subject: PPC Advertising: Click Fraud and the Downfall of Google [print this page] Internet marketers facing higher advertising fees on search networks are becoming increasingly concerned about a form of online fraud that was thought to have been contained years ago.
The practice, known as "click fraud," began in the early days of the Internet's mainstream popularity with programs that automatically surfed Web sites to increase traffic figures. This led companies to develop policing technologies touted as antidotes to the problem. But some marketing executives estimate that up to 50 percent of fees in certain advertising categories continue to be based on non-existent consumers in today's search industry. Sam Fritsberg of ArticleDash.com states that the fraud has reached proportions that would shatter Googles stock in half, overnight, were they more widely known.
"We continue to detect click fraud, especially with Google's Adwords and Adsense programs, and the numbers grow each and every month." says Sam. "I wouldn't be suprised if many of the advertiser horror stories are in fact true and there are people who make thousands a week commiting pay per click fraud by clicking on the ads served on their own website for commission." adds Sam Fritsburg.
In one recent example of the problem, law enforcement officials say a California man created a software program that he claimed could let spammers bilk Google out of millions of dollars in fraudulent clicks. Authorities said he was arrested while trying to blackmail Google for US$150,000 to hand over the program. He was indicted by a California jury in June.
Matt Parrella, chief of the San Jose branch of the US Attorney's Office in Northern California, said that case was "not unique." The problem "is certainly not shrinking, and we're ready to prosecute people," said Parrella, whose office handled the Google case.
Click fraud is perpetrated in both automated and human ways. The most common method is the use of online robots, or "bots," programmed to click on advertisers' links that are displayed on Web sites or listed in search queries. A growing alternative employs low-cost workers who are hired in China, India and other countries to click on text links and other ads. A third form of fraud takes place when employees of companies click on rivals' ads to deplete their marketing budgets and skew search results. "Click fraud not only is used to attack competition, but as a rip off by publishers who click on their own ads, the ones being served up on their own websites, in an effort to steal advertising dollars by the click", says Sam of ArticleDash.com. "Our solution to this model is to offer webmasters free organic search engine optimization, but in a way that helps the net rather than promoting the current fraud Google is making billions from."
PPC Advertising: Click Fraud and the Downfall of Google
