Let’s start with the numbers. Brands spend, on average, 12% of their annual revenue on ads. That might not seem like much, but even if a brand only makes $10,000, that’s $1,200 on ad spend; it’s a significant amount for a small business. For those ad campaigns, click fraud on search campaigns specifically ranges between 14% and 22% – every fraudulent click is money down the drain.
Those are starting statistics. Below, we’ll go into detail about whether your ad money is going down the drain.
Click Fraud
Click fraud happens when people or automated bots click on online ads only to exhaust a company’s advertising budget without showing interest in the product or service promoted. It can be done by competitors, publishers out to rip people off, or even traffic generators and click farms.
And recent statistics have shown just how massive this problem has become. For example, a 2023 report from the Association of National Advertisers (ANA) found that global losses resulting from ad fraud, including click fraud, would surpass $100 billion by 2024. And, according to the World Federation of Advertisers (WFA), by 2025, ad fraud could become the second-largest criminal income globally, even exceeding drug trafficking figures.
How Click Fraud Impairs Advertising Campaigns
Illegitimate clicks quickly deplete businesses’ advertising sources, leaving little chance for real users’ clicks. That leads to poor campaign performance, decreased conversions, and ultimately a lower return on investment (ROI).
In 2023, Juniper Research found that click fraud accounted for a 20% loss of average small businesses’ PPC advertising budgets. Those losses can be fatal for small and medium-sized enterprises (SMEs) with little funds for marketing. Wrong conclusions derived from click fraud-related data can lead to the withdrawal of winning advertisements and promotion of underperforming ads.
The longer you remain oblivious to click fraud, the more severe its consequences become for your advertising campaigns.
Bots and DDoS Attacks: Helping Click Fraud
Click fraud would not be possible without bots and DDos – preventing ddos attacks is more crucial than ever. These automated programs are aimed at generating fake traffic by clicking on ads like humans do. According to a report by Imperva in 2024, bots accounted for nearly half (49.6%) of all internet traffic, with malicious bots making up 32% of those particular figures. These sophisticated bots often know how to go undetected by security systems, allowing them to exhaust the entire advertising budget completely unnoticed.
It is not only click fraud that is a danger. This also involves using them in DDoS attacks, during which many compromised systems overwhelm a particular server with requests until it crashes or becomes inaccessible. They go hand-in-hand to form a terrible duo.
One example: you can have a botnet create fraudulent clicks for PPC ads while doing a DDoS attack on another website belonging to their competitor. This dual-pronged blow can seriously harm the finances and reputation of the targeted organization.
Detecting Click Fraud
Determining what constitutes click fraud is tricky, but not impossible. Companies should remain cautious about monitoring their advertisements to identify any patterns indicative of dishonest activities. Some common indicators include:
- Unusually high CTRs: A sudden surge in CTR without an accompanying increase in conversions could be an indication that your ads are being clicked by robots.
- High Bounce Rates: If you notice visitors leaving your site shortly after visiting your ad, then these clicks may be fake.
- Geographical Incongruities: You may suspect click fraud if most clicks originate from places outside the target audience.
- Unusual IP Addresses: A large number of suspiciously unrelated or identical IP address clicks could imply the involvement of botnets in click fraud activities.
Protecting Your Ad Spend From Click Fraud
Businesses should use multiple security layers to protect their advertising budgets from click fraud. Here are some effective strategies to protect your ad spend:
- Use Software for Detecting Click Fraud: There are various tools that, when used, can give real-time alerts on fraudulent clicks and block them immediately. Using algorithms, these tools analyze traffic patterns and thereby expose suspicious activities, allowing businesses to filter out fake clicks before they affect their advertising budget.
- Embrace IP Blocking: Whenever you notice repeated clicks coming from a single IP or several suspicious IP address ranges, it is possible to prevent further such attempts through IP blocking.
- Monitor Campaign Metrics Carefully: Regularly checking ad campaign statistics will help you identify any irregularities that might be suggestive of click fraud. Examples of these are CTR, bounce rates, and geographical data.
- Introduce Conversion Tracking: Conversion tracking is one of the best methods for click fraud prevention. It helps differentiate genuine clicks that result in customer actions from fraudulent ones that don’t. This enables you to concentrate your budget on ads that deliver business results.
- Work With Trusted Ad Networks: Go for advertising networks that have robust measures against fraud. Usually, such networks employ sophisticated algorithms and security protocols to detect and stop click fraud.
The growth of bots and the increasing complexity of click fraud schemes make it essential for companies to take proactive steps to protect their ad budgets. Don’t waste money on ads – take immediate action to protect campaigns from the hidden costs of click fraud.