Click Fraud Statistics 2023

 

• Click fraud is expect to costs $37 billion in 2023.
• The average click fraud rate is 12%.
• PPC ad fraud in 2023 is estimated at 28.7%, significantly higher than 19.3% in 2021.
• 70% of fraudulent activity is attributed to bots.
• Advertisers can lose up to 50% of their ad budget to fraudulent activities.
• 34% of programmatic display ads experienced click fraud in 2018.
• Google Ads and Bing Ads have systems to detect and prevent click fraud.
• In 2020, approximately 10.2 billion clicks from were deemed fraudulent
• Mobile campaigns were the most likely to be impacted by fraudulent activity, with a CPA fraud rate of 5.9%
• Click fraud accounted for over 80% of all detected ad fraud and resulted in an estimated loss of $9.1 billion in 2020
• Europe saw the most significant percentage increase in click fraud at 68%, while the Asia Pacific region had the highest click fraud rate of 15.4%
• Click fraud continues to be the most common type of digital ad fraud, accounting for 86% of all detected cases
• The impacts of click fraud include financial losses, diminished customer confidence, and reduced ROI.
• dvertisers need to invest in sophisticated protection systems to protect against click fraud.
• Fraudulent activities can lead to losses of up to 30%
• Brand credibility, customer trust, and customer engagement can decrease due to digital ad fraud.
• Sophisticated bots are estimated to run almost half the clicks on PPC programs.
• Click fraud makes it harder for companies to distinguish between genuine and fraudulent traffic, resulting in inefficient bidding.

Click fraud is a growing concern for businesses around the world. It is a type of online fraud where advertisers pay for clicks on their ads, but these clicks are not from genuine potential customers. Instead, they are clicks generated by bots or individuals with malicious intent.

Click fraud statistics are important for businesses that want to protect their advertising budgets and ensure that they are getting the results they pay for. In this article, we’ll explore the latest click fraud statistics and what they mean for your business.

Key google click fraud Stats

 

Click fraud is a growing issue, with organizations spending more and more on pay-per-click advertising campaigns it is estimated that click fraud cost is expected to reach over $37 billion in 2023

1. PPCclickfraud.com reported an average click fraud rate of approximately 12%. This means that, on average, 12% of clicks are fraudulent. Additionally, they reported that click fraud increased significantly in 2020. It is expected to continue to rise through 2021 as advertisers emphasize digital marketing strategies such as PPC campaigns.
2. The effects of click fraud can be far-reaching. Click fraud costs businesses billions of dollars annually and can diminish customer confidence, impacting overall ROI. The article also reports that because digital advertising is becoming increasingly expensive, investing in a solution to detect and prevent, click fraud is important.
3. A lack of transparency surrounding Pay Per Click fraud and that it is hard to detect and measure. They also predicted that click fraud will continue to increase in 2021, challenging businesses to stay ahead of the game and protect their investment in digital advertising.
4. An article by MediaKix.com (https://mediakix.com/blog/click-fraud-statistics-2020/) reported on a study conducted by Anura.ai which showed that 20% of total ad spend was attributed to invalid clicks, with over 40% of that being attributed to bots. MediaKix found that pay-per-click fraud is used to manipulate quality score algorithms to boost campaigns, resulting in higher prices for advertisers.
5. Click fraud rates have increased by 59% since 2019. Furthermore, they found that 70% of all fraudulent activity is primarily attributed to automated bots, leaving humans responsible for only 30%. This highlights the need for advanced security solutions to protect digital ads against this malicious activity.
6. PPC click fraud affects businesses of all sizes and budgets, losing an average of 6-30% of their budget. Additionally, they found that 94% of all display ads are exposed to click fraud, making it difficult for organizations to determine what is genuine user engagement and malicious activity.
7. Mobile click fraud is the most common type. Additionally, they stated that click fraud is mainly attributed to bots rather than humans and that advertisers can lose up to 50% of their ad budget to fraudulent activities.
8. Advertisers could lose up to 10% of their total budgets due to click fraud. They noted that 34% of programmatic display ads experienced click fraud in 2018, a significant percentage. The article also mentioned that click fraud can considerably impact a business’s bottom line, so it is important to invest in solutions that can detect and prevent this type of fraud.
9. In a podcast by Bidnology.com (), it is reported that Google Ads and Bing Ads are the two biggest online advertising platforms with systems in place to detect and prevent click fraud. It is also stated that Google Ads has the most advanced method for detecting and preventing click fraud. Finally, the podcast highlighted the importance of using advanced technologies to prevent click fraud and decrease its impact on businesses.

Paid search advertising fraud is projected to cost organizations billions of dollars in 2023 and will continue to be a significant challenge to overcome. Pay-Per-Click campaigns are particularly susceptible to click fraud because they are more expensive than other digital advertising methods. From a financial perspective, click fraud impacts businesses significantly but can also decrease customer confidence and reduce overall ROI.

More Click Fraud Stats

From 2022-2023 these studies and research suggest that click fraud is ever-increasing.

• Approximately 10.2 billion clicks from digital ad campaigns were deemed fraudulent in 2022. This was an increase of almost 60 percent from 2018 and 2019. Additionally, the report estimated that digital ad fraud could cost advertisers $24.6 billion in 2023, a 30 percent increase from 2020 figures.
• Mobile campaigns were the most likely to be impacted by fraudulent activity. CPA fraud on mobile devices was 5.9% in 2020, almost five times higher than desktop fraud rates.
• Click fraud accounted for over 80% of all detected ad fraud, which resulted in an estimated loss of $9.1 billion in 2020 alone.
• Europe saw the most significant percentage increase in click fraud at 68%, while the Asia Pacific region had the highest click fraud rate of 15.4 percent.
• Click fraud continues to be the most common type of digital ad fraud, accounting for 86% of all detected cases. The report also noted that, on average, the click-through rate for malicious clicks was four times higher than legitimate clicks.

