The report is composed of two parts, a quantitative study of based on first-party data from AppLift’s proprietary media buying platform, DataLift, and a comprehensive educational guide covering mobile fraud.
Powered by internal heuristics as well as leading fraud prevention tool, Forensiq, the study found that campaigns running on both a CPC and CPI basis were less likely to be fraudulent than CPM campaigns.
DataLift’s fraud detection system found 34 percent of all mobile traffic to be at risk of fraud. With eMarketer predicting that U.S. mobile programmatic media buying will reach $20.45 billion by 2017, fraud detection is a major multi-billion concern for advertisers.
AppLift distinguishes fraud into two categories: suspected fraud and high-risk fraud. The study revealed that 22 percent of overall mobile traffic is suspected of fraud, while 12 percent is at high-risk of fraud.
“The cost of advertising plays a significant role in mobile marketers’ budgets,” said CEO and Co-founder of AppLift, Tim Koschella. “The rise in fraudulent activity not only undermines the integrity of the advertising industry, but it is extremely costly for advertisers. By benefiting from the fraud detection system such as that offered through DataLift, marketers can better understand their mobile programmatic data, detect fraud prior to bidding, and therefore salvage a significant portion of their ad spend.”