Saturday, April 16, 2016

Bots Costing Advertisers

It is a well known trend that companies are shifting their marketing dollars from traditional advertising to digital advertising.  The benefits of digital marketing are vast:  more targeted ads, extensive analytics, higher ROI, etc.  However, there is an offsetting cost that is costing advertisers significant money:  bots.  Bots are website robots that run automatic tasks such as clicking on advertisements.  This in turn causes companies to pay for these "fake" clicks with no promise of a return.


How much are these bots costing advertisers?  According to a study released by the Outdoor Advertising Association of America, bot fraud is stealing ~$7B from advertisers.  Display media with CPMs over $10 received 39% more bot traffic than lower CPM media and media with CPMs over $15 had a 173% high bot rate.

http://www.adweek.com/socialtimes/report-bot-fraud-costs-advertisers-7-2-billion-worldwide/636920

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