In today’s complex ecommerce landscape, there are endless opportunities for bad actors to practice less-than-savory methods of promotion within the affiliate channel. Not surprisingly. this unscrupulous activity can result in detrimental waste of ad spend, time and resources for marketers. In fact, within the partnership channel alone, it’s estimated that 9% of all partnership transactions are affected by fraud and on average, 1.5% of conversions are potentially fraudulent. Bottom line: Affiliate marketers are expected to lose a staggering $1.4B to fraudulent transactions over the course of the year. 

Each year, $1.4B is lost to affiliate marketing fraud—ad spend allocated to expand reach and acquire new customers that is instead cannibalized by nefarious affiliates. This risk makes brand safety relevant to all marketers, regardless of whether they’re actively monitoring for suspect activity within their affiliate programs.

It’s been satisfying to see affiliate marketing mature over the past two decades, evolving from a somewhat experimental performance option that more adventuresome marketers undertook to a reliable channel that has perfected the equation for partnerships, analytics and outcomes. In the beginning, early pioneers hoped that their investments and undertakings would pan out, with limited risk, to generate rewards. Those that have stayed the course to present day, evolving along with the space, have seen the value and now can scale with confidence into the future.

When allocating spend to paid search campaigns, marketers expect to expand their reach and acquire new customers to justify a return on spend for the channel. However, a disadvantage of paid search is that the channel’s payment model is based on clicks—a structure that creates a low barrier for entry to digital fraudsters and contributes to $1.4B dollars lost to affiliate marketing fraud annually.

More than ever, marketers are leaning into the affiliate channel because of its attractive performance-based pricing model that allows a cost-controlled solution to optimize in any economic climate. While the channel boasts benefits such as scale, automation and outcome-based pricing, affiliate (like anything) also carries the potential for significant risk if not monitored—compliance that is impossible to achieve through manual affiliate search audits.

SEATTLE, WASHINGTON, UNITED STATES, May 11, 2021 /EINPresswire.com/ -- BrandVerity, a global leader in brand safety and fraud prevention technology and services, today announces its freemium solution granting affiliate marketers fundamental brand safety and fraud protection at no cost. The free-to-use protection ensures channel compliance by providing always-on search monitoring across affiliate programs.

It’s estimated that nearly $19 billion is lost to worldwide digital fraud each year. In response, ad compliance has become a necessity for marketers that want proper channel attribution and protection against ad spend theft. 

Dave Naffziger, our founder and GM, takes a closer look into what the new year has in store for the industry.

BrandVerity ensures brand safety in key markets with geo-specific customized compliance coverage.

BrandVerity’s Paid Search Monitoring solution has allowed iHerb to catch rule-breaking partners across a global program, protecting Marketing spend from payouts to unearned commissions.