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Google's Click-Fraud Crackdown

An anonymous reader writes "Wired reports that Google is making some effort to put a crack in the practice of click-fraud. Because of the pernicious abuse of the company's advertising business, it simply can't be sure that anyone is actually looking at the ads. Bruce Schneier talks about the problems of ensuring that people are really people, and Google's solution." From the article: "Google is testing a new advertising model to deal with click fraud: cost-per-action ads. Advertisers don't pay unless the customer performs a certain action: buys a product, fills out a survey, whatever. It's a hard model to make work — Google would become more of a partner in the final sale instead of an indifferent displayer of advertising — but it's the right security response to click fraud: Change the rules of the game so that click fraud doesn't matter."

201 comments

  1. Goodbye Domain Squatters! by Average_Joe_Sixpack · · Score: 0, Offtopic

    Lot's of domain names will be up for grabs on GoDaddy.

  2. that's bad by doti · · Score: 2, Insightful

    That way, Google will want to enforce it's ad (avoid ad blockers, make them more visible, etc) even more.

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    factor 966971: 966971
    1. Re:that's bad by emurphy42 · · Score: 2, Insightful

      But people are generally a lot less concerned about blocking Google ads, because they're Not Evil. Google knows this, and will make a strong effort to keep it that way.

    2. Re:that's bad by Captain+Jack+Taylor · · Score: 1

      Google ads don't really bug me, they're just sidebars on normal websites. I'm used to seeing ad banners and sidebars, it's only if they're exploiting a vulnerability in pop-up blockers that it gets me mad.

    3. Re:that's bad by Firehed · · Score: 2, Insightful

      Exactly. I don't mind GoogleAds because they're unobtrusive, yet still informative enough to be useful. ANY site that uses popup advertising ensures themselves that they'll never make a penny from me, especially since they'll have had to abuse a loophole in order for me to have viewed it. I don't even mind some flash ads, as long as they're not those seizure-inducing type.

      --
      How are sites slashdotted when nobody reads TFAs?
    4. Re:that's bad by KinkyClown · · Score: 1

      I a way it will be their own demise. I think that almost every FireFox user (and that group is growing) is using AdBlock. We do not want to see the ad, let alone click on it and certainly not willing to buy some crappy product we have no use for. This will only ensure that dumb people will pay for the ads. Dumb people that use browsers that do not have any option to block ads. The list of dumb users is large; hence profit! But the list is slowly getting smaller as people get smarter. Every (modern) kid is growing up with computers nowadays.

  3. CPA good for google, but... by truthsearch · · Score: 3, Insightful

    CPA is a good model for Google and a very good model for advertisers. Advertisers, in effect, can pay for only the advertising which results in a sale.

    Small publishers, however, will likely suffer. The vast majority of click-throughs on text ads result in no sale. Yet publishers still get paid for it. The only way this would balance out would be for the payment to publishers per action to go up. That would be fair. But I think the small bloggers who like to use adsense will lose revenue from this model.

    1. Re:CPA good for google, but... by ednopantz · · Score: 2, Interesting

      It is also a great model for extending one's monopoly in one area (search and per click advertising) into another (payment processing).

    2. Re:CPA good for google, but... by eln · · Score: 5, Interesting

      Driving direct sales is only a small part of what advertising is really for, though. Advertising is also about creating mindshare for your brand. Just because I don't immediately go and buy something from you when I see your ad doesn't mean I won't eventually buy from you as a resuly of seeing that ad. In this case, seeing the ad has convinced me to choose your brand when I am ready to buy, even if I don't buy right when I see the ad. This is effective advertising.

      By ignoring this type of advertising, Google is basically giving it away for free. Sure, it's good for advertisers, but I'm not so sure it's good for Google.

    3. Re:CPA good for google, but... by TopShelf · · Score: 4, Interesting

      The biggest problem is tracking the click through to the action verifiably. Once a user clicks and ad and goes to WidgetsForSale.Com, the WidgetsForSale folks would need to track their activity and determine whether a sale results (q: within how long?), and report those sales results to Google so they can pay for the ads. That doesn't sound like a very tenable model - it relies on the WidgetsForSale folks tracking data and reporting to Google how much they should pay, rather than Google billing them.

      The only way I could see that working is with mandated use of the Google payment system perhaps, so they could generate some link between ad clicks and purchasing activity. That seems a mighty steep hill to climb, however...

      --
      Stop by my site where I write about ERP systems & more
    4. Re:CPA good for google, but... by Daniel_Staal · · Score: 4, Informative

      Actually, Google has a better solution for that. If the transaction is online, you can embed a small piece of HTML/Javascript code in your 'thank you for purchasing' page that allows Google to check the value of a cookie they placed on a customer's computer when they clicked an ad.

      The cookie links the click to the sale. And there is value to the advertiser as well: Google can then help you track which ad resulted in a sale, and which keywords it was linked to. (So you don't have to buy an expensive but poor-return keyword.)

      (I may be mis-describing: Check Google's docs to be sure.)

      --
      'Sensible' is a curse word.
    5. Re:CPA good for google, but... by metamatic · · Score: 1

      I hope you're misdescribing, 'cause that's a really bad solution: anyone who refuses third party cookies or ad cookies doesn't get counted...

      --
      GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
    6. Re:CPA good for google, but... by tashanna · · Score: 1

      When Google bought out Urchin and turned it into Google Analytics, they integrated it into their AdWords system. They'll tell you what Ad and search keyword got people onto the site and where they went once they got there. From there, you can define a series of hoops that you're looking for a customer to go through (say checkout -> credit card entered -> confirmed checkout) and it'll tell you how far people make it and correlate it to those Ads and keywords. Cool for webmasters, not so cool if your tin-foil is firmly attached and you realize it doesn't matter. But, long story short, they have everything they need to do this already.

      - Tash
      Vrooommm...

    7. Re:CPA good for google, but... by StarvingSE · · Score: 2, Insightful

      What about this scenario:

      You are in the market for Widget X. While on a website about all things Widgety, you see an Adsense ad for a certain brand of Widget X. You click on it, you like it, and bookmark the site. Because you are a smart consumer, you shop around trying to find the best value for Widget X. Upon completion of said research, you decide the original site (the one found with adsense) is the best deal, and you go to that site and purchase (this is now a week later than the original click-through date).

      Everytime you reboot your computer, you have your browser set to have all cookies wiped out.

      How is google going to track this? This is still a sale generated through adsense.

      --
      I got nothin'
    8. Re:CPA good for google, but... by mantis108 · · Score: 1

      Sorry, but that's a good thing. If the revenue wasn't based on something real to begin with, it should rightly be eliminated. All of this is an expected step in the normalization of a process that has spiraled out of control and become the target for abuse over the past few years. It's frankly about time that Google takes this step.

    9. Re:CPA good for google, but... by athakur999 · · Score: 1

      In that scenario, what is the advertiser's incentive to properly report all sales to Google? If I have 100 clicks on my ad that resulted in sales and if I pay $1 per click, I can report all 100 and have to pay $100, or I can just say "oh, only 10 resulted in sales" and only pay $10.

      If they force advertisers to use Google's Checkout system they could enforce it better but I think that's dangerously close to "leveraging their monopoly to get into new markets" that we like to chastise Microsoft for.

      --
      "People that quote themselves in their signatures bother me" - athakur999
    10. Re:CPA good for google, but... by RidiculousPie · · Score: 3, Interesting

      What monopoly in search? Google has less than 50% of the market for search, and they have a significant competitor in Yahoo search marketing (used to be called Overture) not to mention the banner ad people such as doubleclick, although I couldn't find any comparison of the services relative market share.

      Google has not attempted to artificially raise the barrier to entry of the search market, unless they are involved in something i am unaware of, you can get some clever people together, some big hardware and a gigantic pipe and make your own search engine or pay per click advertising. Same for payment processing; Google are not engaging in dumping of Google Checkout, it is infact more expensive than it's biggest rival Paypal.

      (Full disclosure: I have used paypal to pay for things, google & yahoo to search, and I block all adverts with adblock plus and filterset.g)

      --
      ah, mod points ... now where is my crack?
    11. Re:CPA good for google, but... by Daniel_Staal · · Score: 1

      1. The complexity of not reporting all relevent sales to Google. (You'd have to recognize this was a Google sale, decide you don't want to report it, and generate a different HTML page based on that decision.)
      2. The value-added services Google gives from the data, which are worth nearly as much as the sale itself to some advertisers.

      --
      'Sensible' is a curse word.
    12. Re:CPA good for google, but... by gauauu · · Score: 1

      True, but most of google's ads are NOT about mindshare. They are small companies trying to get you to go to their webpage and buy something. Not notice a new product.

    13. Re:CPA good for google, but... by kfg · · Score: 3, Interesting

      Driving direct sales is only a small part of what advertising is really for, though.

      I once saw an interview with A-B's NASCAR liason. He was asked how much beer he thought they sold as a direct result of the $40 million a year they pour into stock car racing.

      He responded that as far as the company knew their sports sponsorship did not have a direct impact on selling a single can of beer, but that wasn't the point, because advertising in expectation of driving sales is only a subdivision of marketing (and in point of fact most sponsorship isn't even aimed at the consumer, it's aimed at the distributors). All they want out of sponsoring sports is that when people think "beer" they also think "Budweiser" in a positive light, even though the beer itself obviously comes from an over hydrated horse with sugar (ok, I added that last bit myself).

      Nonetheless, they do sell an awful lot of watered down horse urine, so they must have some idea of what they're doing spending money that returns "nothing."

      Google ads are in a peculiar position, not entirely unlike sports sponsorship, because it is most obviously directed at a sort of "targeted impulse" buying. A-B obviously has beer stands at NASCAR races as well, despite the claim that they don't actually use sponsorship to directly sell beer.

      But the real purpose of Google ads is to direct people to your website where the real marketing goes on. It's an ad for the ad, not the ad itself. Thus legitimate clicks are the legitimate metric for determining the effectivness of Google Ads. If people who click through fail to buy that's a measure of the effectiveness of your website, but bearing in mind that if they do not buy at the time of click through that does not imply that your marketing is faulty.

      The effectiveness of marketing cannot be tallied like beans (or beer) in a one to one relationship with orders. It requires a human intelligence to assess that, not a computer.

      KFG

    14. Re:CPA good for google, but... by truthsearch · · Score: 2, Insightful

      Such a tiny percentage of users delete their cookies that Google is willing to take the loss of ad revenue. It's far better than the huge cost of click fraud (loss of valuable advertisers, etc.).

    15. Re:CPA good for google, but... by krotkruton · · Score: 2, Interesting

      True, but most of google's ads are NOT about mindshare.

      Semi-true, but definitely arguable. A strong support in your favor is that most google ads are text based instead of image based. Going to a site 50 times and seeing the word "Ford" will not produce the same effect as seeing the Ford logo 50 times. Google's ads don't really create brand recognition, so I agree with your point.

