Advertisers face two main problems when placing ads: funds that are wasted due to fraud and improper budget distribution.
Click fraud is one of types of network fraud that consists of deliberately clicking on an advertising link by a person who has no interest in a product but instead wants to drain an advertiser's budget. Both manual and automatic click fraud is possible. In the former case it is a human who clicks, while in the latter it is automated scripts and programs that imitate a user clicking on PPC (payment per click) advertisements.
According to estimates of advertising traffic, the number of fraudulent clicks is at least 10-20%. Today click fraud is a serious problem for contextual advertising.
Despite the fact that contextual advertising systems try to combat the click fraud, their efforts are not enough, since in ambiguous situations they must judge between advertisers and ad sites and discard only clicks that are 100% cheats. They often let ambiguous clicks go through, and the cost of these clicks is often charged from an adviser's account.
As for another problem, it's sometimes very difficult to understand which advertising is responsible for the most profit.. You can equally distribute advertising budgets across the various systems; you can advertise in many regions and generate a desirable number of orders. But in this case you may not understand where customer come from. Is it worth spending money right away on all the advertising types or do the customers clicking on your ad come from one source, and the rest of your customers are unprofitable? Is it worth advertising across 100 keywords or is it enough to use only 40 keywords, since the rest of them are useless? And the big question is GEO. You might encounter certain difficult situations where one keyword generates a profit in Ekaterinburg but it is not used in Moscow or vice versa. And now imagine: how much money including pay per click was spent on advertising in Moscow, but nobody has bought any goods.
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