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EXCLUSIVE: How Multichannel Saved Multiplaz Over $200K Using a New Method for Fighting Ad Fraud

Written on
Dec 18, 2013 
Author
Richard L. Tso  |



ADOTAS – Automation is redefining the ad industry, but a primary concern for advertisers is relying on computer algorithms to determine the best placement for ads online. With ad fraud and botnet traffic on the rise, some ad networks are rife with questionable websites that may appear to yield high volumes of traffic, while in actuality they have little to no audience for advertisers.

Multichannel, an artificial intelligence ad company is using automation in an entirely new way to combat ad fraud for its clients. The company just announced the findings of a new case study for client Multiplaz that reveals how they identified click-fraud draining ad dollars and increased sales by over 13 percent, helping to save the company over $200,000.

“Multichannel has proven to be very precise with its evaluations and recommendations for online and social marketing planning for our business,” said Multiplaz CEO Patricia Lewis-Hansen. “Collaboration with Multichannel resulted increased efficiency of media exposure and elimination of fraudulent media spending.”

Using its “improvements” module, Multichannel tracked the effectiveness of Multiplaz’s online display advertising campaigns and identified 12 placements that were generating zero sales but were costing the company $206,495 every year. This amounted to nearly three-quarters of Multiplaz’s annual budget for display network. Even worse, further analysis showed that Multiplaz had been victimized by a high concentration of unscrupulous sites whose primary objective is to generate profits through bogus clicks.

On a weekly basis, the Multichannel solution blocked about 85 bad Multiplaz placements. As a result, expenses are down 5 percent, sales are up 12 percent, and losses from click fraud are now less than 1 percent.

“Multichannel’s only focus is on conversion and ROI. Our algorithms crunch big data in real-time to improve your sales. Vanity figures like impressions don’t impact the bottom line enough. That’s why we offer a 30-day trial, proving our value,” explained Dmitry Fedotov, CEO and founder of Multichannel.

Adotas spoke exclusively with Fedotov to pick his brain about where the market is headed.

“The new edge of development in marketing is driven by efficiency; advertisers want to see exactly what they get for their marketing budget spent,” he said. “The demand for this was always in place, even in times of ‘Mad Men.’ Yet, the real ability to start becoming efficient aroused fairly recently, pretty much at the time when you lost the illusion of being anonymous online. But what personally fascinates me the most is that we are moving towards the climax of any marketing professional since the beginning of their days – the ability to reach out to the right customer at the right time with the right message.”

When asked about how artificial intelligence drives campaign management, Fedotov responded:

“If you hear terms like ‘Big Data,’ ‘ROI orientation’ and ‘Cross-platform analytics’ in the boardroom, you’re already there. Now, what these terms actually mean is quite simple: common practices for every business including developing a collection of information about customers, suppliers, competitors and partners. Current technology development processes this data and turns it into a variety of wonderful things: new customer groups, repeat orders, increased loyalty, decreased acquisition costs and even allots time to outline strategies for future company development. Automation does so by utilizing increasingly smart, self-learning and independent algorithms, which can predict patterns of customer behavior — their likes and dislikes and best (or most cost-efficient) ways to reach them. In a nutshell, it turns your data into profit.”

Automation certainly is here for the long haul, but the companies that are able to adapt and refine the technology to further the industry — such as through combating ad fraud — will emerge as the clear winners.





Richard L. Tso is a reporter for Adotas and an avid writer covering the intersection of technology and advertising, fashion and music. With over 12 years of experience in the Advertising, Marketing and Public Relations industries, Richard has held executive positions at global agencies and technology companies and is founder of the interactive communications firm Pseudosound Consulting LLC. A classical cellist and painter, he believes that sometimes sound carries more weight than words. He is a graduate of Stanford University.

Reader Comments.

not sure how unique or novel this approach is, we were doing this 13 years ago at advertising.com

Posted by john | 1:03 pm on December 18, 2013.

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