Ad fraud has become a popular topic nowadays. Rumored to be costing the advertising industry millions or even billions of dollars a year, ad fraud has nearly everyone in agreement that something needs to be done.
Master of the universe and a leader in online advertising, Google has finally unleashed a weapon to help combat ad fraud. This new feature automatically filters the traffic coming from the top ad fraud botnets that are currently plaguing the industry. Marketers can access this new feature on Google Display Network and DoubleClick Bid Manager.
“Our move to consistently and confidently cut out the traffic from these botnets represents a significant milestone in the defense of our advertising ecosystem,” said Andres Ferrate, chief advocate, ad traffic quality at Google. “Identifying ad fraud malware and protecting ad platforms against botnets is a sophisticated effort that requires deep technical knowledge, diligence, and the ability to think several steps ahead. It’s a game of chess against an opponent that is constantly changing the rules.”
The three main botnets, Bedep, Beetal and Changthangi, have already infected hundreds of thousands of devices and are responsible for generating fake traffic or serving ads that no one actually sees. These botnets are designed to mimic human behavior such as clicking articles or scrolling. In addition, they also control malware-infected computers, which are run by fraudsters who generate a large amount of non-human ad traffic to shady publishers. This then generates a large about of ad dollars for the fraudsters and publishers. A report by Distil Network claims that these fraudsters see $1 for every $3 spent, and according to a recent ad spend report, that would accumulate to over $18 billion annually.
Google states that they are now able to stop these botnets and the new feature is “resilient to possible changes” made to the malware that generates botnet traffic, which is often an issue when filtering out spam. Does this actually work? Only time will tell but for now, Google has again saved the day.
Search advertising seems to be the “ol’ faithful” of digital advertising. It is usually the first type of online advertising a company tries, and they usually keep it as they explore additional online marketing avenues.
For the first time ever, advertisers in the U.S. will spend more money on display ads—specifically traditional banners, video, and native ads—than they will on search ads. According to eMarketer, display ads are projected to grow by 23% this year. Don’t get us wrong; money is still going to search ads, in fact, they are projected to grow by 10%. However, this increase in display is evidence to the fact that brand advertisers who love TV are shifting their budgets to online. Display ads are more accommodating to TV-style brand awareness campaigns versus search ads, which are most commonly used more for direct response efforts.
Though pre-roll ads seem to be the logical shift from TV to online, traditional banners and native ads will continue to grow over the next few years. Advertisers are expected to spend the remaining digital budgets on rich media ads and various sponsorships.
Display ads are nothing new. Having been around now for over 20 years, it has become a common way to advertise online. And when we say common, we mean really common. Did you know that on average you see 362 display ads daily? That’s approximately 22 ads per every hour you’re awake. With such a flood of information you can’t expect users to click on every ad they see; they would never get anything done. But just because a user didn’t click on an ad, doesn’t mean it wasn’t noticed and remembered.
In 1994, the first banner ad received a click-through rate (CTR) of 44 percent. Over the years, it has slowly declined and is now around 0.1 percent for standard display ads, not including video or rich media ads. But, that doesn’t mean display ads no longer work. As online advertising performance changed, so did the methods, strategies, and reporting. The click-through rate is no longer the key performance indicator (KPI) of a display ad.
Many businesses no longer focus directly on the CTR because they are more focused on quality over quantity and reaching the right person, with the right message, at the right time. The goal has now become to drive action that leads to a purchase, regardless if that translates to a click or not. Ads are driving more actions than just clicks, including website visits and product research, and they must all be taken into consideration when looking at a campaign’s performance.
According to SEOmoz, 53 percent of people surveyed said they were likely to search online for a product featured in an ad they saw, which is the same percentage of who said they would click on the ad. This proves that searching for more information is just as likely as clicking on an ad, it just doesn’t happen as fast. Seventy-four percent would click on an ad immediately or within an hour, while 52 percent would search online immediately or within an hour.
Several aspects influence the action a user will take on display ads, including how close they are to a purchase decision, messaging, age, gender, and income. Utilizing consumer data is extremely useful to reach a consumer with the right message at the right time, in turn increasing your possibility for a conversion.
Savannah web development agency Robmark Web specializes in various forms of online advertising, including display ads, search advertising, pre-roll, and more. If you are interested in reaching new potential customers through online advertising, please call (912) 921-1040.