Preventing Ad Fraud During Black Friday and Beyond
Ad fraud isn’t static; it evolves. Beyond traditional schemes like click fraud and ad stacking, fraudsters are now weaponising advanced AI.
The holiday shopping season is here, and with it comes a flurry of excitement for marketers and consumers alike. Flash sales, limited-time offers, and aggressive discounts are flooding inboxes, creating a competitive frenzy. For brands, this is a time to shine—but it’s also a time when the threat of ad fraud looms largest.
The numbers tell a sobering story: 22% of global ad spending was lost to ad fraud in 2023. For perspective, that’s billions of dollars vanishing into fraudulent activity. And this year? The stakes are even higher as online sales for the 2024 holiday season are projected to reach $241 billion, an 8.4% increase from 2023.
But here’s the kicker: 42% of all digital traffic consists of bots, and a staggering 65% of these bots are malicious. These aren’t just harmless web crawlers; they’re sophisticated, AI-powered fraudsters designed to exploit every loophole in the digital ecosystem. Left unchecked, this kind of activity not only erodes advertising ROI but can also compromise a brand’s reputation during the most critical shopping period of the year.
A Real-World Example: How Ad Fraud Crippled a Retailer’s Black Friday Campaign
Last year, a mid-sized ecommerce retailer launched a multi-million-dollar Black Friday campaign. Everything seemed to be going well—clicks were pouring in, and traffic spiked overnight. But sales? They lagged. When the dust settled, they discovered that nearly 40% of their traffic was generated by bots, driving up their ad spend but leaving conversions stagnant. Worse, these fake clicks had drained their budget, leaving little room to pivot their strategy for Cyber Monday.
Unfortunately, stories like this are becoming more common. Fraudsters have grown more sophisticated, leveraging emerging technologies like generative AI to mimic human behaviour. With tactics like click fraud and counterfeit websites, they exploit shopping behaviours such as flash sales and countdown deals, targeting moments when brands are most vulnerable.
The Growing Cost of Ad Fraud
The financial implications of ad fraud are staggering. According to Statista, ad fraud costs are forecast to grow from $100 billion in 2024 to $172 billion by 2028. In simpler terms: for every $3 spent on marketing, $1 is lost to ad fraud.
This isn’t just about numbers—it’s about trust. Imagine a customer clicking on your ad, only to land on a fake website impersonating your brand. Not only is your revenue at risk, but your reputation takes a hit. With 27% of organic and direct traffic including bots and fake users (Imperva), every marketer must ask: how do we separate real customers from fraudulent activity?
Emerging Trends in Ad Fraud
Ad fraud isn’t static; it evolves. Beyond traditional schemes like click fraud and ad stacking, fraudsters are now weaponising advanced AI. These scams can dynamically adjust based on user behaviour, making detection harder. For example, bot traffic often mimics human actions such as scrolling, hovering, or even adding items to a cart, tricking systems into categorising them as legitimate users. During flash sales and Black Friday rushes, these bots can overwhelm servers, skew data, and exhaust budgets.
Another alarming trend is the rise of fake ecommerce sites, which have surged around Black Friday in recent years. These fraudulent sites often mimic well-known brands, leveraging stolen logos and design templates to appear credible. They exploit shoppers looking for deals, collecting payment details and disappearing without delivering a product.
Strategies to Combat Ad Fraud
Fortunately, you don’t have to tackle this challenge alone. With the right tools and strategies, you can protect your brand and your bottom line this holiday season. Here’s how:
- Advanced Traffic Verification:
Ensure all traffic is screened for authenticity. Ad fraud prevention platforms can identify suspicious patterns in real time, flagging bot activity before it impacts your campaign. - Behavioural Monitoring:
Look beyond basic click metrics. Tapper uses advanced behavioural analytics to detect unusual activity—like rapid scrolling or identical patterns across multiple sessions—that often signals fraud. - Educate Your Team and Customers:
Awareness is half the battle. Train your marketing team to recognise signs of fraud and educate your customers on how to verify legitimate offers from your brand. - Leverage AI Against AI:
Tapper employs machine learning models that don’t just react to threats—they predict them. By analysing vast datasets, these tools can identify emerging trends in fraud, keeping you ahead of the curve.
At Tapper, we specialise in keeping brands safe during high-stakes moments like Black Friday. Our platform combines cutting-edge device fingerprinting, behavioural analytics, and AI-powered detection to give you real-time insights into your campaign performance. Whether it’s blocking bot traffic or preventing counterfeit clicks, Tapper ensures your ad spend goes toward real customers—not fraudsters.
The Takeaway
The holiday season presents a golden opportunity for brands—but also a golden opportunity for fraudsters. By staying vigilant and leveraging advanced tools, you can maximise your ROI while protecting your reputation. Let’s make this holiday shopping season not just the biggest, but also the safest, yet.
