The Hidden Cost of Lead Generation Fraud in Pay-Per-Call Campaigns & How to Stop It
If you are selling products or services online in the US, there’s a good chance that you have dabbled with performance marketing or pay-per-call (PPC) campaigns, as they are commonly called. In fact, these days, in order to drive any kind of business online at scale, PPC campaigns have emerged as a necessity, and for good reason.
In a perfect world, PPC campaigns have the potential to provide businesses with high-intent leads that can easily be converted into paying customers. Many brands have deployed significantly large teams of sales experts to handle the leads generated by PPC campaigns and drive conversions.
Unfortunately, the world isn’t perfect, and modern PPC campaigns are plagued with lead generation fraud. Fraudsters use a variety of simple and sophisticated techniques to defraud advertisers and waste their ad spending while making a quick buck in the process. The worst part is that the wasted ad spend has just a short-term impact on such fraudulent activities. In the longer run, scammers can skew the metrics that advertisers use to plan their campaigns. As a result, lead generation fraud can have lasting effects on any brand’s PPC performance.
Let us look at this problem in more detail.
The Problem: How Lead Generation Fraud is Hurting Pay-Per-Call Campaigns
Lead generation fraud is a huge problem, especially for advertisers operating at a large scale. This problem can be made easy to understand by breaking it down into its components:
1. Fake and Invalid Leads
The most noticeable impact of fake campaigns is the fake lead generation with the use of bots and duplicates. Fraud publishers employ bots and in some cases, real people to click on ads and generate calls. However, since these calls are generated with the sole purpose of defrauding the advertisers and securing unethical monetary gains for the fraudsters, they have no real intent behind them and never convert into paying customers. The only losing party in this mix is the advertiser who ends up paying for calls that have no chance of converting, no matter how well a sales team works on them.
2. High Volume Of Fake Engagements
Fake and invalid leads generated with the use of bots of poorly paid employees of fraud publishers generate a lot of engagement but drive no real value. In fact, they drain ad budgets that could otherwise drive engagements that boost the business’ bottom line. Similarly, the fake calls generated also engage call center resources that could be otherwise used to engage with genuinely interested prospects. This reduces the operational efficiency of the call centers.
3. Lack Of Pre-Call Filtering Mechanisms
Most businesses don’t have a mechanism for lead validation designed for filtering out bad and fake leads before their call gets connected to their call center. This results in increased cost-per-acquisition (CPC) for the advertiser.
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