Understand These 5 Online Advertising Risks in 2020 Before You Regret

Online advertising risks

Online advertising plays a major role for every business that is looking to grow in today’s modern world. This benefits of Online Advertising may be widely known. But there are also Advertising Risks that come with this digital marketing strategy.

Since the internet has become the primary platform for promoting and conducting business. It has become a necessary and sometimes the best medium for advertising as well. However, there are several Advertising Risks involved in Online Advertising Risks. Which can create problems for businesses and advertisers if not handled properly.

So, in this article we have Top 5 Online Advertising Risks. Also see what are some of Top Risks of Marketing Campaign.

1.User Privacy Protection

User privacy protection is one of the major Online Advertising Risks. If you are an online advertiser then as a part of your mandate. You must respect and protect the privacy of your user.

Here are some examples of illegal invasions of user privacy. Using someone’s name without their permission, sharing their personal private data and revealing information about the user among many others.

When in violation. The advertisers exposes themselves to huge risks legally. The best way to avoid this is by treating user’s data with respect and taking their permission before using their name.

2.Regulatory Compliance

Globally, there are thousands of laws governing electronic communication usage policies. These laws are different across geographies. And all advertisers must be aware of the laws of the region they are operating in.

The main purpose of these laws is to ensure the honesty and fairness. So that the consumers are protected against misleading about products and services.

In the United States, the FTC requires three things of all advertisers:

  • There should be evidence for all claims made in advertisements.
  • The advertisement should be true.
  • Business may not make unfair advertisements.

Solution to this Online Advertising Risks is to obtain the full familiarity with the laws in your target country. You should have a complete understanding of what you may or may not put in an ad. We recommend getting a consultation from a legal professional when you are just starting out.


Under this Online Advertising Risk. The businesses and advertisers must be vary of making untrue, disparaging statements about another company. And their product or person. Doing so may lead you to a libel.

For Example: Suppose you own a product company and you run an ad where you are trying to show how your product is better than your competitors. And with the end goal of convincing them to move to your product. While doing this in itself is not illegal. Making an untrue claim about the inferiority of the other product is.

This Online Advertising Risk can be mitigated by vetting all of your information before publishing and also avoiding the defamatory statements about competitors.

Make sure that you are not using defamatory statements that also untrue in your ads to avoid this  Online Advertising Risk. Have a look at the Digital Marketing Success KPIs to Track in 2020.

4.Advertising Idea Theft

It is highly unethical to imitate another company’s way or method of advertising. When a company is doing well and has developed a unique way of advertising. Which is identifiable to customers. You increase your risks further. This is a very big Online Advertising Risk. And if any person can connect through your communication that you stole the idea from another company. Then you will definitely be in trouble legally.

For Example: Suppose your competitor has used very distinct colors and shapes in their communication. Which differentiates them from other brands. If you as a brand in a similar space decide to use the same colors and shapes to piggyback on the customer attention. You will be violating their copyright and be subjected to litigation around property appropriation.

This Online Advertising Risk can be mitigated by being original and not stealing the advertising copyrights of other brands. Creativity that people haven’t seen before is often the most effective and also has the highest chance of ROI.


In a November 2014 report from Google. It was said that 56% of all online ads are actually not seen by humans. This happens because these ads are placed outside the computer browser. “Bot Fraud” is a highly pervasive phenomenon, with devastating ramifications. One report has estimated that companies have lost an upwards of $6 Billion in fraudulent ads in 2017. Currently these Bots make up about 12% of online traffic.

This Online Advertising Risk can also be avoided. Always use the platforms from which you purchase advertisements and request specific performance reports.

Pay attention to the ROI from these online ads. If you  are not getting any valuable conversions from ads. It could be an indication of Bot Fraud. And will impact your ROI and overall marketing budget significantly.

The risk of being defrauded by bots can be mitigated. That is by carefully evaluating each online advertisement you run.


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