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Google Releases Analysis of Click-Fraud Detection

fragmentate writes "This morning Google released information about their analysis of the exaggerated click-fraud numbers. Without pointing fingers, they mention that click-fraud analysis companies need to clean up their methods. From the post, 'A rigorous technical analysis by Google engineers has found fundamental flaws in the work of several click fraud consultants - flaws that help explain why widely quoted estimates of the size of the click fraud problem are exaggerated.' They even point out some obvious shortcomings of the methods used. The entire report [PDF] is available with their complete analysis."

38 of 117 comments (clear)

  1. Our own analysis. by Jerk+City+Troll · · Score: 5, 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.

    Meanwhile, two friends of mine had their google accounts cancelled and funds withdrawn because Google accused them of click-fraud. Of course they had nothing to do with it and when they pleaded their cases to Google they got no reply. Google doesn't have to care because they have so many other willing partners. They were even willing to provide click logs and etc. But they just ignored ignored it. 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:Our own analysis. by FliesLikeABrick · · Score: 5, Interesting

      I ran adsense on a couple of gaming sites I'm responsible for, and my account got suspended (well, more or less I got suspended permanently since they can block me via tons of the personal info they had with my registration). I went through their appeals process and, after a long wait, got a canned response. Nobody was taking the time to personally investigate anything in the appeals, or at least it felt this way. I had logs and lots of other information and background, as well as a compromise to pull the ads from those sites and preserve a good record (aka working account) for future use. I had been planning some new major sites that would use adsense as a major revenue channel (via legit means, not some "omg click and get a free ipod" thing), but they apparently trust no one. Parent post was correct in saying that they seem to just point and close any accounts with a hint of odd activity without thinking twice, since they have thousands (millions?) of other sources of trickle income to them. I'm not a google fanboy, but I'm a strong supporter. This experience is the single, but very large, mar on their reputation, as far as I'm concerned. ... Oh, and also that nonsense with MySpace, but business is business I suppose.

    2. Re:Our own analysis. by NightWhistler · · Score: 2, Interesting

      I run AdSense on my (Open Source) camchat-site, and so far Google has always paid up nice and on time.

      Not saying that they may not be closing accounts without proper reason, but they are certainly NOT closing accounts as some kind of evil strategy.

      --
      PageTurner Reader: open-source e-reader for Android with cloudsync. http://pageturner-reader.org
    3. Re:Our own analysis. by FliesLikeABrick · · Score: 2, Informative

      I wasn't implying that it was some evil strategy to save a few drops in the bucket, but rather that they don't take the time to investigate [possibly/likely wrong] cases of account closure as a result of click fraud when an appeal is filed.

  2. Yea I'd say there's something wrong by OverlordQ · · Score: 2, Interesting

    We have seen some instances of reports showing 1.5 times the number of clicks in our logs - for example, in one case 1,278 clicks were claimed as being "fraudulent" by the consultant while only 850 actually even appeared as clicks in Google's logs.

    So how many total clicks did they claim to get including the fraudulent ones? Or are they claming >100% were fake, heh.

    --
    Your hair look like poop, Bob! - Wanker.
  3. Follow the money... by e2mtt · · Score: 3, Insightful

    In this case, it sounds like some are crying "click fraud" in order to pay less for the clicks their ads generate. If they can claim large amounts of fraudulent clicks, they pay less to Google.

    Sure click fraud exists, but I imagine these "consultants" are advertising themselves as a way to pay Google less, while still having a high volume ad campaign. Taken to the logical extreme, any click-through that doesn't result in a sale was a fraudulent one.

    1. Re:Follow the money... by Tau_Xi · · Score: 4, Insightful

      If they report that google has a very low amount of click fraud, then they see the job as a failure. This kind of thing happens all the time. A small problem gets blown way out of proportion in order to make it look like something is being accomplished.

    2. Re:Follow the money... by Doc+Scratchnsniff · · Score: 3, Interesting
      Taken to the logical extreme, any click-through that doesn't result in a sale was a fraudulent one.
      Why stop there? One group took it even farther- they said that some clicks which resulted in sales were still fraudulent!
      Events identified as fraudulent in these reports, which actually match real clicks in our logs, often converted at nearly the same rate (and in some cases better) compared to other clicks. For example, in one case where 800 paid clicks were marked as fraudulent, the rate of conversion for these clicks was 5.1%, which compared favorably with the 5.8% overall conversion rate the advertiser achieved on approximately 24000 paid clicks.
  4. gasp by spykemail · · Score: 4, Funny

    Consultants fudging number for the people paying them? Say it ain't so! Next thing you know you'll be able to hire "expert" witnesses to testify in defense of science fiction over science fact... oh, wait.

