Fraudlogix: Fraudulent Traffic Correlates with Lousy Conversion Rates From Human Traffic

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According to research from Fraudlogix, sites with greater than 9% fraudulent traffic generated significantly lower conversion rates from their real human traffic, indicating a correlation between high fraud percentages on sites and poor quality traffic.

Fraudlogix, a provider of advanced fraud detection solutions, uncovered these results by analyzing client campaigns in a range of different verticals including: financial services, consumer electronics, apparel, home improvement and transportation. The campaigns included in the analysis ran real-time, CPM display ads across 13 different exchanges, displaying on 144,992 unique websites.

To obtain clear results, the campaigns chosen for the study were limited to advertisers whose traffic was purchased in a programmatic environment on a CPM basis and whose campaign goals were to generate conversions in the form of leads or sales.

Fraudlogix analyzed each publisher site for fraud, scoring them according to the percentage of fake traffic uncovered on each site: What Fraudlogix found was that 98% of the conversions for these campaigns occurred on sites with a Fraudlogix score of 0 (< 9% fraudulent traffic). These sites received 64% of the budget and comprised 72% of the sites used in the campaigns. Conversely, the remaining sites– 28% of the sites used in the researched campaigns – only generated 2% of the conversions. This research shows that even a site with 30 or 40% fraudulent traffic –– fails to deliver the same rate of conversions despite the fact that 60 – 70% of their traffic is from real people. "This research shows that in digital advertising, 'all real traffic isn't created equal'," said Hagai Shechter, CEO & founder, Fraudlogix. "And site fraud statistics vary over time. Therefore, publishers, advertisers and agencies need to work together to monitor fraud on a continuous basis and to include conversion analysis in order to ensure that fraud does not negatively impact ad performance." "According to this research, it appears that sites with higher percentages of fraud have questionable practices when buying traffic most likely as a result of trying to buy traffic at bare minimum prices, leading to poor performance even when the traffic is real," added Hagai.

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