The digitization of means of payment, combined with the popularization of neobanks, cryptocurrencies, and the launch of CBDCs, are important points that show that online solutions for the financial market are true trends.
Overheated, especially when it comes to mobile devices, the industry faces a major challenge: avoiding the actions of cybercriminals, who use sophisticated methods to waste advertisers’ investment in user acquisition campaigns for applications. In 2023, the cost of fraudulent activity could reach USD 100 billionaccording to Juniper Research.
Financial apps are among the most downloaded apps on mobile phones, with nearly six billion users worldwide. And here it stands out Brazil, which was among the three countries that downloaded the most this type of app.
According to the State of Mobile 2022, data.ai study, in 2021, more than 693 million downloads were made, which represents a growth of 91% compared to the two previous years. In the first half of 2022, finance app installs increased by 50%. What’s more, according to a Boston Consulting Group report published in November, Latin American financial institutions are expected to increase investment in digital marketing by around 18% in the next five years. The sector will be the third that invests the most, with around USD 700 million annually.
“With an eye on this growth, mobile marketing strategies are powerful tools for driving traffic and reaching users interested in downloading apps. But this also brings more possibilities for cybercriminals to use increasingly sophisticated ad fraud methods to gain advantage.“, warned Eduardo Carneiro, VP Latam of TrafficGuard, an Australian startup that operates globally in the fight against invalid traffic in digital ads.
Bot-driven installs and app install farms, for example, are “device farms” that click on ads, download the app to the device, and open it automatically to trigger install events. Click spam and click injection are types of attribution fraud, in which fraudsters create fake clicks that are credited to legitimate users when they access the app.
These methods return tainted and incorrect results for engagement and attribution to advertisers, since app installs are not legitimate. “Without an understanding of which channels and partners drive the most clicks and downloads for qualified users, advertisers cannot optimize budget effectively and end up investing, and reinvesting, in ‘bad’ media channels that drive engagement based on fraud and invalid ads. traffic“warned the executive.
The result of this is a financial loss for the advertiser who allocates a large part of his media budget to scammers and fake users. Invalid clicks, impressions, and conversions can lead to huge losses. “I bring an example of an international digital bank, a TrafficGuard client, in which 20% of the invalid traffic coming from application promotion ads was identified. With the use of technology to identify the problem in real time, it was possible to optimize 100,000 thousand dollars per month, making this investment directed to real users with a higher probability of conversion“Eduardo completed.
With so much competition in the app market, companies are increasingly willing to increase their audience touchpoints online to gain visibility. Acting preventively, it is guaranteed to have correct attributions, installations made by real users, with engagement and effective conversion for the success of the business.
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