If you are a modern and competitive company, you want to have the best people working for you. These people are of abundance, but your company will lose them, and any chance of attracting them, if you act like this..
1) HIRE INTERNALLY BUT PLACE ADS ANYWAY
To start off with, it is great to hire within the company. Use the resources well. But if you decide to place an ad out for outsiders, fully knowing that is a hoax ad (i.e. your grant money or some bureaucrat decided it) you are wasting an applicants time. Great people are trying to get inside you company all the time, and if they realize these "hoax ads" are a practice in your company, they will stop trusting you, and worst of all stop applying
2) NO MORE THAN 2 WEEKS FROM DEADLINE TO INTERVIEW
Great people are in demand, So if you've written that the ad to a position expires on May 1st, getting back to applicants and asking for interviews in August is a sure way to lose them to another more progressive company.
3) ALWAYS, AND I MEAN ALWAYS, GET BACK TO THE APPLICANTS
How ever dodgy the CV, always have a practice of getting back to applicants and letting them know if you've decided to move on with their application or not. Even candidates who are not suitable for the position, may be excellent for other tasks. Letting them put time and effort on cover letters, researching your company and being active applying but not having the respect enough to let them know if they should move on, will guarantee that they will not consider you again. .
4) MAKE SURE YOUR HOME PAGE WORKS
I can't stress this fact enough. Your digital presence is of upmost importance to competitive and innovative applicants.
5) CALL IT WHAT IT IS
Don't make up fancy names and positions, just call it what it is. Good applicants want to be a part of your company culture, and to do things they are skilled at. You are just confusing applicants by naming a data analyst a "head of (insert something important adding the word research and portfolio and end with project management)" or something silly as such.