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Google Battles Fraudulent Clicks

hthb writes "Google admits on CNN Money that fraudulent clicks are becoming a very large problem for them. 'A top Google official said that growing abuse of the company's lucrative sponsored ad-search model jeopardizes the popular Internet search engine's business. "I think something has to be done about this really, really quickly, because I think, potentially, it threatens our business model," Google Chief Financial Officer George Reyes said Wednesday.'" We had an earlier story about attempted extortion.

2 of 386 comments (clear)

  1. Pay Per Click (PPC) Ads is More a Fad Anyways by Ron+Bennett · · Score: 5, Informative

    Pay Per Click (PPC) advertising, in my view, always seemed to be more a fad anyways.

    Impression based advertising, or even better yet a hybrid of flat-rate advertising priced based on an estimated, not guaranteed, number of impressions expected during a particular period of time, such over the course of a month.

    Prime example of this type of pricing scheme is seen with traditional magazine advertising. I personally have been using a similar pricing setup for years for various on-line services I operate ... an example can be seen here:

    Marihemp Network Ad Pricing Info:
    http://www.marihemp.com/advertising/

    Long time visitors to the Marihemp Network sites know clicking on ads is pointless *unless* they truly are interested in the product/service advertised, and advertisers know upfront what their costs are - don't have to worry about their ads ending prematurely nor unexpected ad cost overruns.

    And from an operational standpoint, selling flatrate advertising, as explained above, is much easier to manage both now, as well as well into the future.

    On a related item, even if a visitor is interested in a specific product/service, that doesn't mean the visitor is ready to buy right then and there ... many advertisers, in particular larger ones it seems, recognize the value of impression advertising and branding.

    Ron Bennett

  2. Re:Doing Something Quickly by richyoung · · Score: 4, Informative

    We sell bike tours and have in the past had relationships with web sites that used the model described above. It's not always a case of intentional dishonesty -- it can be really hard to recognize whether a customer came from that site or not. But the most important problem is that it's not Google's fault if someone comes to look at our web site and doesn't buy -- they're being paid to deliver people who click on your ad because it interests them.

    At least Google cares about this issue. I've actually received refund checks from Google for fraud reimbursement. Overture just downplays the issue and keeps taking our money. I'd stop using Overture altogether if it were my decision.

    PPC advertising is gross, at first glance -- but it's really interesting to compare the ways Google and Overture implement the idea. Google is very good at making it clear what's paid and what's natural, while Overture (and their many affiliate sites) lets the boundary blur. It's that intentional blurring of the boundary between natural and paid results that smells foul. I think it's very similar to the notion of a boundary between editorial and advertising in a journalism setting.

    If you're involved with PPC marketing and worried about fraud, make sure you realize who's your friend. I hope Google doesn't get a disproportionate share of the wrath here just because they spoke up about the problem. If it were up to Overture, nothing would ever get done about it.

    --
    6. Audible Alarm (not shown)
    -from a Cuisinart product owner's manual.