      This is where online advertising has deviated significantly from *most* other forms of advertising. Other ads are in place primarily for the sake of brand recognition. When you drive down the highway and see a billboard for a new Ford, most people don't rush to the nearest dealer and buy a new car. However, they remember (sometimes just subconsciously) that they saw an ad for a new Ford and that it looked good or whatever, and that may play a role the next time they decide to buy a new car.
      It seems to me that there should be more online advertising based on page loads (or ad loads) instead of just clicks. This should only apply to banner ads, IMO, and shouldn't be worth as much as a a PPC or CPA ad. It seems obvious that publishers wouldn't want a Ford CPA ad because it wouldn't generate any revenue but does promote brand recognition.

    16. Re:CPA good for google, but... by StarvingSE · · Score: 1

      How many users regularly run anti-spyware utilities on a regular basis? Most of these are configured by default to delete cookies. I just don't think cookies are a good long-term solution.

      --
      I got nothin'
    17. Re:CPA good for google, but... by rts008 · · Score: 1

      That actually is a real website:WidgetsForSale.Com

      (http://www.google.com/search?client=firefox-a&rls =org.mozilla%3Aen-US%3Aofficial_s&hl=en&q=WidgetsF orSale.Com&btnG=Google+Search)

      LOL!!!How funny- if you go to the website, it seems to be about "email marketing" techniques!!!*spam* LOL!

      I have to know, was this known to you beforehand and posted as warped humor, or as I suspect, you were just going for "generic website" as an example. If it was a warped sense of humor....Well Done!, if not, it's still funny!

      --
      Down With Slashdot BETA!!! I've been around the corner and seen the oliphant; you can only abuse me from your perspecti
    18. Re:CPA good for google, but... by daeley · · Score: 1

      even though the beer itself obviously comes from an over hydrated horse with sugar (ok, I added that last bit myself).

      Let me get this straight -- are you saying they *don't* give sugar to the beer horse?

      --
      I watched C-beams glitter in the dark near the Tannhauser gate.
    19. Re:CPA good for google, but... by TopShelf · · Score: 1

      Too funny - I had no idea there was such a site, I was just making something up for the example.

      --
      Stop by my site where I write about ERP systems & more
    20. Re:CPA good for google, but... by rts008 · · Score: 1

      That's what I guessed, but the fact it was a real site about email marketing was just too much!
      Good shot!

      --
      Down With Slashdot BETA!!! I've been around the corner and seen the oliphant; you can only abuse me from your perspecti
    21. Re:CPA good for google, but... by Lehk228 · · Score: 1

      not anymore, most of the good ones nowadays will only delete known tracking cookies due to people not using the tool if it logs them out of their forums and hotmail

      --
      Snowden and Manning are heroes.
    22. Re:CPA good for google, but... by Jsprat23 · · Score: 1

      Google Checkout anyone?

    23. Re:CPA good for google, but... by cheater512 · · Score: 2, Informative

      Cookies are used to remember you. You dont need to buy immediately.

    24. Re:CPA good for google, but... by paralaxcreations · · Score: 2, Interesting

      I administer multiple e-commerce sites, and the majority of our customers don't make a purchase until at least 30 days after first visiting our sites. Google should know this, and I have no idea why they're even considering CPA as an option.

    25. Re:CPA good for google, but... by Anonymous Coward · · Score: 0

      Daniel_Staal wrote:
      >
      > Actually, Google has a better solution for that. If the transaction is online, you can embed a small piece
      > of HTML/Javascript code in your 'thank you for purchasing' page that allows Google to check the value
      > of a cookie they placed on a customer's computer when they clicked an ad


      It's been a long time since I coded HTML, but I don't think one site can read the cookies set by another site. So what you've described simply can't work, from a technical standpoint.

    26. Re:CPA good for google, but... by theArtificial · · Score: 0

      Overture (Yahoo Search Marketing) offers a similar feature called Conversion Counter which is used along with purchased keywords. Ad comes up in a search and is clicked, visitor does something in the site (lets say they eventually purchase something) and the Conversion Counter code is placed on the checkout page "tracking" the conversion from a click to a purchase.

      --
      Man blir trött av att gå och göra ingenting.
    27. Re:CPA good for google, but... by grandgator · · Score: 1

      Plus, what about sites that buy ads but don't sell anything? I run a site, for example, that purchases adwords ads (for VERY tightly defined keyword phrases) simply to get people to visit, i.e., the "mindshare" mentioned in the GP. I don't sell anything at all, and in fact, am completely non-commercial. Are they going to keep charging me the same way? Because that seems pretty unfair.

    28. Re:CPA good for google, but... by Ilgaz · · Score: 1

      Well tell you a funnier thing, there is a mystery domain Yahoo gives as example for domain name for months:

      (ex. widgetdesigns.com)

      http://smallbusiness.yahoo.com/domains/ says "(ex. widgetdesigns.com)"

      What is this recent obsession with "Widget" as imaginary domain? :)

    29. Re:CPA good for google, but... by twistedsymphony · · Score: 1

      I thought of the same thing after reading the article. Living in a vacation area I've built several websites for local businesses (mostly restaurants). The idea is to get people who are looking to vacation in the area to find these places online and decide to stop in for dinner when the make their trip. There's no online purchase. The whole idea is for them to click the ad look at the site (most often just a simple 1 to 3 page deal) and write down the name as some place to check out next month while on vacation.

      I have other clients too like local plumbers, drywall hangers, HVAC installers. Actually I think I only have 1 client who offers items for sale thought their website; a local artist and her items are just links to eBay auctions. Heck even my web design service doesn't actually SELL anything but it's sure nice to get those clicks.

      I can totally understand trying to squash click-fraud. If some schmuck put Google ads on his home page and the wrote a script to keep clicking whatever comes up... I get worthless clicks that I paid for, as do all of my clients as does whoever else that is advertising. I don't really have a solution to the problem but I can certainly say the one being proposed wouldn't be the best.

    30. Re:CPA good for google, but... by cduffy · · Score: 1
      The only way this would balance out would be for the payment to publishers per action to go up.
      Well... duh.

      With a fairly priced CPA ad, an advertiser is paying not a commission on the sale, but also reimbursing for the average rate of impressions which didn't result in sales. The impressions are still being paid for (bundled into the cost of the action); the primary case where this tends to be inaccurate is situations where the ratio of clicks to actions is severely out of whack (as with, say, click fraud), and those are situations where it's not fair to give the advertiser the bill for those clicks either.
    31. Re:CPA good for google, but... by mmalove · · Score: 1

      "CPA is a good model for Google and a very good model for advertisers. Advertisers, in effect, can pay for only the advertising which results in a sale."

      I think Google treads on dangerous ground going through this route. As stated in the article, they essentially are partnering with the business they advertise by going this route, as they only get paid when the advertising business does. Here's a few implications to consider:

      1. Google revenue from advertising this way now includes a factor of how successful the linked to site is, something Google has zero control over. So either Google has to pick and choose its advertisers based on a successful sales history (which screws the little guy), or suffer in its own piggybank (which screws its shareholders).

      2. Google may prevent click fraud, but what about fraud from the advertiser's side? How does google audit the sales generated from it's own advertisments effectively?

      3. On a related note, http://slashdot.org/comments.pl?sid=190555&cid=156 78996 . (Shameless self plug). Company's get free publicity for every ad that users view, but don't buy from. Think about the golden arches from McDonalds. You don't have to buy a cheeseburger as you drive by to have been influenced by the image. Would you agree to put a McDonalds arch in your front yard, if you only got paid specifically when someone saw the sign, then went directly to McDonalds and bought a cheeseburger? You might based on a "hey, this is kind of neat", but financially it's a bad model.

      --
      You can get 15 minutes of fame, but you can go down in history for infamy.
  4. Re:why do they care? by Duhavid · · Score: 2, Insightful

    Perhaps because Google's customers care?

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    emt 377 emt 4
  5. This was news 10 years ago by Gnavpot · · Score: 1

    Really. When I first read about web advertising 10 years ago, this was one of the models described. I think it was heavily used by some online bookstores where the website showing the ads would receive a percentage of that customers sale.

    1. Re:This was news 10 years ago by truthsearch · · Score: 2, Informative

      This CPA model is already very common. See Commission Junction and other affiliate networks.

    2. Re:This was news 10 years ago by iamdrscience · · Score: 1

      Yes, when Google came out with adwords/adsense I remember being very surprised that they were paying per click rather than per sale or other action. At the time, I thought the world of web advertising was mostly moving away from that.

  6. Re:why do they care? by Threni · · Score: 3, Insightful

    > Why does Google care so much? They get more money when people abuse it. Just charge less per click
    > if they're that concerned about it.

    Because most people *don't* cheat, which means that Google would be making less money from everyone because of a tiny amount of fraud.

    I like to think, though, that I've helped cause this problem by right clicking/open in new tab on ads I have no interest in. I also fill in questionaires with random answers if I have to complete them to proceed into an otherwise "free" website, though, so I'm not sure how long this proposed solution is going to do any good...

  7. Re:why do they care? by doti · · Score: 4, Insightful

    But if people abuse it, the adversiters will find less value on Google ads.
    They are trying to protect the value of their product.

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    factor 966971: 966971
  8. Re:why do they care? by AgentOJ · · Score: 1

    You've got that backwards. When you host Google AdSense ads, Google pays you for each click. Thus, they lose money when people abuse it.

  9. Re:why do they care? by truthsearch · · Score: 4, Insightful

    Fraud results in distrust by advertisers. Many advertisers ignore adsense because of the high level of fraud. They don't want to pay for something that brings no sales. With enough fraud this whole business model disappears.

  10. Re:why do they care? by Orange+Crush · · Score: 2, Insightful

    1.) Because their company's culture is geared towards providing the best user experiences it can and that whole "Don't be evil." bit.

    2.) Even if you think all of that's a crock, Google will make more money selling online advertising if they aren't continually making ~$90 million or so click fraud settlements periodically . . .

  11. Doesn't solve the wider problem by IamTheRealMike · · Score: 2, Funny

    This approach may or may not solve click fraud, but it certainly doesn't solve the wider problem of proving that it's a human performing some action instead of a computer - and that one definitely needs to be nailed.

    There seem to be at least two alternatives - you could use a chain-of-trust type model such as TCPA to be able to remotely prove that [a] this packet is coming from [b] this program that is [c] digitally signed by this party who [d] asserts that it only accepts input from humans when run on [e] an operating system that will ignore [f] debuggers and [g] un-approved input devices. But this seems unworkable and contrary to the spirit of open computing.

    A better solution might be some kind of fingerprint reader that generates digitally signed "proof of life" which can be demanded by remote sites. For instance if you want to post a blog comment you have to touch your finger against the reader which is now 'charged' with 10 proofs - enough that a legit user probably won't be bothered again for some time, but not enough to make automatic spamming profitable.

    I don't know of anybody developing such a thing though.

    1. Re:Doesn't solve the wider problem by Daniel_Staal · · Score: 4, Insightful

      Who cares whether it's actually a human? What you really care is that they purchased your product. If the payment is tied to that, it becomes irrelevent who clicked or how they clicked.

      They spent money because of your ad. So you can afford to pay for the ad.

      And if an AI was the one who spent the money, great. As long as their credit card works.

      --
      'Sensible' is a curse word.
    2. Re:Doesn't solve the wider problem by truthsearch · · Score: 2, Insightful

      The action they're going to track will typically be a sale. There will be no fraud if the only way to commit the fraud is to make an actual purchase. This is already how product affiliate systems work. If people click through an ad but don't buy a product the merchant doesn't pay. No one's going to write bots to automatically buy products which cost more than the advertising.

