It’s never been easy to be confident that your advertising budget is being put to good use. Nearly a century ago, marketing pioneer and successful businessman John Wanamaker said, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
Move to the present time, when some marketers would have you believe that we now know which half of advertising is wastedbecause we can use Big Data to reach select prospects in an audience instead of buying access to the entire target audience. There’s just one problem. It turns out that many of those supposedly viable prospects aren’t real.
They’re bots. It’s estimated that only about 25 percent of all digital ad spending reaches real people. Organizations may actually be wasting up to $7 billion annually on bot-driven fraud.
Precision has long been one of the top benefits of digital advertising. It was easy to calculate the impressive return on investment. Spend thismuch money. Reach thatmany prospects. But now we know that in some cases, most of those prospects weren’t real people.
A 2017 studyshows that nearly one in five advertising sites on the Internet are involved in advertising fraud. The sites use an army of traffic bots which mimic human behavior. Marketers spend money and get confirmation they’ve reached prospects – except that these prospects aren’t real.
Many marketers can’t afford the sophisticated intelligence to determine bots from humans. They pay for clicks or impressions and they get reports on performance. Bots, though, have no intention of becoming customers. Their handlers get to keep your advertising money.
Battling the bots
Bot fraud is ingenious, but artificial intelligence (AI) is a step ahead of the game. It’s removing the inefficiencies of programmatic online advertising, and it’s eliminating the waste that’s spent talking to bots.
The most important thing AI does is help advertisers provide prospects with a personalized experience tailored to their respective profile. No more irrelevant messages to uninterested people. How does AI figure this out?
This process is known as Identity Resolution, which makes use of an identity graph. It initially removes the waste of paying to reach disinterested people. The collection of multiple identifiers across devices creates robust prospect profiles. You learn Identity Resolution via an identity graph confirms that you are marketing to a real human, whose identity is verified.
Spend less, achieve more
Consider the efficiency achieved when your paid advertising reaches only the people in your market who are looking to buy your product or service right now – and who have been verified as actual humans (or companies) rather than bots.
Yes, you’ll have to invest in this efficiency. However, you’ll be able to dramatically decrease your ad spend. You’ll put your message in front of real people – not bots – who are actually looking for what you sell.
Find out how we harness Identity Resolution and identity graphs to help you stop wasting money on bots and advertising fraud. Schedule a quick call today!