Adware Programs such as spyware, pop-ups, are secretly installed on users’ computers without their permission or knowledge and used to artificially inflate traffic figures reported to an advertiser.
Cookie Stuffing is when the performance loads cookies onto the user’s computer simply because the user visited the site. Then the performance scores a commission for potential future purchases, whether the user clicked the performance link or not.
According to Ben Eldelman, Assistant Professor at Harvard University and known as the leading expert on Performance Fraud, the top three offenders are still spyware, adware, and cookies stuffing.
Preventing fraud from your performance program helps you save money and run an effecting word of mouth marketing campaign. When it comes to performance marketing, fraud is a very broad term that encompasses anything that violates your performance terms and conditions, including any unethical or unscrupulous behavior by your performances. Performance managers, both in-house and outsourced, need to be ever vigilant as there will always be a few unsavory individuals in the industry unfortunately, and potentially ruin an advertiser’s ROI and success in the performance channel.
How to Prevent Performance Marketing Fraud
Performance fraud prevention is not an easy task although there are some common best practices to implement. There are a lot of details and signs that can point to fraudulent behavior. To minimize risks, check the performance has an active website, the content relates to the products, and the site is optimized accordingly. Communicate with the actual performances on a regular basis. This can filter out a big part of performance marketing fraudulent behaviors. However, they just won’t be enough in case of advanced techniques which are growing in number and popularity.
Here are more things to do to help prevent fraud
1. The terms and conditions should clearly spell out what constitutes a valid/commissionable performance sale, leads, subscriptions, etc.
2. Research a new performance before approving them into the program.
3. Watch for sudden traffic surges
4. Keep an eye on fraudulent transactions (two such transactions from the same performance should raise a red flag).
5. Analyze referral URLs to catch any cyber- or typo-squatters.
6. Monitor your brand online to see what customers are saying about it and to catch any spamming performances.
7. Police and enforce any other restrictions you may have in your program’s agreement (e.g. trademark PPC bidding, use of).
Create a Routine
It’s important to create a routine to keep your performance program in check. Set aside time one day a week to go through your data and your fraud checking tools to ensure performance compliance.
Creating a routine and sticking to it is going to give you the best shot at detecting and stomping out fraud in your performance program. Keeping this routine will mean higher ROI, better on-brand promotion from your performances, and more success overall in your performance program.