Many social networking applications are switching over from banner advertisements to virtual goods, rewarding users with points or some form of game credit for completing advertisers’ offer campaigns. The Facebook application called “Farmville” is a popular example of social media applications utilizing the virtual goods model by giving “coins” to users based on their participation in various activities, including advertising offers.
More and more social media advertising traffic is becoming incentivized like this. Though this type of traffic tends to have a very high conversion rate, incentivized traffic also leaves some dangerous room for fraudulent conversions.
For this reason, HasOffers has been working diligently with their top clients to shut down fraud connected to incentivized traffic. For one of our online gaming clients, HasOffers consistently finds an average of 16% of sales to be fraudulent as a result of social media advertising. These fraudulent transactions are caused by users trying to complete their offer multiple times to gain more virtual rewards, thus creating duplicate conversions. Another online dating client reported that 11% of their conversions were found to be duplicates, saving them a fortune in fraudulent conversions.
The HasOffers proprietary tracking technology consistently prevents these advertisers from paying for duplicate conversions and sales, allowing them to continue to utilize social media advertising without the fear of fraud impacting their bottom line. Each user that commits an action recorded on HasOffers is assigned a unique identification number within the system. This identification number is then verified against each conversion, insuring that users don’t create multiple sales by clicking on the same advertisement again. Standard cookie-based tracking always records multiple sales by the same user, but HasOffers tracking technology provides the option to only record one unique sale per user (based on IP and User Agent), which is extremely valuable for virtual goods advertising.
This tracking technology is available to all HasOffers clients. Clients select from four different duplicate prevention methods based on their particular business model as well as their average frequency of conversions. Smart technology that tailors to the nature of offer campaigns like this will soon be the industry standard of performance tracking, constantly solving the difficulties that new and creative advertising campaigns may create.
Peter is CEO and Partner at TUNE. Developing his early skills as an online marketer in SEO, PPC, and Media Buying, he met the twin co-founders of TUNE in 2009 and had the opportunity to join prior to day one, leading product marketing for the company's first launch. He continues to contribute to media, white papers, analysts, and industry blogs with the goals of educating mobile marketers and making the digital marketing ecosystem more connected. Follow @peterhamilton