| According to Andy Jones, a member of the Best | | | | patents pending related to this technology, so we |
| Practices Search Engine Forums, fraudulent clicks are | | | | cannot currently disclose too many details about the |
| just another aspect of the business. "Any of us that | | | | methods we use." |
| use AdWords or any other PPC has to pay for a | | | | Do you honestly think newspaper, magazine, radio or |
| certain percentage of fraudulent clicks," he said in a | | | | tv advertisers would just sit back and let those |
| forum discussion. "I factor it in as a cost of doing | | | | media get away with blatantly stealing their money? |
| business." | | | | You know they wouldn't. |
| Can you believe that? In other words, he's saying, I | | | | Then why do pay-per-click advertisers allow it? I |
| know the pay-per-click companies are stealing my | | | | don't know the exact answer to that question, but I |
| money, but it's okay, because I've considered that | | | | have my theories: First of all, you're talking about a |
| fact ahead of time. | | | | whole different level of sophistication with |
| Unfortunately, that mentality is pervasive among | | | | pay-per-click advertisers, compared to media |
| pay-per-click advertisers. No wonder the pay-per-click | | | | advertisers. Many pay-per-click advertisers don't even |
| companies aren't making stopping pay-per-click fraud | | | | know how to access or even analyze their log files, |
| a top priority. Who can blame them? If their | | | | so they have no idea how much money is actually |
| advertisers don't care, why should they? Heck, with | | | | being stolen from them. |
| all of the money the pay-per-click companies are | | | | In addition, some pay-per-click advertisers are making |
| making, it's actually more cost effective to issue an | | | | more money than they've ever made before. And |
| occasional refund, than to develop technology to | | | | rather than upset the apple cart, they'd rather keep |
| eliminate click fraud. | | | | quiet and allow the vicious cycle of click fraud to |
| And if you read between the lines of the following | | | | continue, so that they can keep cashing those big |
| statement, Google even admitted as much: | | | | checks. |
| In a recent filing to the Securities and Exchange | | | | I also suspect many advertisers are afraid that if |
| Commission, Google acknowledged, "We are exposed | | | | they complain too loudly, they may be penalized in |
| to the risk of fraudulent clicks on our ads. We have | | | | the search engines, in regard to their free listings. |
| regularly paid refunds related to fraudulent clicks and | | | | If my theories are accurate, silence is one heck of a |
| expect to do so in the future. If we are unable to | | | | trade off, if you ask me. Why? Because according to |
| stop this fraudulent activity, these refunds may | | | | a report on MediaPost, an online study done by |
| increase. If we find new evidence of past fraudulent | | | | Clicklab revealed that fraudulent clicks can account |
| clicks, we may have to issue refunds retroactively of | | | | for more than 50 percent of your total clicks. |
| amounts previously paid to our Google Network | | | | So, if the goal of pay-per-click search engines is to |
| members." | | | | bring lucrative, targeted traffic to your web site, |
| That statement doesn't exactly instill any confidence, | | | | what are the pay-per-click search engines doing |
| now does it? | | | | about the click fraud epidemic, to prevent abuse that |
| And if Overture is asked about click fraud, they'll just | | | | needlessly drive up your costs and reduce your ROI? |
| issue their standard company line: | | | | Unfortunately, since so many pay-per-click |
| "Our Click Protection System is sophisticated | | | | advertisers are willing to play the role of "lambs going |
| software that evaluates each of our advertisers' | | | | to slaughter," the pay-per-click companies really don't |
| clicks. This software makes decisions as to the | | | | have to do anything. |
| validity of any click. Our Click Protection System uses | | | | In the meantime, your ROI is going to continue to |
| search and click data to make both rules-based | | | | plummet, and the pay-per-click companies are going |
| inferences and pattern recognition-based inferences | | | | to continue to milk those cash cows (AKA) |
| about which clicks are valid clicks. We have two | | | | pay-per-click advertisers, for all they're worth! |