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BizReport : Ecommerce : March 05, 2015

Report: Fraud, conversions linked to traffic numbers

Small, medium or large, chances are someone in your organization has received an email message from a company promising to get more traffic to your site. While a few of those companies are legitimate, many are fraudulent. And those fraudulent clicks can really hurt business.

by Kristina Knight

When it comes to increasing traffic to websites, retailers and brands need to consider carefully where that traffic will originate - and why those new 'hits' are coming to their page. That because, according to new data out from Fraudlogix, even sites with less than 10% fraudulent traffic post 'significantly lower' conversion rates from legitimate traffic sources.

"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."

Some interesting takeaways from the report include:

• Sites with 30% to 40% fraudulent traffic post conversions significantly lower that other sites even though most of their traffic is legitimate
• 72% of sites have 9% fraudulent traffic
• 18% of sites have 10% to 30% fraudulent traffic
• 10% of sites have between 40% and 100% fraudulent traffic

Image via Shutterstock

Tags: ad fraud, advertising, ecommerce, Fraudlogix, fraudulent traffic

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