{"id":12268,"date":"2022-04-21T13:03:56","date_gmt":"2022-04-21T13:03:56","guid":{"rendered":"https:\/\/customlytics.com\/how-fraudsters-milk-your-programmatic-advertising-budget-and-what-to-do-about-it\/"},"modified":"2022-07-08T06:48:53","modified_gmt":"2022-07-08T06:48:53","slug":"programmatic-ad-fraud","status":"publish","type":"post","link":"https:\/\/customlytics.com\/de\/programmatic-ad-fraud\/","title":{"rendered":"How fraudsters milk your programmatic advertising budget and what to do about it"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Author:<strong> <\/strong>Steffen Meyer, <em>Mobile Marketing Content Specialist<\/em><\/h3>\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<p class=\"wp-block-paragraph\">It\u2019s so easy: Just upload your ad and the artificial intelligence will do the rest. This is the promise of <a href=\"https:\/\/customlytics.com\/de\/the-rise-of-mobile-programmatic-advertising\/\"><span style=\"text-decoration: underline;\">programmatic advertising which has gotten very popular in the marketing world<\/span><\/a>. While programmatic advertising is quick and probably even more accurate than doing everything manually, it opens up the doors for fraudsters who steal from advertising budgets.<\/p>\n\n<p class=\"wp-block-paragraph\">These fraudsters use all kinds of tricks to falsely claim they are the reason for your app getting downloaded \u2013 and cash in on it. This way, they not only steal chunks of marketing budgets but as well skew statistics, making some campaigns appear more successful than others and thus luring marketers into a trap, feeding the ad fraud even more.<\/p>\n\n<p class=\"wp-block-paragraph\">There are various estimates on how much is lost to digital ad fraud each year: The numbers range <span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.businessofapps.com\/ads\/ad-fraud\/research\/ad-fraud-statistics\/\">from 7 to 87 billion dollars<\/a><\/span> per year, and <a href=\"https:\/\/www.adjust.com\/resources\/ebooks\/sources-of-error-white-paper\/\"><span style=\"text-decoration: underline;\">some studies say 4% of every campaign budget is lost to fraud<\/span><\/a>, <a href=\"https:\/\/www.appsflyer.com\/resources\/reports\/mobile-fraud-threat\/\"><span style=\"text-decoration: underline;\">some claim it\u2019s up to 20%, when the budget is above 1 million dollars<\/span><\/a>. Even though the numbers differ, they show: ad fraud is a problem.<\/p>\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h2 class=\"wp-block-heading\">Common fraud practices and how to defend your budget<\/h2>\n\n<p class=\"wp-block-paragraph\">So how do tricksters steal from your marketing budget and what can you do about it? There are some known common practices and ways to identify them, but since fraudsters change tactics and react to countermeasures, we advise you to get professional help to effectively defend your marketing budget against attacks.\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">However, to get a grasp on the topic, it is good to understand the basic principles. So here are four common fraud practices and how to look out for them.<\/p>\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h2 class=\"wp-block-heading\">1. Click spam<\/h2>\n\n<p class=\"wp-block-paragraph\"><strong>What\u2019s that?<\/strong> <\/p>\n\n<p class=\"wp-block-paragraph\">When downloading an app, the last click on an ad counts for the download statistic and thus for payment. Fraudsters use this to their advantage and simulate lots of clicks, for example by running a fraudulent app in the background.\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">This way, chances are high that the last click and thus the app download and the marketing money will be attributed to the fraudster. Additionally, users who downloaded an app without interacting with an ad before, will not be counted as organic, messing up valuable marketing data.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>What to do?<\/strong> <\/p>\n\n<p class=\"wp-block-paragraph\">This click spamming or \u201eorganic poaching\u201d as it is sometimes called, leaves traces of dubious clicking patterns. If a tracking tool records an almost constant barrage of clicks, you can be very sure that there is fraud involved. So look out for these unusual stats.<\/p>\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h2 class=\"wp-block-heading\">2. Click Injections<\/h2>\n\n<p class=\"wp-block-paragraph\"><strong>What\u2019s that? <\/strong><\/p>\n\n<p class=\"wp-block-paragraph\">This is a more refined version of click spam. By accessing Android\u2019s \u201ebroadcast intents\u201c, the fraudsters don\u2019t need to spam clicks anymore but inject exactly one click before the install completes, receiving credit for the download and thus stealing from the marketing budget. Again, organic users won\u2019t be counted as such.