(Source: https://pltfrm.com.cn)
Introduction
Ad fraud is one of the biggest challenges for brands in China’s fast-growing digital market. This article explores how companies can optimize their ad spend by identifying and preventing fraudulent activities in the advertising process.
1. Detecting Fraudulent Clicks and Impressions
1.1 Unusual Click Patterns
Ad fraudsters often use click farms or automated bots to generate fake clicks. By monitoring unusual spikes in click-through rates or clicks from unverified sources, brands can identify fraudulent activities early.
1.2 Invalid Impressions
Invalid impressions occur when ads are served to non-human entities or are hidden behind other elements. Monitoring ad visibility through third-party tools can ensure that ads are being seen by actual users, not just bots or hidden layers.
1.3 Inconsistent Geolocation Data
Clicks or impressions coming from geolocations that don’t match your target audience are often a sign of fraudulent activity. Real-time geolocation tracking helps brands detect and exclude fraudulent traffic from certain regions.
2. Leveraging Data for Fraud Prevention
2.1 Behavioral Analytics
Analyzing user behavior on websites and apps can help spot patterns that indicate fraud. If users are quickly bouncing after clicking on an ad or if they engage in a pattern of erratic behavior, it may be a sign that the traffic is fake.
2.2 Automated Fraud Detection
Automation can help detect ad fraud faster by flagging suspicious activity in real time. AI and machine learning algorithms allow for more accurate identification of fraudulent clicks or impressions, ensuring that ad spend is only used for genuine engagement.
3. Collaboration with Ad Networks
3.1 Vetting Ad Partners
To reduce the risk of fraud, it is essential to work with trustworthy ad networks. Networks that are committed to transparency and have a track record of preventing fraud can ensure that your ad campaigns are running smoothly.
3.2 Ad Network Audits
Brands should routinely audit the ad networks they are working with to ensure that there are no discrepancies in their reporting. These audits can reveal inconsistencies in traffic data or highlight areas where fraud is occurring.
4. Proactive Fraud Prevention Measures
4.1 Setting Fraud Thresholds
Establishing thresholds for acceptable click-through rates, impressions, and conversion rates helps brands detect any activity that falls outside of the expected range.
4.2 Real-Time Fraud Monitoring
Monitoring ad performance in real time gives brands the ability to react to fraudulent activity as it happens. The quicker the response, the less impact fraud will have on the campaign’s overall success.
Case Study: A Luxury Brand’s Ad Fraud Mitigation Strategy
A luxury brand in the fashion industry faced a significant challenge with ad fraud in China. After implementing automated fraud detection tools and working with their ad networks to ensure transparency, the brand saw a 30% reduction in fraudulent impressions within three months, leading to more efficient ad spend.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
