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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."
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Meanwhile, two friends of mine had their google accounts cancelled and funds withdrawn because Google accused them of click-fraud.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?
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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.
Haiku for you!
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.
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.)
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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.
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.
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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.
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
.... 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.
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?
"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).