Wasted Ad Spend on Invalid Traffic Increases by 33%

Invalid traffic can be a major drag on resources because of the fact that this is the sort of thing that could potentially end up wasting ad dollars on users that aren’t interested to begin with. According to an analysis conducted by Lumio, an estimated 8.5% of all paid traffic turned out to be invalid with all things having been considered and taken into account. This poses a major issue that can make marketing campaigns less effective than might have been the case otherwise.

With all of that having been said and now out of the way, it is important to note that the problem appears to be getting worse. In 2022, around $54.63 billion in ad spend was wasted on invalid traffic, or IVT for short. This number is set to increase by 33% by 2024, which would make the sum total of wasted ad spend reach an astonishingly high $72.37 billion.

One thing that bears mentioning is that it’s more than just ad dollars at stake here. Marketing agencies put considerable resources into ad campaigns, and time is yet another thing that is set to be wasted in unacceptable quantities. Agencies might end up spending a lot of time chasing leads that won’t pan out in the end, and that can decrease the overall efficiency of their marketing in a way that could seriously affect results in the long run.

Another factor that is worth considering is lost revenue. Agencies and brands can expect 2.87 dollars in return for every dollar that they spend on leads. Hence, it is estimated that the total losses including lost revenue will in excess of $200 billion by 2024, or $204.83 billion to be precise.

A great way to avoid wasting money on IVT would be to opt for Google, since this search engine juggernaut has an IVT rate of just 5.5%. This is far lower than the average 17.5% IVT rate of Bing, Meta and other competitors to Google.

With Google’s IVT rate, losses will reach $16.59 billion by 2024, up from $12.35 billion in 2022, if the 2024 ad revenue prediction of over $300 billion holds true. For other channels, the losses will be as high as $54.78 billion based on $300 billion social media spend as well as $13 billion that will be spent on Bing.

Read next: Black Friday 2023 Sees 7% Ecommerce Traffic Dip, Highlighting Shifts in Consumer Spending and Retail Trends
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