    3. Re:Doesn't solve the wider problem by aardvarkjoe · · Score: 1

      I actually don't see any real difference between the two "alternatives" you mention. Both of them boil down to proving that a request was generated by some (presumably tamperproof) hardware. That's fairly difficult, especially when you're transmitting your packets across a channel that can't be controlled.

      We actually already have these "proof of life" systems -- CAPTCHAs -- which are used with varying success on blogs and the like. They have weaknesses, but that's mostly weaknesses in a particular kind of CAPTCHA, not in the system itself. Of course, how to convince people to click on an ad and then do a CAPTCHA is a bit of a problem.

      --

      How can we continue to believe in a just universe and freedom to eat crackers if we have no ale?
    4. Re:Doesn't solve the wider problem by profet · · Score: 2, Interesting

      Who cares whether it's actually a human? What you really care is that they purchased your product. If the payment is tied to that, it becomes irrelevent who clicked or how they clicked. They spent money because of your ad. So you can afford to pay for the ad. And if an AI was the one who spent the money, great. As long as their credit card works.

      This works now... but what happens when that scheme is broken?

      ie:
      Step 1: Script buys product from ad link.
      Step 2: One minute later, script cancels said order before it is processed.

      Its a cat and mouse game.

    5. Re:Doesn't solve the wider problem by vertinox · · Score: 1

      This approach may or may not solve click fraud, but it certainly doesn't solve the wider problem of proving that it's a human performing some action instead of a computer - and that one definitely needs to be nailed.

      Actually, as computer power increases as well as the complexity of pattern recognition algorithms, this will be harder and harder to tell a human user from a computer.

      Eventually, we won't be able to tell the difference in 20 years or so...

      On the bright side, sentient computers might way to make purchases online too.

      --
      "I am the king of the Romans, and am superior to rules of grammar!"
      -Sigismund, Holy Roman Emperor (1368-1437)
    6. Re:Doesn't solve the wider problem by Anonymous Coward · · Score: 0

      Step 3: Send copy of credit card reversal to Google
      Step 4: Inform credit card company (if the script continues to be a problem)
      Step 5: There is no step 5

    7. Re:Doesn't solve the wider problem by Anonymous Coward · · Score: 0

      What part of cat and mouse did you not understand?

    8. Re:Doesn't solve the wider problem by Daniel_Staal · · Score: 1

      Technically, that is no longer Google's problem. That is the advertiser's.

      The company advertising has no reason to commit click-fraud. An AdSense partner who has ads on their site does, and your competitors do, but you don't. If you let people cancel their sale immediately via a scriptable interface, you've got bigger problems. (Yes, it should be easy to cancel a sale, but not that easy.)

      --
      'Sensible' is a curse word.
    9. Re:Doesn't solve the wider problem by novus+ordo · · Score: 1
      A better solution might be some kind of fingerprint reader that generates digitally signed "proof of life" which can be demanded by remote sites
      The random confirmation images seem to do a good job, although they are a nightmare for usability. Imagine a blind person having to enter the contents of an image... Also don't forget that unlike passwords, fingerprints are not very easily changed.
      --
      "You're everywhere. You're omnivorous."
    10. Re:Doesn't solve the wider problem by LuminaireX · · Score: 1

      If its the same print every time its read, what's to keep someone from writing a program that stores the fingerprint and uses it as input every time its requested?
      Your solution would baffle your average idiot computer user, but the true fraudsters aren't stupid - at the end of the day, you're making bits talk to other bits.

    11. Re:Doesn't solve the wider problem by El_Isma · · Score: 3, Interesting

      So the problem now becomes truthful advertisers? If they lie to Google ("no, that sale didn't come tru your ad"), what can Google do?

      Since Google has no control over the advertisers... Google just must believe what they tell Google.

    12. Re:Doesn't solve the wider problem by Jerf · · Score: 2, Insightful

      Why would you report to Google that a product has been purchased any earlier than the completion of the transaction?

      If, at that point, you start to have trouble with people cancelling, that's easy: You require them to call in to cancel. You may find that in the real world, this is already the case, if you can cancel at all. By the time a bot can fake a phone call, we'll have other problems and solutions.

      I'm not sure if it's possible to reverse credit charges without a phone call, but again, if an automated credit charge reverser is online, and it starts to get abused, it'll come offline real quick. If there isn't one online, again, no bot is going to be calling the credit card company and reversing charges.

      I'm not sure how a botnet can attack this when properly implemented. The gaming opportunities are moved to the advertiser side, and while that too will have some issues, I believe they will also be solvable, unlike the current situation where the bots have a natural advantage that can not be practically overcome.

    13. Re:Doesn't solve the wider problem by IamTheRealMike · · Score: 3, Insightful

      It matters because not every advertiser on AdWords is actually selling something. So, cost per action ads even if fully deployed won't solve the problem for everybody.

    14. Re:Doesn't solve the wider problem by CCFreak2K · · Score: 1

      As long as their credit card works.

      But, does it matter whose credit?

      --
      "Beware of he who would deny you access to information, for in his heart he dreams himself your master."
    15. Re:Doesn't solve the wider problem by Daniel_Staal · · Score: 1

      Only to the credit card company.

      --
      'Sensible' is a curse word.
  12. Re:why do they care? by eipgam · · Score: 1

    You obviously missed the part in the article about Google facing multiple lawsuits then.

  13. Doubtful... by suggsjc · · Score: 1

    So your saying that Google wants to know about what visitors do on your site AFTER they leave the ad? First, are companies going to just give that away? Second, they could just fake it...oh, they completed the first part of the survey but not the "second" part of it.

    I didn't RTFA, but just like everything the overall price of a good/service is going to be slightly inflated to cover the costs of fraud/defects/lawsuits/etc. If you are going to pay Google for ads, then you just have to accept that there is going to be somebody somewhere trying to make an easy buck at your expense. I'm not saying that we shouldn't try to stop it, but I don't think this approach will work.

    --
    When I have a kid, I want to put him in one of those strollers for twins and then run around the mall looking frantic.
    1. Re:Doubtful... by truthsearch · · Score: 1

      Google already offers conversion tracking. It's javascript embedded in the page displayed after the "action". It's very commonly used on large sites.

    2. Re:Doubtful... by Wormbrain · · Score: 1

      "Second, they could just fake it...oh, they completed the first part of the survey but not the "second" part of it."

      Indeed. There is a HUGE gray area here. How do you coordinate both Google and the Seller's software so that Google knows when a purchase was made because of one of their ads? What percent of the purchase does Google get, if any? What if the buyer just leaves the items in the "shopping cart" but purchases them later (like after he's checked with his wife).
      Google has their work cut out for them if they are going to make this work.

      --
      http://wormbrain.com/
    3. Re:Doubtful... by danharan · · Score: 1

      If you under-report your conversion rate, Google makes less money and shows fewer of your ads. A pretty silly way to save money.

      --
      Information: "I want to be anthropomorphized"
  14. Re:why do they care? by Daniel_Staal · · Score: 1

    Because an advertiser won't pay if they think they aren't getting value for their money. They'll go someplace where they are getting value for their money.

    Charge less works for a while, but the price per-click is already so low it's hardly worth mentioning in many cases. You need to charge for something that is of actual value to the advertisers.

    --
    'Sensible' is a curse word.
  15. Re:why do they care? by donnyspi · · Score: 0, Offtopic

    In response to my own post, I was so intent on getting FP that I didn't think through what I was typing. (How's that for an excuse?)

  16. Re:why do they care? by athakur999 · · Score: 1

    Because it diminishes the value of their primary source of income - selling advertising. Everything else Google does is to provide them with more places for them to put up ads.

    Google isn't the only game in town and they know this. If Google can provide some assurance that every click on an ad is a real person, advertising with Google suddenly becomes much more valuable than advertising with another company that can't provide that assurance.

    --
    "People that quote themselves in their signatures bother me" - athakur999
  17. Suspensions of Google accounts by i_want_you_to_throw_ · · Score: 1

    I had one friend who wondered why she was suspended and it was simple, Google logs the IP of the address you check your account from and matches it up against the click throughs.

    So if you're gonna commit click through fraud......

    1. Re:Suspensions of Google accounts by Anonymous Coward · · Score: 0
      ...Google logs the IP of the address you check your account from and matches it up against the click throughs.

      So, if you happen to have an ISP that assigns you an IP address that was just used by someone who logged in check their account, your click through won't be counted?

      I guess that would happen so infrequently that it wouldn't really matter.

    2. Re:Suspensions of Google accounts by AnotherDaveB · · Score: 1
      I had one friend who wondered why she was suspended and it was simple, Google logs the IP of the address you check your account from and matches it up against the click throughs.

      Do you KNOW this, or are you guessing?

      I use dialup internet access so the IP address I have when I check my Google Adsense account would match heaps of people.

    3. Re:Suspensions of Google accounts by DarkAxi0m · · Score: 1

      I think its a bit more that than, because i often check my account status at an internet cafe where the connection is shared (im rather sure they have a fix ip for their game hostings). I havent checked if clicks work when im loged in, but ive gotten add clicks from the cafe when im not around.

  18. Get a free IPod if you click on this google ad. by nixkuroi · · Score: 1

    This will probably lose Google money in the long run. I tend to regard any website that asks me to complete a survey for no reason as a scam. If they base it on people buying things, they're going to find themselves forced into a payment processing business so they can ensure that they get paid when these websites get paid. While THAT might be an interesting concept for them, they'd probably just as soon buy Ebay to get paypal for that, otherwise they're going to be putting themselves in direct competition with PayPal.

    1. Re:Get a free IPod if you click on this google ad. by lordsid · · Score: 1

      You obviously don't read this website much. Ever heard of Google Checkout?

      --
      IMAGE VERIFICATION IS EVIL!
    2. Re:Get a free IPod if you click on this google ad. by frenchs · · Score: 1

      To elaborate on the previous poster

      https://checkout.google.com/

    3. Re:Get a free IPod if you click on this google ad. by karmatic · · Score: 1

      Perhaps you mean something like Google Checkout?

  19. Terrible Idea by dada21 · · Score: 5, Interesting

    I'm an AdWords advertiser and click-fraud means zero to me -- in fact, I don't care either way. All AdWords-advertised sites make a better profit from AdWords than one can believe -- it works. If even 10% of the clicks are fraud (I _highly_ doubt it), I don't care -- the profit is still better than most advertising campaigns.

    I also get a ton of impressions -- most of my ads have a click through rate of under 5%. Considering that 95% of the unclicked ads still form a brand impression, I'm even more satisfied (free advertising, basically).

    AdWords advertisers who complain are just idiots. I've run TV, radio, magazine and newspaper ads for years and never had this kind of ROI.

    I'm also an AdSense publisher, and I don't see what people bother with fraud. For the few bucks you make an hour trying to defraud the system, you can do a better job selling something online and using AdWords to drive business to you.

