Insights & Events
The True Value of Organic and Paid Users
How much attention do you focus on acquiring organic app users versus paid? We take a deeper look into the value of organic and paid users.
Insights & Events
17 October, 2017
In the online advertising industry, the threat of fraud is ever present. An end user traverses a horde of SSPs, ad exchanges, DSPs and ad networks in the milliseconds between clicking on an ad and reaching the advertiser. This fragmentation makes the supply chain murky and complex which is the perfect environment for fraud to flourish.
IVT impacts an advertiser in two ways – your current and future ROI on ad spend.
Undetected invalid clicks and conversions lead to a loss in revenue, negatively impacting current ROI, as you end up paying for clicks and conversions that don’t result in real value for your campaigns.
Your current ROI is also compromised, as you often need to sacrifice some of your ad budget to cover the costs of third party IVT reporting tools. Ultimately, this is a necessary spend, but is money that could have been used acquiring new mobile users.
IVT impacts future ROI when it skews your performance metrics, inflating conversion rates and making some sources of traffic look more attractive than they really are. You may be persuaded to shift budget from what seems to be a poorly-performing traffic source or campaign, to one that appears to be higher performing and inadvertently optimising for fraudulent behaviour.
With ad fraud having an annual bill to the tune of $8.2 billion in the US alone, make sure you are doing everything possible to protect yourself from all invalid traffic (IVT), including ad fraud.
Placing emphasis on traffic quality in-house is a must for app advertisers. This can be achieved by incorporating quality metrics into user acquisition KPIs.
At every price, markets and numbers of users are finite. If a user acquisition manager can’t hit their target with genuine quality users, a quota based commission acts as an incentive to supplement quality supply with inferior traffic.
By tying commission to metrics of quality, you can incentivise your user acquisition managers to prioritise quality over quantity.
Unlike other models such as CPC or CPM, with CPI you only pay for users that actually install your app. It is much harder for fraudsters to imitate an install or in-app activity than it is to replicate a click or impression.
With Mpire’s performance based payment model, we reduce the risk typically associated with advertising spend.
For maximum performance, you should partner with ad networks that prioritise quality. When quality is reflected through a network’s technology focus, in-house quality processes, and industry-body memberships, you can be confident that your campaigns will deliver genuine app users.
Here at Mpire, all of our clients benefit from an industry leading invalid-traffic mitigation solution, TrafficGuard™. It detects and intercepts invalid traffic in real time, minimising the impact of IVT by ensuring you only receive installs from real app users.
Using statistical algorithms and behavioural analysis, TrafficGuard™ blocks suspicious activity that doesn’t resemble normal user behaviour across three different levels – the click level, the install level and the post-install level.
TrafficGuard’s key to success is in the process of observing big-data in real-time to block the traffic and mitigate the impact on the advertiser, not simply reporting on the suspicious activity after the fact.
Through machine learning, TrafficGuard™ is able to identify suspicious behaviour as it evolves. Continuous improvements to our quality tools and procedures enables us to stay one step ahead of IVT and fraud, mitigating future unknown threats to quality as well as existing threats.