The Hidden Drain on NZ Business Ad Budgets: Understanding Ad Fraud
In the evolving digital marketplace, New Zealand businesses face a unique challenge that often goes unnoticed but has a substantial impact on their return on advertising spend (ROAS) – ad fraud. Ad fraud, as described in a Juniper Research report, is any attempt to deceive digital advertisers or networks for financial gain. It includes actions like click fraud, where ads are clicked by bots or through click farms, artificially inflating traffic statistics.
For New Zealand businesses, which typically operate on lower advertising budgets compared to their American or Australian counterparts, the impact of ad fraud is significantly magnified. The Juniper Research report predicts a staggering global loss of $84 billion to PPC fraud in 2023, anticipated to reach $172 billion by 2028. This escalating trend underscores the urgency for deploying effective fraud mitigation strategies.
ROI and the Role of PPC Fraud Protection
Implementing PPC fraud protection software can dramatically improve a business’s ROI. These tools, through sophisticated algorithms and machine learning, can discern between genuine user interactions and fraudulent activities. Juniper Research estimates that fraud mitigation platforms can recover over $23 billion of advertiser spending lost to fraud in 2023, with this figure rising to over $47 billion by 2028.
For instance, Mars Digital, a digital marketing agency, actively blocks close to 20% of clicks per day due to fraud for a client in the tiny homes industry. This proactive approach saves the client approximately $46 per day, which is significant, especially for businesses with constrained marketing budgets. This alone pays for our ads management fee.