    1. Re:Terrible Idea by myheroBobHope · · Score: 2

      Mark Cuban has written an interesting article on his blog on who ClickFraud effects and how. http://www.blogmaverick.com/

      --
      http://www.pterrys.com
    2. Re:Terrible Idea by karmatic · · Score: 5, Insightful

      It depends on the term - it's easy to rack up $125/day for the right terms (mesotheliomatic cancer, anyone?). For a lot of people, that's a good chunk of money.

      All you need is an internet connection, some proxies, greed, and a "they're rich americans (because they exploit everyone else) so they deserve what they get" mentality.

      How do I know this? I'm an adwords advertiser, and I tracked down one of the site owners who was doing a fair amount of fraud on one of my terms. One of the proxies he used had an X-Forwarded-For header, and I found his IP in an IRC log, and finally managed to track him down on IRC. I pretended to be a fellow fraudster, and we compared account screenshots. The guy was very proud that he was making over $4000USD/mo. His sites were simply wikis with stolen content (it's easier to make pages for a specific term that way, I guess). He did the clicks himself, and had a proxy program that simply took from a list of proxies and picked a random one every page load. He actually sat there for several hours a day clicking, and made about $40/hour to do it.

      For some advertisers, it is a huge problem, especially when paying $10+ per click.

    3. Re:Terrible Idea by dada21 · · Score: 1, Interesting

      Maybe that is true if you're attempting arbitrage, which to me is just as lame as clickfraud. Why would you be advertising for mesothelioma unless you're a shyster lawyer or trying fo arbitrage?

      Most terms I pay for are in the nickel to the buck range, and again, I set my advertising budget with about 70% of clicks not converting to a sale or an interested customer. The fraud is irrelevant for me and for almost 100% of the people I help in setting up AdWords campaigns.

      Congrats on catching the fraudster, though :)

      FWIW, I think Google _SHOULD_ be working on click fraud, just not converting AdSense to an affiliate program.

    4. Re:Terrible Idea by cvos · · Score: 1

      click fraud is probably the largest challenge the major search engines face. it is widespread and impossible to detect 100% of the time. click fraud is causing my clients and thousands of other people to decrease advertising. The company that solves click fraud will gain an order of magnitude advantage over its competitors. www.wired.com/wired/archive/14.01/fraud.html www.searchenginewatch.com/searchday/article.php/35 03376 Internet ad-traffic scams could be ripping off as much as $1 billion annually. www.businessweek.com/technology/content/feb2006/tc 20060227_930506.htm

      --
      I'm just here for the sigs
    5. Re:Terrible Idea by Anonymous Coward · · Score: 0

      When you are directly targeted, AdWords click-fraud can mean a lot to you. If you have a spending limit of $100 per day, a fraudster could search specifically for your ad from different proxies and drive up your bill to your daily limit and prevent your ads from showing up. This allows his site to be higher on the list by knocking you out.

    6. Re:Terrible Idea by Cyno · · Score: 1

      I hate adwords and avoid websites and businesses who make use of them. Adwords are more annoying than a banner. I think it would be intelligent to acknowledge your customers are conscious people who don't like to be bothered by your salemen. Instead of getting in their face with your ads, maybe you should create a site that attracts customers with good custmoer services, quality products and low prices? Nah, that would be too much like work.

    7. Re:Terrible Idea by Lehk228 · · Score: 1

      what are you talking about?
      are you confusing adwords with those annoying mouse-over inline ads that look like funny hyperlinksw?

      --
      Snowden and Manning are heroes.
    8. Re:Terrible Idea by Fatal67 · · Score: 1

      As a small publisher that generates less than 1k a month on my website, this will change what I have to do to fund my site. My readers are very targetted and only specific ads from a few companies show up on my site. I am better off becoming an affiliate of the advertiser directly than taking a the small percentage I would get from Google. It's going to cost Google money, not me.

    9. Re:Terrible Idea by Ilgaz · · Score: 1

      He could be talking about Google adwords and their zero administration policy. They recently got sued and lost by Louis Vouitton (fashion company) for example.

      They accepted people selling that companies fake products to give advertisement.

      I am always into OS X community sites, some managed very good and couple of times I saw stolen opensource software ads claiming they can run Vista on OS X. If you logon to that sites forum and claim something like that, they will joke with you and ban you (even your IP) from their forums. If that is "AdSense", it is untouchable.

      I sometimes go to Windows based tech sites and see amazing crooks ads coming from Google too. Those fake spyware removers, so called "OEM software" etc.

      What about this:

      1) Piracy forum advertises their site using Google Groups to Usenet to big5 group

      2) Click to site URL (with a secure browser), you see they have Google ads

      You report them to Google groups AND Google Adsense: Nothing happens. In fact, spammer openly laughs at you.

      That was not a serious thing? Well, BSA didn't see that way...

      I started to stay away from their Ads but I am not boycotting the sites having their ads. I try to be positive and tell them to find a more legit advertiser.

      The point is: Try putting a doubleclick.com advertisement to a pirate site, see what happens next. But doubleclick is "evil" their cookies shouldn't be accepted even (!) , Google is somehow "good", I have no clue how this is happening. I must be stupid.

    10. Re:Terrible Idea by Lehk228 · · Score: 1

      doubleclick is annoying and uses popups, they also use obnoxious flsh advertisements.

      the first time a google ad pops up or starts talking to me their ad servers will get put in the hosts file just like doubleclick

      --
      Snowden and Manning are heroes.
    11. Re:Terrible Idea by Cyno · · Score: 1

      yeah, im confusing things here, nm :P

      Those hyperlinks mouse-over ads suck.. don't mind Google AdWords so much..

    12. Re:Terrible Idea by Ilgaz · · Score: 1

      Let me give you a live example about what kind of people use google and why: (SITE NOT BUSINESS/KID SAFE!)

      Re: http://herbalshop-4-u.blog/ spot.com/ (Administrator of network hosting website referenced in spam)
      To: abuse@google.com (refuses to accept this type of report) (space added to prevent click)

      I wonder if they share the $$$ too. :)

      That is not exactly related to article but it may give a clue why people started to ignore google ads.

      I don't say doubleclick is a very nice company but I have never seen doubleclick advertising ILLEGAL content or ignoring ILLEGAL content advertisement abuse reports.

      They are much more serious company having policies. They even implemented opt-out cookie which allows people to stop their cookies unlike Google keeping them until 2038.

      They keep ignoring my abuse reports, I keep ignoring them. I seriously didn't buy a software title I needed since I thought it was one of those fake, open source stealing companies. It started to give that feeling,very bad for advertisers.

      I have never seen doubleclick or other major advertisers ads on legally questionable sites. That is what I observe.

  20. Dangerous ground by Rob+T+Firefly · · Score: 3, Insightful

    This could open up a big can of worms, precisely because it increases Google's stake in the actual buying process. The protests over ads for controversial stuff like religious or medical items, "adult" materials, political stuff, and so on simmer to a faint background hum when Google is just churning out automatic ads, but if Google can be shown to be taking part in the actual sales and transactions of this stuff their critics are likely to pounce on that. "OMG Google is selling evil pr0n/Satanism books/weaponry/GTA San Andreas/Online Gambling/etc..."

  21. Fraud? Or a flawed business model? by RobertB-DC · · Score: 3, Interesting

    TFA talks a lot about fraud, but what do you call it if I finish reading the article, and I click the nice linkies at the bottom with no intention of buying anything? What if I don't need a "Trojan remover download", credit report restoration, a work-from-home scheme, or (my favorite) to "Make Money With Adsense" with help from some outfit called cash-sense dot com.

    So if I do four shift-ctl-clicks (open in a new window, keeping current window active, I love Opera), am I a bored 'net surfer, or have I just committed Click Fraud? For the advertiser, is there really any difference?

    --
    Stressed? Me? Of course not. Stress is what a rubber band feels before it breaks, silly.
  22. I remember when this was all fields by also-rr · · Score: 2

    ::Old-fart Now while Google's advertising is generally pretty inoffensive what's with the idea of putting adverts on anything that stands still long enough for the paint to dry? There are blogs running on $2/month webhosts that use AdSense. Just because it is possible to make money doesn't mean that it's an appropriate thing to do. It reeks of the same kind of greed that causes people to put lengthy disclaimers on their naff short stories or trivial programmes (copyleft excepted) just because they can't stand the idea of missing out on 5 cents. ::End

    1. Re:I remember when this was all fields by Rob+T+Firefly · · Score: 1
      It reeks of the same kind of greed that causes people to put lengthy disclaimers on their naff short stories or trivial programmes (copyleft excepted) just because they can't stand the idea of missing out on 5 cents.
      Most of the time when I've encountered/used the above, it was more about the author wanting to keep their work from being sold by greedy strangers than greedily grabbing the nickels for themselves. Not everyone wants to find their stuff on eBaumsworld or something making ad-money for somebody else.
    2. Re:I remember when this was all fields by InfiniteWisdom · · Score: 1

      Yeah! And it's horrible how they hold guns to your head and force you to visit their blogs, read their short stories and use those trivial program.

  23. IP Block by Anonymous Coward · · Score: 2, Interesting

    I would like to have the ability to see which IPs are clicking my ads and then be able to block them - i.e. my competitors and other random fraudsters.

    1. Re:IP Block by celardore · · Score: 1

      http://www.adlogger.org/ - Works well for me.

  24. But can it defeat the monkeys? by Rufus211 · · Score: 0

    ClickMonkeys worked for Pets.com and MSN, certainly it can work for you!

  25. Why not regular ads ? by zymano · · Score: 1

    Just charge for space just like the paper.

    Just needless complexity in the current system.

    1. Re:Why not regular ads ? by Anonymous Coward · · Score: 0

      I guess you never noticed the stories this year about newspaper circulation fraud.

  26. Wrong Direction by SoupIsGood+Food · · Score: 4, Interesting

    This is headed in the wrong direction. The traditional role of the ad is to attract the eye, and get the consumer to consider and then remember the product when they want/need it in the future. Even if the ad isn't clicked on, the company advertising is getting itself noted and noticed, for free. That's the entire value of traditional print, radio, TV and billboard ads, just given away by web content providers. It's unreal, and is stifling the growth of online media. I suppose it's OK for enormous middlemen like Google, but it sucks for those making and maintaining websites. Advertisers have gotten too much of a free ride, and the models used to support this free ride... banner ads, popunders, flash ads, etc... have been largely self defeating.

    Making the burden on the content creator heavier and more onerous before they get their dollar is not the way to go. The middlemen and the ad buyers are getting too much for too little in return. New models need to be developed. I'm in favor of the old fashioned sponsorship: flat fee so it's a predictable expense for the ad buyer, and predictable income for the content provider. I'm sure there are other ways to charge advertisers what their advertisements are worth, and increase their effectiveness at the same time.

    This new Google approach doesn't deliver.

    SoupIsGood Food

    1. Re:Wrong Direction by danharan · · Score: 1

      The traditional role was selling products and/or services. If branding was the entire value of advertising, no one would advertise. "Hey, everyone knows who we are, and no one wants to buy!" This will even out. If your conversion rate was 2%, you should be willing to spend 50 times more in CPA. If you're not, your competitor will. Bottom line: this should help boost confidence amongst advertisers, and result in more, not less revenues for most. The spammers and click-frauders will lose.

