Home
>
Pay-Per-Click Advertising
>
Pay Per Click Advertising Can Be Very Risky Business

Pay Per Click Advertising Can Be Very Risky Business

Click fraud is an unfortunate byproduct of the pay per click advertising business. Many people with an online business spend large amounts of money on pay per click advertising only to discover that many of the people clicking on their ads weren't really interested in their products or services.

Bogus "visitors" to a pay per click ad represent click fraud. This is a serious scam that threatens the viability of the pay per click advertising business which has become enormously profitable for all of the major search engine operators, namely Google, Yahoo/Overture, and MSN.

Click fraud has different forms, but the end result is generally the same. Advertisers are billed for fruitless traffic generated by someone who repeatedly clicks on an advertiser's ad without any intention of ever buying anything.

The search engine advertising market is currently about $3.8 billion per year and estimates vary widely on how much click fraud is actually going on. Clearly, the search engine operators would like to downplay the extent of this problem. Some industry experts claim that a little click fraud exists but that it is overblown by advertiser paranoia, while others estimate that ten to twenty percent of all clicks are false (made by someone with no legitimate interest in the ad itself).

Virtually everyone involved with pay per click advertising sees click fraud and knows it's there, but no one is quite sure what to do about it.

Both Google and Yahoo/Overture acknowledge that the click fraud problem exists, but claim improved internal controls will prevent the problem from escalating. Their stated position seems to be that they are concerned about click fraud, but that it is not a material issue so far. Both of them are touting their increasing internal actions aimed at detecting and combating click fraud.

Such reassurances from search engine companies certainly aren't surprising, given how much they stand to lose if advertisers cut back on advertising spending. The stakes are huge and the search engine companies are actively involved in public relations campaigns. Industry research firm eMarketer expects $7.4 billion to be spent on search engine advertising by 2008, up from only $108.5 million back in 2000.

The incentives for click fraud have increased along with the money devoted to search engine advertising. Advertising on search engines has turned into a fast-spreading craze as more and more marketers have realized substantially higher returns on search engine ads than on more traditional marketing campaigns conducted through print media.

Most pay per click advertisers set a spending limit and once the spending limit is reached, the ads cease to appear in the search results. Click fraud is a very unethical competitive tactic where someone repeatedly clicks on a competitor's ad until the spending limit is reached and the ad then disappears from the search results. It seems that it's only a matter of time before some advertisers become so exasperated with click fraud that they file a class-action lawsuit against a major search engine.

The success of search engine advertising has substantially raised prices that advertisers pay for top spots. Unfortunately, these higher prices have turned click fraud into a dark little industry of its own. Some crooks have hired cheap overseas contractors to just sit in front of computers and constantly click on targeted ads and others are developing sophisticated software to help automate and conceal click fraud.

If you use pay per click advertising it would be wise to carefully monitor your traffic to determine if you are the victim of click fraud. In any event, it's probably safe to say that pay per click advertisers are going to have to accept a certain level of click fraud as just a cost of doing business.

Kirk Bannerman operates his own successful home based business and also coaches others seeking to start their own home based business. For more information visit his website at legitimate home based business

cleaning help near Mundelein ..

In The News:

New study of 10,500+ kids reveals early smartphone ownership linked to depression, obesity, and poor sleep by age 12. Earlier phones mean higher risks.

A phone phishing attack compromised Harvard's alumni and donor database, marking the second security incident at the university in recent months.

AutoFlight's zero-carbon floating vertiport uses solar power to charge eVTOL aircraft while supporting emergency response, tourism, and marine energy maintenance.

A new phone return scam targets recent buyers with fake carrier calls. Learn how criminals steal devices and steps to protect yourself from this fraud.

New Anthropic research reveals how AI reward hacking leads to dangerous behaviors, including models giving harmful advice like drinking bleach to users seeking help.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

Holiday email scams, including non-delivery fraud and gift card schemes, spike in November and December, costing victims hundreds of millions, the FBI says.

Holiday visits offer the perfect opportunity to help older parents with technology updates, scam protection and basic troubleshooting skills for safer digital experiences.

Swiss scientists create grain-sized robot that surgeons control with magnets to deliver medicine precisely through blood vessels in medical breakthrough.

Researchers exploited WhatsApp's API vulnerability to scrape 3.5 billion phone numbers. Learn how this massive data breach happened and protect yourself.

Travel companies share passenger data with third parties during holidays, but travelers can protect themselves by removing data from broker sites and using aliases.

Xpeng's humanoid robot moves so realistically that crowds believed it was fake, marking a major advancement in robotics technology ahead of 2026 commercial launch.

Researchers discover phishing scam using invisible characters to evade email security, with protection tips including password managers and two-factor authentication.

iPhone and Android users can reduce battery drain and data usage by restricting Background App Refresh to Wi-Fi connections instead of mobile networks.

Scammers nearly stole an Apple account by exploiting the support system with authentic-looking tickets and phone calls, users can protect themselves with safety steps.

FoloToy restored sales of its AI teddy bear Kumma after a weeklong suspension following safety group findings of risky and inappropriate responses to children.

Threat intelligence firm Synthient uncovers one of the largest password exposures ever, prompting immediate security recommendations.

Viral video shared by Elon Musk shows Tesla's Optimus humanoid robots performing tasks from cooking to construction, garnering over 58.5 million views on social media.

Chinese hackers used Anthropic's Claude AI to launch autonomous cyberattacks on 30 organizations worldwide, marking a major shift in cybersecurity threats.

Apple's new Sleep Score feature gives you a rating for your nightly rest quality. Learn how to set it up on your Apple Watch and iPhone today.

Essential phone settings to enable before losing your device, including Find My network, location services and security features for iPhone and Android.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

Cybersecurity research shows weak passwords remain a major threat, with simple patterns and number sequences putting millions of accounts at risk.

New Android malware BankBot YNRK silences phones, steals banking data and drains crypto wallets automatically. Learn how this advanced threat works.

FDA approves first human trial for Paradromics' brain-computer interface that could restore speech for paralyzed patients through neural technology.

Pay Per Click Advertising Can Be Very Risky Business

Pay-Per-Click Advertising