  5. Standards-based Web Design by y5 · · Score: 3, Insightful

    Google Search: 3.5%
    Google adsense: 0.25%

    This is what kills me. Companies are so willing to fork over a ton of money for cost-per-click (CPC) advertising, when so many sites are not friendly to search engine spiders for organic (non-paid) searches. It's one of the biggest, and most overlooked reasons to use standards-based design practices. And it's free to do so (at least, if it's done the first time)!

    In many cases, CPC advertising is another example of throwing money at a problem for a band-aid.

    1. Re:Standards-based Web Design by Jerk+City+Troll · · Score: 4, Informative

      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.

    2. Re:Standards-based Web Design by y5 · · Score: 3, Insightful

      To clarify: CPC advertising, such as Adsense, is fine, but it should be used only as a supplement, after focusing on organic search results. This includes standards-based design, properly using meta tags, backlinking, etc.

    3. Re:Standards-based Web Design by vmcto · · Score: 2, Interesting

      500K / (2M * .9)

      Wow! 28% of revenue is for adwords? What the heck are you selling?

      Just curious...

    4. Re:Standards-based Web Design by Wildclaw · · Score: 2, Interesting

      Capitalism is quickly becoming just as inefficent as communism once were. As companies has dicovered that advertising/marketing is far better at selling products than quality or even price. It is an armsrace that is very costly for society.

      Just look at tv advertising. 2.5 hours per day times 17minutes is over 40 minutes per day. Using a salary of $10, and assuming only half of advertising time is wasted time for the watcher (The rest is spent going to the toilet), that makes $100 wasted per month and person. Free time should also be valued more than work time (otherwise the optimal decision would be to work more).

      What I have pointed at right now is just the direct cost to society because people are watching advertising instead of doing something they find more fun. Other costs are, production of advertisment, paying telephone marketers and of course the hidden cost of "uninforming" the consumer, which is very damaging in a market economy that relies informed consumers.

      And saying that tv advertising is needed or otherwise it would costs more for cable, is just using the broken window fallacy. If advertising didn't exist, the products would be cheaper and the money you saved could be spent on the more expensive cable.

  6. Purchase callbacks fix this, but... by Jerk+City+Troll · · Score: 4, Insightful

    It amazes me anyone would pay any attention to them in the first place.

    Google has a great 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.)

    1. Re:Purchase callbacks fix this, but... by Daniel_Staal · · Score: 3, Informative

      I'd complain, but you seem to be doing better with my post than I did.

      --
      'Sensible' is a curse word.
  7. google still refuses third party auditing. by googisgod · · Score: 5, Interesting

    It takes a set of balls a mile wide for Google to throw out this report that basically says "If you had access to our secret click data, you'd know how completely wrong you are about clickfraud." "Oh, I'm sorry, you don't have access to our secret click data? Tough shit."

    Look- Google could end the entire debate over clickfraud and the clickfraud detecting companies by doing one thing- for every click, tell the advertiser/publisher the IP and time of the click. That's it. That's all. They won't do it in a million years, though, not until government regulation starts to force some kind of auditing- like that which exists in every other advertising media on planet earth. (tv, radio, magazines, newspapers)

    Remember how Google just recently admitted that they charged advertisers for two valid clicks whenever they "doubleclicked" on an ad? They kept doing that practice from 2003 until march of 2005. They raked in tens if not hundreds of millions of dollars in illicit profits, none of which they are going to return. If Google had been giving out IP and time data back then, independent parties could have spotted what Google was up to immediately and you can be damn sure the practice would have stopped a lot sooner.

    Oh BTW- I know Google likes to use the "user privacy" as a reason not to reveal IPs to advertisers. But that excuse falls completely short since both the publishing website AND the advertiser both already should be seeing that IP in their own server logs. The only reason Google refuses to attach IPs to clicks is because it would allow people to see things like the doubleclick scam, or see that their clicks are coming from a country who can't even read the language of their advertisement, etc etc.

    Google, stop issuing these stupid public relation stunt "studies" saying how all the clickfraud detection companies are barking up the wrong tree when it is YOUR FAULT for not releasing data that could let people do an accurate job of keeping you in line.

    I know it's fun not being accountable to anyone, but Google my friend, you only get to pull that stunt as long as you're a monopoly. Eventually, with increased competition from yahoo and microsoft, you'll actually have to start treating your business partners with some modicum of respect.