      --
      Information: "I want to be anthropomorphized"
    2. Re:Wrong Direction by jthill · · Score: 1
      the entire value of traditional print, radio, TV and billboard ads
      isn't even the point of Google's ads. Google's ad service exists to get buyers to the seller's place of business in less than a second. For those not looking, they're so discreet (on most sites) nobody even has to notice them. No traditional medium can play that game.

      I'm sure there are other ways to charge advertisers what their advertisements are worth, and increase their effectiveness at the same time.

      Yeah. Small-timers are getting waaaaaaaay too much bang out of the ads almost nobody minds at all, and the web's full of amateur and semi-pro sites that cover or at least help with their costs with nearly trivial convenience. The successful ones even make money! That's bad. The world won't be right until big flashy expensive advertising doesn't have to compete with ads nobody minds, and big flashy expensive companies don't have to compete with the ones that need wide exposure to reach enough market. See, when we say "level" playing field, we mean "razed" playing field. The Google approach doesn't even allow advertisers to make demands on the businesses that run their ads! What's the point of advertising if you can't threaten to pull your ads??!!!?? It's galling.

      So how to make the world right? Gotta get everybody who's happy with the current arrangement unhappy, right? I know! Let's appeal to greed!.

      It's nice to have allies, isn't it?

      --
      As always, all IMO. Insert "I think" everywhere grammatically possible.
  27. Re:why do they care? by shaneh0 · · Score: 4, Interesting

    Are you kidding? My company has about 2MM in sales annually, and we spend almost $500,000 a year on Google Adwords. Over 90% of our sales come from Google. We're getting a conversion rate that is less then one percent and it's gotten worse over time. If it continues to drop we'll have no choice but reduce our adwords cost-per-click limit and take our advertising dollars elsewhere. No matter how you spell it, that means problems for the GOOG.

  28. Re:why do they care? by danpat · · Score: 4, Insightful

    It's not that simple. Google is a middle-man, they're not creating the ads. Joes Pizza shop pays Google to display their ad when certain keywords are found on a web-page. They pay different rates for different words, and they pay by the number of times their ad is displayed.

    Click-fraud hurts Joes Pizza because hey's paying Google to show his ad to potential customers, but during click-fraud, no-one is actually seeing it. He's paying for nothing. Google just takes a cut of what Joe paid, and passes the rest on to the websites that actually displayed the ads (or claimed they did).

    Google only cares about this because if Joe thinks he's paying for nothing (i.e. no real people are actually seeing his ads, and all the "clicks" he's charged for are actually fraud), he might stop paying Google to farm out his ads. If that happens, Google loses their revenue stream.

    Lots of clicks are good for Google, they get to charge Joes Pizza more. But they're only good if Joe thinks he's getting his message out to lots of people.

  29. Flawed plan by CharlesDonHall · · Score: 1

    Advertisers don't pay unless the customer performs a certain action: buys a product, fills out a survey, whatever.

    I can't see that working with most ads. If I'm surfing the web and happen to see an ad for something interesting, I don't stop everything I'm doing while I dig up my credit card and place an order. I don't even stop everything I'm doing and fill out a contact form. I bookmark the main page (losing all the redirect info in the process) and come back to it after I've finished whatever I was doing.

    The survey thing would make click-fraud easier. Fewer people are going to fill out surveys, so fraudsters could earn more ad money from each one. (Assuming that the advertiser has a fixed budget.) You could get away with having fewer unique IP addresses, which is a big win, and a lot of the random demographic information could be automated across surveys.

    1. Re:Flawed plan by truthsearch · · Score: 1

      I bookmark the main page (losing all the redirect info in the process) and come back to it after I've finished whatever I was doing.

      You've heard of cookies? This is how affiliate systems work. Part of the deal between publisher and advertiser is the duration of the cookie (i.e. action required within x days of click).

  30. victim of click-fraud by Anonymous Coward · · Score: 4, Interesting

    On two occassions, I've had my google account cancelled and funds withdrawn because Google accused me of click-fraud. Of course I had nothing to do with it and when I pleaded my case to Google I got no reply. I was willing to provide click logs and etc. But they just ignored me. I guess it's cheaper to just cancel accounts who are suspected of click-fraud then actually investigate. But if all it takes is a few malicious users with some scripting knowledge and open proxies to ruin my revenue why should I as a publisher use Google Adsense?

    1. Re:victim of click-fraud by Random832 · · Score: 2, Insightful

      Of course google closes accounts with no investigation - the money train is showing no signs of slowing down anyway, and this lets them keep it all to themselves.

      --
      We've secretly replaced Slashdot with new Folgers Crystals - let's see if it notices.
    2. Re:victim of click-fraud by broothal · · Score: 1

      Two occasions? How did you get a second chance? I was locked out in the early days of Adsense, and as in your case, I had done nothing wrong, nor would google prove anything to me. To this day - several years later, I'm still not allowed to enter.

    3. Re:victim of click-fraud by Anonymous Coward · · Score: 0

      I got a new domain and registered it under my girlfriend's name. Also used my girlfriend's info for the Adsense account. So basically it was my girlfriend's account. Anyway several months later I got a click-fraud notice of account cancellation.

  31. script kiddie by quakehead3 · · Score: 1

    It's fraud if you sit at the computer and repeatedly click on the ad or -- better yet -- write a computer program that repeatedly clicks on the ad.
    Perl hackers! Forwaaaard!

  32. Re:why do they care? by Nos. · · Score: 2, Insightful

    Actually, no, because Google charges the owner of the ad for that click and pays you (the adsense hoster) a portion of that amount. So in the end, the company paying to have the ads displayed loses money to invalid clicks. Google still makes money (ignoring legal costs and such) for each false click. However, it does make adsense a less valuable advertising tool and thus would cost them in the long run.

  33. Re:why do they care? by vertinox · · Score: 1

    Don't.
    Be.
    Evil.

    --
    "I am the king of the Romans, and am superior to rules of grammar!"
    -Sigismund, Holy Roman Emperor (1368-1437)
  34. cost-per-action fraud by Glacial+Wanderer · · Score: 1

    It seems that cost-per-action fraud could be a bigger issue than the existing fraud unless google is very careful. I can see people creating sites that have an action of buying some product, but make their money off of advertisements. They only pay google if someone buys there product; however, these sights would also make money by plastering ads all over their site. This matters to me because these sites would have little incentive in making a good site to sell the product I searched for.

  35. Slashdot the click-fraud advertisers! by tfurrows · · Score: 1

    Don't like google's approach? Think they should ignore the whole issue of "click fraud"? Slashdot the click-fraud advertisers! Here's how it works: 1. Search in google for "google click fraud site:slashdot.org" 2. Click on all the advertisers 3. ???? 4. The advertisers PROFIT and eventually realize that click fraud is GOOD!

  36. Re:Fraud? Or a flawed business model? by truthsearch · · Score: 1

    No, you haven't committed fraud. Yes, there is a difference to the advertiser. An advertiser would much rather pay for a click that results in a sale than a click that results in only a page view. There's a reason many large potential advertisers ignore google.

  37. Re:why do they care? by Anonymous Coward · · Score: 0

    Legal class action by the overcharged advertisers, that's why Google cares.

  38. Not a good thing for Google by Todd+Knarr · · Score: 1

    This isn't a good thing for Google. It turns the fraud situation on it's head. Having written software to try and do it, let me tell you it's hard to tie a sale back to an advertisement impression and/or click-through. Most of the ways involve either trusting the guy who'll be paying, depending on cookies to persist or maintaining a lot of server-side state to track an individual over the long term. The only case that's simple is where the viewer clicks on the ad and then performs the action in the same browsing session without ever leaving the site. Even if advertisers don't set out to defraud Google a lot of payments are going to drop through the cracks simply due to the normal things people do to avoid being tracked, or simply because the connection got lost because of the passage of time. If someone's setting out to defraud Google, it gets a lot worse really fast.

  39. Re:why do they care? by EatHam · · Score: 1

    I like to think, though, that I've helped cause this problem by right clicking/open in new tab on ads I have no interest in.

    Well, you haven't. It's people that do it thousands of times that matter. Like the fine folks at clickmonkeys.

  40. PORN by NineNine · · Score: 1

    Bookstores, sure. But, as usual, the porn industry figured out that per click doesn't work many, mayn years ago, also. You really can't find any porn sites that pay per click any more. Based on the porn industry, Google may very well be fucked if they can't figure out a way to go "per signup" as the porn sites call it. Google's money stream is going to get turned off really quickly if they don't fix this. As is, they're not going to make as much as they make now because they're going to have to partner with advertisers and set up a "per sale" type of thing, instead of just letting anybody advertise as it is now.

    It'll happen. As with the rest of the Net history, the porn industry always leads the way, and the porn industry dumped per click a long time ago. It's just a matter of how quickly Google can do it before they lose enough advertisers that they're in serious trouble.

    1. Re:PORN by grandgator · · Score: 1

      The overall solution, of course, being what other's have already mentioned: Mandatory integration (or even "strongly encouraged integration") with Google Checkout. That's definately not going to be a free service. Thus, one could speculate that lost "per click" fees could be more than made up by getting a ton of people using the payment service.

      Losing that $0.30 from a few clicks vs making $3 from a transaction fee when somebody buys a product is more than a fair trade.

      They've got shareholders to keep happy, so you can bet they're not going to suddenly turn off an enormous revenue stream without something waiting in the wings.

  41. No Problem? by hlh_nospam · · Score: 1

    You don't think click fraud is a problem? Check out http://www.clickmonkeys.com/

    They have a variety of interesting 'services', including one where you can "Google Bomb Your Competition!"

    This sort of thing has successfully prevented me from even considering adwords or adsense. I get enough traffic from posting on blogs and slashdot :)

    1. Re:No Problem? by Anonymous Coward · · Score: 0

      That's a spoof site, retard. I would think this page would be a dead giveaway.

    2. Re:No Problem? by null-loop · · Score: 1

      I think you'll find that Click Monkeys site is a load of bollocks... search Google for the "founder" Sidney Zwibel, loads of mande up nonsense. Gotta love the petsorfood.com site and all the others taken in by it. You eventually wind up at this story here where our intrepid Sidney is some kind of surgeon / cowboy. All very odd.

      I really hope you didn't think Click Monkeys was real, set off my BS alarm almost immediately.

      --
      "If you unscrew Bill Gates' navel will the bottom fall out of the software market?"
    3. Re:No Problem? by kimvette · · Score: 1

      uh, that site is a joke.

      --
      The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
  42. Biometrics to record clickthrough... by Baloo+Ursidae · · Score: 3, Insightful
    A better solution might be some kind of fingerprint reader that generates digitally signed "proof of life" which can be demanded by remote sites.

    To record an ad impression? Let me get this straight. You're honestly suggesting that users submit their fingerprint to verify they've seen your ad and you expect people to submit to this? Are you high?

    I mean, it's inconvenient, and invasive! Now if you can just find a way to make it really uncomfortable for the user while they're at it and you'll have achieved the prostate-exam trifecta that everybody shoots for when they want to pitch a new product idea.

    --
    Help us build a better map!
  43. Google Needs to Shape Up by Pigeon451 · · Score: 2, Interesting
    I had my account banned for click through fraud, I did nothing. I wasn't bringing in much revenue at all, however I've heard from others that they've experienced the same thing.

