Click Fraud and How to Deter It

Pay per click (PPC) advertising continues to gain popularity in the online marketing world as an effective and inexpensive way to drive targeted visitors to web sites. Research firm eMarketer reported that between 2002 and 2003 the paid search listing market grew 175 percent. Major trusted search properties such as Google, Overture, FindWhat.com, and Kanoodle, all offer PPC campaigns in which you pay only when someone clicks through your banner ad or link. But PPC also has an enemy--click fraud--and understanding what it is and what to do about it should also be a key part of your PPC campaign.

What is Click Fraud?

Click fraud is when someone or something generates illegitimate hits on your banner or text advertisement causing you to pay for worthless clicks. AS PPC campaigns have grown in popularity and keyword prices and bidding have become more competetive, click fraud is on the rise.

Online marketers are becoming increasingly worried about the prospect of click fraud. According to CNET News, some marketing executives estimate that "up to 20 percent of fees in certain advertising categories continue to be based on nonexistent consumers in today's search industry."

This estimate is certainly unsettling for advertisers who, recently, have been paying hefty amounts bidding on desirable search terms. Financial analysts report that in the year 2004 advertisers are paying an average of 45 cents per click. Compare this to 40 cents in 2003 and 30 cents in 2002; the bidding wars continue to rise.

Who's Doing it and Why?

Click fraud perpetrators are most often motivated by trying to increase revenues from affiliate networks or attempting to damage competitors' revenues by forcing them to pay for worthless clicks. The Google Adsense program, in which affiliates receive payment for clicks whether they are real or not, has caused great concern for Google and has intensified its focus on click fraud.

Those engaged in click fraud use a variety of techniques to generate false clicks. Low cost international workers from all over the world are hired to locate and click on ads. The Times of India provided investigative reporting on payment for manual click fraud happening in India. Unethical companies may pay their own employees to click on competitor ads. Last but not least, click fraud can be generated by online robots programmed to click on advertiser or affiliate ads. Some companies go to great lengths creating intricate software that allows for this to happen.

How Can You Deter It?

Many advertisers know about the possibility of click fraud but generally haven't done much in the past to prevent it. Some feel that if they complain to any of the search conglomerates, it could ruin their free listings. Others feel like the problem is beyond them.

"It is a bigger problem, but folks just don't want to take the time to track it down because it's a complex problem," stated John Squire, of web analytics firm Coremetrics, to CNET. "Given that some of the largest marketers manage up to 1 million keywords in a campaign the data can be difficult to crunch."

Companies who do understand and report click fraud to search engine properties have had success receiving refunds for fraudulent clicks. For those advertisers who want to address the possibility of click fraud in PPC campaigns, good option do exists. At the most basic level, advertisers can use general auditing; many have been known to compile lists of sites that generate high numbers of clicks but not sales. This will indeed put up a red flag.

On the other hand, because click fraud is advancing at such frequency, click fraud detection companies and software have been popping up all over the country. Let's take a look at some of the options:

ClickDetective - ClickDetective allows you to track return visitors to your site and alerts you if there is evidence that your site may be under attack. Its reports show you every click in real time rather than a summary hours later.

Who'sClickingWho.com - This fraud detector tracks all PPC search engines, detects multiple IP's, and even pops up a "ClickMinder" after a potential abuser clicks repeatedly over five times.

BogusClick - BogusClick can help advertisers determine competitor IP addresses, originating PPC search engines and/or partner sites involved, as well as keywords used.

Clicklab - Clicklab employs a score-based click fraud detection system that applies a series of tests to each visitor session and assigns scores. Calculations are made to indicate bad/good sessions to show an advertiser the quality of traffic.

Click fraud is a big problem in search engine marketing that's only going to get bigger in the future. It is wise for any online advertiser to implement some auditing system. Why continue to waste precious campaign money?!

Hollis Thomases is the President of Web Ad.vantage, Inc., an search engine marketing firm specializing in search engine optimization,

paid search engine marketing, and search engine marketing. The Web Ad.vantage Inc. site was named by Forbes magazine one of its "Best of B2B Sites" for media and advertising. An award-winning entrepreneur, Hollis Thomases has been honored by CNN and is also a contributing writer to ClickZ.

move in cleaning service Mundelein ..

In The News:

Cybersecurity experts warn about one of the largest credential compilations ever found, urging users to check "Have I Been Pwned" and change passwords immediately.

Quick iPhone and Android battery optimization techniques help your device stay powered all day by turning off hidden features that secretly drain power in the background.

Kodiak Driver autonomous truck achieves perfect 98 safety score, matching top human fleets in groundbreaking AI evaluation by Nauto's VERA system.

New 401k catch-up contribution rules in 2026 will change taxes for high earners over 50. Learn how scammers exploit these changes and protect your retirement savings.

Kurt Knutsson's guide covers social media privacy protection through location settings, account privacy controls and two-factor authentication to prevent scams and data breaches.

Revolutionary retinal implant restores central vision in 80% of patients with advanced macular degeneration, offering hope where treatments once only slowed blindness.

Learn how to use passkeys on Windows and Mac computers without cameras or fingerprint readers. Discover secure authentication methods that replace passwords.

Tesla's FSD v14.1.2 update reintroduces Mad Max mode, enabling higher speeds and more frequent lane changes than the standard Hurry profile setting.

A phishing email scam targeting American Express customers shows how cybercriminals use fake urgent messages to steal personal and financial information.

Facebook's new Meta AI feature analyzes your camera roll photos to create polished collages automatically, but requires cloud processing and raises privacy concerns.

A New Jersey teenager filed a major lawsuit against AI/Robotics Venture Strategy 3 Ltd. over ClothOff, an AI tool that created fake nude images from her social media photos.

Microsoft reports Storm-2657 cybercriminals sent phishing emails to 6,000 addresses at 25 universities to steal payroll credentials and redirect funds.

Astronomers have discovered asteroid 2025 SC79, a skyscraper-sized space rock orbiting the sun in just 128 days. the second-fastest known.

The Fox News AI Newsletter delivers the latest developments form the world of artificial intelligence, including the technology's challenges and opportunities.

A cyberattack on SimonMed Imaging exposed personal information of 1.2 million patients, including medical records, financial details and identity papers.

Spotify's managed accounts for kids under 13 now available in at least seven countries, allowing parents to filter and block explicit content and songs.

Friendly text conversations about BBQs and social events can lead to WEEX gold trading scams that target older adults with fake investment opportunities.

California company Skyeports creates self-healing glass spheres from Moon regolith that generate solar power and support plant growth for sustainable lunar living.

Cleafy researchers discover fake VPN streaming app Mobdro Pro that installs Klopatra banking Trojan, giving attackers full control over Android devices.

Police departments across the U.S. and Canada are adopting virtual reality training to better prepare officers for high-pressure, real-world situations.

House Bill 469 would prevent AI systems from owning property, serving as executives, or gaining legal personhood in Ohio under Representative Thaddeus Claggett's proposal.

Public voter records expose retirees' personal details to election scammers who create targeted cons using names, addresses, and voting history data.

Instead of fearing what comes next with artificial intelligence, think outside the box. Here are high-earning AI jobs that don't require a computer science degree.

OpenAI CEO Sam Altman says polite words like "please" and "thank you" cost millions annually, while direct prompts may improve ChatGPT accuracy by several points.

Chattee Chat and GiMe Chat exposed intimate conversations and photos, revealing users spent up to $18,000 on AI companions before the breach.

Click Fraud and How to Deter It

Pay-Per-Click Advertising