity Theft and How Does it Target the Banking Sector? Read More »

click-spamming

Click Spamming in UAE: Over 50 Million Clicks in a Country of 10 Million

Leave a Comment / Blog, Ad Traffic Validation /

The case of organic traffic theft of a leading BFSI client in UAE A major publisher partner of a large BFSI client was massively engaged in click spamming registering huge events. This publisher was stealing the organic traffic of the client. Once its engagement was blocked, the organic engagement went up for the client. A new breed of smaller affiliates sprouted to grab the opportunity through click spamming. One of the leading BFSI clients of mFilterIt in the region was recording huge events as were reported by its key publisher which was entrusted with the task of getting relevant engagement for a campaign.  The client was facing the typical situation of viewing extremely high events that even did not stand some basic logic.  For instance, the total population of the UAE is less than 10 million.  The nature of the service is not something that anyone from other countries would be interested in.  For example, one could absorb extremely high events, even more than the population, in the case of a real estate campaign in UAE assuming that foreigners are interested in buying a property in the country.  However, there would be hardly anyone looking for a financial service in the country from a foreign land. In this specific campaign analysis, it was found that a campaign registered events above 50 million in a single day.  This is five times the total population of the emirate.  It can only be interpreted that on average every single person living in UAE clicked 5 times on this campaign! Why would any person do that? On a deeper analysis, an inverse relationship was established between organic traffic patterns and the traffic acquired through a particular publisher.  mFilterIt took down this publisher and instantly started seeing the organic traffic going up for the client for some time.  However, one of the fundamental principles of effective ad-fraud protection is that there should be no exceptions.  No one can combat it effectively by monitoring only a few, or for that matter ignoring smaller agencies and focusing on the larger ones alone. The same was the experience in this case.  As soon as the organic engagement started going up, a set of new agencies, though smaller started pulling down the organic engagement by click spamming.  This is a learning for every marketeer not to be only after the ‘big fish’.  There should be no tolerance for any size of fish in the pond. It is a typical strategy to engage one or a few major publishers which account for 70-80% of the campaign KPIs and the remaining is entrusted with several smaller affiliates.  An advertiser is mostly focussing on the key partners for everything, including when investigating ad fraud.  This analysis shows that while focusing on the key partner does help, we cannot ignore the smaller affiliates as well.  Click spamming is done by all irrespective of their size and they do hijack the organic traffic, though the impact would be proportionate to the engagement level of the publisher. This is the reason mFilterIt has always been advocating for holistic ad fraud protection where the strategy should be to analyze to the 100th percentile and across platforms.  Unless that is done, ad fraud will barge into the system from one of the other weak points. The thought process for campaigns must change.  Every advertiser does evaluate a potential partner on certain KPIs as part of the hygiene factors. The need is to also include parameters like genuine (BOT free) engagement as well as brand safety assurance offered by any potential partner as part of the hygiene parameters. The approach adopted by mFilterIt is a neutral one where it does not only solve the advertisers’ problems.  It does work along with publishers and agencies as well helping them implement the best practices so that such ‘pilferages’ in campaigns wherein the long run it maximizes returns for everyone in the value chain. Get in touch to learn more about click spamming.

