Tackling Ad Fraud at a Large E-commerce Company: A $75 Million Story

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A recognized leader in the e-commerce sector, our subject enterprise specializes in a broad array of high-quality, original products, including cosmetics and dietary supplements. With an annual turnover of $75 million, the company sets aside a significant $23.8 million for advertising expenses, signifying its commitment to creating a strong brand presence.
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Overview

A recognized leader in the e-commerce sector, our subject enterprise specializes in a broad array of high-quality, original products, including cosmetics and dietary supplements. With an annual turnover of $75 million, the company sets aside a significant $23.8 million for advertising expenses, signifying its commitment to creating a strong brand presence.

Challenges

The e-commerce entity grappled with two primary issues that threatened to compromise its advertising efforts. Firstly, the company had an inadequate understanding of the real magnitude of ad fraud affecting its campaigns. This uncertainty obstructed their capability to determine the exact impact of fraudulent activities on their operations.

Additionally, the firm confronted the complexities posed by inconsistent and sporadic peaks in invalid click rates, sometimes surpassing the 10% mark. These fluctuations made it arduous to accurately measure the efficacy and outcomes of their advertising initiatives.

Why Spider AF

To tackle these obstacles, the company undertook an exhaustive examination of numerous fraud detection tools, evaluating them based on detection precision, fraudulent click calculation accuracy, and cost-benefit ratio. Spider AF stood out, offering superior performance on all counts.

The complimentary trial of Spider AF served as a revelation, unmasking a higher degree of ad fraud than anticipated. These valuable insights enabled a comprehensive evaluation of their advertising campaigns, thus facilitating data-driven decisions.

Solutions

Upon full integration of Spider AF, the company noted marked improvements in their ad campaigns. The tool's robust fraud detection capabilities led to a substantial increase in refunds from multiple media platforms.

The effective identification and subsequent handling of fraudulent activities led to significant cost savings. Furthermore, the company was able to decrease expenses over time by excluding fraudulent IPs and automatically eliminating misleading ad placements.

Results

The e-commerce giant places high importance on customer growth optimization, considering aspects like Cost Per Order (CPO) and Customer Lifetime Value (LTV). They have experienced the detrimental effects of ad fraud, leading to major financial losses of up to 20% in certain instances. This translates to potential losses of nearly $4.76 million from their $23.8 million advertising budget.

What's Next

To tackle advertising performance issues, they advocate for other e-commerce businesses to undertake Spider AF's free trial. This step can identify and effectively address ad fraud, thereby preserving their significant advertising investments and boosting overall business performance.

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