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Click fraud remains a growing problem for search engines and online advertisers, according to a study by US-based consultancy Click Forensics.

The research, based on data from 1,300 online marketers, said average click-fraud rates had risen to 14.1% in the second quarter, up from 13.7% in the first three months of the year.

Highly priced search terms (classified by the firm as those costing more than US$2 per click) were unsurprisingly targeted more than others, with an average fraud rate of 20.2%.

Click Forensics said the greatest percentage of click fraud, more than 88%, originated within the United States and Canada.

Outside North America, the greatest amount came from within India, which saw a 26% increase in the second quarter.

The firm also found that tier one search engines such as Google had the lowest click-fraud rate, although its average fraud rate of 12.8% increased from 12.1% in the previous quarter.

Tier two and tier three search providers had higher rates (20.3% and 27.1% respectively) but these had fallen from 21.3% and 29.8%in the three months.

The statistics come at a time when click fraud is coming under the spotlight as firms focus the returns they are getting from pay per click ads.

Market research firm Outsell recently estimated that click fraud cost advertisers US$800 million last year.

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Published 18 July, 2006 by Richard Maven

529 more posts from this author

Comments (1)

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Corey Katir, Manager at iqbator

Why you need to Fight Click Fraud

I have been reading and thinking a lot about the dilemma of Click Fraud. I
believe Click Fraud is more of a danger to existing Google AdSense
publishers who are honest than Google.

I also read about eBay promoting click fraud with allowing people to place
dishonest ads. Shame on eBay!

See below:

http://www.e-consultancy.com/news-blog/361351/ebay-sells-adsense-click-fraud-plays-with-fire.html

also see:

http://www.bloggingstocks.com/2006/07/10/click-fraud-for-sale-on-ebay/

I believe Google has created tremendous value with Google AdSense. Google
and Google AdSense Team should be congratulated for such achievement.

Let me show you how I mean this.

Here is my reasoning:

First, I like to pose this question:

How much is your website worth if you generate revenue from Google AdSense?

Let's say your website makes a good $30 per day on average.

This is how we calculate the value of your website:

Yearly income = $30 x 30 x 360 = $32,400

Value of the Website= $32400/interest rate = 32400/.07 = $462,857 (this is
assumed that the income will never end and is good for ever

Of course if the income grows, the value will be even more)

How many websites do you think make over $30 per day? If the answer is say
10,000. Then total value created is: 10,000 x $462857 = $4,628,570,000.
That is more than $4 Billion.

Google should be congratulated for creating such a wealth.

I am 100 percent sure not many honest AdSense Publishers are aware of this
value.

If they knew, they would also be more protective of the existing AdSense
system and the integrity of the AdSense system. Hence, I believe Google
should plan a campaign to educate the honest Publishers of such value and
the fact that Click Fraud can jeopardize this value.

If the Honest AdSense Publishers recognize this value and also recognize the
danger that such value could be jeopardized by Click Fraud, they will take
action.

This might relieve Google from Burden of fighting Click Fraud alone.

I suggest AdSense Publishers boycott eBay. We must fight along Google to
eradicate Click Fraud.

Thanks for reading

Corey Katir

http://www.iconocast.com/

about 10 years ago

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