The Rock App: A Quarter of Advertising Traffic in iGaming is Fraud
Research shows that fraud in advertising is becoming an increasingly widespread problem in the iGaming industry. Advertising budgets are being lost, and company analytics are being distorted due to fraudulent schemes. In this context, the RockApp program highlights the significance of this issue, reporting global losses in the tens of billions of dollars and a high proportion of fraud in iGaming advertising traffic.
Scale of Fraud in iGaming
In 2023, global losses from online advertising fraud amounted to $100 billion, and by 2025, they may exceed this figure. The situation is especially critical for the iGaming industry, as it relies on advertising and digital campaigns to attract users. Fraud losses in the iGaming sector account for more than 25% of affiliate and programmatic traffic. This leads to significant losses in advertising budgets and distortion of marketing strategy performance metrics.
The biggest losses are reported in the Asia-Pacific region, where annual losses reach up to $75 billion. However, other regions, including Europe and North America, are also not immune to the threat of fraud.
Main Types of Fraud in iGaming
Fraudsters use various methods to deceive advertisers. Here are the most common ones:
- Affiliate Marketing: This channel faces the biggest losses due to fake clicks and registrations that distort data accuracy. The fraud rate in affiliate marketing within iGaming stands at 14.3%.
- Programmatic Advertising: Fraud here involves domain substitution, bot usage, and hidden ads. On average, 12.2% of traffic is fake.
- Mobile Advertising: On mobile platforms, the number of fake installs reaches 31% on iOS and 25% on Android. Fraudsters use methods like click injection and click-spam to manipulate traffic.
- Social Media and Other Channels: Fraudulent traffic also affects native advertising, social media, and search marketing. In each of these channels, fraudsters use various schemes to increase their earnings through deceptive advertising.
How Fraud Impacts iGaming Businesses
Advertising fraud not only increases financial losses but also distorts important data on which marketing strategies are based. This makes it difficult to measure true user interest and reduces the effectiveness of advertising campaigns.
Distortion of Analytics and Metrics
Due to fake clicks and registrations, it is difficult to accurately determine the real results of advertising campaigns. Engagement and conversion cost metrics are often inflated.
Budget Losses
Fraud schemes can consume up to 1 in every 3 dollars spent on advertising. This leads to ineffective spending of funds that could have been used to attract real users.
Reputational Risks
In addition to financial losses, fraud can result in reduced trust in the brand and even violations of regulatory requirements, which can affect long-term business outcomes.
Ways to Combat Fraud
To combat advertising fraud, iGaming companies need to implement effective fraud prevention strategies. These include:
- Using Technology for Fraud Detection. It is important to invest in systems that can analyze traffic in real time and detect suspicious activities.
- Partnering with Trusted Advertising Networks. It is recommended to work only with reliable platforms that implement strict anti-fraud measures.
- Continuous Monitoring and Campaign Optimization. Regular data audits and the use of white and blacklists help to filter out fake traffic sources.
Conclusion
Fraud in advertising is a serious threat to iGaming businesses, which continue to grow and require more effective solutions to protect advertising budgets. Implementing advanced technologies and collaborating with trusted partners will help reduce losses and improve the return on investment in advertising. It is essential for iGaming companies to take proactive action and protect their interests through modern monitoring and fraud prevention tools.