Online channels offer businesses an unprecedented opportunity to grow revenues and optimize business models. However, they also present a range of serious and continuously evolving threats that cost companies worldwide billions of pounds in revenue every year.
The watchdog agency BASCAP (Business Action to Stop Counterfeiting and Piracy) puts a $1 trillion annual figure on global losses from counterfeiting and piracy, with 2.5 million jobs put at risk.
Revenues at Risk
The Internet is a vast, unregulated space where counterfeiters are able to promote and sell imitation goods on an immense global scale. In 2013 alone, NetNames removed two billion items from online auction sites and shut down thousands of rogue websites on behalf of its customers.
The primary concern for most organizations is the financial implications of these online threats. NetNames are often asked to build ROI calculations that can quantify the monetary value of brand protection. These calculations are often based on volumetric criteria, such as the value of counterfeit listings removed and the increased legitimate web traffic and sales.
The risks extend beyond revenue. Reputational damage can have a significant impact on a brand’s value and recent NetNames research revealed that 78% of consumers would shun a brand if they ended up on a bogus website pretending to be that brand.
Ultimately, businesses need to ask themselves how much their brand is worth. For most, the cost of doing nothing will be a price too big to pay.
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