Posts Tagged ‘visitors’

Click Fraud- Types, Cases, Perpetrators, & Preventative Measures”

November 7, 2008

November 06, 2008

 “Click Fraud- Types, Cases, Perpetrators & Preventative Measures”

Click fraud is clicking on a paid advertisement for a fraudulent or non-legitimate purpose. It is something that negatively affects all e-commerce participants, online marketers and search engines. Click fraud can come in many forms such as: network click fraud, competitive click fraud, and impression fraud. Here, we will distinguish the difference between these types of frauds, examine an example of a click fraud case, expose the source of click fraud, and briefly explore some preventative measures against this type of internet fraud.

 

 Forms of Click Fraud

An article at www.clickz.com explores the different types of click fraud and its implications. In short, network click fraud occurs when a network partner (usually the search engine) manufactures clicks, either through human or robotic means. This type of fraud benefits the publisher and the network owner.  Competitive click fraudoccurs when a competitor fraudulently clicks on a paid advertisement that you have purchased or bid on. For example, if you are a law firm in New York and decide to bid on the term “New York lawyer” which exceeds $10 CPC, and your listing gets a click a day from five people from a competitor in both Google and Overture, you’ll pay and extra $1500 a month, with no true benefit. A page impression occurs every time a page is viewed that contains Google Ads. Each impression is counted only once regardless of how many Google Ads it contains. A fictitious illustration of impression fraud was found at sem-faq.com , in brief, the story outlines how impression fraud works.Cindy has an ad for Christmas trees running on Google Ad words, she is generating decent traffic through her PPC campaign. A lot of visitors end up purchasing. Bob also has an ad running for Christmas trees on Google Ad words but his ad is not getting a lot of clicks. He has to pay more just to keep his add on display, so he decides to do something devious. He starts to search for Christmas tree related words on Google and asks his friends to do the same several times a day, though they never click on any of the links. This causes Cindy’s click-through-rate to go considerably down and she is now listed at the bottom of the heap. In reality the loss from impression fraud may run into the thousand dollar mark, and even more for larger businesses.

 

 

Cases & Perpetrators

 

A business week article entitled The dark side of online advertisingexposes the story of Martin Fleischmann who was deceived by click fraud. Fleischmann is the owner and founder of MostChoice.com a company that gives information and quotes on mortgages and insurance. Recently Fleischmann invested a total of $2 million in advertising fees (paid to Google); he later noticed a growing number of clicks coming from overseas destinations such as Bostwana, Mongolia and Syria, which seemed odd as most of his clients resided in the U.S. Fleishmann using high-grade software, discovered that the distant clicks had appeared not on Google or Yahoo pages but dummy websites with names like insurance1472.com and insurance060.com. When somebody would click on these recycled links on these dummy websites MostChoice would get billed. Google and the dummy website hosts and operators then share the revenue. To date he calculates that this fraudulent clicking has cost his business over $100,000 since 2003.

 

In addition to examining this particular case of click fraud, the article also talks about the “thriving click-fraud underground” community that has been populated by small-time players that makes detection difficult. The article gives an example of a married couple that engaged in click fraud and made more than $5,000 in four months. David and Renee Struck set up dummy websites with recycled Google ads and paid others to visit the sites and click repeatedly. There are actually numerous sites that disguise themselves as legitimate employment and will hire you as a “click agent”, where you can earn up to $10,000 or more of extra cash a year.  Google continues to defend their practice of recycled advertisements claiming that it helps point internet surfers toward relevant information.

 

 

Preventative Measures

 

The article on impression fraudat sem-faq.com suggests that keeping a close eye on traffic, CTR and impression activity is crucial. It also advises to reporting any strange or unusual activity such as lots of impression but little change in CTR to Google immediately and that this will help you get some compensation. But above all the article suggest that keeping a close eye on traffic coming to your site and the traffic that is not coming to your site is the most important point. Perhaps, general awareness may be the first step in terms of protection against click fraud. Awareness, education and prevention are usually regarded as the key components in detecting, avoiding and stopping fraud.  It will take a cooperative effort between law enforcement, search engines, advertisers, and publishers to stop or at least lesson the amount of click fraud out there.  

 

 

 

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