    1. Re:google still refuses third party auditing. by Jerk+City+Troll · · Score: 4, Interesting

      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.

    2. Re:google still refuses third party auditing. by R3d+M3rcury · · Score: 2, Insightful

      Actually, here's an entertaining idea for privacy concerns. Munge/Obfuscate the IP Address. If I see a bunch of clicks from xxx.xxx.253.99 or from address "Whahoopa" in a day, I can kind of assume that something fishy is going on.

    3. Re:google still refuses third party auditing. by jone1941 · · Score: 3, Informative

      Google does not pay per impression, they pay per click. This is the reason that click fraud is so frustrating. The parents suggestions are perfectly reasonable. Providing the person creating the add and paying google with a means to audit their bill is perfectly reasonable. Does your mobile phone carrier just sent you a bill at the end of the month with minutes used and a dollar amount? They provide you with a list of phone calls made (at least mine does). Having a bill that you can audit against your records gives the bidder peice of mind. There is no ethical argument against it. As is always the case with business...there is of course a business case against it.

      --
      Fear trumps hope and ignorance trumps both
    4. Re:google still refuses third party auditing. by IamTheRealMike · · Score: 2, Informative

      What on earth makes you think IP addresses would be in any way useful?

      IP address tells you sweet FA about anything these days. AOL used to run pretty much their entire userbase via a caching web proxy, so every single AOL user showed up with a single IP address. NAT is so widespread now that 2 clicks in a short timespan from the same IP address could mean a user clicking twice on an advert, or it could simply mean two entirely different people that happen to be behind the same caching proxy/NAT router clicking once, or it could be two users who happened to go through a DHCP reconfiguration in between the clicks.

      I also find the idea that somehow there needs to be regulation like with TV advertising a bit weird. With pretty much any ad campaign except online advertising you get no reliable statistics at all about its impact. How many people saw it? You can only guess. How much traffic did it drive to your business? You cannot know. Even if traffic goes up after the advert run, it might have been due to other factors (mention in a newspaper, other website etc). No amount of regulation will ever give you the amount of transparency you already get with online advertising in another medium.

  8. The Quota Hypothesis by ezratrumpet · · Score: 4, Insightful

    If quotas exist, whether set by man or machine, mechanisms will eventually appear to ensure that quotas are met.

    If Software X must discover Y amount of fradulent clicks, then there will eventually be a means that makes certain that Y amount of fradulent clicks are discovered.

    For Google, how much of the budget depends on discovering X number or Y percent of fraudulent clicks?

    For Microsoft, how many pirated copies of Windows must be discovered each day/week/month/whatever?

    The hypothesis may apply in other cases. How much of a town's civic budget depends on income from traffic violations? What happens if traffic violations fail to raise that revenue?

    Look for quotas. Sometimes the numbers are the answer.

  9. Re:As I said last time this came up... by googisgod · · Score: 3, Insightful

    Unfortunately this is not true with pay-per-click, which is where google makes 99% of their income. At the end of a day in reality, you are paying for CLICKS. The question is are those clicks generated by humans, or by scripts, or by people trying to rip you off.

    I often hear the same stupid analogy: "Click fraud is no different than getting up to go pee during a commercial break and not watching the commercials, or tivo'ing through them in fast forward."

    WRONG. With clickfraud, you can make REAL, ACTUAL, CASH. I defy you to give an example of how someone can make REAL, ACTUAL, CASH by going to the bathroom during a commercial.

    Face it- Google will never end the controversy until they have third party auditing. Right now, all they have is "trust us". Guess what- there's no other advertising industry on earth where "trust us" is good enough. They ALL have auditing by independent parties. Cuz guess what? Businesses will try and rip each other off if they know they won't be caught. Google has already proved they are perfectly willing to rip off advertisers since they ADMITTED they have been charging people for "doubleclicks" for YEARS, even though they knew all those clicks were invalid because they came from the same IP/cookie and happened within 1/4 second of each other.

    ----
    At the end of the day, you're paying me for access to my readers' eyeballs. If your product is irrelevant, overpriced or otherwise not useful to my readers, or you lack the marketing skills to gain their interest with your ad, why should I be forced to let you off the hook on paying me? You still ran your ad on my site...

  10. Neutral Analysis? by otisg · · Score: 5, Insightful

    Interesting, but wouldn't it make more sense to have a neutral party do the analysis instead of Google, whose bulk of the revenue comes from those same clicks they analyzed? Having Google do the analysis and reporting is like having Microsoft do Vista benchmarking. That is, if Vista were actually ready.

