We are honored to publish this signature by Richard MetcalfDirector of Business Development EMEA, TrafficGuard. Be sure to give us your feedback below the article.
The global pandemic has undoubtedly caused a massive increase in the number of active users who play regularly. A global statistic from Casino.org suggests that nearly 26% of the world’s population gambles, and the global gambling market is expected to grow from $76.79 billion to an impressive $127.45 billion by 2025, according to Research and Markets.
Betting companies must distinguish themselves in such a competitive and evolving market by investing in digital campaigns and using premium advertising networks. However, many of these channels may not be properly equipped to deal with invalid traffic and ad fraud and as a result could lose large sums of money to fraudsters every day.
The level of financial growth and competition within the industry has created a strong attraction for scammers, and gambling companies can fall prey without even knowing it is happening. And, with the betting industry only becoming more saturated, businesses cannot afford to suffer from low ROI and poor campaign performance.
Understanding Ad Fraud Risk
The risks associated with virtual gambling are unfortunately heightened with such lucrative rewards and many betting companies deploy protection to help minimize the risk of fraudulent transactions or unethical behavior. However, there is a real lack of awareness of ad fraud in gambling, and many companies don’t realize the level of impact it has on them.
Ad fraud is any traffic that is maliciously created and used to target companies’ advertising budgets. This is a subset of invalid traffic, meaning any ad engagement that falls outside the target of an ad campaign.
Here are some of the ways ad fraud threatens your ad campaign:
- robots – Bots are programmed to mimic human behavior and vary in sophistication levels and can do everything from click and view ads to watch videos. Promotional abuse bots that click on paid search ads and then run scripts to claim free bets or free spins are very common in online games. As these bots “convert”, providing misleading marketing metrics, it means you’re likely optimizing campaigns using the wrong data and gaining more bot traffic.
- Browser Fraud – For example, location spoofing, which involves manipulating users’ location information to match the advertiser’s targeting criteria, and domain spoofing, when malicious actors monetize traffic from poor quality sites. quality by manipulating domains and making it appear to be from high quality sources. .
- Attribution error fraud – A large number of clicks on affiliate and mobile campaigns are faked from a mobile device, even if the user never clicked on the ad. If a user with a similar fingerprint then visits the target website and installs the application, the spammer receives credit for the conversion/installation and receives a commission.
In reality, the result of ad fraud is inaccurate ad results and wasted budget. A world-renowned online betting company running a Google Ads campaign found that 23% of its clicks were invalidated, which equated to 28% of its ad spend.
Without any prior visibility or protection, 71% of the gambling company’s wasteful spending was attributed to just one of its campaigns. If the company had the visibility and awareness it really needed to fix the problem, there was an opportunity to save $115,000, a mix of media spend and potential losses in bonus deposits.
All gambling companies that run Google Ads campaigns are just as vulnerable as this online betting company, making it crucial for marketers operating in this industry to proactively get in front of fraudsters with a increased visibility, accurate analytics and real-time protection.
Protect and save your budget
With confidence in your data and analytics, the savings potential for gambling companies is around 10%, 7% higher than other verticals. The solution to invalid traffic starts with knowing exactly how it affects your business and how you can combat it. With reliable data that analyzes every bit of traffic quality, you can easily make a business case for combating bots, browser fraud, and misattribution.
With visibility into the scale of the problem, betting companies can then properly assess the right solutions and the partner needed to help solve it. Once you’ve identified a partner with the right skills, technology and expertise, they can have an immediate impact.
Elimination with prevention
Ad fraud currently dominates many betting companies around the world, but a change of hands is at hand. Fortunately, stopping invalid traffic doesn’t have to be complex or expensive. In fact, the money you save will almost always outweigh your investment to stop it, leaving you to focus solely on making further savings.
By combining proactivity and visibility, betting companies can realize huge savings and deal with invalid traffic with confidence and ease. With many betting companies around the world looking only to further develop their digital marketing, now is the time to understand your advertising losses and prevent them from achieving maximum growth and success.