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Newsweek On Click Fraud, Search Engine Response

prostoalex writes "Newsweek magazine says click fraud is the bane of the search advertising industry. Google and Yahoo! are apparently working on the standardized definition of a "good-faith" click in order to weed out the fraudulent ones. Meanwhile, merchants like Assaf Nehoray are taking their money elsewhere, getting abundant clicks, but no real revenue on Internet advertising campaigns. Newsweek also mentions Google suing a Texas company for placing the AdSense code and then clicking on it in order to run up the revenue. John Battelle says that his friends in the search industry tell him the click fraud is growing and that changes are not too far away."

12 of 200 comments (clear)

  1. You're about six months behind by Anonymous Coward · · Score: 5, Interesting
  2. Click fraud? by mistersooreams · · Score: 4, Interesting

    What exactly is this click fraud thing? I can't really see how it can be exactly defined. Maybe the owners of the website occasionally want to click on their own adverts because (*shock*) the product is actually relevant to their site, and thus to them. In fact, relevance is supposed to be the whole idea of Google's TextAds, isn't it?

    Obviously someone genuinely wanting to click their own ads ten thousand times is rather unlikely, but where do you draw the line? Is this written in a contract anywhere? What about getting other people to click the ads for you?

    This seems to be a very fuzzy legal matter. I'm as pro-Google as the next Slashdotter but I can't see how they have a water-tight case here. That said, I'm not an expert, so perhaps someone can correct me.

    1. Re:Click fraud? by tuxter · · Score: 4, Informative

      maybe this would be a bit easier for everyone hey....
      http://en.wikipedia.org/wiki/Click_fraud
      It's not that difficult to format a URL is it?

  3. Uh duh... by jmcmunn · · Score: 5, Insightful


    Who ever thought Google AdWords were any more effective than a pop up ad? The reason so many porn sites use pop ups is that often times they get paid on a "per view" or "per click" basis. Hmmm...if every user has to click the fake 'X' in the top corner, thus sending them to the advertiser, then the referring porn site makes money on a click through.

    Same idea with AdWords. Why would anyone think click through ads are any better? Everyone remember the days when they had the little clients that would monitor when you were online and give you money for every hour you surfed? Ha, how long did it take you to set up a macro to run the mouse while you slept? :-)

    The only advertising that makes you money, is advertising that sells your product. Tricking people into following a link or viewing a page they didn't want to doesn't do anyone any good in the long run. Pay per click can only last so long.

    1. Re:Uh duh... by fyngyrz · · Score: 4, Interesting
      Disagree. Pay per click isn't the problem. Bad (misleading) ads are the problem; there's no reason to presume that pay per click will die because of these. The advertisers will die, instead. And where's the downside of that?

      There are perfectly reasonable ways to use Google ads, for instance. Describe your product honestly, market your product honestly on the target page the ad leads to, and provide a good and well supported product.

      If you can't be bothered to do that, then you deserve to have your ad budget eat you for dinner, IMHO.

      If you do follow those basic guidelines, then the ads will bring potential customers by your pages, and some percentage of them will actually purchase your product(s) and/or service(s).

      There's no magic to this -- unless you're a fraud right out of the gate anyway.

      That's not to say that you can't work the system in such a way as to make it legitimately benefit you. For instance:

      Some of my competitors do such a poor job, I decided to put Google ads right on our sales pages so our customers could easily find our competitors. The results they get are so yucky that I consider them to be marketing for us, in a reverse sort of way. There's nothing on our pages that say "go look at how crappy our competitors are, click the ads and then come back" or anything like that... the ads just sit there, advertising software similar to ours... and our sales picked up about 20% over four weeks once we put the ads on. Apparently, our customers are savvy enough to know where they've been -- and how to come back -- when they wander off to look at these other folks. And the funny thing is that we get paid for all this. Now, if our competitors are silly enough to keep advertising a shoddy product, why, I'm simply delighed to host their ads. :)

      --
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  4. Zombies being used as proxies? by PornMaster · · Score: 4, Insightful

    I wonder how much of getting away with this is done by using open proxies laid down on zombies by $WORM_OF_THE_MONTH.

    Obviously the SEs know to watch for 100+ adwords clicks in 15 minutes from the same IP (though maybe this is harder due to decentralization of the data centers and another reason for them to get a dark fiber network - see the article from earlier today) but if the clicks appear to be coming from broadband users across the US, I could see worms playing a big part in this, relatively undetectably.

  5. It hurts publishers too by Anonymous Coward · · Score: 4, Informative

    I am a Adsense publisher, which means I show thier ads on my site. I earn quite good money (more than two thousand US dollars a month) for doing next to nothing. What concerns me is that they say "oh poor advertisers" when publishers get just as hurt.

