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Newsweek On Click Fraud, Search Engine Response

Posted by timothy on Mon Jan 17, 2005 09:08 PM
from the clickie-clickie dept.
prostoalex writes "Newsweek magazine says click fraud is the bane of the search advertising industry. Google and Yahoo! are apparently working on the standardized definition of a "good-faith" click in order to weed out the fraudulent ones. Meanwhile, merchants like Assaf Nehoray are taking their money elsewhere, getting abundant clicks, but no real revenue on Internet advertising campaigns. Newsweek also mentions Google suing a Texas company for placing the AdSense code and then clicking on it in order to run up the revenue. John Battelle says that his friends in the search industry tell him the click fraud is growing and that changes are not too far away."
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[+] Search Companies Team Up Against Click Fraud 84 comments
isabotage3 writes to tell us that the top three search companies, Google, Microsoft, and Yahoo, have teamed up to create an alliance to combat click fraud. The fact that these three bitter rivals can team up shows just how serious the industry has become about preserving the current online advertising boom that is currently underway. From the article: "Click fraud has attracted an increasing amount of attention amid class-action lawsuits and industry studies asserting advertisers have been collectively overcharged by more than $1 billion for bogus sales leads during the past four years. Google and Yahoo contend that those estimates are gross exaggerations generated by opportunistic lawyers and online advertising consultants hoping to cash in on the anxieties triggered by their calculations."
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  • by Anonymous Coward on Monday January 17 2005, @09:09PM (#11391334)
  • Puff (Score:4, Interesting)

    by FiReaNGeL (312636) <fireang3l.hotmail@com> on Monday January 17 2005, @09:10PM (#11391342) Homepage
    Everyone is affected, big or small "publisher".

    But I assure you that it hurts when your 100$ Adword budget goes in a puff of probably fraudulents clicks, with nothing you can do about it. The guys at SEO Chat forum [seochat.com] are not very happy about this, I assure you.

    It's discouraging me of running small-scale Adwords campaigns, honestly.
    • Re:Puff (Score:5, Interesting)

      by iconnor (131903) on Monday January 17 2005, @09:29PM (#11391459)
      Is there any service that advertising can pool their useless clicks?

      To an advertiser, a useless click is a click that hits the adwords landing page and little (or nothing else) and does not mean a sale. If these bogus clicks could then be processed at a 3rd party auditing house, then fraud could be detected and each member could then complain to google about bogus clicks.

      I am sure someone must have thought of this already - I just can't find it listed on google :(
      • Re:Puff (Score:4, Insightful)

        by Eric Giguere (42863) on Monday January 17 2005, @10:03PM (#11391681) Homepage Journal

        But then who polices the advertisers? Is Google supposed to trust you to tell them when a visitor who reaches your landing page converts into a sale? What if you're not selling anything, at least not directly? I can see all kinds of problems at that end, too.

        Really, you're paying Google for traffic. Qualified traffic, yes, but traffic just the same. How you convert that traffic into sales is not Google's worry.

        Eric
        Listen, people: JavaScript is not Java [ericgiguere.com]
  • Darn! (Score:4, Funny)

    by Sebby (238625) on Monday January 17 2005, @09:12PM (#11391348)
    I thought they were talking about Amazon's one-click!

  • Click fraud? (Score:5, Interesting)

    by mistersooreams (811324) on Monday January 17 2005, @09:15PM (#11391375) Homepage

    What exactly is this click fraud thing? I can't really see how it can be exactly defined. Maybe the owners of the website occasionally want to click on their own adverts because (*shock*) the product is actually relevant to their site, and thus to them. In fact, relevance is supposed to be the whole idea of Google's TextAds, isn't it?

    Obviously someone genuinely wanting to click their own ads ten thousand times is rather unlikely, but where do you draw the line? Is this written in a contract anywhere? What about getting other people to click the ads for you?

    This seems to be a very fuzzy legal matter. I'm as pro-Google as the next Slashdotter but I can't see how they have a water-tight case here. That said, I'm not an expert, so perhaps someone can correct me.

    • I know that Google says if you want to check an advertiser out that is showing on your site, or are interested in what that advertiser offers, hover your mouse over the link, then type it into a location bar, don't click the link directly. One interesting side note. The link does not show in Firefox, just IE.

      It's useful to weed out ads that are direct competitors, or ads you would deem inappropriate for your site. Google then has the provision to "lock out" those ads by going into your account and add th
    • Its against your "contract" with Google (that you accept when signing up with Adsense) to click on your ads. Even once. Even to "check" if its working. Thats were the line is.

      "Begging" for clicks, directly or indirectly, is agaisnt the terms of agreement, too. "I have trouble paying my hosting bills, so I added ads to the left, please support us", that kind of thing.

      Don't see the point? Ads can be very profitable. Some keywords go for $0.03, sure. Some go for $7.00, too.

