Google Refunding Advertising Spend Due to Fraud

Google Refunding Advertising Spend Due to Fraud

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A recent article in the Wall Street Journal highlights how Google is beginning to scale up their efforts to reimburse advertisers in clear cases of advertising fraud. However, while many of these firms will be grateful for the compensation, and the fact that Google is taking a step in the right direction in admitting the problem, some are worried that not enough is being done to safeguard Return-on-Investment (ROI) for advertising spending in the future.  

Advertising fraud typically occurs when somebody purchases several ads to display on an ad network, but if a lot of the traffic on that site turns out to be fake (such as bots “viewing” and clicking on these ads), a significant percentage of that money can go completely to waste. In other words, if a pay-per-click (PPC) advertising service charges businesses a fee each time somebody clicks their ads, when a bot “clicks” the ad, the business is still paying money - even though the ad wasn’t viewed by a real person. 

Some conservative figures estimate that more than a third of advertising revenue could be being wasted on low quality traffic in this manner, and understandably, many major firms are now demanding reimbursement for the revenue that’s been lost. Google has admitted that this is a major problem, and is currently working on implementing tools for firms to get a refund for at least a portion of their advertising spend. 

However, the main issue though is that even if companies are able to get a 100% refund on a particular advertising campaign, the lack of protection tools in place to ensure that their revenue goes towards real users means that there is no way to protect their ROI for future campaigns. These types of measures are great for reducing liability for the advertisers and getting refunds sorted, but they won’t really do anything initially to actually address the problem or truly mitigate the fraud. 

And it isn’t just Google – the advertising fraud space is fraught with similar difficulties among many different providers, and with so many interlocking layers where the fraud is taking place, it can be difficult to notice the problem or how much revenue is being stolen until it’s far too late to do anything about it. Until advertising providers get these types of processes in place, there is a real need for a product that can identify sources of bad traffic and help firms avoid wasting their advertising revenue targeting them accordingly. 

Fortunately, this is exactly the type of issue that NS8 Complete Storefront Protection is designed to address. As well as protecting merchants from the typical transactional fraud and performance problems that might affect their storefront, NS8 Complete Storefront Protection also protects stores from advertising and re-targeting fraud. This service can analyze each of a merchant's ad campaigns and score them for the prevalence of low quality traffic, helping businesses to see which of their campaigns are being wasted marketing to bots.

Using this service, companies can see exactly which of their advertising efforts are actually able to reach their real end users and then decide if they want to re-allocate that revenue accordingly, saving them potentially thousands and thousands of dollars every year. The product itself only costs anywhere from $100-400 a month (depending on the size of a merchant’s operation), so it’s easy to see that even with minor changes to their advertising campaigns, merchants can very easily pay for the product several times over.

NS8 Complete Storefront Protection is available via a direct API integration for merchants on the Shopify and PrestaShop online platforms. For more information on NS8 Complete Storefront Protection and how it can protect against advertising fraud, check out the following link.

Wall Street Journal 
Marketing Dive


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