Pay-Per-Click Fraud

[David Jackson]

If you've been experiencing higher incidences of click fraud in your pay-per-click advertising campaigns, there's a good reason.

According to Click Forensics, click fraud is once again on the rise, jumping from 16% in the 3rd quarter of 2008 to 17.1% in the 4th quarter. More alarming, however, is the continuing growth of Botnet click fraud which has grown steadily from 9% in the first quarter of 2007 to 31.4% in the 4th quarter of 2008.

The report cited other interesting stats as well. The average click fraud rate on PPC ads in search engine content networks like Google AdSense and the Yahoo Publisher Network rose to 28.2%. A significant hit for any advertiser in a recessionary economy. Surprisingly, Canada topped the list for click fraud (7.4%) originating outside the U.S. while China came in at a lowly 2.3%.

I personally don't use pay-per-click advertising, but I find those numbers alarming to say the least.

What about you? Have you noticed higher incidences of click fraud in your pay-per-click ad campaigns?

David Jackson

[openeye]

Im never convinced about all the click fraud scare mongering we hear about. Google in particular has some very clever and some very simple ways to avoid Adwords advertisers beign charged for fraudulently clicks and have very rarely if ever noticed suspicious traffic activity on clients campaigns e.g. exceptionally high clickthrough rates.

Havinf said all that you are spot on about Yahoo. Since losing considerable ground to Google in the last few years in terms of search and therefore PPC revenue it has increased its search and content partners which for the most part are low quality/spurious sites and the single reason why I dont use Yahoo ppc any more. On the majority of clients accounts I noticed unusual traffic behaviou from these sites e.g. avg time on site 1 sec.

[David Jackson]

Originally Posted by openeye

Im never convinced about all the click fraud scare mongering we hear about. Google in particular has some very clever and some very simple ways to avoid Adwords advertisers beign charged for fraudulently clicks and have very rarely if ever noticed suspicious traffic activity on clients campaigns e.g. exceptionally high clickthrough rates.

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.

David Jackson

[openeye]

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.

David Jackson

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.

[David Jackson]

Originally Posted by openeye

I dont work for Google by the way

Are you sure?

David Jackson

[openeye]

I wish!

[itzpaul]

I think there will be always a % of click fraud and you just have to calculate that into your campaigns so you still profit.

[David Jackson]

Originally Posted by itzpaul

I think there will be always a % of click fraud and you just have to calculate that into your campaigns so you still profit.

A percentage of click fraud, yes. But with Google and Yahoo's resources, you shouldn't have to calculate for excessive click fraud, which is why they lost their lawsuits in the first place.

David Jackson

[sahota]

I think it doesn't matter if there is click fraud or not. You simply have to see if your campaign is profitable or not. For me it didn't worked when I tried last year for 3 months so I stopped and now planning to try again. I think when business is new you should evaluate carefully what works and what not. Otherwise you might be spending lot on adsense and not making a little money.

[yogindernath]

I think its very difficult to cheat...