App marketers stand to lose $100m to mobile app install and engagement advertising fraud in 2016. That’s according to new research from mobile attribution and marketing analytics firm, AppsFlyer. The State of Mobile App Install & Engagement Fraud study also revealed the countries with the highest rates of advertising fraud.
AppsFlyer releases new research on mobile advertising fraud
Figures are based on DeviceRank, a technology just launched by AppsFlyer, which offers mobile app advertisers a way to protect their campaigns from fraudulent traffic by automatically cleaning fraudulent devices. It’s a solution aimed at app-install and post-install ads.
Mobile app install and engagement fraud carries a cost of $350m for advertisers globally. $100m of this sum are verified fraud, whilst another $250m are suspected.
Mobile app install fraud
The research also found that the US may be the most targeted region in terms of advertising fraud. However, Germany, Australia, China, Canada and the UK are also experiencing high rates of app-install and engagement fraud.
Generally fraudsters try to target countries where potential payout is greater. Higher cost-per-install and cost-per-action campaigns also come with greater fraud rates. Regions where there’s a low payout, such as Indonesia, India, Brazil, Vietnam and Thailand were found to exhibit less fraud.
Fraud in different global markets
Android devices are more prone (up to 50%) to advertising fraud than iOS devices, according to AppsFlyer. The exception is China, where iOS devices exhibit higher advertising fraud due to having greater ad payout rates.
Android devices experiencing higher fraud rates
AppsFlyer’s new DeviceRank technology aims to identify fraudulent app installs and engagement at device level. It addresses suspicious behaviour and offers enhanced protection by tapping into data-powered algorithms to create a more multi-dimensional rating of each mobile device. Devices are then rated from C to AAA, whereby C signifies automatic exclusion from AppsFlyer’s attributed installs and analytics.
Oren Kaniel, Co-founder and CEO of AppsFlyer, explains:
“As we’ve seen from our global study, fraudsters and scammers are growing increasingly sophisticated, tricking advertisers into paying for both installs and in-app engagement. DeviceRank takes a radically different approach, cutting off fraud at the source and adding transparency to our industry in order to protect advertisers, our partners and the entire market. AppsFlyer is in a unique position to apply this game-changing technology and leverage our scale across the mobile industry, arming marketers worldwide with the best solution to combat fraud. We are excited to add DeviceRank to the AppsFlyer Active Fraud Suite, as we remain committed to fighting fraud and helping cleanse the app ecosystem of this problem.”