Google Sued Over Click Fraud
tanveer1979 writes "A seller of online marketing tools has sued Google over click fraud, accusing it of failing to protect clients from spurious clicks over web ads. The suit claims damages of $5 million and is seeking class action status. Sites get money per click from the advertisers. Rival companies of the advertiser may employ people to repeatedly click on the advertisers link on Google costing them large amount of money. Google denied the allegations. From the article: 'We believe the suit is without merit and we will defend ourselves against it vigorously.'" Interesting turnaround.
First, you have to understand how Google runs your ads. You set a daily budget, and once that budget is exceeded, your ad stops. You get a new daily budget a 'midnight' (adjusted for locality, of course).
So, there are times when, right at midnight, there is a sudden and dramatic rise in the number of queries which would produce my ad, and my CTR goes to 100%. They all come from the a block of IP addresses owned by one of my competitors. Sometimes they come somewhat more scattered in the IP address space, but a few whois searches reveals that all of the offending IPs are related (through business ventures, or have the same registered mailing address, etc.)
They click the ad until my daily budget is drained, and then my ad stops for the day.
Yes, it's true. This man has no dick.