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3 Proven Ways To Build Your Opt-In List
3 Proven Ways To Build Your Opt-In List
If you've been involved in online marketing for any amount
of time, you've probably heard the phrase "The money is in
the list!" Why? Because those who are successful online use
their mailing list to...
7 Customer Acquisition schemes your competitor is hiding from you.
Copyright 2005 Michael Lever
Customer Acquisition is beyond doubt the number one priority for
all serious business owners. Whether you're a merchant or an
associate/affiliate of a merchant, your goal is to grow sales.
That is why the best in...
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...
Did You Get All the Good Keywords? Are You Sure?
If you are an advertiser with pay per click (PPC) services, you know one of the keys to a successful campaign is finding the right keywords. You also know that the ‘right’ keywords aren’t necessarily the most popular or the most obvious. The most...
How Ordinary People Are Making Thousands of Dollars From Internet Information Publishing
Johanes Gutenberg, the 15th century German who invented the
printing press died a poor man and failed as a businessman. Yet
his invention revolutionized publishing and made untold fortunes
for publishers all over the world. The penniless German...
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Click Fraud – Threatening the Internet Economy
One of the most popular forms of Internet advertising is pay-per-click (PPC). Merchants place ads with search engines like Google or MSN and the ad appears whenever someone enters a relevant search.
If the ad is clicked the merchant pays a fee – anywhere from 5 cents to $100. It’s a fabulous idea – ad campaigns targeted at your most likely customers.
It’s such a fabulous idea that Google, the king of PPC, grossed $1.24 billion in the first 3 months of this year – most of it from advertising revenue.
Watch out, though. There’s trouble in PPC land. The flip side to PPC is a phenomenon called “click fraud” or “click spam.”
There are two types of click fraud. The first type occurs when someone maliciously clicks on your PPC ad to drive up your advertising costs. It could be a competitor or a disgruntled former employee.
The second type of fraud involves clicking on affiliate ads to generate income. Affiliate ads are placed on third party web sites and each time someone clicks on an affiliate ad the web site owner receives a commission.
Industry observers believe that affiliate click fraud is the biggest problem of the two. Either way, the result is the same – advertising budget depletion with little gain for the merchant.
Either type of click fraud can be accomplished with the use of automated “robots” or by hiring an army of workers. The India Times reported in 2004 that a “growing number of housewives, college graduates, and even working professionals across metropolitan cities are rushing to click paid Internet ads to make $100
to $200 per month.”
How serious is the problem? It’s hard to judge exactly, but click fraud is commonly estimated at 20% to 35% of all PPC ad campaigns.
A recently launched lawsuit alleges that Google is aware of the magnitude of click fraud and does not do enough to alert advertisers of the problem.
The class action suit launched by Click Defence says that "Google has an inherent conflict of interest in preventing click fraud since it derives the same amount of income from each fraudulent click as it does from each legitimate click."
The $10 million lawsuit quotes Google Chief Financial Officer George Reyes as saying that click fraud is “the biggest threat to the Internet economy.”
Click Defense is a Colorado company specializing in click fraud detection. They claim that they themselves became a victim of click fraud when they advertised with Google’s Adwords program this year.
They are seeking damages for breach of contract, negligence, unjust enrichment, and unfair business practices.
A Google spokesman said that the case is unmerited and that Google will defend itself “vigorously.”
About the author:
Copyright 2005 by Ross MacIver
This article may be redistributed freely on the Internet or in ezines as long as the resource box and hyperlinks remain intact.
Ross MacIver is the director of Best Online Content. We provide quality content for your web site and offer a full range of design and SEO services.
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