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ramadan

The True Spirit of Ramadan 2021 Woven for a Brand

Leave a Comment / Blog, Brand Safety & Protection /

There are four ways mFilterIt can collaborate with advertisers to deliver the best experience to their respective audiences through digital advertising during Ramadan. Ramadan is the month of introspection, altruism, celebration, and camaraderie. This period calls for spiritual reflection, self-improvement, and compassion for others. Like real life, in the digital world, we are challenged with the good and bad, and as marketers, we attempt to sail through to deliver the best for our audiences. Brands need to observe a similar discipline and therefore must come across as respectful and thoughtful. mFilterIt can be your trusted partner throughout the digital advertising journey and ensure that you deliver a pure experience with the right intent and integrity. Here are the ways mFilterIt can help you go through the digital journey. a) Acquisition of Users:  This Ramadan will leverage digital like never before. In 2020, it was a contingency approach. But this year, marketeers, even in the ‘Essentials’ category, have a thought-through process of leveraging digital platforms to deliver the best to the customers and audiences. Whether acquiring new users for an app or getting genuine non BOT traffic to web resources, mFilterIt can help brands achieve the best engagement by connecting with real humans who want the service, thus optimizing the return on acquisition spending. Typically, 1 of every 3 users acquired is not genuine due to challenges like BOT traffic, etc. b) Ads with Integrity and Safety: A mature brand is always conscious of the experience it creates. During Ramadan, brands become extra cautious and do not want to get associated with something that doesn’t go with the core thought of Ramadan. For instance, certain brands may not desire to show cooked food before Iftaar in ads. Also, marketers will go the extra mile to protect their brand image from getting associated with obscene and explicit content. The bars of safeguarding brands are raised very high during Ramadan, and mFilterIt helps advertisers create a safe and pure view of the brands within which they can engage with the audiences over digital platforms. The brand safety suite of mFilterIt scans ads to do high-quality content analysis and flag off any placement, relevancy, or messaging issues contrary to the brand’s reputation. c) Honouring the Promotions and Offers: Ramadan is also a month when people spend a lot. This is in the spirit of giving the family the best food and other essentials and buying for the needy. To complement this, brands roll out special offers and promotions. This situation is also exploited by rogues in the system. They exhibit unbelievable offers to allure genuine buyers for cheating or taking credit (attribution) for organic engagement. Even if a buyer doesn’t lose money in all such situations, it does not portray the brand in a good light. This is not the image that the brand wants to be associated with. mFilterIt’s incent tracking solution helps brands stay alert about the offers and promotions being rolled out in its name. It can proactively safeguard consumers’ interests by acting upon the fraudsters and ensuring end-users get genuine promotions. d) Creating a Ramadan View of the e-Store: Like the product placements and shelf management in the brick-mortar stores, the digital stores also need to change during Ramadan. The shelf display needs to be optimally organized for a richer experience for users visiting online marketplaces on apps and web portals to buy products that are sought after during Ramadan. Leveraging mScanIt (Powered by mFilterIt) share of shelf and other powerful insights, a marketer can decide the optimal strategy for an online marketplace and create a competitively richer experience for visitors to buy the right products and leverage the maximum from the promotions that are being rolled out for them. With the array of services offered by mFilterIt, marketers can optimize every segment to create a synergy that gives a richer, wholesome, and value-driven experience to the audiences for engaging and buying online. So, what are you waiting for? Connect with mFilterIt to make the digital experience for your customers driven by the genesis and value systems that guide us during Ramadan.   Get in touch with our experts for deeper insights. Reach out to learn more!

