Last month, we conducted a trial with Lunio, and the results were astonishing. The invalid click rate was the second highest in the country, reaching an estimated amount of the annual invalid click cost that could purchase a luxury apartment in Roppongi . This Google advertising account represents a globally renowned brand that has enjoyed widespread support from people of all ages and genders for many years. In light of these results, I would like to discuss the fundamental industry challenge regarding click fraud prevention in Japan.

Firstly, ad accounts with high invalid click rates often possess one of the following three characteristics:
1. Intense competition within the industry.
2. High industry and public recognition.
3. A significant proportion of display advertising expenses (since display ads tend to have an average invalid fraud rate approximately three times higher than search ads).

However, we have observed that accounts falling under the second category, “high industry and public recognition,” tend to have extremely high invalid click rates. Furthermore, these accounts are managed by major domestic or international advertising agencies without implementing click fraud prevention measures, resulting in billions of yen wasted on ad expenses attributed to fraudulent users and bots.

This issue is not only a problem for large advertising agencies that have failed to take action but also for the advertisers themselves who have neglected to proactively implement necessary click fraud prevention measures independently or through their agencies. Just imagine, as an advertiser, if you were annually spending billions of yen on ad expenses for fraudulent users and bots. It becomes evident how significant of a problem is being ignored.

Lunio is a globally recognized click fraud prevention solution, acknowledged as the industry leader on G2. We would be delighted to collaborate with individuals or companies who are willing to address this fundamental industry challenge together.

Masaki “Mark” Iino
Founder & CEO
SOPHOLA, Inc