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The global pandemic has undoubtedly caused a massive increase in the number of active users who play regularly. A global statistic from Casino.org indicates that nearly 26% of the world’s population gambles, and the global gambling market is expected to grow from $76.79 billion to $127.45 billion by 2025, according to Research and Markets.
Bookmakers must differentiate themselves in such a competitive and evolving market by investing in digital campaigns and using premium advertising networks. However, many of these channels may not be properly equipped to deal with invalid traffic and ad fraud, and as a result you may lose large amounts of money to scammers every day.
The level of financial and competitive growth in the industry has created a strong attraction for scammers, and gambling companies can fall prey without even realizing it is happening. As the betting industry becomes more saturated, companies cannot suffer from lower ROI and poor campaign performance.
Understand the risks of ad fraud
Unfortunately, the risks associated with virtual gambling are increased by the lucrative bonuses offered and many bookmakers are publishing safeguards to help reduce the risk of fraudulent transactions or unethical behaviour. However, there is a real lack of awareness of advertising fraud in the gambling industry, and many companies are not aware of the level of impact this has on them.
Advertising fraud is any traffic that is maliciously generated and used to target companies’ advertising budgets. This is a subset of invalid traffic, which is any interaction with an ad that does not match the objective of the ad campaign.
Here are some of the ways ad fraud threatens your ad campaign:
- robots Robots are programmed to imitate human behaviour. Their level of development varies and they can do anything from clicking ads to watching videos. Abusive promotional bots that click on paid search ads and then run scripts to claim bets or free spins are very common in online games. Since these bots “convert” and provide misleading marketing metrics, this means that you are more likely to optimize your campaigns with bad data and strive to drive more bot traffic.
- Browser scam – For example, site fraud, which involves manipulating users’ location information to match advertiser targeting criteria, and domain spoofing, when bad actors monetize low-quality site traffic by manipulating domains and making them appear to come from high-quality sources.
- Misattribution scam – A large number of clicks on affiliate and mobile campaigns are faked from a mobile device, even if the user never clicks on the ad. If a user with a similar fingerprint visits the target website and installs the app, the spammer is credited with the conversion/installation and receives a commission.
In fact, ad fraud leads to inaccurate ad results and a lost budget. A world-renowned online betting company running a Google Ads campaign found that 23% of its clicks were invalidated, which is 28% of its ad spend.
Without any protection or prior visibility, 71% of the betting company’s wasted spending is attributed to just one of its campaigns. If the company really has the vision and awareness it needs to be able to tackle the problem, it has the potential to save $115,000, which is a combination of media spending and potentially lost bonus deposits.
All gambling companies that run Google ad campaigns are at risk like this online betting company. It is therefore imperative that marketers operating in this sector outperform scammers by providing them with more insight, accurate analytics, and real-time protection.
Protect and save your budget
By trusting your data and analytics, the savings potential for gambling companies is around 10%, which is 7% more than other sectors. The solution to the problem of invalid traffic is to know exactly how it affects your business and how you can combat it. With reliable data that analyzes every element of traffic quality, you can easily create a business case for fighting bots, browser fraud, and error attribution.
By being clear about the scale of the problem, betting companies can then evaluate the right solutions and the partner needed to help solve it properly. Once you identify a partner with the right skills, technology, and experience, they can have an immediate impact.
Elimination through prohibition
Advertising fraud currently dominates many betting companies around the world, but there is a change in hand. Fortunately, stopping invalid traffic doesn’t have to be complicated or expensive. In fact, the money you’ll save will always be greater than the investment you’ve made to stop it, leaving you to focus solely on making more savings.
By combining proactivity and visibility, bookmakers can generate huge savings and handle invalid traffic with confidence and ease. As many bookmakers around the world are just looking to expand their digital marketing, it’s time to understand your advertising losses and prevent them from achieving maximum growth and success.