Traffic arbitration fraud is a growing problem in affiliate marketing, harming both advertisers and companies. In an article for GMB, 1win Partners explores some of the main existing types, how they impact the sector, and mainly, how to avoid fraudulent traffic.
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Fraud and its varieties in affiliate marketing
What is fraud? It is the deliberate attraction of low-quality traffic under the guise of valid leads. It is mainly associated with traffic managers who try to game the system and profit from advertisers. There are also unintentional cases of fraud, especially common among newcomers to the field, when a person thinks they have found a “loophole” that will help them make extra money. But why do traffic managers resort to this type of traffic?
The answer is simple. This traffic is much cheaper than targeted traffic and is common in CPA, CPI, CPL, and COD payment models. Due to the simple conversion points in them, the temptation to make money by investing minimal effort is very great. For example, a traffic manager might send a link to a website to all his friends, who, at his request, will register and make a minimum deposit, thus fulfilling the target action of the offer, but their interaction with the advertiser does not continue.
For a traffic manager, detected massive fraud is a risk of financial loss. If fraud is detected, any affiliate network can block the account and, by right, not make the payment of the due remuneration. For the sphere as a whole, this is mainly a loss of reputation, as affiliate marketing is associated with something dishonest. For advertisers, it is money wasted (by paying for this traffic), as there is no way to interact with it in the future.
There are various types of traffic fraud, including:
* Traffic bots - bots that mimic the behavior of real people, performing the desired actions through user interfaces. They can leave leads, install apps, respond to surveys, etc.
* Incentivized traffic - one of the most popular methods of fraud. It includes all internet users who perform targeted actions in exchange for a reward. In this case, the reward for the action is the main motivation of the user, but they are not interested in the product itself.
* Multiple accounts - traffic is generated through accounts created by the traffic manager and mimics attractive users. This type of fraud is also developed among users (bonus hunting) with the aim of receiving additional welcome bonuses.
* Click fraud - this occurs when bots or individuals not interested in the product click on ads with the sole purpose of inflating click metrics. This type of fraud drains the advertiser's budget without generating real conversions.
* Conversion fraud - sending false conversions so that advertisers believe a sale was made or a lead was generated. In many cases, fraudulent affiliates use automated tools to simulate conversions.
* Cookie stuffing - when an affiliate inserts multiple cookies on a device without the user performing a legitimate action. In this way, the affiliate tries to claim credit for sales that, in fact, they did not influence.
* False impressions - similar to multiple accounts, this fraud involves creating fake "viewers" of ads, through bots, that generate ad views that were never actually seen by humans.
* Traffic hijacking: Fraudulent affiliates may redirect legitimate users to third-party pages without the advertiser realizing, stealing traffic paid for by other channels.
Some methods of extracting traffic are also called fraud (although some advertisers work with them):
* mislaid - deliberate manipulation of user expectations
* spam - mass sending on social networks or email
* intrusive advertising - popunders, pop-ups, and other types of ads where the user is forced to click or clicks accidentally
* brand imitation - creation of a website or social media page in the name of a brand and posting content on its behalf
Network of advertising fraud
Not only media buyers, but also advertising networks want to profit from traffic managers. For example, if you accept an offer and use the services of a dishonest advertising network, instead of traffic, you will receive a flood of bots or non-targeted traffic that does not convert. The money invested in advertising, in this case, only benefits the advertising network.
Combating frauds
To combat low-quality traffic, various automatic systems are used that analyze the lifetime of users, the GEO, the activity, the speed of the target action, etc., and traffic analysis - waiting time.
* Constant monitoring: The key to combating fraud is continuous monitoring and the use of advanced analytical tools to identify abnormal behavior patterns.
* AI and machine learning: AI-based tools can detect suspicious activities in real time, such as an excessive number of clicks or conversions coming from the same source.
* Lead verification: To avoid lead fraud, many advertisers implement verification systems that validate the information of generated leads before compensating affiliates.
* Audit and cookie control: Implementing strict cookie tracking policies can help avoid cookie stuffing.
The waiting time is different for all advertisers. But this method of evaluating leads is currently the main method of combating fraud. Advertisers evaluate the retention of attracted leads and, based on this, can draw conclusions about the presence of fraud. For the same purpose, there are baseline and re-deposits.
Conclusion
Advertisers have been fighting fraud since the beginning of affiliate marketing, while trying to maintain loyalty and compelling stories for traffic managers. But everyone agrees that reducing the share of fraud will only be possible if the number of people using it as a tool to make easy money decreases.
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Source: 1win Partners
