Mobile app marketers are expected to lose up to $100 million this year due to app install and engagement advertising fraud, says a new study by San Francisco-based mobile attributing and marketing analytics firm AppsFlyer. To fight against the same, the company has launched a mobile device-level fraud prevention technology that automatically identifies and addresses fraudulent app installs and engagement.
According to the report titled, State of Mobile App Install & Engagement Fraud, the U.S. has the highest rates of fraud followed by countries like Germany, Australia, China, Canada, and the United Kingdom.
The findings of the study that covered 500 million devices are based on the company’s new anti-fraud technology, called DeviceRank, which was released alongside. The technology, ‘with three to 12 times better protection than existing industry solutions’ provides a new level of protection for mobile app advertisers by automatically “cleaning” fraudulent devices from marketers’ campaigns aimed at driving app installs and post-install activities.
The research says that a particular country is targeted depending on the potential payout. States with the highest cost-per-install and cost-per-action payouts have a higher fraud rate, while countries with relatively low payouts — including Indonesia, India, Brazil, Vietnam, and Thailand have a lower rate of fraud.
Apparently, Android has 50 percent more fraud rate though iOS isn’t safe either and is often heavily targeted since successful payouts tend to be far higher on iOS than Android for those perpetuating app install and engagement fraud.
With marketers increasing spending budgets and putting more efforts behind mobile app install and engagement campaigns to attract loyal users, the threat of mobile app install and engagement fraud continues to grow.
AppsFlyer says DeviceRank technology works similarly to a Credit Score, identifying questionable behavior and offering enhanced protection. It leverages a proprietary big data-powered algorithm to build an anonymized, multidimensional rating of every mobile device. Each device is rated on a scale from C (fraudulent) to B, A, AA, and AAA.
“DeviceRank takes a radically different approach, cutting off fraud at the source and adding transparency to our industry in order to protect advertisers, our partners, and the entire market. AppsFlyer is in a unique position to apply this game-changing technology and leverage our scale across the mobile industry, arming marketers worldwide with the best solution to combat mobile app install and engagement fraud. We are excited to add DeviceRank to the AppsFlyer Active Fraud Suite, as we remain committed to fighting fraud and helping cleanse the app ecosystem of this problem,” said Oren Kaniel, cofounder, and CEO of AppsFlyer, in a statement.