From reach to relevance is key to fight ad fraud

Ad-fraud is not only about increasing reach through bots on social media or click injection

From reach to relevance is key to fight ad fraud
With Google to phase out third-party cookies towards the end of next year, marketers are believed to be focusing on creating plans which are day-to-day problem solvers, as opposed to targeting them with just ads.

In 2020, advertising fraud caused economic losses worth $35 billion worldwide. In 2014, eBay lost $28 million due to such attack, Pawan Chawla, chief information and security officer and DPO, Future Generali India Life Insurance, said at the DigiFraud Insiders Summit organised by Financial Express Digital, in Mumbai on Friday.

According to industry experts, flaws in the business model is one of the main reasons for this.

“The online business model is based on reach which is derived through clicks or impressions and to achieve these numbers we have seen a rise in fraudulent activities,” Hiren Shah, president, and mentor, Net-Square Solutions, said. At the same time, it is believed that if businesses invest in the right set of data and analytics tools, it is a solvable issue.

According to Harish Goel, director, IT Security and Compliance, Publicis Groupe, one needs to observe aspects such as click-through-ratios (CTR) to track fraudulent activities. Also, ad-fraud is not only about increasing reach through bots on social media or click injection.

Dhiraj Gupta, co-founder and CTO, mfilterit, said recently it has taken the form of customer care, and merchant on-boarding, among others. “When observed carefully today on social and video platforms such as YouTube many videos are available, where people pose as customer representatives of large brands such as HUL and then commit various frauds against consumers,” he added.

“The industry needs to invest in technology such as blockchain besides exchange of knowledge to be able to fight this menace,” Omkar Shirhatti, co-founder, CEO, Karza Technologies, said.

Agreed Siddharth Dabhade, managing director, India, Saarc and China MIQ. He added data can help in detecting a lot of anomalies, which can further help in understanding user behaviour around digital advertising. With Google to phase out third-party cookies towards the end of next year, marketers are believed to be focusing on creating plans which are day-to-day problem solvers, as opposed to targeting them with just ads.

“We need to find a place in the life of a customer, through relevant conversation. For example, an e-commerce company can maintain purchase history and can accordingly remind her, as per relevance. It can remind her to buy a gift for her husband on his birthday,” Avi Kumar, CMO, Join Ventures, said.

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