That is according to AppsFlyer, an app measurement and analytics platform, whose APAC Ad Fraud Report 2019 has revealed that the average fraud rate in the region is 60% higher than the global average.
Based on analysis of 2.5 billion installations across 8,000 apps in six consumer segments – entertainment, finance, gaming, e-commerce, travel and utilities – AppsFlyer found around 25 out of every 100 non-organic installs in the region were fraudulent over the six months covered in the report.
The situation was particularly bad in Southeast Asia, where more than US$260m – or 40% of the APAC total – was put at risk, while India was the second-largest target with US$186m exposed to fraud.
The AppsFlyer researchers identified several reasons to explain why Southeast Asia remains so susceptible to ad fraud, including its high mobile penetration rate, improvements to connectivity quality and an expansion of e-payment methods.
At the same time, the problem is compounded by lower resources devoted to app development, the prevalence of fraud in local marketing networks, as well as an increasing demand from marketers for volume in digital campaigns.
“Southeast Asia is an attractive target for fraudsters, with marketers in the region tapping on the mobile-first and growing digital nature of the population to drive marketing priorities,” said Beverly Chen, marketing director or AppsFlyer APAC, in comments reported by Campaign Asia.
“Fraud distorts and pollutes the data businesses rely on to make decisions, resulting in a misinformed use of resources, ineffective spending and financial losses,” she continued.
“To combat this, marketers need to have multi-layered protection solutions in place as well as understand and remain vigilant against the rising threat of bots, non-human traffic and the always-evolving techniques of bad actors in order to maintain their competitive advantage.”
Sourced from AppsFlyer; additional content by WARC staff