      1- Set up website targeting profit
    • Google AdSense Policies [google.com]
    • Re:Click fraud? (Score:3, Informative)

      by Mistlefoot (636417)
      You are a webmaster and you want to see what the ads link to for relevance. Mouse over and check the status bar for the link and then simply type it into your browser window.

      You've adhered to google's policies AND discovered what the result of that click is. If you are a webmaster and you CANNOT figure this out you deserve to lose any money Google TextAds would have earned you. The policy is simple. Click on the ad yourself and forfeit the right to your earnings.
  • Uh duh... (Score:5, Insightful)

    by jmcmunn (307798) on Monday January 17 2005, @09:16PM (#11391381)

    Who ever thought Google AdWords were any more effective than a pop up ad? The reason so many porn sites use pop ups is that often times they get paid on a "per view" or "per click" basis. Hmmm...if every user has to click the fake 'X' in the top corner, thus sending them to the advertiser, then the referring porn site makes money on a click through.

    Same idea with AdWords. Why would anyone think click through ads are any better? Everyone remember the days when they had the little clients that would monitor when you were online and give you money for every hour you surfed? Ha, how long did it take you to set up a macro to run the mouse while you slept? :-)

    The only advertising that makes you money, is advertising that sells your product. Tricking people into following a link or viewing a page they didn't want to doesn't do anyone any good in the long run. Pay per click can only last so long.
    • Re:Uh duh... (Score:3, Interesting)

      HA!

      "The only advertising that makes you money, is advertising that sells your product. Tricking people into following a link or viewing a page they didn't want to doesn't do anyone any good in the long run."

      And in this posters sig:

      "Get a FREE MiniMac Here! [freeminimacs.com] "

      Scams obviously work as good tricks :)

      • I am in no way hiding where this link leads...no tinyurl crap. Stright up, if you want to click it, then click it. If not, then don't it's as simple as that.
    • This is hilarious, coming from a guy whose sig is a ponzi scheme link. Asshat.
    • Re:Uh duh... (Score:4, Interesting)

      by fyngyrz (762201) on Monday January 17 2005, @09:34PM (#11391490) Homepage Journal
      Disagree. Pay per click isn't the problem. Bad (misleading) ads are the problem; there's no reason to presume that pay per click will die because of these. The advertisers will die, instead. And where's the downside of that?

      There are perfectly reasonable ways to use Google ads, for instance. Describe your product honestly, market your product honestly on the target page the ad leads to, and provide a good and well supported product.

      If you can't be bothered to do that, then you deserve to have your ad budget eat you for dinner, IMHO.

      If you do follow those basic guidelines, then the ads will bring potential customers by your pages, and some percentage of them will actually purchase your product(s) and/or service(s).

      There's no magic to this -- unless you're a fraud right out of the gate anyway.

      That's not to say that you can't work the system in such a way as to make it legitimately benefit you. For instance:

      Some of my competitors do such a poor job, I decided to put Google ads right on our sales pages so our customers could easily find our competitors. The results they get are so yucky that I consider them to be marketing for us, in a reverse sort of way. There's nothing on our pages that say "go look at how crappy our competitors are, click the ads and then come back" or anything like that... the ads just sit there, advertising software similar to ours... and our sales picked up about 20% over four weeks once we put the ads on. Apparently, our customers are savvy enough to know where they've been -- and how to come back -- when they wander off to look at these other folks. And the funny thing is that we get paid for all this. Now, if our competitors are silly enough to keep advertising a shoddy product, why, I'm simply delighed to host their ads. :)

      • Re:Uh duh... (Score:3, Insightful)

        by kiddailey (165202)

        The advertisers will die, instead. And where's the downside of that?
        The downside is that sites that use advertising in a (sometimes last-ditch) attempt to recoup hosting/bandwidth costs will no longer be free.
    • I would much rather click on a nice google ad than a hyperactive bouncing you may hve won a pc with a virus that could be running twice as fast if you install cpurocket with antispyware suite of free ipods.
  • by PornMaster (749461) on Monday January 17 2005, @09:18PM (#11391397) Homepage
    I wonder how much of getting away with this is done by using open proxies laid down on zombies by $WORM_OF_THE_MONTH.

    Obviously the SEs know to watch for 100+ adwords clicks in 15 minutes from the same IP (though maybe this is harder due to decentralization of the data centers and another reason for them to get a dark fiber network - see the article from earlier today) but if the clicks appear to be coming from broadband users across the US, I could see worms playing a big part in this, relatively undetectably.
  • by dpplgngr (63186) on Monday January 17 2005, @09:19PM (#11391400) Homepage Journal

    For any affiliate program, as that community operates like the mos eisley cantina. In fact, it's expected, and has been dealt with over and over. Google should talk to the old guard on this one.

    I'm sorry to admit that gfy [gofuckyourself.com] is the authoritative source on this problem; no joke!

