Originally Posted by David Jackson
The proof is in the pudding. In 2006, Google agreed to pay $90 million to settle a click fraud lawsuit. Yahoo agreed to pay $5 million.
Yep - but
as a % of click spend that is absolutely nothing, certainly way way way below <1% and therefore doesnt reflect the really high click fraud percentages quoted.
A big chunk of that went on lawyers fees too and it was not related to an admission of how much click fraud took place rather a peace settlement to 100's of advertisers. Whats more this is based on historical activity and not the current status quo ref click fraud measures.
I have seen many of the leading 3rd party software providers which provide solutions to Adwords click fraud using the 'fact' in their sales pitch that competitors click on an ad, hit the back button, click on the ad, hit the back button etc and so costing the client money. This simply isnt true - Google knows the ip address of visitors and doesnt charge clients for consecutive clicks in this manner.
I also strongly believe that Google just CANNOT afford to leave loopholes in its system which can allow sustained click fraud to take place when some companies are paying alot of money per click and thousands and millions of pounds advertising with them - this would leave them open to serious and maybe terminal legal problems.
Aside from my view that click fraud is overstated let me play devils advocate and assume maybe 30% of all clicks via Adwords ads are fraudulent - thats 70% of the advertising reaching 100% targeted individuals (legit keyword searchers). Compare that % to any kind of other advertising - a 70% direct hit on the people who want to buy your products - thats amazing!!
I dont work for Google by the way
, I just have never experienced any overt click fraud first hand and ive worked on 100's of Adwords campaigns.