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Rethinking Ad Optimization: Why Metrics Alone Won't Maximize Your Campaigns

October 17, 2024
5 min read

Marketers need to reconsider how they optimize ad campaigns. It might seem logical to let algorithms and performance metrics like clicks, impressions, or conversions dictate budget allocation, but this approach can lead to wasted ad spend. Here’s why.

The Pitfall of Automatic Optimization

Many marketers depend on automatic optimization tools that adjust budgets or bids based on performance metrics such as click-through rates or impressions. The concept is simple: by increasing investment in high-performing channels, you maximize your return on ad spend. However, this method often plays right into the hands of fraudsters. The reason? Bots are designed to exploit these metrics.

In the screenshot below, you can observe the traffic distribution over time, highlighting the distinction between blockable visitors (in red) and legitimate new visitors (in blue). The data reveals patterns of suspicious traffic spikes, which tools like Tapper help identify and prevent from draining your budget. By reallocating your spend away from traffic sources with higher levels of blockable visitors, you can ensure your campaigns reach real users.

Bots click on ads at a much higher rate than humans, which makes sites with bot traffic appear to perform better than those targeting real audiences. If your algorithms are optimizing for clicks, you’re likely feeding more budget to these fraudulent sources. The same applies to metrics like viewability, where fake sites manipulate measurements to seem more effective than they are.

The Performance Illusion

Consider this: bots can do more than just click on ads. They can convert. They can fill out lead forms, make purchases, or even engage with mobile games by buying in-game items.

It may sound strange, but bots can and do convert. Think of ticket scalping bots that buy concert tickets the instant they go on sale. These bots don’t just click; they complete transactions. In the digital marketing space, this means bots that fill out forms, reach purchase confirmations, or abandon shopping carts, tricking algorithms into thinking they are real users.

The problem is that bots can do everything a human can within a browser or app. If your optimization tools rely solely on these metrics, they won’t be able to tell the difference.

The True Cost of Bot-Driven Campaigns

Here’s the reality: if you’re basing your optimization on inflated metrics, you’re likely paying more than necessary for genuine user interactions. Your campaign might appear to be performing well because of high click-through rates, but a considerable portion of those clicks could be coming from bots. In some cases, more than 50% of the clicks are fake.

This skews your data, making it seem like your campaign is more successful than it is. For instance, if only half of your clicks come from actual users, your cost per genuine click is double what your CPC suggests. Essentially, you’re burning through your budget on fake clicks, all while thinking you’re making smart optimizations.

The Damage from Attribution Fraud

Even if bots aren’t completing purchases, they can still distort attribution data, making it appear as if they were responsible for sales that were actually made by real customers. Fraudsters can then claim credit for these conversions, receiving commission or revenue shares despite not driving any genuine sales. This type of fraud, known as attribution fraud, is particularly damaging because it’s challenging to detect without proper tools.

How to Fight Fraud and Optimize for Real Results

So, how can you protect your campaigns? Instead of allowing algorithms to optimize based on easily manipulated metrics like clicks or impressions, focus on actual business outcomes. Analyze your incremental sales – are they truly driven by your marketing efforts? Another key strategy is to examine the quality of your traffic. With tools like Tapper, you can filter out bot traffic and identify fake clicks. Tapper lets you track who clicked, what they interacted with, and whether it was a bot or a genuine user engaging with your ad.

By taking a proactive approach, you can avoid the pitfalls of relying on surface-level metrics and ensure that your budget is being spent effectively on real engagement.

Get a free invalid traffic audit

Our machine learning algorithms will monitor and analyze all your paid ad clicks, and at the end of the audit you’ll receive a report detailing which channels, campaigns, keywords, and placements are worst affected.

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It’s time to stop paying for clicks that will never convert. Make your marketing budget go further by eliminating waste from your campaigns.