Reality of Pay
So, what is click fraud and how does it occur?
Click fraud occurs in pay per click online advertising when
a person, automated script, or computer program imitates a legitimate
user of a web browser clicking on an ad, for the purpose of generating
an improper charge per click. Click fraud is a crime, plain and
Advertisers are being cheated and the search engines appear
to be sitting on the sidelines, leaving much of the responsibility
for detecting click fraud with advertisers, the majority of whom
lack the tools and knowledge to detect it.
Click fraud is also the single biggest threat to companies like
Google and Yahoo, whose digital empires are largely dependent
on their advertising revenues. Google's $6 billion-a-year advertising
business is especially at risk. Despite the threat, or maybe
because of it, Google is saying little about click fraud and
the pay-per-click concept as a whole. In fact, click fraud losses
have surpassed the total loss attributed to credit card fraud
in the U.S.
Do the current click fraud problems have the power to slow the
growth of pay-per-click search advertising or even bring it to
a screeching halt?
Well, that's hard to say, but the industry as a whole is certainly
being crippled by this problem. Pay-per-click may not be the
future. Many advertisers are now starting to look at advertising
options that offer an uncorrupted alternative. Flat-fee advertising,
pay-per-percentage, and pay-per-action are all possibilities.
Pay-per-click advertising is expensive. There are a number of
companies who spend $5,000 to $10,000 per month on paid search
marketing. Competition is fierce with many keywords costing $5
per click or more.
The problem is then compounded when you consider that 20 to
35 percent of those advertising dollars are wasted on fraudulent
clicks. Just imagine. If you are paying $1,000 dollars per month
to advertise on Google, $200 - $350 of those dollars are wasted
on click fraud.
The rules in search engine advertising are shifting and the
winners are adapting. As for Google, Yahoo, and MSN, you can
definitely expect to see some changes being made with their paid
search programs in the near future. Cyber crime is still a crime
and law enforcers are finally starting to take these problems
Meanwhile, start working with an established firm that understands
search engine optimization and can prove it. The proof is the
client list. Their list should show at least one hundred clients
who rank on the first page of Google, Yahoo, and MSN. These clients
should rank on the first page in at least 2 or 3 categories.
This verifies that the search engines are seeing your entire