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

Detected and removed fraudulent ad placements

Increased refund claims from advertising platforms

Blocked fraudulent IPs and bad placements

At Glance

Company

Anonymous

Headquarters

Tokyo, Japan

Industry

Ecommerce

Product Solution

PPC Protection

A leading e-commerce company specializing in high-quality cosmetics and dietary supplements, this enterprise generates $75 million in annual revenue. With its headquarters in Japan, the company invests heavily in digital marketing, allocating $23.8 million annually to advertising efforts to drive brand awareness and customer acquisition.

However, ad fraud posed a serious challenge, with invalid clicks, fraudulent leads, and deceptive affiliate practices draining their budget. To combat these issues, the company turned to Spider AF’s solutions

The Problem

Ad Fraud Was Hurting the Business

The company faced two major ad fraud challenges:

Lack of visibility into fraudulent activities – Without a clear understanding of how much ad fraud was affecting their campaigns, they struggled to measure the true impact on their ROI.
Surging invalid click rates – At times, fraudulent clicks exceeded 10%, making it difficult to track campaign effectiveness, optimize spending, and ensure real customers were being reached.

This fraudulent activity led to millions in wasted advertising spend, misleading data, and difficulty scaling campaigns effectively.

The Solution

Spider AF Multi Ad Fraud Solution Helped

After evaluating multiple fraud detection tools, the company chose Spider AF due to its superior accuracy and cost-effectiveness. A free trial revealed that fraud levels were higher than initially estimated, confirming the need for immediate action.

By implementing Spider AF’s three core solutions, they were able to:

Automatically detect and block fraudulent clicks, preventing wasteful ad spend.
Identify and filter out invalid leads, ensuring marketing efforts focused on genuine potential customers.
Eliminate fraudulent affiliate activities, reducing unnecessary costs and protecting revenue.

Results

Measurable Impact of Spider AF

With Spider AF fully integrated, the company saw significant improvements:

Detected and removed fraudulent ad placements, leading to higher-quality traffic.
Increased refund claims from advertising platforms by proving fraudulent activity.
Blocked fraudulent IPs and bad placements, preventing recurring losses.
Projected savings of up to 20% of their ad spend—equivalent to nearly $4.76 million in potential loss recovery.

By eliminating fraudulent activity, they optimized their Cost Per Order (CPO) and improved overall Customer Lifetime Value (LTV)—directly enhancing business performance.

Conclusion

A Smarter Approach to Fraud Protection

Ad fraud was significantly impacting this e-commerce company’s advertising investments, leading to wasted budget and inaccurate performance tracking. By integrating Spider AF’s PPC Protection, False Lead Protection, and Affiliate Fraud Protection, they were able to:

✅ Eliminate fraudulent ad traffic
✅ Reduce invalid leads and improve conversion quality
✅ Save millions in ad spend losses

Moving forward, the company remains committed to continuously optimizing its advertising strategies with Spider AF and encourages other e-commerce businesses to take advantage of Spider AF’s free trial to protect their own ad spend.

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

June 15, 2023

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

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.

Table of Contents

Overview

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.