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Moderator - PerimeterX Webinar on Fraud

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Moderator - PerimeterX Webinar on Fraud

  1. 1. IDO SAFRUTI CTO & FOUNDER PERIMETER X JACK CHIANG MODERATOR AND THE DRAG ON MARKETING BOT ASSAULTS JAMIE CLARKE CEO, LIVEOUTTHERE.COM
  2. 2. © 2016 PerimeterX™ - Proprietary and Confidential WHY SHOULD I CARE ABOUT $7.2 Billion what Ad fraud will cost marketers by end of 2016 (ANA) Half of all online ads are never seen by a human being (ComScore) 8% of impressions have the opportunity to be seen by a real person (Tatoris/Media post) Lead gen programs - affiliate fraud on leads Programmatic buys Ad buys / Ad effectiveness Referral - affiliate attribution fraud on commerce
  3. 3. © 2016 PerimeterX™ - Proprietary and Confidential WHY SHOULD I CARE ABOUT $4.5 billion US spend on affiliate marketing in 2016 10% annual growth through 2020 4 in 5 advertisers/merchants and publishers/affiliates embrace affiliate marketing Lead gen programs - affiliate fraud on leads Programmatic buys Ad buys / Ad effectiveness Referral - affiliate attribution fraud on commerce Rakuten / Forrester
  4. 4. Anecdotal evidence: High Marketing program spend ● (e.g. Affiliate program) Business challenge: Attribution. Why such a big deal? ● Can you trust your data? Business impact: Forecast marketing impact, ● Actionable revenue data The Reality of Decision Making
  5. 5. BOTS IMPACT MARKETING © 2016 PerimeterX™ - Proprietary and Confidential INCOME EXPENSE Waste of Marketing Spend Revenue Loss / Depressed Results Skewed Analytics 10% of a typical company spend on marketing but 20-50% with Internet-centric companies driving growth Fraud skews data to inflate or deflate channel, budget allocated to wrong channels Funded or overfunded channels don’t perform, it affects P&L
  6. 6. © 2016 PerimeterX™ - Proprietary and Confidential MARKETING FRAUD - BOT EVOLUTION Gen 4 Bots Gen 3 Bots Gen 2 Bots Gen 1 Bots Primitive clicker bots - hosted bot farms, no true js support Extension bots - tapping onto user’s activity, and manipulating it Bot-nets - based on malware infected computers, working regardless of the user’s activity Modern clicker bots - hosted bot farms, with simulated browsers
  7. 7. © 2016 PerimeterX™ - Proprietary and Confidential SCENARIOS Ad buys / Ad effectiveness Programmatic buys Lead gen programs - affiliate fraud on leads Referral programs - affiliate attribution fraud on sales
  8. 8. © 2016 PerimeterX™ - Proprietary and Confidential BOT FRAUD Probably about 50 percent of what you’re spending online is being stolen from you AD BUYS PROGRAMMATIC LEAD GEN ATTRIBUTION Bob Hoffman / Ad Contrarian
  9. 9. © 2016 PerimeterX™ - Proprietary and Confidential BOT PROBLEM HEINEKEN - $150 MILLION AD BUDGET • In 2013 found were getting $2 revenue for $1 digital ad spend vs $6:1 revenue for TV, something was very wrong …. • Only 20 percent of the campaign’s “ad impressions” — ads that appear on a computer or smartphone screen—were even seen by actual people.” http://www.bloomberg.com/features/2015-click-fraud/
  10. 10. © 2016 PerimeterX™ - Proprietary and Confidential CLICK FRAUD Cloud-based bot network generates false impressions or clicks Computer with bot-net malware ● Hidden to user, ad-clicking and browsing as a service Publishing and tracking/counting non-viewable ads ● “Click traps”/hidden ads; 1 px non-viewable delivered ads
  11. 11. © 2016 PerimeterX™ - Proprietary and Confidential BOT FRAUD 10-20% AD display traffic BOTS 50% of publisher traffic BOTS AD BUYS PROGRAMMATIC LEAD GEN ATTRIBUTION http://www.adweek.com/socialtimes/ why-programmatic-is-the-future-of-digital-display-advertising-infographic/639184
  12. 12. © 2016 PerimeterX™ - Proprietary and Confidential PROGRAMMATIC Advertising inventory offered, bid on, and fulfilled in the blink of an eye • In 2016, programmatic will account for 63% of display ad spending • By 2020, programmatic could account for 85% of targeted banners and 67% of streaming video ads http://www.adweek.com/socialtimes/why-programmatic-is-the-future-of-digital-display-advertising-infographic/639184
  13. 13. © 2016 PerimeterX™ - Proprietary and Confidential PROGRAMMATIC ADS All the direct ad fraud campaigns -- on steroids More middlemen = easier to hide
  14. 14. © 2016 PerimeterX™ - Proprietary and Confidential PROGRAMMATIC ADS Evaluate sources of traffic, decide how to pay Time of day, browser version, Flash version all indicators of bot In the aggregate, older browsers/Flash, at night, are bots - you can see this in Google Analytics Specifically can use tools to vet requests and sources 01 02
