A Third of Online Traffic is Fake?

The questions started for me when I compared Google Analytics traffic with Wassup traffic, a widget on WordPress that tracks all the numbers coming to websites.  Was all the traffic appearing on Wassup actual humans and why weren’t the people who had made comments on my site showing up as traffic on Google Analytics?

Later I was having a discussion with two TV sales representatives about online impression discrepancies and they were saying that they were also challenged with the reporting of traffic on their site. One advertiser had placed ads on their TV website and had their own tracking which differed from the numbers the TV station was showing.  Now, the advertiser was telling them they owed them impressions.  So, who was correct?  There was probably a middle ground.

Evaluating Media Expenditures

Media buyers evaluate the value of an advertising unit by looking at how much the ad costs against how many people in the target audience are being reached. Traditional mediums like TV and radio have relied on outside market research firms Nielsen and Arbitron to substantiate their numbers.

Nielsen Net Ratings and ComScore

Third party market research for online assets is available through Nielsen Net Ratings and ComScore but an industry standard really hasn’t been implemented or demanded by buyers.  It’s usually expensive for a medium to purchase ratings for their outlet and generally if they don’t report well they probably don’t want the buyer to know that.  Thus, I believe the low cost per thousands (cpms) many online servicers are offering are probably not as good of a deal as what has been presented. Advertisers are now just waking up to that fact.

Balanced Media Plans

I’ve always been an advocate of balanced media schedules and think online is important part of it but one of the things to look for when you’re placing any media dollars is to make sure you do your research. Don’t just go by what the outlet is telling you they’re getting, find out for yourself.  Demand that they supply you with good research and make your comparisons.  You just may have some negotiating power that way.

Causes for Fraudulent Traffic

What might be causing extra traffic?  Bots.

While I was pondering this topic, I stumbled upon a recent Wall Street Journal article titled, A ‘Crisis’ in Online Ads: One-Third of Traffic Is Bogus

Wall Street Journal Article Reports on Issue

Here’s a link to the story Wall Street Journal

Here’s a quote from the article, “When you bundle bots, clicks fraud, viewablity and the lack of transparency [in automated ad buying], the total digital-media value equation is being questioned and totally challenged,” says Bob Liodice, chief executive of the Association of National Advertisers trade group. Advertisers are beginning to question if they should increase their digital ad budgets, he says.

It goes on to say that they are estimating fraudsters have stolen $6 billion dollars in the US alone. 

Be Smart

As advertisers we need to get smart about how we’re spending online dollars and demand more accountability by the outlets offering product.  In its infancy, we might reason that we were all just trying to figure this new landscape out, but now that the dust has settled it’s time to make this medium legit.