    --
    Simpy
  11. Re:As I said last time this came up... by kanefsky · · Score: 2, Insightful

    Networks charge advertisers REAL, ACTUAL, CASH for that guy going to the bathroom during the commercial. The ad rates are determined by the size of the audience, so if the audience counts the guys going to the bathroom then the advertiser is being overcharged.

  12. Kudos to Google .... by RallyDriver · · Score: 4, Insightful

    .... for taking these "analysts" to task with some facts, and publically. Many companies would have just deferred to presenting it all in a libel lawsuit.

    Is click fraud an issue? Certainly.

    However, these companies purporting to provide analysis and actually providing nonsense are just as guilty of defrauding the advertisers as the click fraudsters they purport to guard against.

  13. Log Analysis? by FuryG3 · · Score: 4, Interesting

    Sorry for the newbie-question, I'm not someone who uses adsense.

    Can't this 'fraud' be detected through log analysis (referrers, refearing search phrases, etc)? I would think that you could also configure adsense to link to a specific page (yoursite.com/adsense.php), and monitor it that way.

    Am I way off base here?

    1. Re:Log Analysis? by trogdor8667 · · Score: 2, Informative

      You can't modify the AdSense code to do that, or it invalidates the links. *sigh*

      You could, however, setup the AdSense in an IFrame and try to monitor it that way.

  14. Years ago... by misleb · · Score: 3, Interesting

    I seem to remember years ago people talking about how banner ads and pay-per-click just don't work. What happened? Is Adsense really that effective? People I talk to hardly even notice the text ads, much less click on them. No, this isn't one of those "I never click on an ad" rants. I'm really curious here. What has really changed besides a little targetting?

    My gut feeling is that Google is scamming the world. They took a model that was broken, applied some superficial "fixes" to it and got everyone to believe that banner/text ads are "in" again. Meanwhile, they hide all of their logs in the name of privacy so nobody can really tell who is clicking on what. I would not be at all surprised if 'net advertising has become like email is today... 80% fraud and junk. I trust the consultants over the companies (Google) who have an interest in protecting they're primary source of income. But that is just my gut feeling. The facts could be completely different. :-)

    --
    "THERE IS NO JUSTICE, THERE IS ONLY ME." -Death
    1. Re:Years ago... by Prof.Phreak · · Score: 2, Interesting

      You're likely right.

      I've never imagined "advertising" can -itself- be the bulk of any economy, as it appears to be online. (goog stock goes up, all tech stocks go up... and vice versa).

      I think what's happening is google set themselves up as middleman, they charge folks to have ads listed on their sites... and they pay folks to have stuff appear on other sites. This naturally generates fraud (people want to get paid more)---which results in google charging more---which results in more money flowing -through- google; which no matter which way you look at it, is a `good thing' for google (especially if they make a % of that increasingly larger cash flows through their corp).

      That, and their stock price goes up with popularity---and the more popular they are, the more fraud that causes, the more cash flows through, the more their stock rises.

      It's a system that feeds on itself, and google is right in the middle of it.

      Around 1999-2001, people realized that `advertising' business alone isn't enough; so bubble burst. Now, we have a google bubble (where google is actually making money---horay: ads are in business once again!).

      I wonder how long it will take folks to realize just how much money the -other- parties (the ones buying the ads; the -most- important chunk of this economy) are making (and how many are losing?!?).

      My wild guess... is that there are way more losers than winners among the ad buying masses. Once more folks realize that, Google will not be in the advertising business.

      --

      "If anything can go wrong, it will." - Murphy

  15. Re:As I said last time this came up... by rkd2110 · · Score: 2, Insightful

    Because you get a return that you're happy with. Although Google does not have an independent auditor to go over their click data, advertisers still pay. Some feel they are not getting enough conversions for the money they invested in their ppc (pay-per-click) campaign, some feel they do. Some cancel their accounts and move on to a different kind of web marketing, some stay and use the Google system.

    In the end, it's a service, not an obligation, and even though most countries already formalized auditing measures for other types of advertising mediums, it doesn't mean it makes sense. Personal responsibility and decision making are applicable in this case just like always. If all of Google's clients demanded auditing, there would be auditing. There's definitely no need for governmental regulation.

    End of the day, I don't understand why people pay for a service, with defined rules of use and known risks only to start crying murder later (well, I do understand why they do that, it's just that I don't understand why we are taking them seriously).

