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Home arrow Market Research Findings arrow Advertising and Marketing arrow Are Marketers Wasting Money On Mobile Ad Clicks?
Are Marketers Wasting Money On Mobile Ad Clicks? PDF Print E-mail
Written by eMarketer   
18 Sep 2012
Forty percent of all mobile ad clicks worldwide deemed invalid

As of March 2012, about 10% of all US internet visits came from smartphones and tablets, according to comScore, but mobile advertising budgets lag.

Email and cross-channel marketing solutions provider Strongmail found in April that more than half (54%) of business executives worldwide who invested in mobile spent less than 5% of their total digital dollars on mobile marketing, including advertising.

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And June findings from Trademob offer mobile marketers and advertisers little justification for additional budget, especially for display ads. The app marketing platform found 40% of approximately 6 million mobile display advertising clicks worldwide resulted in wasted dollars for brands.

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Mobile devices’ smaller screens and the imprecision of using one’s finger for site navigation were likely contributors to the high rate of accidental clicks (22%). Poorly placed or rendered mobile display ad units may have also played a role.

Click fraud is hardly a new concept to pay-per-click (PPC) marketers, and the same basic types that occur on desktop have migrated to mobile. The study found one in 10 display clicks were from a botnet or client-side fraud. A botnet is a virus that creates a false click count then logged in the advertiser’s or site’s server.

Unlike a botnet, client-side fraud involves real clicks generated by the publisher with the direct intention of falsely charging a PPC advertiser for clicks that never occurred. This is accomplished either through the use of a click farm or a sneakier method such as hiding one ad behind another and charging both advertisers for the click. An additional 8% of clicks were the result of plain fraud, or the act of sites falsely reporting or logging clicks coming into their servers.

These effects are costly: eMarketer estimates US mobile display ad spending will reach $1.1 billion this year. By 2016, this will jump to $5.9 billion.

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As mobile display advertising matures, the number of accidental clicks should decrease. Fraudulent clicks should also subside as the industry gets a better handle on how to address mobile-specific challenges.

In the interim, brands should carefully vet mobile inventory providers for reputable publishers and specifics regarding click-quality controls and policies. Brands may also take advantage of ad verification tools and services, many of which offer blacklists of high-risk sites and click-fraud offenders. Ad verification can also allow brands to actively police their own advertising activity to ensure maximum performance and efficiency.

17 September 2012

Last Updated ( 18 Sep 2012 )
 
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