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The Importance of Data Fidelity in Advertising [Data Series, Part 1]

In part one of our four-part series on digital advertising best practices, we explore the importance of data fidelity.

Ever since the dawn of search marketing, the importance of using data to measure performance has been widely touted. After the turn of the century, the ad tech landscape chart, devised by Internet investment firm Luma Partners: “The LUMAscape,” inspired hundreds of vendors looking to leverage data in new or better ways to stake their claim to a piece of the ecosystem. The companies positioned to demonstrate performance at scale have survived and thrived. But only in the last couple of years have these companies started addressing major advertiser concerns in measuring performance.

Click Fraud Damages the Entire Ecosystem

One such concern is click fraud. Click fraud is estimated to cost advertisers more than $7B globally in 2016. Much of this fraud is comprised of automated software programs known as bots that generate clicks automatically. Distinguishing bots from humans can be a difficult task. A device may be compromised by bot software at one point in time and no longer compromised weeks later. Furthermore, some bots are able to generate clicks at a very rapid pace so it’s important to be able to detect them quickly. Criteo is able to detect and blacklist devices infected by bots at a rapid pace, often within 10 seconds of detecting inhuman activity.

Ad Viewability is Essential

Another concern is ad viewability. An ad provides no value to an advertiser if it’s never seen. However, many ad vendors continue to charge advertisers or credit attribution for ads rendered below the fold where consumers never scroll down to see the ad. In late 2014, Google released a study where it found 56% of rendered ads are never viewed. Criteo doesn't count impressions nor claim attribution for ads that are not visible inside a browser window.

Transparency is One of Our Core Beliefs

Another concern is transparency. Most ad vendors provide some form of aggregated reporting, but many do not provide advertisers with full attribution details about each individual attributed order. Criteo provides advertisers with the details of the click or impression that led to each attributed purchase. Besides strengthening trust, this allows advertisers the option to measure performance using their own attribution model.

Look out for part two of this series, where we’ll be providing an in-depth review of blocking bot activity.

Data Best Practices, a 4-part series:
The Importance of Data Fidelity in Advertising [Part 1]
Best Practices for Combating Click Fraud [Part 2]
Why to Incorporate Ad Viewability Into Your KPIs [Part 3]
Attribution Is Key to Successful Performance Marketing. Here's Why [Part 4] - Coming soon!

Categories: Performance Marketing