  15. 15. © 2016 PerimeterX™ - Proprietary and Confidential BOT FRAUD AD BUYS PROGRAMMATIC LEAD GEN ATTRIBUTION AFFILIATE - LEAD GEN
  16. 16. © 2016 PerimeterX™ - Proprietary and Confidential LEAD GEN FRAUD … Bots won’t make purchases or fill out online forms. No longer true … they will It’s easier to fake a lead than a sale • More susceptible to fraud and vulnerable to frequent attacks • How do you enforce quality up front, how do you detect fraud sooner than later Impact • Referral dollars wasted to fraud • Worthless prospects / leads • Skewed analytics - can you trust your data to know what to scale?
  17. 17. © 2016 PerimeterX™ - Proprietary and Confidential AFFILIATE FRAUD - SKEWED ANALYTICS Used 2013 and 2014 Q4 data to project 2015 Q4 goals Fraud uncovered, removed the publishers from the program Missed their Q4 goals by 33% 01 02 03
  18. 18. © 2016 PerimeterX™ - Proprietary and Confidential BOT FRAUD … one of the top five customer acquisition channels is affiliate marketing ... AD BUYS PROGRAMMATIC LEAD GEN ATTRIBUTION AFFILIATE - REFERRAL PROGRAMS
  19. 19. © 2016 PerimeterX™ - Proprietary and Confidential AFFILIATE / REFERRAL FRAUD Man in the browser attack 1 Malware in browser extension 2 Watches sites, gets referral id, associates with user (overwrites other referral if present)3
  20. 20. © 2016 PerimeterX™ - Proprietary and Confidential AFFILIATE / REFERRAL FRAUD One domain list with over 66,000 entries • 105 of top 120 ecommerce (according to IR500) • >85% of them in Alexa top 1M
  21. 21. © 2016 PerimeterX™ - Proprietary and Confidential LIFECYCLE OF MALICIOUS EXTENSIONS Published in browser store Get fraud campaign instructions from C&C Dormant waiting period Executes background click and referral links Downloaded by real user Retrieves payload of target websites Offer completed Wait for user to access targeted site Delay user from accessing the page “Release” user to load site, claiming attribution
  22. 22. REFERRAL FRAUD - SKEWED ANALYTICS • Skewed analytics across multiple internet marketing channels • Malware in extension will always win in any last-click attribution model • Lose actual source of traffic (organic, SEO, SEM, Display), resulting in lower ROAS for these channels • Double-paying across channels a concern • Can affect revenue forecasting and budget allocation across channels • Skewed analytics within affiliate channel • Steal attribution from another affiliate • Upset and lose credibility with legitimate affiliates • Zero incrementality since fraudulent affiliate don’t actually run any campaigns or proactively promote your brand
  23. 23. © 2016 PerimeterX™ - Proprietary and Confidential DO YOU AGREE? WHEN FRAUD FOUND ... we think it was an isolated incident, that publisher has been removed we’ll take it internally from here … or NO response at all
  24. 24. © 2016 PerimeterX™ - Proprietary and Confidential TAKE ACTION BOT FRAUD NEXT STEPS
  25. 25. © 2016 PerimeterX™ - Proprietary and Confidential NEXT STEPS Break the model for fraudsters Don’t buy into futility of ‘arms race’ / mutual escalation of technologies and capabilities Measure it / Monitor it Benchmark where you are today • Inbound traffic • Advertising quality Manage it Clean up traffic to your site, your programs • ROI gains for programs • Enhances your metrics Implement high value, low relative cost measures • High hassle factor and barrier to fraudsters • High return to effort and investment
  26. 26. © 2016 PerimeterX™ - Proprietary and Confidential PERIMETERX BOT DEFENDER • Increasingly more sophisticated attacks to websites • Business & financial impact across the organization • Cloud architecture, distributed website deployments Today’s environment • Architecture — any deployment, any scale • Accuracy — behavioral fingerprinting detects threats invisible to today’s solution • Ease/Speed of Integration — activate monitoring in minutes, powerful reporting Solution: PerimeterX Bot Defender Behavioral Fingerprinting Automated Detection 5 Minute Integration Behavioral-based Web Protection
  27. 27. © 2016 PerimeterX™ - Proprietary and Confidential ARE YOU UNDER ATTACK? Check your website: https://tools.perimeterx.com
  28. 28. IDO SAFRUTI CTO & FOUNDER PERIMETER X JACK CHIANG MODERATOR JAMIE CLARKE CEO, LIVEOUTTHERE.COM Q & A

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