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The business end of mobile ad fraud - Eric Seufert

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An introduction to mobile ad fraud and some strategies for pre-empting it through thoughtful contract negotiation

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The business end of mobile ad fraud - Eric Seufert

  1. 1. The Business End of Mobile Ad Fraud Eric Benjamin Seufert Partner, Heracles
  2. 2. Who I am Partner, Heracles Owner, Mobile Dev Memo Author, Freemium Economics
  3. 3. What is Mobile Ad Fraud?
  4. 4. What is Mobile Ad Fraud? Breach of Contract Deception ● Terms of IO violated; ● Traffic sent, but it is not according to the terms of the contract. ● Real traffic not sent; ● IO requirements fulfilled via falsified traffic signaling.
  5. 5. What is Mobile Ad Fraud? Deception ● Re-brokering; ● Creative manipulation; ● Non adherence to device / geography limitations; ● “Click stuffing”; ● Web Redirects. Breach of Contract ● Bot installs; ● “Click spamming”.
  6. 6. How does this affect developers? ● Developers pay for traffic that doesn’t exist or isn’t what they wanted; ● Developers spend time / resources clawing back refunds.
  7. 7. Fraud Recognition
  8. 8. Fraud Recognition Unknown Unknowns
  9. 9. Fraud Recognition Unknown Unknowns Known Unknowns
  10. 10. Fraud Recognition Unknown Unknowns Known Unknowns Opportunity Cost
  11. 11. Fraud Recognition No Solution “Business” Solution Technology Solution
  12. 12. Fraud Recognition “Business” Solution Technology Solution No Solution
  13. 13. Pre-empting Fraud
  14. 14. Pre-empting Fraud ● Signaling;
  15. 15. Pre-empting Fraud ● Signaling; ● IO quality stipulations;
  16. 16. Pre-empting Fraud ● Signaling; ● IO quality stipulations; ● Early warning triggers.
  17. 17. Signaling
  18. 18. Signaling ● Being obviously aware of ad fraud will force networks to be more vigilant in preventing fraudulent / inappropriate traffic.
  19. 19. IO Quality Stipulations
  20. 20. IO Quality Stipulations ● Setting clear quality thresholds on cohorts and refusing to pay for traffic that doesn’t conform (eg. <25% Day One Retention, <80% download / install, etc.).
  21. 21. Early Warning Triggers
  22. 22. Early Warning Triggers ● Creating an early warning system around traffic quality and notifying networks to immediately pause campaigns.
  23. 23. Clawing Back Money
  24. 24. Clawing Back Money ● Proof of fraud;
  25. 25. Clawing Back Money ● Proof of fraud; ● Agreed-upon terms;
  26. 26. Clawing Back Money ● Proof of fraud; ● Agreed-upon terms; ● Persistence;
  27. 27. http://hrcls.co hi@hrcls.co

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