The Hidden Cost of Lead Generation Fraud in Pay-Per-Call Campaigns & How to Stop It
If you are selling products or services online in the US, there’s a good chance that you have dabbled with performance marketing or pay-per-call (PPC) campaigns, as they are commonly called. In fact, these days, in order to drive any kind of business online at scale, PPC campaigns have emerged as a necessity, and for good reason. In a perfect world, PPC campaigns have the potential to provide businesses with high-intent leads that can easily be converted into paying customers. Many brands have deployed significantly large teams of sales experts to handle the leads generated by PPC campaigns and drive conversions. Unfortunately, the world isn’t perfect, and modern PPC campaigns are plagued with lead generation fraud. Fraudsters use a variety of simple and sophisticated techniques to defraud advertisers and waste their ad spending while making a quick buck in the process. The worst part is that the wasted ad spend has just a short-term impact on such fraudulent activities. In the longer run, scammers can skew the metrics that advertisers use to plan their campaigns. As a result, lead generation fraud can have lasting effects on any brand’s PPC performance. Let us look at this problem in more detail. The Problem: How Lead Generation Fraud is Hurting Pay-Per-Call Campaigns Lead generation fraud is a huge problem, especially for advertisers operating at a large scale. This problem can be made easy to understand by breaking it down into its components: 1. Fake and Invalid Leads The most noticeable impact of fake campaigns is the fake lead generation with the use of bots and duplicates. Fraud publishers employ bots and in some cases, real people to click on ads and generate calls. However, since these calls are generated with the sole purpose of defrauding the advertisers and securing unethical monetary gains for the fraudsters, they have no real intent behind them and never convert into paying customers. The only losing party in this mix is the advertiser who ends up paying for calls that have no chance of converting, no matter how well a sales team works on them. 2. High Volume Of Fake Engagements Fake and invalid leads generated with the use of bots of poorly paid employees of fraud publishers generate a lot of engagement but drive no real value. In fact, they drain ad budgets that could otherwise drive engagements that boost the business’ bottom line. Similarly, the fake calls generated also engage call center resources that could be otherwise used to engage with genuinely interested prospects. This reduces the operational efficiency of the call centers. 3. Lack Of Pre-Call Filtering Mechanisms Most businesses don’t have a mechanism for lead validation designed for filtering out bad and fake leads before their call gets connected to their call center. This results in increased cost-per-acquisition (CPC) for the advertiser. Impact of Lead Generation Fraud on Brands The impact of lead generation fraud on a brand’s campaigns may not always be obvious. However, knowing where to look can work to the advantage of advertisers trying to make the most out of their PPC efforts: 1. Revenue Drain If a brand has fallen victim to lead generation fraud, it means that they are spending a portion of their ad spend on fake leads. Depending on the severity of the problem, this wasted budget can make up a significant portion of the advertiser’s total ad budget. 2. Call Center Inefficiencies Fake leads, after an advertiser has unwittingly paid for them, land as calls to their sales team. As a part of their responsibilities, sales teams have to take these calls and spend valuable time attending to them. Since they never even have a chance of resulting in a sale, the entire ordeal ends up wasting the time of valuable sales resources. 3. Brand Safety and Compliance Risks If a brand is struggling with lead generation fraud, it usually means that its ads are being published by fraudulent publishers. The brand is also usually never aware of the kind of content hosted by such fraudulent websites. As a result of association with such publishers, the brand risks damaging their reputation and in extreme cases, failing compliance checks. 4. Distorted Marking Analytics Finally, such instances of fraud have the potential to skew the very advertising metrics that advertisers use to inform their campaign strategies. If, for instance, an advertiser notices that ads with a particular set of publishers are generating good engagement, they may be inclined to direct more of their budget towards these publishers. However, if the publisher is not generating genuine leads, it leads to the advertiser wasting more of their budget with them. Besides the cost of the wasted ad budget, the brand also ends up paying the opportunity cost of not directing their budget towards genuine publishers that could have enabled them to access genuinely interested prospects. Real Case This problem is exemplified by the case study of one of our clients operating in the banking sector. Our client was struggling with poor lead quality, with some campaigns registering as many as 98% of generated leads as fake. Besides the fake leads being sent their way from bad affiliates, the other challenge our client was facing was to improve the efficiency of their quickly growing call center, something that was being plagued by the menace of fake leads. Let’s look at how we helped our client overcome these issues with our tool’s state-of-the-art validation features. How mFilterIt Solves the Problem Leveraging its advanced AI-enabled technology, mFilterIt helps advertisers gain transparency in their lead funnel. Here are a few ways it solves the lead gen fraud issue for advertisers: 1. AI-Powered Click-To-Call Validation Mechanism Our AI-powered validation mechanism is designed to detect bot-driven call interaction. This is made possible with behavioral and network analysis to identify patterns and detect bot activity. Leveraging this feature, the mFilterIt tool is able to execute reliable lead validation before the call is ever initiated. This, in turn, improves call center efficiency by eliminating fake call connections.
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