Businesses are always looking for ways to reduce customer acquisition costs, which is why affiliate marketing is so popular. However, external factors such as user acquisition fraud can significantly increase the risk of generating leads via affiliate marketing.
Contents
- User Acquisition Fraud Affects the Entire Ecosystem
- Ways to Reduce Risks of Customer Acquisition Fraud
- Affiliate Marketing: Getting New Customers
User Acquisition Fraud Affects the Entire Ecosystem
Undoubtedly, user acquisition fraud costs the advertising industry billions of dollars, but its effects go far beyond that.
It usually involves unaware users who only see the incident as a marketing industry representation. This can impact surveys, consumer trends, and other vital data used by millions of marketers.
Simply put, consumers and businesses will lose trust in the online marketing industry if fraud persists.
Ways to Reduce Risks of Customer Acquisition Fraud
Affiliate marketing, for example, aims to generate leads quickly without sacrificing quality. Creating an affiliate marketing customer acquisition program is not without risk.
Advertisers can take steps to reduce ad fraud and other unwanted incidents.
These are:
1. Set Up a Monitoring Tool for Analytics
The first step is to research different ad fraud protection software providers and compare your options. There is no magic formula for finding the perfect fit, so you must weigh all of your options and choose one based on your needs and budget.
2. Use Device Fingerprinting Services
Along with an ad fraud detection tool, your platform should have a device fingerprinting solution. Instead of cookies or other methods, device fingerprinting solutions allow you to identify users based on their device.
3. Create a scoring system for behavior
Together with data from your website, you should have enough information to understand your target market. You should devise a scoring system to determine the legitimacy of your conversions. Then use this system to spot-check your conversions and only get real users.
4. Partner with a Safe Affiliate Network
Affiliate networks connect reputable publishers with reputable advertisers. Only work with affiliate networks that protect both advertisers and publishers, like lemonads. Contact us today to learn more about our internal mechanisms for creating a transparent ecosystem.
Affiliate Marketing: Getting New Customers
Before discussing affiliate marketing’s customer acquisition risks, it’s important to understand the ecosystem’s structure and stakeholders. Advertisers, publishers, consumers, and affiliate networks are the main players in the affiliate landscape.
Let’s examine these stakeholders’ roles.
1. Advertisers
In an affiliate program, advertisers promote their products and services. In simple terms, these companies partner with affiliate marketers to drive traffic, convert leads, and send them to advertisers. When advertisers get leads, they pay affiliate marketers commissions and try to convert them into sales.
Because advertisers own the affiliate program, they decide what constitutes a conversion, what demographics publishers must meet, and other relevant factors.
2. Publishers
A publisher is an affiliate marketer who creates and distributes web content. These affiliates can work on a single channel and platform. They can also own multiple platforms and publish content via multiple channels such as websites, social media profiles, and even messaging app groups.
Publishers can monetize their traffic by selling it to media buyers or by joining affiliate programs. Because different publishers have access to different target audiences, these affiliates can help advertisers from various industries.
3. Consumers
Advertisers and publishers, as you probably know, want to attract consumers. But the good news is that affiliates specialize in engaging online users and developing content that influences their behavior.