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edtech-brand-safety

Edtech and Brand Safety

Leave a Comment / Blog, Brand Safety & Protection /

One of the serious concerns for any parent with the digital ecosystem is how they keep their children safe from the ‘digital ghost’, and ed-tech could be an easy trap. Kid safety is of paramount concern. With digital exposure, new challenges result in other types of potential harms caused by ‘digital ghosts’ or ‘digital bhoots’, which exist in the ecosystem. There is no denying that the digital exposure of children has increased. It has also gone beyond regular schooling, and parents are encouraging promoting children to opt for several courses and certifications offered digitally. This has resulted in a thriving ed-tech space, and over the past 6 months, we have even seen ed-tech companies acquiring brick-mortar education brands. Various flavors are offered in the ed-tech space to differentiate and attract as many students as possible. Much content is being recreated to go well with this mode and facilitate easy self and virtually assisted learning. At the same time, these ed-tech companies completely understand that they are dealing with tender ages meaning the Internet exposure to them cannot be like an adult. For this, they adhere to ‘kid-safe’ practices and ensure that they are using content that does not harm children – especially psychologically. The ed-tech companies are cognizant of making the experience safe and children-friendly. However, that is all within the boundaries of their application, where they have all the control. But a lot more can be counterproductive to a much larger engagement who may even never cross the line to experience all measures they take to make every element inside the application child-safe and friendly. Other than children less than 10 years of age, parents allow children to explore such opportunities independently. When in their teens, children also get a chance to recommend to parents which courses they want to pursue. In the latter case, children get exposed to the discovery of such applications, which means they interface with the promotional / advertising environment of ed-tech apps. For children less than 10, parents will primarily explore such solutions. In both situations, the decision-makers need to get assurance that the application they want to go with isn’t harming children in any way, especially the ones which could contribute to the development of any negative trait in children as they would not have the capability to handle such exposure at that tender age. For instance, hate language, obscenity, crime, and other content. We have clear demarcations of what is suitable for children and what is not in the broadcasting world. That is why even action content isn’t advised to children, and specific content is explicitly categorized as adult only. Due to brand safety issues, often without any intervention from the ed-tech solutions provider, the ads do get placed wrongly, which could be carrying content not suitable for children. This means that children and parents exploring such solutions could land in ‘bad areas’ of the Internet. While children could land up in entirely the wrong territory, which isn’t suitable for them, parents would get shocked to see the affiliation of the platform they are exploring for their children. The issue could worsen as the ads are served based on the content consumption pattern and interests of the user with whom the device is profiled. In these cases, it would be a parent, or an adult, whose profile would be targeted by advertisers through ad networks, affiliates, and other mediums. A responsible and aware ed-tech platform has to look at things end-to-end and make the entire experience safe and friendly, not just inside the app when someone is on board. This could result in the majority of the potential users having a bad experience and impression about the platform, while only the ones who convert and sign up appreciate the proactive measures taken by the app to give children their due environment. This ‘digital ghost’ or ‘digital bhoot´is something that we need to keep children away from. Otherwise, what a ghost invisibly does in the real world to the minds by causing psychological damage, which at times longs for a lifetime, could get replicated in the virtual world with children at a very tender age. Unfortunately, ed-tech is the platform that has a high risk of carrying this invisible ghost, harming children while attempting to do better for their overall development. Brand Safety is a crucial thing to address for any brand, especially those dealing directly with potentially vulnerable sections like children. mFilterIt is already engaged in this space with a few proactive ed-tech platforms piloting some activities with us in this direction. However, this should become an industry/vertical hygiene where the objective is to make the entire experience children safe, not just inside the app, which is a controlled world for the platform.   Get in touch with our experts for deeper insights. Reach out to learn more!

Edtech and Brand Safety Read More »

third-party-validation

Neutrality is Key to Third-Party Audits and Validation

Leave a Comment / Blog, Ad Traffic Validation /

mFilterIt proactively gave up a million-dollar opportunity 4 years back to uphold the integrity and neutrality of validating ad-spends. Any ad fraud detection & prevention solution is algorithmic in nature. So even if the results are statistically driven and scientifically proven, the biases can be absorbed within the algorithm design. The simplest example could be white-listing traffic of a particular publisher or ad network making it a valid high-quality engagement source. Tracing back the journey of mFilterIt, it also started with the idea of establishing an ad network (mXpresso), which would offer ad fraud detection as a value addition. But soon it was realized that it’s fundamentally contradictory to act as both – someone to spend for campaigns (ad network), and someone doing the validation of whether it has been done rightfully (ad fraud). Like any ad network, mXpresso was blossoming and as goes the very nature of this business, the growth parameters were overwhelmingly encouraging. This only indicated that it was going to be soon a million-dollar opportunity. It was a very difficult trade-off to give up a growing opportunity versus creating something that would face resistance from all corners. Obviously, both could not continue. To uphold the integrity and bring neutrality and impartiality invalidating the ad-spends on performance campaigns, mXpresso was shelved for eternity, and mFilterIt, which was an add-on to the ad network became the anchor and only offering. Presently in the market majority of the widely used ad-fraud detection solutions do not give a 3rd party view. They are part of the 2nd party in the form of either being an add-on to the attribution platform or with some recent acquisitions, even an ad-network. This raises the fundamental question of how anyone can do both very important roles without diluting the conflict of interest. The same party, in its dual role, is responsible for the spending and then again responsible for validating if the spending did take place in the right way, giving the desired ROI. Ad fraud cannot be combated alone algorithmically. The neutrality and 3rd party orientation are as important as the efficacy of the tool which is determined by how deep a view it can offer basis the advanced algorithms used in its design. This is what mFilterIt has always stood for and shall continue to have this equally distanced approach from everyone in the value chain – advertisers, agencies, and affiliates. It envisioned these 4 years back, which is why it today is trusted by some of the leading digital advertisers globally for auditing their ad spending on performance campaigns and adjacent issues.

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