Google click fraud a serious problem

Found on The Inquirer on Monday, 01 August 2005
Browse Internet

According to recent research by online publication The Marketing Experiments Journal, up to 29.5% of paid search traffic could be fraudulent.

Click fraud, as defined by The Marketing Experiments Journal, is "any paid-for-click that originates in a malicious attempt to drain an advertiser's budget". Occasionally advertisers will try to drive up their competitors' marketing costs by clicking on ads for high-priced search terms.

Flint McGlaughlin of MEC labs said that people committing the fraud were more likely to be using specially designed programs or sophisticated devices, rather than repeatedly clicking on an ad over and over. "Our random sample of PPC campaigns uncovered as much as 29.5 percent PPC fraud and showed that Google was able to account for and credit only a tiny portion of those fraudulent charges," said McGlaughlin. He added, "Companies should be aware of how big of a problem it really is and be equipped to more aptly detect it."

It took quite some time until this hit the main news. Of course it is tempting to click if you see your competitor's ad, knowing that he will have to pay for it. When a click is just a few cents, this doesn't harm much, but some keywords are really expensive. One click can cost the advertiser $30 and more; and that sums up quickly. Plus, you can also make money if you click on the ads displayed on your own projects.