    If you don't like AdSense or AdWords, close your account. You can. They have a button or something.

  16. Adlogger by celardore · · Score: 2, Interesting

    There's a piece of software available from http://www.adlogger.org/ that tracks all the clicks to ads, as well as page impressions, IP addresses. It's fairly comprehensive.

  17. Re:Adsense's Biggest Flaw... by dtietze · · Score: 4, Informative

    "Google does not even allow you to ignore clicks and impressions from your own IP for testing" - Not true!
    There is a "debug" parameter you can add to your AdSense snippet which will make ads show up but not make impressions or clicks count. I got this info from Google support when I asked them about exactly this issue.
    Simply add the following to your AdSense Javascript parameters: google_adtest="on";
    For more info, see http://www.gidnetwork.com/b-5.html (no, this is not my site).

  18. Re:"Search engine optimization" convention this we by jacobw · · Score: 2, Funny

    The "search engine optimization" crowd now has a convention.. It's on, right now, at the San Jose convention center.

    If there were any justice in the world, the road to the San Jose would be lined right now with large billboards giving misleading instructions, trapping conventioneers in endless loops to nowhere.

    Ah, well. A man can dream.

  19. IP Addresses and Phone Numbers Are Created Equal by brian23 · · Score: 2, Insightful

    Much like how your celluar phone company prints out the list of numbers that called you, Google should provide a list of IPs that contacted the website with the search term. I don't see how it's anymore private than if you called a company because you found it in a phonebook and starting asking questions. What type of personal information is Google worried about releasing? For instance, if I search for "outlook plugin" and a company that sells the plugin shows up in the AdSense links on the side, and I click on it - how is that private? Ok, let's take it more extreme so I go and search for "russian girls", then I see Adsense links for that on the right side. I don't see how that is any different than if I called a company and asked for the same thing. Google is just an electronic white/yellow pages. If they just released documents with the request records most of this would be a moot point and people could cross-reference their Apache or IIS logs with Google's click logs.

  20. If you're paid to cry wolf... by Moraelin · · Score: 2, Insightful

    Think about it this way: If some people make a living out of just crying wolf... guess what they'll do? Cry wolf. Lots. Invent gazillions of wolves to scare their customers with. Tell them that 250% of the North American wolves are in their backyard.

    So, yes, basically that's what they claimed in that case: that 150% of the clicks were fraudulent. Literally.

    Are you surprised?

    All these "click fraud consultants" are people making their money by crying wolf. Unlike any other kind of consultant, they don't even have to fix the problem or anything. (Which, in other kinds of consulting is a clear test of whether the problem is real or bogus. If, say a DB consultant tells you that your querries are too complex, there's a very simple test there: then you write faster ones, please. If the app runs faster afterwards, ok, he was right. If not, well, the problem was bogus.)

    but for this flavour it's a job that has actually less reality checks than an astrologer. As long as you say what the hapless customer wants to hear, in the form that he wants to hear it, that's all the "data" you need. And you already know from the start what the customer wants to hear. How convenient is that? You get called by someone who already strongly suspects click fraud (or he wouldn't bother paying a consultant), and has no clue how to check it (ditto.) You only need to do the sacred hocus-pocus and cast the holy runes (or the modern equivalents, involving spreadsheets and powerpoint graphs) and finally tell him "wow, you were right."

    Plus, think long term. If you tell someone "well, there's a couple of dubious clicks in there, but nothing that would really tilt the statistics by much", that's the end of that relationship right there and then. If you tell him that your secret voodoo found 150% fraud, he'll call you next week too, to see if it gets better or worse.

    --
    A polar bear is a cartesian bear after a coordinate transform.
  21. My Father and all people over 60, that's who! by us7892 · · Score: 2, Insightful

    My father clicks on all sorts of things. He falls for the "Button" that looks like a windows button. The "speed up my PC" button, which installs spyware and actually makes it slower. He clicks on things that blink. He clicks on EVERYTHING. He opens spam. Bascially, if you're over 60, and use a PC, you're the one doing the clicking.

    I spend a few hours a year cleaning his PC and making it usable again. I installed tinyPersonalFirewall a couple of years ago, and that helps with a lot of stuff.

  22. MOD PARENT DOWN by spuke4000 · · Score: 2, Informative

    The parent's comment was just ripped off verbatim from another thread about click fraud. Here's the original.

    --
    This post cannot be rebroadcast without the express written constent of Major League Baseball.