Thanks to new digital channels that allow advertisers to connect with target audiences, media spending has rapdily increased over the last couple of years. Despite higher media spend, advertisers often lose out on higher revenues due to rampant fraud. According to the Wall Street Journal, about $6 billion are lost due to fraud in the US alone.
A big part of the problem is bot-traffic which generates false visits, views and clicks which dilutes metrics and publisher inventories. Nevertheless, marketers can’t really decrease their spending because digital is the main channel to reach end-users. But the real problem is, of course, that many buyers don’t know where the traffic they’re buying is coming from. Since it may be a herculaen task to detect fraudulent traffic, marketers can invest into tools that prevent fraud from enetering their ecosystems, and reduce hidden operational costs caused by fraud
A great way to stop fraud right at the gate is to look closely at lead generation forms. Even though preventing fraud on the form is in most cases too late, since media is mainly bought on CPM or CPC basis, real-time lead verification can at least give you an insight into which channels are producing low quality traffic. By looking at session-length or user behavior, bot-traffic can easily be detected. There are also many companies that offer services to cross-reference form data with databases to detect inconsistencies in user data.
Another way to examine the quality of leads, is to employ lead scoring tools that measure data validity, user bahvior, and historic data to calculate an overall quality score. These scores can give marketers a real insight into whether or not the incoming lead is submitted by an actual human.
And it’s worth noting that even if you are affected by fraud, you may still potentially be sitting on a goldmine: data. If you can use data to your advantage, and learn to analyze user behavior and data, you can learn to focus on high-quality sources. Of course, this doesn’t prevent the damage that fraud causes, but lead verification and scoring can at least help to optimize processes and focus on non-fraudulent traffic.
ReviMedia, for example, has developed a proprietary lead exchange platform, LXP®, which verifies, scores and delivers leads in just 0.8 seconds, giving buyers complete insights into sources and quality of their traffic. Buyers can also choose which sources they want to block or prioritize, therefore giving them the opportunity to gain more control over the buying process. Relying on lead verification and scoring can offer buyers tremendous chances to maximize their ROI.