Click fraud is yet again a big problem; a recent report for the first quarter of 2009 stated that the average click fraud percentage was 13.8%. This was a decrease in comparison to the last quarter in 2008 which was reported to be 17.1%. Although it dropped significantly the problem is far from gone.
According to recent news Facebook a popular social network that recently started advertising and promised huge returns to investors has been charged with click fraud. There have been several reports from advertisers using quality ad trackers that have detected a 90% click fraud rate meaning that only 10% of clicks were valid. In some instances some advertisers have stated that Facebook click fraud has been as high as 100%! This has resulted in thousands and thousands of advertising dollars lost due to click fraud. Facebook has admitted that it is a major problem and is dedicated to finding a proper solution.
Google in the past has dismissed click fraud as a major issue and rejected several times that click fraud was as big as it was being reported. However, recently they have come to terms and acknowledged that click fraud is a huge problem. It is a very sensitive issue to Google because almost all of their revenue comes from online advertising and click fraud will only mean bad news to its reputation.
Microsoft is also actively engaged in fighting click fraud; they received several reports from their advertisers over suspicious click fraud activity (generated from 3rd party ad tracker tools). After Microsoft received such information they investigated and discovered that it is a big deal and is suing three family members that boosted their traffic by hindering other advertisers. Microsoft is seeking $750,000 from the family due to fraudulent activity. Microsoft also credited over $1.5 million to their advertisers which were affected by the scheme (which would have never been credited if advertisers had not used a 3rd party ad tracker). Microsoft stated that click fraud is likely to continue if it is left unchecked. It is clear from the Microsoft case that having a 3rd party ad tracker that can track click fraud is priceless and moreover can save thousands from click fraud alone.
Click fraud continues to be a big issue that major search engines have been unable to eliminate. Fighting click fraud is making progress and will continue to do so because of 3rd party ad tracker tools which are simply not provided by the big search engines. Search engines make a lot of money from click fraud, as Microsoft has stated “click fraud is likely to continue if it is left unchecked.” In other words online ads must be monitored and must be monitored by a 3rd party ad tracker solution to be able to truly track and prevent click fraud.
The bottom line is that although the search engines are taking action click fraud is here to stay. Search engines are acting based on the reports that they have received from their advertisers. Advertisers receive their information from a 3rd party ad tracker. Simply put, if advertisers were not using ad trackers no money would be awarded and search engines would not be participating as actively in fighting click fraud. It is through quality 3rd party ad tracker tools that have and will continue to improve the quality of clicks received! Simply said preventing click fraud with a 3rd party ad tracker is essential to online advertising.
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- The Worst Threat Ever To PPC
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- New Update – Click Fraud Case Studies!
Due to high demand we have decided to release the first blog dedicated to the ad tracker and click fraud industry. This blog will stay up to date with all of the industry changes along with any reviews that are underway. We will post all updates to the site and reviews here using our blog. We welcome everyone to go ahead and participate in our blog, commenting on any blogs that have been written or write your own blog and we will post it for you.
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