What is Click Fraud?

Click fraud is the act of artificially inflating the number of clicks on a PPC or CPC ad, often by using bots or click farms. This can lead to higher ad costs, lower quality scores, and lower conversion rates for advertisers. Challenges in the industry include identifying and preventing click fraud in real-time, tracking the source of fraudulent clicks, and ensuring that advertisers only pay for genuine clicks and conversions.

Click Fraud

It Affects..

Ecommerce Platforms

Advertisers

Ad Networks

Publishers

Digital Marketing Agencies

And many more..

Challenges faced due to Click Fraud

Increased Advertising Costs

Increased Advertising Costs

Click fraud can lead to an increase in advertising costs by consuming the ad budget through fraudulent clicks, impressions, or engagements. This results in wasted advertising spend for advertisers, which could have been used to reach genuine customers. Advertisers may end up paying for clicks generated by bots or click farms, which would never result in actual conversions. This leads to poor ROI, and a loss of trust in the advertising platform.

Lower Ad Performance

Lower Ad Performance

Click fraud can lead to lower ad performance by decreasing the click-through rate (CTR) and ad rank. A low CTR means that fewer users are clicking on the ad, and hence, the ad rank drops, resulting in fewer impressions and clicks. This leads to lower ad performance and wasted advertising spend for advertisers.

Decreased Conversion Rates

Decreased Conversion Rates

Click fraud can also decrease the conversion rate, as fraudulent clicks or engagements would never result in genuine conversions. This leads to a decrease in ROI, and a loss of revenue for advertisers. It is essential to ensure that the advertising platform reaches genuine customers to maximize the conversion rate and ROI.

Loss of Revenue

Loss of Revenue

Publishers who monetize their inventory face the risk of losing revenue due to click fraud. Advertisers may refuse to pay for clicks and impressions that are generated by fraudulent sources, leading to a loss of revenue for the publisher. This affects the overall revenue stream for the publisher and may impact the sustainability of their business model.

Legal Issues

Legal Issues

Click fraud can have legal implications, as it is considered illegal in many jurisdictions. Advertisers and publishers involved in click fraud could face legal action, leading to fines and reputational damage. It is essential to ensure that the advertising platform is transparent and complies with local laws and regulations to avoid any legal issues.

Credibility Issues

Credibility loss

Click fraud can harm the reputation of advertisers and publishers by creating a false impression of low engagement or low-quality traffic. This can lead to a lack of trust among customers, partners, and stakeholders, damaging the brand reputation and credibility. It is essential to maintain the integrity of the advertising platform to maintain trust and build a strong brand reputation.

How can we help

ClearTrust's SafeAPI and SafePixel integrations offer a powerful way to combat click fraud, allowing advertisers to easily detect and prevent fraudulent activity in real-time. With ClearTrust, you can track the source of fraudulent clicks, ensure that you only pay for genuine clicks and conversions, and maximize your ROI by avoiding wasted ad spend.

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