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Wednesday, December 08, 2004

Click Fraud: The "Biggest Threat"

Regardless of what its measurable impact may be, the issue of click fraud is certainly making headlines. This article on CNN even quotes Google CFO George Reyes as saying click fraud “potentially… threatens our business model” and therefore needs to be eradicated “really, really quickly.”

By the sound of this article, Google only recently identified click fraud as an issue - and most publications certainly didn't pick up on the problem until this year. This is interesting, given Pay-Per-Click search engines have refunded fraudulent clicks for years; perhaps Google is taking advantage of the recent hype?

The real problem with fraudulent clicks to date has been informing advertisers of when they occur. Few (if any) Pay Per Click engines offer a transparent method for identifying fraudulent clicks and providing refunds. If something needs to be done really, really quickly by engines like Google, it’s implementing a system that can identify fake clicks and dispense refunds accordingly. They won’t catch everything, but it would certainly be a start.

Posted by Adam




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