How much money do businesses lose to ad fraud. Spoiler: A lot

New Ideas in MarketingEssential news for marketers, summarised by YouGov
December 07, 2021, 5:50 PM UTC

The latest Netacea study found that businesses in the UK and US lose a significant chunk of their revenue each year due to ad fraud or click fraud.

Ad fraud costs marketers considerable revenue each year, as 73% of companies report losing 4% of their online ad revenue to ad fraud. 68% of businesses also reported losing 4.07% of their online revenue due to skewed marketing analytics.

For large businesses (25%) with an annual turnover of more than $7 billion, the 4.07% margin translates to $284,900,000 in lost revenue. Around 56% of businesses reported bots impacting their analytics, resulting in poor data quality and a minor financial impact on their organisation in 2020.

The report further found that since marketing teams have broader site and app traffic visibility, they are usually the first to identify a bot problem. Marketing and the security teams need to be on the same page to resolve bot issues and address click frauds effectively.

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