Luis Casillas
Companies are increasingly aware of the importance of protecting their brand against threats on social media and fake websites. Likewise, with the rapid expansion of the digital world, it has become essential for organizations to also understand the return on investment in brand protection measures. Check out how companies can benefit from investing in brand protection, analyzing the ROI generated by this vital strategy for their success and continuity in the current market.
What is ROI in brand protection?
In the business world, one of the most important metrics for evaluating the success of an investment is the famous ROI, Return on Investment. But what does this really mean? In simple terms, ROI is a way of finding out whether what you have invested in a project, be it money, time or resources, is generating a satisfactory return. If the return is positive, you are on the right track, but if it is negative, it is time to rethink your strategy.
When it comes to brand protection, ROI is the key to understanding the effectiveness of strategies against fake profiles and websites. After all, when seeking to protect the integrity of the brand against such threats, investing in protection solutions becomes a necessity. However, evaluating ROI in this context is not just a matter of finances, it involves much more than calculating costs, it also means considering the impact of these measures on the health of the brand.
This goes beyond numbers on a spreadsheet, as it is directly linked to the protection of intellectual property, the consolidation of brand reputation and the building of consumer trust. ROI, therefore, plays an essential role, serving to justify the actions taken and helping to understand the effectiveness of these strategies.
Tangible ROI X Intangible ROI
In the brand protection scenario, understanding the tangible and intangible returns against risks arising from social networks and fraudulent websites is very important. Tangible results can be measured assuming that a visit to a fake page, profile, or app takes away trust in the brand and the customer no longer wants to buy its products, we can believe that the cost per threat is equal to the cost of CAC.
However, it is essential to recognize the equal importance of intangible results, which reflect the trust that consumers place in the brand and the company's reputation. Therefore, for a comprehensive understanding of the effects of these fake websites and profiles, it is important to consider both objective data and subjective perceptions:
Intangible
Although they cannot be quantified in the same way as financial values, intangible benefits should not be underestimated. These non-measurable aspects are the basis that keeps customers loyal to the brand, establishing relationships of trust that can last for years.
Along with the trust placed by customers and the brand's reputation, the protection strategies adopted against threats on social networks and fake profiles generate other valuable results.
We highlight the improvement in the ranking of the official page in search engines and social networks. When a brand does not need to compete with fake links and fake pages, its digital presence is strengthened, resulting in more positive visibility and, consequently, less need for investment in paid advertising. This not only saves financial resources but also enhances brand authenticity and credibility.
Secondly, there is a reduction in the workload of the service sector. With fewer complaints and issues arising from fake websites and profiles, the support team can focus on delivering high-quality service and improving the customer experience, which in turn strengthens brand loyalty.
Tangible
When evaluating the tangible results of brand protection, it is essential to consider both financial and non-financial perspectives. For organizations that do not have a purely financial focus, such as charities or government bodies, the cost per threat can be compared to the Customer Acquisition Cost (CAC). CAC encompasses all expenses related to marketing and sales operations. Let's assume that, for each threat faced, a person visiting a fake page no longer trusts the brand and stops buying its products. This creates a direct equivalence between the cost per threat and the CAC, considering that each threat translates into just one victim.
The financial perspective shifts the focus to the fraudsters' objective, which often involves capturing real customer data to carry out financial scams, such as Account Take Over. Here, the analysis focuses on the avoided cost, that is, the amount that would be spent in the future when the fraudster used the information to request credit or exploit the card's limits.
This calculation is similar to that used to evaluate card leaks. With the value in hand, it is multiplied by the volume of threats found in the brand monitoring modules added to the CAC. However, it is important to note that, when considering that phishing is equivalent to one victim, we are adopting a very conservative estimate, and the reality can be much more impactful.
Data from social networks and fake websites in Brazil and around the world
Unfortunately, fake profiles on social networks and websites have increased in the country. In 2021, Brazil faced a sharp increase in fraud attempts, with a total of more than 4 million cases reported, according to statistics from Serasa Experian. These numbers represent a worrying growth of 16.8% compared to 2020. Translating this data into a clearer perspective, this suggests that, on average, every seven seconds, someone in Brazil is the target of a fraud attempt.
Additionally, in a global context of digital threats, Brazil is also advancing. A study carried out by Kaspersky, a Russian digital security company, reveals that Brazil leads the world ranking of phishing attacks, that is, misleading and fraudulent messages that attempt to induce individuals to provide personal or financial information. According to the survey, 20% of internet users in Brazil reported having been the target of phishing attempts.
This statistic puts Brazil ahead of Portugal, with 19.7% of its users affected, while France has 17.9%, Tunisia records 17.6%, Cameroon accounts for 17.3% and Venezuela closes the group with 16.8%.
Among the most recent data, a survey carried out by SurfShark, specialized in privacy, Brazil occupies 12th place among the countries that recorded the most episodes of data leaks in the first quarter of 2022. The research also revealed that 286 thousand Brazilians had their data exposed through information on the internet. Leaks include: email, passwords, phone numbers, personal documents and other sensitive information.
There are always victims
Brand protection against virtual threats is a fundamental component in management. When we discuss brand protection against threats like fake social media profiles or websites, we are actually considering a deeper aspect: the victims involved. Every threat, be it a fraudulent Facebook profile or a fake e-commerce page, is not just a potential risk; it is an attack on the trust of at least one real person.
Estimating that a threat equals a victim is actually a cautious assessment, when in reality, the implications arising from these fraudulent accounts and websites are often much more far-reaching. The impact goes much further, potentially affecting hundreds, if not thousands of people and damaging not only the brand's image, but also the relationship of trust that consumers have with it.
For all the reasons mentioned, ClearSale's Brand Protection is a solution with great ROI. Developed to ensure the uninterrupted protection of your brand against threats and piracy on the internet, it is the anchor of your digital security in an ocean of uncertainty. Learn more about it and ensure your brand remains strengthened and trusted today and in the long term.