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>What to do? <\/strong><\/p>\n\n<p class=\"wp-block-paragraph\">You can look out for clicks that happen just seconds before the download ends, since it\u2019s rather unlikely that apps of 100 Megabyte will be downloaded that quickly. However, there are circumstances that make such a quick process legally possible. To filter out these errors, you need sophisticated methods provided by Mobile Measurement Partners (MMP) like <span style=\"text-decoration: underline;\"><a href=\"https:\/\/adjust.com\/\">Adjust<\/a>, <a href=\"https:\/\/www.appsflyer.com\/\">AppsFlyer<\/a>,<\/span> <a href=\"https:\/\/branch.io\/\"><span style=\"text-decoration: underline;\">Branch<\/span><\/a> or <a href=\"https:\/\/www.kochava.com\/\"><span style=\"text-decoration: underline;\">Kochava<\/span><\/a>.<\/p>\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h2 class=\"wp-block-heading\">3. Fake Installs<\/h2>\n\n<p class=\"wp-block-paragraph\"><strong>What\u2019s that? <\/strong><\/p>\n\n<p class=\"wp-block-paragraph\">Instead of stealing clicks as explained above, fraudsters here just claim app downloads that didn\u2019t happen at all. They do so by using software that emulates devices and users which seemingly click on ads as well as download and open apps.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>What to do?<\/strong> <\/p>\n\n<p class=\"wp-block-paragraph\">For this type of trick, fraudsters use data centers or identity-masking servers, leaving so-called \u201eanonymous IPs\u201c. By filtering these IPs, you can prevent your data from getting polluted.<\/p>\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h2 class=\"wp-block-heading\">4. SDK Spoofing<\/h2>\n\n<p class=\"wp-block-paragraph\"><strong>What\u2019s that? <\/strong><\/p>\n\n<p class=\"wp-block-paragraph\">Fraudsters perform a \u201eman-in-the-middle-attack\u201c on the communication between the tracking software inside an app, the SDK, and its backend servers. By trial and error they test which communications signals correspond to what actions, like first opens or installs. Then they send out these signals to claim downloads and ad money.<br\/><br\/><strong>What to do? <\/strong><\/p>\n\n<p class=\"wp-block-paragraph\">Since the perpetrators don\u2019t emulate devices but use real device data, it is very difficult to stop this fraud. <a href=\"https:\/\/www.adjust.com\/glossary\/sdk-spoofing\/\"><span style=\"text-decoration: underline;\">The MMP Adjust for example implemented a signature hash<\/span><\/a> that should prevent fraudsters from copying communication signals.<\/p>\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h2 class=\"wp-block-heading\">Not the end of it<\/h2>\n\n<p class=\"wp-block-paragraph\">There are a lot more tricks, <a href=\"https:\/\/www.appsflyer.com\/glossary\/mobile-ad-fraud\/\"><span style=\"text-decoration: underline;\">as listed here<\/span><\/a>, and most probably criminals out there are inventing new ones already. To protect your budget and your data, it is best to have professionals on your side: <a href=\"https:\/\/customlytics.com\/de\/kontakt\/\"><span style=\"text-decoration: underline;\">drop us a line<\/span><\/a> and get in contact with our experts.<\/p>\n\n<p class=\"wp-block-paragraph\">So look for spam, don\u2019t let them inject you, identify fakes and prevent spoofs. Read you soon.<\/p>\n\n<p class=\"wp-block-paragraph\"><em>\ud83d\udca1 Knowledge sharing is at the core of what we do. Learn more about the app industry and discover useful resources by signing up for our <\/em><a href=\"https:\/\/customlytics.com\/newsletter-sign-up\/\"><em><span style=\"text-decoration: underline;\">newsletter<\/span><\/em><\/a><em> or becoming part of our community on <\/em><a href=\"https:\/\/www.linkedin.com\/company\/customlytics\/\"><em><span style=\"text-decoration: underline;\">LinkedIn<\/span><\/em><\/a><em>.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s so easy: Just upload your ad and the artificial intelligence will do the rest. This is the promise of programmatic advertising which has gotten<\/p>\n","protected":false},"author":1,"featured_media":12267,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"0","ocean_second_sidebar":"0","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"0","ocean_custom_header_template":"0","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"0","ocean_menu_typo_font_family":"0","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"0","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"off","ocean_gallery_id":[],"footnotes":""},"categories":[106],"tags":[124,182],"class_list":["post-12268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-performance-marketing-de","tag-mobile-fraud-de","tag-programmatic-de","entry","has-media"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How fraudsters milk your advertising budget and what to do about it<\/title>\n<meta name=\"description\" content=\"Fraudsters target online marketing budgets and rob billions of dollars each year. 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