    Google really needs to fix their fraud-detection systems, and this idea isn't going to fly with most people. Either put up with a certain percentage of fraud, or risk banning those who don't deserve it ... Damned if they do, damned if they don't.

  44. Re:why do they care? by soft_guy · · Score: 1

    OK, I went to the Click Monkeys site. I have a hard time believing that it is not a joke, especially given their "testamonials".

    --
    Avoid Missing Ball for High Score
  45. This is a strange solution... by limabone · · Score: 1

    Advertising is not just about a sale that day, advertising is used sometimes to create awareness of a product or brand, that may lead to sales down the road, making up your mind for you without you even knowing it. Could you imagine if TV advertisers didn't get paid unless you purchased a product or did some survey with your remote after each commercial?

    I guess I'm glad I am not a GOOG shareholder because this seems like folly to me.

  46. Re:why do they care? by novus+ordo · · Score: 1

    Or they might sue, which I think is the real incentive.

    --
    "You're everywhere. You're omnivorous."
  47. Re:why do they care? by soft_guy · · Score: 1

    Also, the higher the rate of click fraud, the less value google's ads have. The less value they have, the less google can charge. Their costs to produce the ads are quite small, but they are not zero. Therefore, to stay competitive Google would have to lower the price of the ads in order to account for click fraud which lowers their profit margin on the ads.

    --
    Avoid Missing Ball for High Score
  48. This goes too far the other way by bhalter80 · · Score: 1

    So let me get this straight we've gone from the "please click on my links so I can make money" model to "i get free advertising if you're an indecisive consumer". The problem I see is that if I happen to see an ad for a product I'm interested in I may click the link, checkout the web site, check out a few more similar sites, mull it over for a night then possibly buy something. T

    his all works properly as long as I use the same PC to make the actual purchase and don't have all cookies set to be session cookies. Otherwise if I do have cookies set to be session cookies or if I'm shopping at night and go in and end up making the purchase at work the advertiser has just gotten a free sale while the site that hosted the ad hasn't gotten a penny.

    I hope Google can figure out a way to center the balance because if I can figure out this scheme I'm sure someone more devious can come up with one much much better.

    1. Re:This goes too far the other way by Anonymous Coward · · Score: 0

      Well, when I first heard of this I agreed completely with you, but thinking about this in a bit more detail and based on the way AdWords currently work...

      I would guess that the prominence and number of times an ad gets displayed will be based on the amount of sales (and revenue from sales) generated. Therefore it's far, far more important for advertisers to to try and generate sales (and make sure they effectively track users to the point of sale) than it is to bum some free advertising.

      Sure, the free advertising might benefit you for the first handful of clicks, but if none of those clicks result in sales, your ad is pretty quickly going to get buried. Is it worth saving a few bucks on stealing free ads from Google when in the long term it's going to kill your entire online advertising campaign? Probably not.

      I can even envision a situation where advertisers pretend to have made sales in order to get their ad to appear more often/higher on the page - imagine if the system counts only number of sales rather than revenue, you could add some cheap items to your site, write a script that follows your ads and buys up these items and get huge increases in your ad placement for very little output.

      I still think it's kind of unfair on the people hosting the ads, though - unless they're going to get a bigger share of the pie to account for the fact that they're losing click-through cash. After all, it does mean that even a click-through that doesn't result in a sale will increase mind-share for the company by boosting brand recognition, and a lot of people still like to browse for items online before going to the store in question to buy offline. Having said this I don't think it will be so unbalanced as it first appears.

  49. Maybe a convenient push for GooglePay? by grolschie · · Score: 3, Funny

    1. Pursuade existing Google advertisers to use GooglePay so transactions can be monitored and click-fraud prevented.
    2. ???
    3. Profit!

    1. Re:Maybe a convenient push for GooglePay? by Anonymous Coward · · Score: 0

      Parent is modded funny, but I think he's probably spot on. Google are potentially giving up a large slice of revenue by not counting all those clicks. Of course they're likely to increase the amount they charge per action (after all, a definite sale is worth a lot more to a company than a potential sale), but if they get too greedy with this approach they'll drive customers away.

      If, however, they're not only the advertiser but also the payment processor, they get to charge the company twice, and it's probably not going to make much difference to the company - one payment processor is as good as another after all, they're going to get charged anyway and they'd most likely be happy to switch processors to eliminate click fraud.

      Seems like the companies win, Google wins and the only people who lose out will be the people who host the ads, but will they feel strongly enough to drop the ads or will they take the approach that some revenue is better than none? Google must be banking on the second.

  50. Re:Fraud? Or a flawed business model? by soft_guy · · Score: 1

    No, you haven't committed fraud. However, if you write a script to automatically do that and send it to thousands of zombie PCs that you have pwned, then that would be fraud.

    --
    Avoid Missing Ball for High Score
  51. Google Analytics by ribuck · · Score: 1
    Google has the technology to track how visitors move through an advertiser's website. It's called Google Analytics.

    It's voluntary, and it's for the advertiser's benefit. But with cost-per-action advertising this is how Google could capture data relating to how visitors move through the advertiser's site.

    Furthermore, if the advertiser is using Google Checkout then it's pretty clear-cut whether a purchase "action" has occurred.

  52. CPA only works when there's a trackable action by Goldenhawk · · Score: 2, Insightful

    CPA only works when there's a trackable action... and in many cases, the trackable action is going to be impossible to define. For example, I launched a new site in July (geochecker.com), which is a free geocaching-related site, supported by Google Adsense ads, and doesn't sell anything. To get some initial traffic, I used my existing Adwords account to run ads on related search terms. Now, since my only monetizing product is advertising (from Google itself!), and the services the site offers are free, how on earth can there be any action? As a matter of fact, the very "action" that I'm trying to get IS a click - I want them to visit the site. I don't have anything to sell beyond that, other than possibly deciding they don't really want to be there and leaving thru a similar click on the Adsense links. I just need to build traffic above the breakeven critical mass. Beyond that, I don't care what happens to any "conversion".

    (And given the economy of Google ads, I'm basically paying about 50% of the Adwords cost because I get about a 1% click-in, and about 1% click-out, and the Adsense click-out pays about half of what an Adwords click-in costs me. So obviously I can't use Adwords long-term, but it's okay for building initial traffic, and incidentally for making sure my site got quickly indexed - thanks to daily visits by the Adwords robot.)

    Now, in that model, as with many other businesses who are not selling online, it becomes impossible to track CPA, and the CPC is really the only valid business model. And this is true of millions of link-farm sites (not that I'd mind most of THEM disappearing).

    As others have mentioned above, advertising is about much more than simple action-tracking - if you put a favorable ad in front of a potential customer enough times, it will build brand awareness and eventually convert. But not in enough time to make CPA useful, and usually in ways that cannot be directly tracked anyway.

    Sorry, but I think CPC is going to be around for quite some time. And I'm sure Google is well aware of these dynamics.

    --
    --Brandon / Split Infinity Music

    1. Re:CPA only works when there's a trackable action by foniksonik · · Score: 1

      There are many actions that a viewer can take besides purchasing or giving away personal info.

      A survey is easy. Just don't collect emails and anyone who likes the site will take it....

      Becoming a member is harder but if it's free, not so bad... "Sign up Now, help support this site simply be becoming a part of it"

      Newsletter sign ups are much more difficult... you're asking people to let you into their home.

      Clicking on an additional link or button would be okay and if it was a specific button that couldn't be detected by a robot but could be read by a human, certainly harder to quantify as a favorable response....

      Get creative about forms or offers... maybe you could get people to 'buy' something... how about a free downloadable product? A brochure or photo or desktop picture....

      --
      A fool throws a stone into a well and a thousand sages can not remove it.
  53. Re:why do they care? by mantar · · Score: 1

    Is that really 25% of your revenue spent on your advertising budget? What does your company net each year?

    --
    # man tar
  54. Re:why do they care? by MickDownUnder · · Score: 0

    Wooohooo !!

  55. Re:why do they care? by dfjghsk · · Score: 4, Informative

    For the past few years we have had ads running on adsense... 2 weeks ago, we decided we would rather lose the sales that adsense was bringing in than continue to pay google for ads that weren't generating enough revenue.

    For comparison, our conversion rates:

    Google Search: 3.5%
    Google adsense: 0.25%

    I don't know what other companies are doing.. but I wouldn't be surprised companies are considering dropping adsense. There is just to much fraud.

    --
    Help me take back Slashdot. When did 'News for Nerds' become 'FUD and Conspiracy Theories for Extremist Nutjobs'?
  56. Impression ads by Skapare · · Score: 1

    This model will fail for impression ads. And impression ads are important for a large number of products and services. For many things, from mundane things like consumer goods, to advanced business services, the products and services are not purchased or acted upon immediately. Impression ads just keep the name, logo image, or musical jingle, in the minds of the readers. In TV they call them viewers. In radio they call them listeners.

    Obviously, in media like TV, radio, newspapers, and magazines, impression ads are about the only thing they can do. But they do work, else such media would be failing.

    The web, of course, gives a new opportunity because it is, or can be, interactive. And advertisers like that because it can give them direct feedback, at least in some cases. Unfortunately, too many of them think that all their potential customers will drop everything they are doing and "buy now". The reality is, almost no one ever does "buy now". So despite the fact that the web does have the means to support interactive advertising, the model really isn't viable.

    There's another reason web advertising needs to be impression based rather than interactive based. Unlike much other media, on the web, people tend to be focused on a goal, such as to access some particular information, or send some important family email. With these goals up front, they don't just drop everything to buy the latest cool product simply because one advertisement for it shows up. The few people who would, tend to be all out of money, anyway.

    Google's model of Adsense where advertising is (supposedly) selected based predictions of what the readers tend to be interested in is a good one. If I tend to be interested in remote control model cars, for example, I will be often visited sites related to it, or maybe talking about it through Gmail or Google Groups. Showing ads for makers and sellers of model cars and related products and services certainly would have a higher likelihood of advertising success. It is ad dollars better spent than in showing things like feminine hygiene products to men.

    But that doesn't mean I'm going to buy the product or obtain the service right then. That may come later. But when the time comes, enough impressions of a particular product, or keeping the name of a great online hobby store in front of me regularly, will go a long way towards influencing where I might visit first when I am ready to buy.

    A couple months ago I saw an ad by Google for wickedlasers. I was busy at the time and went on about what I was doing. But I was done about half an hour later and remembered seeing the web site for wickedlasers. So I went and checked the place out and surveyed the lasers they had all the way up to the really nasty ones that can light cigarettes (but please, don't start smoking just because you can light up with a wickedlaser). I don't really need one of these right now. But I might in the fall. And I might buy one for a gift for a relative this coming holiday season.

    That's how impression ads work. But will the original site I saw the ad on get credit for it and get paid? Since the ad was gone a half hour later, that's very doubtful. I just visited the site directly. When I'm ready to buy, I'll go directly there again.

    One huge problem that could crop up with Google's cost-per-action model is that advertisers of products which work by impression only will have a free ride. They will get to make the impressions, but won't have to pay (very much) for the advertising because there won't be (much, if any) direct sales (even though they can certainly set up a web page to pretend it's possible). Think about it, if you see an ad (many times) for a new flavor of soft drink that happens to be a flavor you think you would like, would you click on the ad and make a purchase for a 6-pack of bottles to be shipped to you, or would you check the soft drink aisle the next time you make a food run?