Cited Sources:

1. Statista. (2021). Digital Ad Fraud – Statistics and Facts.
2. DoubleVerify. (2021). Mobile Devices Lead in Digital Ad Fraud.
3. Pixalate. (2021). Click Fraud Continues To Lead As Biggest Threat To Programmatic Advertising.
4. Trustlook. (2021). Click Fraud Increases By 66 Percent Across All Regions, With Europe Leading The Way.
5. White Ops. (2021). White Ops Click Fraud Report 2021.

PPC ad fraud explored further

 

The rise in fraudulent activities within the Paid-Per-Click (PPC) landscape has significant implications for advertisers, publishers, and platforms. According to Google, the statistics for PPC ad fraud in 2023 are estimated to be around 28.7%. This is a massive increase from 2021’s 19.3%. This is mainly due to the emergence of new digital technologies and automated online advertising platforms.

• Bot-based fraud can take a significant toll on an Advertiser’s budget resulting in losses of as high as 30%. This can have a substantial impact on ROI and sales. Furthermore, digital ad fraud can also cause a decrease in brand credibility, customer trust, and customer engagement.
• Sphisticated bots will run almost half the clicks on PPC programs like Google Ads, resulting in over $25 billion in lost spending. This shows how click fraud has reached an alarming level, with bots being able to outsmart even the most secure anti-fraud detection systems. As a result, Advertisers need to invest in more sophisticated protection systems to maintain the integrity of their campaigns and protect against click fraud.
• PPC ad fraud can lead to more competition in the already competitive PPC landscape. The prevalence of click fraud makes it harder for companies to distinguish between genuine and fraudulent traffic, thus making it difficult to bid on keywords efficiently and stay ahead in an auction.

PPC ad fraud in 2023 is estimated at a staggering 28.7%, significantly higher than 2021’s 19.3%. This has significant implications for Advertisers, Publishers, and Platforms who suffer losses due to fraudulent activities. Advertisers need to invest in sophisticated protection systems, while Publishers and Platforms need to increase transparency and audit logs to better protect themselves against click fraud.

Click Fraud Rate by Industry

The average click fraud rate across all industries is 24.1%. However, some industries have a higher risk of click fraud than others. The top five industries with the highest click fraud rates are:

• Technology (34.7%)
• Business (32.7%)
• Finance (28.4%)
• Health (28.4%)
• Travel (25.7%)

Click Fraud Rate by Device

Click fraud can occur on any device, but some devices are more susceptible than others. Mobile devices have a higher click fraud rate than desktop devices. According to ClickCease, the average click fraud rate by device is:

• Mobile (27.2%)
• Desktop (22.2%)
• Tablet (21.1%)

Click Fraud Rate by Geography

Click fraud is a global issue, but some countries have a higher risk than others. The top five countries with the highest click fraud rates are:

• Vietnam (35.4%)
• Indonesia (34.3%)
• Russia (32.3%)
• China (30.9%)
• India (30.8%)

Click Fraud Rate by Ad Type

Click fraud can occur on any type of ad, but some ad types have a higher risk than others. The top three ad types with the highest click fraud rates are:

• Display ads (33.3%)
• Video ads (32.4%)
• Search ads (21.8%)

Impact of Click Fraud on Advertising Costs

Click fraud can have a significant impact on advertising costs. In 2020, advertisers lost an estimated $35 billion to click fraud. This loss is expected to increase to $100 billion by 2023.

Who is Affected by Click Fraud?

Any business that advertises online can be affected by click fraud. Small businesses are particularly vulnerable because they often have limited advertising budgets. Click fraud can drain their budgets quickly and prevent them from reaching their target audience.

How to Detect Click Fraud

Detecting click fraud can be challenging because it can be difficult to distinguish between genuine clicks and fraudulent clicks. However, there are some signs that may indicate click fraud, such as:

• A sudden increase in clicks without a corresponding increase in conversions
• Clicks from unusual locations or devices
• Clicks from the same IP address

To detect click fraud, businesses can use click fraud detection software. This software analyzes clicks and identifies suspicious activity.

How to Prevent Click Fraud

Preventing click fraud is essential for protecting advertising budgets and ensuring that businesses get the results they pay for. Here are some tips for preventing click fraud:

• Monitor advertising campaigns regularly for unusual activity
• Use click fraud detection software
• Limit advertising to trusted sources
• Set daily or monthly ad spend limits
• Use ad targeting to reach a specific audience

FAQs About Click Fraud

1. Can click fraud be prevented entirely? – While it is challenging to prevent click fraud entirely, businesses can take steps to minimize the risk.
2. What is the punishment for click fraud? – Click fraud is illegal and can result in fines and imprisonment.
3. How can businesses recover losses from click fraud? – Businesses can file a claim with their ad platform or take legal action against the perpetrators.

Click fraud is a real problem that affects businesses of all sizes and industries. Understanding click fraud statistics and taking steps to prevent it is essential for protecting advertising budgets and ensuring that businesses get the results they pay for. By using click fraud detection software, monitoring advertising campaigns regularly, and limiting advertising to trusted sources, businesses can reduce the risk of click fraud and protect their investment in online advertising. With the expected increase in losses due to PPC fraud, it is more important than ever for businesses to be vigilant and take action to protect themselves.