Digital marketing, specifically Pay-Per-Click (PPC) and Social Media Marketing, is a multibillion-dollar industry. It is here to stay – not going anywhere anytime soon. However, rogue marketing platforms are taking advantage of advertisers. Given that everyone is desperate for online engagement in the name of likes, views, impressions, comments, and clicks, these agencies will give them what they want.
Are you even aware of the bot infestation? Read Also: The Dead Internet: Bot Infestation, Algorithms, and Artificial Intelligence Influence on the Web
We conduct research, and it is our responsibility to keep you informed about the happenings around you, especially in this digital age. By the way, due to public outcry and political pressure against dangerous Artificial Intelligence (AI) Chatbots that are impacting young people’s mental health, things are already taking shape.
Anyway, today let’s analyze ad fraud. Millions of advertisers worldwide are victims of this exploitation. Almost all social media platforms have elements of ad fraud, but what is it?
Ad Fraud Definition
Ad fraud refers to the intentional manipulation of digital advertising systems in which criminals create false impressions, clicks, or conversions through bots and other deceptive techniques. This practice deceives advertisers and platforms into paying for non-existent or low-value engagement, resulting in billions of dollars lost each year as ad budgets are wasted on fake traffic rather than genuine users.
Typical methods include automated bot clicks, fake websites, and hidden or invisible ads designed to generate illegal profits without genuine human interaction.
Fake Profiles for Ad Interaction
Some platforms feature many fake profiles for ad interaction primarily to boost engagement and increase activity. Strategically, they drive revenue through AI-powered entities, bots, and some paid humans generating fake clicks and impressions. These characters make platforms appear more lively, but the truth is – advertisers are the BIG LOSERS!
Evidence of Click Fraud
Users often face click fraud from malicious actors inflating metrics or draining budgets.
According to Ruben, AI bots increase activity and make platforms more engaging.
Source: LinkedIn
Most probably, that’s why some social media owners use them.
A user from Reddit complained of artificial traffic and reactions for his ads. For instance, 600 likes on his ad promotion (post) received no engagement. It attracted no followers or comments.
Source: Reddit
“HyphBot” ad fraud is another famous case that exploited Google’s DoubleClick ad exchanges, generating fake ad impressions through fake websites.
Source: PPC.IO
Why “Fake” Profiles Cause Problems
- Click Fraud: Malicious actors use bots (often from the Audience Network) to click ads, generating fake leads and draining legitimate advertisers’ budgets.
- Inauthentic Behavior: Networks of fake accounts (sometimes called “scammets”) artificially inflate content popularity or target competitors’ ads, notes this Quora thread.
- Misleading Metrics: Bots can distort advertising results, making genuine campaigns look less successful and training algorithms to send more low-quality traffic, according to this Reddit thread.
Final Thoughts!
Whereas advertisers are desperate for online visibility, the internet has no shortage of ad fraud. You’ll spend fortunes searching for traffic, but reap zero Return on Ad Spend (ROAS). ROAS measures how much revenue you generate for every dollar spent on ads. In fact, it shows campaign efficiency.
So, watch out every time you run an ad online!
While some platforms claim to use AI to curb ad fraud, nefarious bots still overrun them by exploiting their systems. If not, they are the ones running the show using ad fraud techniques to tap money. Eventually, the whole process negatively impacts ad effectiveness.
Have you been a victim of this nuisance? What was your experience?