    --
    now we need to go OSS in diesel cars
    1. Re:Impression ads by pe1chl · · Score: 1

      They have a new model, and you have an example of a situation where it cannot be applied. Fine.
      But how relevant is this? Your "impression ads" are not covered by pay-per-clicktrough either, aren't they?
      And that is what the new model attempts to replace or extend.

      What you are saying is like radio ads are failing because they cannot convey an image of the product. It is just a different situation, different solution for a different problem.

  57. Re:why do they care? by MickDownUnder · · Score: 1

    Big brother is coming, and he's in advertising.

    Don't worry about your advertising dollars, there's millions of people (some of them working for google). Thinking up ways to track, record and learn everything there is to know to someone and have absolute control over what business's get utilise or take advantage of this information.

    However watchout ! Once someone actually cracks this and comes up with the model of all advertising models, that company will have the power to help you destroy your competition, or the power to help your competition destroy you and you can bet they'll take the highest bid (which will be very high indeed).

    All you people who think Google is so neat.... well... you need to think a little more.

  58. Stupid question by element-o.p. · · Score: 2, Insightful
    Please excuse the stupid question, but most Apache (and I think IIS, as well) can log the referrer's and the client's IP address. Would it really be that hard to place a cap on the number of clicks from the same pair of client IP / referrer IPs within a given period of time from which the AdSense bill is generated? I would think you could also drop on the floor anything from either an RFC-1918 IP address or an address that matches the referring web server's address, as well.

    I'm not real familiar with how AdSense works, since I've never run it on any of my web servers, but I would expect that if a shady webmaster is engaging in click fraud then either:
    1. He is using computers on different networks to click on the add, in which case there is a limited subset of hosts from which he can operate (home computer, business computer, wireless from the coffee shop, etc.);
    2. The fraudulent clicks will come from a number of RFC-1918 addresses, and therefore must have originated from the webmaster's internal network (assuming that AdSense sends the IP address from which the shady webmaster's server saw the click);
    3. The fraudulent clicks will come from a single public IP address from which the shady webmaster's internal network is NAT'ed (assuming that the AdSense client's web server logs the IP address of the computer from which the click was generated).

    In the first and third cases, the cap on clicks per unit of time from a single IP address will serve to reduce (but admittedly, not eliminate) click fraud. In the second case, dropping RFC-1918 addresses on the floor will prevent fraud, since *only* the webmaster's internal network could possibly have accessed the server from private IP space.
    --
    MCSE? No, sir...I don't do Windows. Yes, I am an idealist. What's your point?
    1. Re:Stupid question by pe1chl · · Score: 1

      Have you ever heard of zombie PCs?

      Fraudsters "own" farms of millions of poorly managed PCs in the average household that they can control to do anything they like, including sending spam, visiting webpages (clickfraud) and spreading worms to infect other PCs to join the farm.

    2. Re:Stupid question by cr0sh · · Score: 2, Informative

      Unless I am reading your post wrong, I don't see where you consider "zombied" machines, except perhaps case number one. However, in the case of a zombie network, you have potentially tens of thousand of machines spread all over the internet, and none would have to click multiple times in a short time period to rack up the clicks - they would just have to click randomly (as in "at randomly spaced time periods) and constantly, whenever the machine it connected to the internet. If the majority of those 0wn3d boxes are on broadband connections, so much the better...

      --
      Reason is the Path to God - Anon
    3. Re:Stupid question by bennomatic · · Score: 2, Insightful
      In addition to zombie PCs, which the other poster mentioned, there are zombie proxies. I used to work for one of the original click-through advertising companies, which is now mostly defunct. To protect the annoyed-at-not-being-successful, I won't ssaayy it's name. Anyway, we had a "client" who kept setting up accounts under slightly different names (different combinations of about 6 first and last names), and then those accounts would make 10 times more money than any of our other clients.

      We finally found that what they were doing was searching for unprotected proxy servers--specifically, ones running something called SQUID, which is apparently easily scriptable--and they would have different IPs hitting their pages from all over the world. Thousands of times an hour from thousands of IP addresses. Looked totally normal. But with 1-2% click-through rate, they would have made $1000/mo from all their accounts, but we caught on that something funny was happening after the first couple of payments went out. It was easy to see that something was wrong, but just what was difficult. Eventually, we simply stopped showing any paid ads to any requests from SQUID servers. That solved the problem, but unfortunately, while the technology was great, it was a little ahead of itself, and we didn't really have a marketing team, so unfortunately, it went the way of the dodo.

      Sigh

      --
      The CB App. What's your 20?
  59. Re:why do they care? by kimvette · · Score: 1

    Because if they don't start cracking down at some point (customers have been complaining about click fraud for eons) then their customers will use competitors who do work on fighting these scams.

    I hope this also applies to the "please click on my ads" blogs.

    --
    The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
  60. Re:why do they care? by kimvette · · Score: 1

    woohoo?

    Let's wrap some content around that "woohoo"

    No more "free" content on the Internet. Woohoo!

    (content has to be paid for somehow)

    --
    The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
  61. Re:why do they care? by dfjghsk · · Score: 1

    that sounds about right... internet companies typically spend 25-35% of revenue on marketing.

    --
    Help me take back Slashdot. When did 'News for Nerds' become 'FUD and Conspiracy Theories for Extremist Nutjobs'?
  62. Re:why do they care? by MickDownUnder · · Score: 1

    Woohoo.... as in no more advertising. No more people trying to track and know everything about you in the quest to sell you something. I don't think there's a chance that this will actually stop google or someone else from doing their best to invade the privacy of every living soul on the planet.

  63. Re:why do they care? by dfjghsk · · Score: 1

    Also on their about us page.. it says he also owns this site: http://www.petsorfood.com/index.shtml

    --
    Help me take back Slashdot. When did 'News for Nerds' become 'FUD and Conspiracy Theories for Extremist Nutjobs'?
  64. Re:why do they care? by Pneuma+ROCKS · · Score: 1
    We're getting a conversion rate that is less then one percent and it's gotten worse over time.

    Isn't this the case for any kind of advertisement? Logarithmic growth, anyone?

    --
    Favorite quote: "
  65. Hence, *Google Checkout* by galdur · · Score: 1

    I'll theorise that Google Checkout isn't just a method of getting a piece of the on-line payment pie (such as Paypal), but a way to connect the ads to the sales in some way in the future as well. This could cut down on the click fraud which plagues Google.

    This is of course not straightforward, but my guess is Google is working that angle too.

  66. Click Fraud down - Credit Card Fraud Up by Larry+Lightbulb · · Score: 2, Interesting

    Steal a credit card number, click on a Google CPA advert, and buy lots of expensive things.

    The profit is in the percentage the advertising website gets, not in the goods.

    1. Re:Click Fraud down - Credit Card Fraud Up by Anonymous Coward · · Score: 0

      Larry Lightbulb wrote:
      >
      > Steal a credit card number, click on a Google CPA advert, and buy lots of expensive things.
      >
      > The profit is in the percentage the advertising website gets, not in the goods.


      Great. So now the stolen credit card is traceable back to your bank account.

    2. Re:Click Fraud down - Credit Card Fraud Up by lorcha · · Score: 1
      Cute, but it don't work that way.

      As soon as the credit card holder sees the bogus charge, he'll do a chargeback for fraud and the merchant won't get paid. When the merchant doesn't get paid, the advertiser doesn't get paid.

      Most, if not all, of the current CPA players work this way. The advertiser doesn't get paid until after the chargeback window expires for the purchase. Ever wonder why it takes so long to collect your cash when you buy something through fatwallet?

      --
      "Avoid employing unlucky people - throw half of the pile of CVs in the bin without reading them." -- David Brent
  67. Wait... what's going on ? by JASAAA · · Score: 1

    $$$$$$$$$$$$ $ 0 ... Well it was going until it was over.

  68. But I like click fraud! by Anonymous Coward · · Score: 0

    Here and click away on the advertisers. Costing them money is a poor substtute for clubbing them to death, but it's better than nothing..

    1. Re:But I like click fraud! by kimvette · · Score: 1

      Here's a hint:

      If Google loses advertisers, they lose advertising revenue. If Google loses advertising revenue, Google goes bye-bye.

      --
      The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
    2. Re:But I like click fraud! by nevvamind · · Score: 1

      The whole concept of "click-fraud" is vague. Eventually "cost-per-action" is gonna translate into web users being forced to "DO some ACTION" on the adverts. I think greedy corporates should come up with newspaper & TV versions of "click-fraud", they could call it "read-fraud" or "view-fraud", in which their complain would be readers/viewers "just reading/viewing" their ads and not actually buying their stuff !

  69. I'll explain what click fraud is... by Anonymous Coward · · Score: 0

    On my old favorite forums (of which I now loathe), the site was supported completely by ads, it was the only way a game modding community website coudl afford to stay afloat! You can't SELL MODS, you can't make people pay you money to support the site, aside from merchendising! Click fraud, is clicking the ad just to generate some revenue for the site hosting the ad. I don't buy anything from ads, I don't trust ads, so why, would anyone else? I don't know anyone who would actually buy immediately from an ad! And when all the sites that host your ads go down, no longer able to pay for their advertising, what are you going to to oh mr.advertiser? Only a select few, major websites, will be able to be supported by these ads! Oh My Fucking God, what has the world come to these days? Just about everyday, I hear of a new scheme to limit the internet for poor people! Strange thing is, I thought about this one time I clicked an ad 70 times, for my favorite site, but that was years ago. I swear, the moment I think of something, I see it on the news, usually here, the next day.

  70. Define an action. by SanityInAnarchy · · Score: 1

    As he said, fill out a survey or whatever. Add your own captchas, all up to you.

    Here's the problem -- how can Google implement this in such a way that they retain enough control to know whether the item was bought, survey was filled out, or whatever? What's to stop someone from just setting up a paypal donation link and calling that their "purchase", but then having the rest of the site be a sales pitch for a sale which is actually handled somewhere else?

    Google would have to take over the whole process of purchasing and collecting money from the consumer (or a survey, or whatever), and they'd still have to manually look at some of them, at least.

    --
    Don't thank God, thank a doctor!
    1. Re:Define an action. by Daniel_Staal · · Score: 1

      Why would they? This is to benefit the advertiser. The person buying the ad does not want click fraud. Google is giving them a tool to help that.

      Sure, they can circumvent it, but that doesn't get them anything. If they do it to keep from paying Google, Google can just stop presenting their ads. (Because Google is being ripped off.) Google doesn't have to take their money, or present the ad if they don't want to.

      --
      'Sensible' is a curse word.
    2. Re:Define an action. by SanityInAnarchy · · Score: 1
      If they do it to keep from paying Google, Google can just stop presenting their ads.

      My point is, now Google has to figure out if they are doing it to keep from paying Google. Which means either a LOT of manual work or the same kinds of problems we had with click fraud, where Google would shut down a web site that presents ads because of click fraud, now they'll shut down a web site that doesn't pay Google -- and in both cases, Google will be wrong sometimes.

