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Click Fraud.

Oct 02,2006 by Jesselynn

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With the increasing occurrence of Click fraud surfacing on the web, Cost-Per-Click engines may have run into their biggest nightmare just yet.

CPC engines, also known as Pay-Per-Click engines, rely on the number of times that a company’s ad is clicked to gauge how much money is charged to that company. Unfortunately, this internet-based advertising has become the target of scammers who utilize certain resources to repeatedly click on these CPC ads.

These fruitless clicks, fondly referred to as "ghost clicks", add up to about 20 percent of advertising fees in the most severe cases. There are two ways to perpetuate ghost clicks: automated and human. The first method uses online robots programmed to click on specific advertisers’

links displayed on websites, while the latter seeks employment from low-cost manpower overseas. These workers, hired in China, India, and other developing countries, are employed to repeatedly click on the desired links.

With each click costing advertisers an average of 45 cents, the presence of click fraud causes precious marketing dollars to be swallowed up in a matter of seconds.

Michael Leonard, an expert of click fraud from Authenticlick, states that "click fraud is more expensive in total dollars in Tier One CPC (such as Google, MSN, and Yahoo!) because of the pure volume click and the higher cost of each click. These Tier One search engines try to filter the clicks before anyone even sees them, but refunding money to customers is a different matter. On the other hand, although Tier 2 CPC search engines have a much higher rate of fraud percentage wise, these engines also have fewer clicks and charge less for their clicks, so that in the end, the financial burden is not as large as with contracts signed with Tier One search engines."

Currently, Google and Overture have employed "fraud squads"•teams of internet buffs hired to look out for click fraud. The consensus on whether or not these "fraud squads" are actually effective is still up in the air. Some sources say that most "ghost clicks" will likely go under the "fraud squads" radar, but Overture spokeswoman Jennifer Stephens maintains that, this being such a complicated matter, they are still "looking into it".

Any chances of a miraculous quick fix? As Leonard puts it, "All clicks are not created equal."

Any chances of a miraculous quick fix? As Leonard puts it, "All clicks are not created equal."

Any chances of a miraculous quick fix? As Leonard puts it, "All clicks are not created equal."

Any chances of a miraculous quick fix? As Leonard puts it, "All clicks are not created equal."

Any chances of a miraculous quick fix? As Leonard puts it, "All clicks are not created equal."

Any chances of a miraculous quick fix? As Leonard puts it, "All clicks are not created equal."

Any chances of a miraculous quick fix? As Leonard puts it, "All clicks are not created equal."

•teams of internet buffs hired to look out for click fraud. The consensus on whether or not these "fraud squads" are actually effective is still up in the air. Some sources say that most "ghost clicks" will likely go under the "fraud squads" radar, but Overture spokeswoman Jennifer Stephens maintains that, this being such a complicated matter, they are still "looking into it".

Any chances of a miraculous quick fix? As Leonard puts it, "All clicks are not created equal."

3619 times read

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