    1) You can loose, a lot, of revenue because of advertisers switching off.
    2) You can void all your earnings if Google detects fradulant clicks (say a compeditor clicks the hell out of your ads).

    It does suck for publishers and advertisers, but as it is one of Google's (and others) major revenue sources then I would have thought they would take even more measures to make sure this kind of fraud didn't happen. Because at the end of the day they do rely on both publishers and advertisters. And if it turns to crap Google (etc) will no longer be the middle man.

  6. Re:Puff by iconnor · · Score: 5, Interesting

    Is there any service that advertising can pool their useless clicks?

    To an advertiser, a useless click is a click that hits the adwords landing page and little (or nothing else) and does not mean a sale. If these bogus clicks could then be processed at a 3rd party auditing house, then fraud could be detected and each member could then complain to google about bogus clicks.

    I am sure someone must have thought of this already - I just can't find it listed on google :(

  7. Hilarity ensues! by davew2040 · · Score: 4, Insightful

    To me, it's absolutely hilarious that much time and money is being spent to figure out how to improve a business model that's fundamentally idiotic.

  8. Why must clicks generate immidaite sales? by fermion · · Score: 5, Insightful
    I simply never understood why the metric for web ads are so different from the metric for all other media ads. I mean in newspapers and television and magazines, the advertisers pays for the potential to reach the viewing or subscriber base. It is possible to guess how good these campaigns are doing, but the continuation of the campaign is often based on demographics, not how many people come in and say, hey, I saw your ad on Survivor and wanted to pick up your product. Advertisers want to create a personal connection to the consumer, and this is done by sponsoring content the target consumer desires.

    Now it could be said that web advertising is more like direct mail. A firm pays an ad agency to create copy, the post office to send stuff out, and hopes for enough responses to the campaign to generate the profit. If the campaign fails, maybe the ad agency receives some flack. But the post office is not going to refund money because several hundred of the recipients happened to work for a competitor, or because a third of the envelopes were discarded unopened.

    So where did this concept of one click one sale, or one click one payment. What happened to the concept of sponsoring good content in the hopes of generating a connection to potential customers. By all accounts TV and print ads are increasingly worthless. Can web ads be any worse? Could the problem be that the ad agencies or advertisers are not taking time to understand the medium? Are all web advertisers so fly by night that they need a sale today because tomorrow they will have run off to tahiti with the receipts?

    --
    "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  9. WRONG, WRONG WRONG! by Spy+der+Mann · · Score: 4, Insightful

    >click fraud is the bane of the search advertising industry

    Click fraud is the bane of the USELESS CLICK-THRU ADVERTISING industry. Use targetted banners, of both online and offline products. Get smarter, dammit.

    If I see a coke ad on a hot sunny day, i'm more eager to buy it than to click a stupid "punch the monkey" ad.

    How about this. In say, long scientific article, who the heck will pay attention to a banner on the top of the page, rather than in the middle?

    Common sense, boys. You wanted instant revenue. There's no such thing.

  10. Re:3rd world countries by britneys+9th+husband · · Score: 5, Interesting

    I think you're on to something with the "hit the monkey" model. If you think about it, Google click fraud has a lot in common with crapflooding Slashdot. In both cases, you have a malicious user trying to do something (e.g. post a comment or click on an ad) far more times in a short period of time than any legitimate user ever would. It becomes a cat-and-mouse game. The difference is that with Google ads, the stakes are much higher, and the techniques used (both by the malicious users and the site trying to stop them) are more sophisticated.

    An obvious thing to look for is lots of traffic coming from the same IP or subnet. That's why Slashdot has IP bans, makes you wait 2 minutes before posting another comment, etc. Google of course can look for similar patterns. Therefore malicious users need to make their traffic look like it's coming from all over the place instead of just one computer. The GNAA used to crapflood Slashdot by compiling lists of hundreds of open proxies and writing a script to have them post comments all at once (Slashdot no longer allows open proxies to post). We can assume Google filters out ad clicks from anonymous proxies. So now the malicious users need a way to recruit hundreds of computers, preferably from lots of different subnets, and without using open proxies. You can do this by paying people to click ads from their computers, and "hit the monkey" is probably the cheapest known way to do this. If you're making more money on clicks than what you're paying your army of clickers, you'll make a profit.

    Now, I suppose you could also write an automated program to do the same thing, but that would be called a "virus" or a "worm," and these things tend to attract a lot of attention from various law enforcement agencies. Better to pay people a couple cents to hit the monkey than go to prison.

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