      The reason Bruce Schneier liked this was that it was automatic, that the security was built into the system and not into any kind of algorithm. I was just pointing out that this doesn't really apply, especially if Google has to develop an algorithm to make sure no one's cheating it this way.

      In other words, the system used to be skewed such that web sites could commit click fraud and Google tried to stop them, sometimes overzealously (refusing to pay innocent sites). Now, it's skewed the other way -- web sites can commit "sales fraud" and Google can try to stop them, probably overzealously again (cancelling the ads of legitimate sites).

      --
      Don't thank God, thank a doctor!
  71. Re:why do they care? by bit01 · · Score: 1

    No more "free" content on the Internet. Woohoo!

    There is no "free" content. With advertising you're paying twice over, once in time/attention for the ad and twice in increased price of product to pay for the ad. And that's ignoring transaction overheads and spammers. I for for one would love to pay for my content and classified advertising directly and avoid the unsolicited advertising value shell game.

    Admittedly, internet advertising is nowhere near as bad as TV/radio advertising. Yet.

    ---

    The majority of modern marketing is nothing more than an arms race to get mind share. Everybody loses except the parasitic marketing "industry".

  72. Re:why do they care? by Lehk228 · · Score: 1

    1 in 400 ad impressions resulted in a sale? or was that 1 in 400 clicks resulted in a sale.

    the former would be pretty great the latter not so much

    --
    Snowden and Manning are heroes.
  73. Re:why do they care? by AgentOJ · · Score: 1

    Good point there. I was out of coffee and tired when I posted that before, thus failing to take into account the further ramifications of click fraud. Although the internet is a great way to conduct business semi-anonymously, one would think that the people paying Google for the ad-placement in the first place would be more worried about who their "customers" (i.e. the people who host the ads on their sites) are in such a situation. Are there any major industry players who let a business choose which sites their ads can appear on (an approval-type system)? If Google already allows this (or a blacklist filter of some sort), forgive my ignorance, I haven't delved that deeply into the topic.

  74. Does this indict the adwords advertising model? by AaronDunlap · · Score: 1

    Isn't this simply fraud protection against cheaters? Other advertiser's value isn't affected, because those clicks/impressions are real. Only the scammers are getting fake clicks.

    --
    Relax... You're soaking in it." -Madge
  75. Re:why do they care? by dfjghsk · · Score: 1

    1 in 400 clicks

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    Help me take back Slashdot. When did 'News for Nerds' become 'FUD and Conspiracy Theories for Extremist Nutjobs'?
  76. Re:why do they care? by Random832 · · Score: 1

    Plus, the profits from the ads are paying for _everything_ else.

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  77. Google will weed them out like low CTR ads by patio11 · · Score: 1
    Suppose you offer $100 a click for an ad to get your brand name in the customer's eye but which also never generates clicks (it would be difficult to actually do, but just suppose). Google will notice your ad, despite the potential to generate $100 if anyone clicks on it, is generating them no revenue, and its "Quality Score" will suffer. Then they'll drop it from the rotation even if the #2 guy is only bidding a quarter a click, but with a 5% CTR. It will be the same for CPA ads -- if your web page can't complete the sale and get Google paid they will give your space to someone who can.

    I'm an AdSense advertiser (hawking my program to make bingo cards for teachers -- there is no other form of advertising which makes any sense for this niche at all) and I *clean up* on some of my keywords because I have a CTR of around 5-20% (for some words) and some advertisers who have inexpertly targetted their ad are offering twice as much but for a click through rate which is likely much lower. On the flip side, I also have some words which aren't well targetted but which are dirt cheap, and its a good day when I hit 1% on them. (My conversion rate to trial downloads is about 10% either way, ironically.)

  78. I manage AdWords clients by OlsonSchmolson · · Score: 1

    and I suspect it could be a boon for Google. If I really knew what our ROIs were going to be, a predictable ad cost per verified lead (or an immediate sale for some type of products), I would look more deeply into the budgeting and margins and probably pay more for it. It tightens things up a bit, removes an element of the gamble in your game. I don't know that I've had any problems with click-fraud, but I do understand that most of it is for pricier products. Fewer sales garnered through expensive ad bids - It becomes worthwhile for lowlife competitors and jilted lovers.

  79. Re:why do they care? by mantar · · Score: 1

    Maybe I'm missing something here... was that 2M figure gross or net? If it's gross, I don't see how anyone could turn a profit and remain competitive while spending 25%-35% of gross sales on marketing (granted, marketing is a broad term here... not necessarily just advertising). Maybe their margin is just huge? (Or maybe it was a fluke that I passed that biz management class in college) :-)

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    # man tar
  80. Where have they CrackedDown ? by Anonymous Coward · · Score: 0

    Where in the article did you find they have cracked down? All it says is about a 2-3 week old news about Google moving to CPA. Moderators sleeping ?

  81. that's not how rfc1918 works... by Anonymous Coward · · Score: 0

    rfc1918 addresses are by definition unroutable on the open internet -- most routers block them and in fact, there's no _route_ to them.

    Any tcp connection would be dropped by the edge routers before it hits the other side of the connection (again, what connection?) -- indeed, try pinging an rfc1918 address that doesn't exist on your own lan -- yeah, it's not there, duh.

    Your post makes no sense and you didn't think it through. I'm sorry, but the other responders apparently had no idea what rfc1918 was and I felt they must be believing you, so I had to respond.

  82. Re:why do they care? by shaneh0 · · Score: 2, Interesting

    This is correct. In our case a bit more. And 95% goes to adwords. When you sell a service, the only cost is development, infrastructure, customer acqisition, and, of course, payroll and administrative expenses. And we're profitable.

  83. Congratulations, Google... by Anonymous Coward · · Score: 0

    ...now I'll be making _less_ than my current $0.01 a day with Adsense.

  84. Changing the business model rather than the law... by Megaport · · Score: 1

    Change the rules of the game so that click fraud doesn't matter.

    I applaud google for trying out different systems in order to eliminate a weakness in their business model. This is the right way to do things.

    More companies should take note of their approach. In particular, the recording and motion picture industry needs to pay attention to this. If you have a business model that just won't work anymore because of advances in technology, the ethical thing to do is to change your model rather than change the laws and using our society's police and courts to keep your profits flowing.

    It is not just ethics either - it is good business sense. In the long term, business models that only continue to work through the suppression of new models that might one day replace it are doomed to failure.

    Google will continue to be a major player precisely because they adopt this sort of approach, not despite it.

    M

    --
    # grep slashdot access.log | grep html | sort | uniq | wc -l 2604
  85. Re:why do they care? by Threni · · Score: 1

    > I have a hard time believing that it is not a joke, especially given their "testamonials".

    What's stopping you from seeing it as a joke? You need a HTML tag to point it out or something?

  86. Some ways... by badevlad · · Score: 1

    How advertising effect can be measured?

    There are some ways:
    1. Views of ads.
    2. Clicks on ads.
    3. Actions.

    The first one still alive. Even if you do not click on the ads, you may read it and it may have effect of "reminder" or "positive opinion building".

    Second: you will have visitor. Even if your visitor will not do any action, he may click on ads on YOUR site, tell somebody about your site or return later to do any action.

    Third does not require explanations.

    So, what will be most logical scheme for payment?

    Payment = Vp * Vc + Cp * Cc + Ap * Ac

    Vp - price of one viewing of ads (e.g. $0.0001)
    Vc - count of ads viewing.
    Cp - price of one click on ads (e.g. $0.1)
    Cc - count of clicks.
    Ap - price of one action (e.g. $5.0)
    Ac - count of actions from ads.

  87. Re:why do they care? by michaelhood · · Score: 1

    As to point 2, assuming the settlement gets approved by the Judget, it prevents any member of the class from ever suing Google in the future with regards to click fraud.

    And every single AdWords advertiser was opted in by default. The opt-out process was painful and included paper mailing a personalized letter, and so on.

    I sincerely doubt any significant percentage of the class opted out, the notifications and instructions were very, very poor.

    If the settlement is approved, consider Google immune from clickfraud suits from every current advertiser.

    Oh, by the way, that $90M was an "allocation of advertising credit for claims of click fraud on past activity". So it was an invitation for us to review our 3 years of logs, identify click fraud, and get credit for it. (There is normally a 90-day statute of limitations, per your agreement with Google)

    So net cost to them, $0. Reduced liabilities to them, probably half a billion dollars, maybe more.

  88. Surely the this is tied by goldcd · · Score: 1

    into google's gcash thingie they've just wheeled out.
    You'll click an advert, buy a product, go to the checkout and pay via the gcash (I've forgotten the name and can't be bothered looking). Google will know you clicked the advert and they'll know precisely how much you paid and can take their % off before the vendor even gets his money.
    In fact it allows for a new model from google. The vendor doesn't pay for the adverts at all, they agree a percentage of the sale price they'll give to google. Google can then decide which adverts to place where entirely based on how much revenue they'll make - e.g. if you have a site that is reviewing a piece of hardware, google can work out if it's better for them to link the site that offers the lower price and pays a lower % or higher price with higher % (i.e. lower volume, higher margin)

    1. Re:Surely the this is tied by jebjeb2000 · · Score: 1

      First thing I thought. A competitive move to connect advertisers to google checkout is the likley real driver behind "combating click fraud".

  89. Re:why do they care? by shaneh0 · · Score: 1

    Except that you cannot compare "an advertisement" to an entire adwords campaign with a rotation of dozens of seperate adverts that are targeted to different keywords and demographics.

    Besides, I said our CONVERSION rate has steadily dropped, not our click thru rate--which has grown, albeit slowly.

  90. make money from teh intarweb? by Anonymous Coward · · Score: 0

    that's umpossible!

  91. Re:why do they care? by stallos · · Score: 0

    Hi, I think google cares is because their advertisers will not trust google much. If they want to have happy clients and be the best they must get rid of the stealing of cash. Google adsense accounts get terminated if someone even your friend clicks many times on your ads. Karl

  92. Re:why do they care? by BenBenBen · · Score: 1

    FYI, unless you're selling to particularly techy types (like a PC shop or whatever) in my experience Overture consistently outperforms Google by quite a margin. Without getting too specific, I spend around $10K on Google in a week and about $40K on Overture - Overture CPA is around the $20 mark and Google is around $35. If you haven't already, get some ads on Overture and see what they do...

    --
    The Slashdot Paradox: "100% Overrated"
  93. Big Brother Google by Anonymous Coward · · Score: 0

    This is very simple. Google will ask you to hook your online store to Google Checkout for payments. They will offer incentives for using adwords and googlec checkout. Critical mass will be reached. You can take advantage of Google's CPA model. Less fraud, only pay for ads that work, etc..etc..

    However I can see from all of these responses that no one actually has a website that sells products. If you did you would see that this whole idea is predicated on the fact that you are allowing Google to store and track all of your sales/price data. Same for your competitors who use this system. Is that information that we REALLY want Google to have...basically for free...

    Do you realize how valuable this type of info is. Google already knows what people search for and soon they will know how much they buy and for what cost...

    It's a Google wet dream. It's any companys wet dream. People would kill for this type of info. And here we are just giving to Google so they can make even more billions...insane...