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Why mobile ad fraud has been handled the wrong way

Lately, I have been reading many great articles about mobile ad fraud, what are the latest approaches to detect ad fraud and what are the volumes of fraud...

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Lately, I have been reading many great articles about mobile ad fraud, what are the latest approaches to detect ad fraud and what are the volumes of fraud in ad networks.

However, I believe the approaches that have been taken by now won’t solve the ad fraud issue in the coming future and even it can get worse.

How does ad networks handle ad fraud?

Ad fraud is being handled in a quite traditional way, let me describe the common flow in the mobile ecosystem, an ad network delivers traffic to app developers, who in the end or beginning of each month are analyzing past month’s performances reports, including fraud reports that their app tracking platform provides. Then, they start deducting installs from their publishers (ad networks, agencies and direct publishers) that are found as fraud or suspicious of fraud.

Why the current flow is killing the industry

The current flow can seem pretty satisfying and acceptable to some of the sides, mostly to the app developers, who are in real need for genuine spending users for their apps but the cost app developers pay for receiving and deducting fraud and fraud-suspicious installs is mainly time, while the costs they pay to their app tracking provider aren’t eating their budgets too much, for ad networks who have as high as 15% of fraud each month it can mean they lose money, sometimes lots of it.

Ad networks are among the biggest providers of users to app developers, but if the industry will keep working in the way we have worked till now, many medium and small ad networks will simply won’t be able to compete with big names companies like Google, Facebook, Twitter and others, what will leave the app developers with much fewer sources.

So, we should just accept ad fraud as part of the traffic?

No, you shouldn’t accept it, but you should handle it much better! How can you do that?

1. Monitor closely your sources and sub-sources performance, not only how much installs they have sent, also how many clicks were delivered. Low conversion rate can many times indicate a low performing traffic sources like popup/popunder, also called fake clicks and steal installs of another ad network, high conversion rate mixed with low conversion rate (usually done by sub-sources) is another fraudulent way to provide low-quality traffic. Most of the tracking software providers have the ability to drill-down to some sort.

2. there are more and more fraud detection companies popping out that will give you real-time analysis about fraud clicks and fraud installs that you delivered to your advertisers. You then have to take action quickly, notify your publisher about their fraud events, block them from promoting the campaign and hope your advertiser won’t deduct your installs.

Is this the best practice to handle ad fraud?

No, this is why we at optimob developed a game-changing solution that will do it automatically for ad networks. the Fraud Buster, a solution that will protect your network 24 hours a day, 7 days a week, and it is done automatically.

Our game-changing solution is integrated with top-notch fraud detection companies, that provide us their analysis on our clients’ fraud conversions and clicks, and we automatically block the source or the sub-source who provided the fraudulent conversions, all done in real-time, without any human involved in the process.

How can it be done automatically?

Optimob is a SaaS aimed for ad & affiliate networks, who want to automate and programmatically optimize their network.

Optimob solution integrates within minutes to the ad network’s API and our clients can place their preferences of how their network should be automated and programmed.

How this method helps an ad network comparing to other methods?

1. TIME IS MONEY! Everything is done in real-time, the analysis is in real-time and blocking the source or sub-source who sends the fraud installs is also blocked in real-time, while doing it manually can be done to a certain level, with many resources to spend: exporting reports, identifying the fraud in the reports, blocking the source’s traffic and sending emails to their fraudulent sources.

2. The average ad fraud in ad networks as described in John Koetsier great article is around 15%, when using optimob’s Fraud Buster it can be as low as 1%.

3. Most of ad networks use tracking SaaS to monitor and deliver their traffic to advertisers, most of these software providers are charging per click or conversion, and if an ad network sends thousands of fraud installs (even without knowing it), which involves hundreds of thousands of clicks, in the end of the month this ad network will have deductions that they can’t deduct from their tracking software costs, with optimob an ad network won’t reach to this point, as the fraud installs source will be blocked seconds after delivering the installs.

About optimob

optimob is a SaaS designed for affiliate & ad networks to maximize efficiency in their performance marketing management using automation tools and optimization algorithms. The all-in-one solution offers an innovative way to manage traffic optimizations by lowering costs and increasing revenues.

For more information reach out to us at Sales@optimob.io or by Skype: dan_fauz

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