One-Third Of Mobile Traffic Is At Risk Of Fraud: Study

by Press Release    Dec 11, 2015

mobile fraud

Mobile marketers should take note of a new study which reveals more than a third (34 percent)of mobile programmatic traffic is at risk of fraud. Of this, 22 percent was suspect and 12 percent presented a high risk of fraud, said mobile advertising technology company AppLift study. According 

The study, “Fighting Mobile Fraud In The Programmatic Era,” reveals that fraud is highest at night — The relative amount of fraud increases during night time hours as many fraud tactics are not sophisticated enough to take into account actual levels of app usage.

The study also found that mobile advertising campaigns running on both a CPC (Cost per Click) and CPI (Cost per Impression) basis were less likely to be fraudulent than CPM (Cost per Thousand) campaigns. CPC campaign fraud in which traffic from campaigns run on a CPC basis is three times less likely to be fraudulent than for CPM campaigns. CPI campaign fraud, where traffic from campaigns run on a CPI basis is 10 times less likely to be fraudulent than for CPM campaigns

With eMarketer predicting that U.S. mobile programmatic media buying will reach $20.45 billion by 2017, fraud detection is a major multi-billion concern for advertisers. DataLift’s fraud detection system found 34 percent of all mobile traffic to be at risk of fraud. AppLift distinguishes fraud into two categories: suspected fraud and high-risk fraud. The study revealed that 22 percent of overall mobile traffic is suspected of fraud, while 12 percent is at high-risk of fraud.

 “The cost of advertising plays a significant role in mobile marketers’ budgets,” said CEO and Co-founder of AppLift, Tim Koschella. “The rise in fraudulent activity not only undermines the integrity of the advertising industry, but it is extremely costly for advertisers. By benefiting from the fraud detection system such as that offered through our platform DataLift, marketers can better understand their mobile programmatic data, detect fraud prior to bidding, and therefore salvage a significant portion of their ad spend.” 

“As the negative impact of fraud continues to affect today’s mobile programmatic world, it has never been more important to utilize available data to better understand fraud risks and develop proactive and preventative measures,” said David Sendroff, CEO and Founder of Forensiq. “By using our tools to identify instances of fraud and to interpret fraud insight at a global level, AppLift was able to detect fraudulent activity across all aspects of the programmatic mobile ecosystem.”

When fighting fraud within the programmatic ecosystem, AppLift assists customers in detecting fraudulent impressions before they are served. The advantage of a demand-side platform such as DataLift is its capacity to “listen” to programmatic bid requests without bidding, in order to detect fraudulent patterns prior to any spending.