https://adgully.me/post/4568/report-unveils-global-impact-of-invalid-traffic-on-marketing-budgets

Report unveils global impact of invalid traffic on marketing budgets

In an era dominated by automation and artificial intelligence, the prevalence of Invalid Traffic (IVT) is reaching unprecedented levels, posing a significant threat to businesses worldwide. IVT, which includes non-human traffic and fake interactions, has emerged as a marketing black hole, wasting budgets, distorting analytics, and hindering business growth.The recently released Wasted Ad Spend Report 2024 by Lunio, a leading marketing analytics platform, sheds light on the global impact of IVT, particularly in the context of paid media campaigns. The report, based on an analysis of 2.6 billion paid ad clicks and 104 billion impressions from over 60,000 ad accounts over a 12-month period (May 2022 to May 2023), provides a comprehensive overview of the issue.The Scale of the ProblemAccording to the 2023 Imperva Bad Bot Report, nearly half (47.4%) of all internet traffic in 2022 came from bots, representing a 5.1% increase from the previous year. Lunio's report focuses on the proportion of IVT directly affecting marketing performance and business revenue.Impact on BusinessesInvalid traffic isn't just a security concern; it's a financial drain on businesses. With a return on ad spend of 0:1 for invalid clicks, businesses are losing out on revenue opportunities and facing unpredictable revenue forecasts. Lunio's real-time decision engine aims to combat this issue by analyzing the validity of millions of paid ad clicks across major marketing channels.A Collaborative Approach to AnalysisTo provide a comprehensive view, Lunio collaborated with industry leaders, Integral Ad Science (IAS), specializing in programmatic media buying protection, and Scope3, the world's largest database of georeferenced emissions factors, to understand the environmental impact of IVT.MethodologyThe report combines Lunio's data with IAS's insights into programmatic ad verification and Scope3's data on emissions associated with digital advertising. The methodology details are available in their respective reports.Key FindingsThe report highlights that Google, with its proactive stance against IVT, still experiences an average invalid traffic rate of 5.5%, causing significant financial implications, especially for larger enterprise brands.Non-Google channels, lacking the same level of resources for IVT prevention, show higher vulnerability. The report recommends a strategic approach, emphasizing diversified marketing mixes to mitigate wasted ad spend due to IVT.Channel AnalysisThe breakdown of invalid traffic rates across individual ad channels, including Google, Meta, Bing, LinkedIn, TikTok, and others, reveals insights into projected wasted ad spend and lost revenue opportunities.LinkedIn's TroublesLinkedIn emerged as the worst-performing ad channel in terms of IVT, with the platform's authenticity under scrutiny. A 2022 investigation by NPR found fake profiles, AI-generated profile photos, scrapers, and engagement bots contributing to high levels of invalid activity.Empowering MarketersThe goal of Lunio's report is to provide a data-driven understanding of the threat posed by IVT and empower marketers with insights to maximize ad spend efficiency, eliminate sources of fake engagement, and reduce carbon footprints.