Taxes & Law

Affiliate marketing: The dirty tricks with the fake clicks

Christian Sturm

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Trust is THE currency of success in affiliate marketing (partner marketing). However, so-called "fraud practices" such as fake clicks or artificially generated conversions pose a particular threat to online retailers and networks. We have put together a few tips for you on how e-commerce companies can protect themselves against this.

Automated bot traffic continues to rise and with it fraud

Automated bot traffic accounted for almost 50 percent of internet traffic in 2023. At first glance, this sounds worrying, but it is put into perspective because bot traffic does not generally mean bad or evil. For example, many companies use chatbots for more efficient customer support and 24/7 service.

"Fraud" refers to activities that generate artificial traffic in order to fake advertising services. This is usually done by displaying an advertisement and then charging money for this advertising service that has not been provided. Of course, this is not a new phenomenon, but technological developments in online retail have taken it to a new level - in 2019, this resulted in a global loss of 42 billion US dollars recorded!

Unprotected advertisers pay commissions for supposed successes, while fraudsters enrich themselves. Fake clicks, artificial conversions or bot traffic jeopardize credibility with partners and customers alike.

But there is no need for skewed numbers in affiliate marketing. It is one of the most effective channels for achieving demonstrably better marketing results. Even without tricks, growth increases of up to 50 percent can be achieved. New technologies and stricter rules create additional security.

Effective fraud prevention

Preventing affiliate fraud requires a holistic approach that combines technology, human expertise and industry cooperation. In practical implementation, this results in the following fields of action.

  • Filter bot traffic automatically: The use of state-of-the-art fraud detection tools is essential. These analyze in real time and not only automatically detect and block inauthentic traffic, but also exclude it directly from the efficiency analysis.
  • Analyze anomalies: Through regular audits, the use of partner programs and with the help of artificial intelligence, customer journeys are systematically analyzed for anomalies. This enables unnatural data patterns to be identified.
  • Introduce strict guidelines: Clearly formulated publisher T&Cs with unambiguous definitions of fraud practices and consistent sanction mechanisms are essential. In order to punish violations, specific contractual penalties and the reclaiming of commissions already paid out should be included.
  • Avoid conflicts of interest: If agencies or networks themselves own publishers, conflicts of interest can arise. These usually make effective fraud prevention more difficult. Direct intervention without an intermediary, on the other hand, creates clear conditions. Personal relationships with all parties involved and close support are the key to sustainable success.

Conclusion

Fraud is a realistic threat. Fraud prevention is therefore essential, especially for e-commerce companies. But online merchants are not left to deal with it alone. Legitimate affiliate service providers can take on a large part of effective fraud prevention. This protects against direct financial losses and increases the overall performance of the affiliate program. The combination of technological innovation, personal relationships, consistent rule implementation and good advice is crucial for success. Investing in fraud-proof affiliate marketing protects against fraud and creates long-term growth in e-commerce.