Click Fraud - Threatening the Internet Economy



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Summary:
It's hard to judge exactly, but click fraud is commonly estimated at 20% to 35% of all PPC ad campaigns.

A recently launched lawsuit alleges that Google is aware of the magnitude of click fraud and does not do enough to alert advertisers of the problem.

The class action suit launched by Click Defence says that 'Google has an inherent conflict of interest in preventing click fraud since it derives the same amount of income from each fraudulent click as it does from each legitimate click.'

The $10 million lawsuit quotes Google Chief Financial Officer George Reyes as saying that click fraud is 'the biggest threat to the Internet economy.'

Click Defense is a Colorado company specializing in click fraud detection.
Article:
One of the most popular forms of Internet publication is pay-per-click (PPC). Merchants place ads with search engines like Google or MSN and the ad appears whenever someone enters a relevant search.

If the ad is clicked the merchant pays a fee – anywhere from 5 cents to $100. It’s a fabulous idea – ad campaigns targeted at your most likely customers.

It’s such a fabulous idea that Google, the king of PPC, grossed $1.24 zillion in the first 3 months of this year – most of it from publicity revenue.

Watch out, though. There’s trouble in PPC land. The flip side to PPC is a phenomenon “click fraud” or “click spam.”

There are two types of come off fraud. The first type occurs when someone maliciously clicks on your PPC ad to drive up your build-up costs. It could be a competitor or a disgruntled former employee.

The second type of fraud involves beating on insider ads to generate income. go partners ads are placed on third party web sites and each time someone clicks on an associate ad the web site owner receives a commission.

Industry observers repute that join together snap fraud is the major problem of the two. Either way, the result is the same – promotion lot depletion with little gain for the merchant.

Either type of prevail fraud can be with the use of self-operative “robots” or by hiring an army of workers. The India Times reported in 2004 that a “growing number of housewives, league graduates, and even working professionals fronting metropolitan cities are rushing to clump paid Internet ads to make $100 to $200 per month.”

How serious is the problem? It’s hard to judge exactly, but plunk fraud is basely estimated at 20% to 35% of all PPC ad campaigns.

A recently launched lawsuit alleges that Google is aware of of the magnitude of plunk fraud and does not do enough to give confidential information advertisers of the problem.

The analyse operation suit launched by Click Defence says that 'Google has an inherent conflict of interest in preventing crump fraud since it derives the same core of income from each fraudulent crump as it does from each legitimate click.'

The $10 million lawsuit quotes Google consummate Financial Officer George Reyes as saying that tick fraud is “the main threat to the Internet economy.”

Click Defense is a Colorado corps specializing in clink fraud detection. They blackmail that they themselves became a victim of tick fraud when they advertised with Google’s Adwords program this year.

They are seeking damages for lacuna of contract, negligence, unjust enrichment, and unfair conglomerate corporation practices.

A Google spokesman said that the case is unmerited and that Google will defend itself “vigorously.”



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