  • by Camel Pilot (78781) on Monday January 17 2005, @09:20PM (#11391405) Homepage Journal
    A while back I had a frustrating exchange with Overture (aka Yahoo) on "Click Protection" on their PPC service. In the meantime I have back engineered their highly touted filter and it is a joke. I could write click bot with a few lines of Perl and a list of proxy servers. My experience has been that they will not pay attention to you until you have goon thru the trouble of documenting the event. Here is a summary of my experience.

    Overture claims to provide "Click Protection" for their pay-per-click advertising service. In reality they fail to prevent the most basic and easiest to detect non-authentic clicks - that is competitors clicking on competitors. They do not even filter out a customer clicking on their own links from within the Overture manager. Nor do they provide a method for an advertiser to test their own ad rendered URL's - a necessary function as a means to test the validity of an entered URL.

    Since filtering out such clicks would be simple and straight forward using established cookies or session id's - I can only speculate the reasons for not patching this obvious flaw and question the "sophistication of Overtures "Click Protection".

    For a complete write up see Overture Click Protection Paper [perlworks.com]
  • would it hurt the submitter to at least explain what the hell click-fraud is?

    if i use a keyboard to simulate a mouse-click, is that considered click-fraud?

    if so, this could really put open source projects like GNOME Accessibility in a dicey situation! ;)
  • by Anonymous Coward on Monday January 17 2005, @09:21PM (#11391414)
    I am a Adsense publisher, which means I show thier ads on my site. I earn quite good money (more than two thousand US dollars a month) for doing next to nothing. What concerns me is that they say "oh poor advertisers" when publishers get just as hurt.

    1) You can loose, a lot, of revenue because of advertisers switching off.
    2) You can void all your earnings if Google detects fradulant clicks (say a compeditor clicks the hell out of your ads).

    It does suck for publishers and advertisers, but as it is one of Google's (and others) major revenue sources then I would have thought they would take even more measures to make sure this kind of fraud didn't happen. Because at the end of the day they do rely on both publishers and advertisters. And if it turns to crap Google (etc) will no longer be the middle man.
    • The relevance of the advertising also needs to be improved, making them more useful then they currently are. If they 'added more value' to the site for the publisher, then maybe they would be used more, and abused less.

      Suggestion:

      I am an Adsense publisher for a local community based website.

      I would like visitors to see advertising on my site with is relevent to my intended target audience. This could be done by allowing the publisher to add additional keyworks to the Adsence search. (eg. locality name
    • Given that the majority of Google's revenues come from advertising, I think it's safe to say that they're devoting resources (and brainpower) to fixing this problem. The nice thing about AdSense is that it lets small website owners like myself get rewarded for putting up free content with no real hassle on anyone's part. It complements the open source model in my mind.

      Most AdSense sites don't earn a lot of money, but it can easily pay your hosting costs if you get enough traffic. Sometimes you hit a lucky

    • Does participating in adsense improve your web site's ranking in Google's search engine?
  • by xmas2003 (739875) * on Monday January 17 2005, @09:23PM (#11391424) Homepage
    While most of the slashdotters laughed [slashdot.org] at my christmas lights/webcam hoax [komar.org], there were a handful (probably fueled by the insinuations in the press reporting) that claimed I cleaned up on my Google Adsense Ads. Nothing could be further from the truth (I'm not quiting my day job!) which I document in my media updates [komar.org] and I was operated totally by the rules of the program as documented in my two cents on Google Adsense. [komar.org]

    So while YES, there is a lot of fraud in this area, be careful about saying everyone running Google Adsense is "bad"

    • interesting stuff... I didn't know the lights thing was a hoax. As for AdSense, I am happy with its performance (and I have used banner type ads over the years). It makes me a bit of money, it's honest, and the ads are not intrusive so I really have zero complaints.
  • Newsweek also mentions Google suing a Texas company for placing the AdSense code and then clicking on it in order to run up the revenue.

    1. Place AdSense code
    2. Click
    3. ???
    4. Profit!
    5. Goto step 2.
  • Hilarity ensues! (Score:4, Insightful)

    by davew2040 (300953) on Monday January 17 2005, @09:42PM (#11391552) Journal
    To me, it's absolutely hilarious that much time and money is being spent to figure out how to improve a business model that's fundamentally idiotic.
  • by fermion (181285) on Monday January 17 2005, @10:01PM (#11391660) Homepage Journal
    I simply never understood why the metric for web ads are so different from the metric for all other media ads. I mean in newspapers and television and magazines, the advertisers pays for the potential to reach the viewing or subscriber base. It is possible to guess how good these campaigns are doing, but the continuation of the campaign is often based on demographics, not how many people come in and say, hey, I saw your ad on Survivor and wanted to pick up your product. Advertisers want to create a personal connection to the consumer, and this is done by sponsoring content the target consumer desires.

    Now it could be said that web advertising is more like direct mail. A firm pays an ad agency to create copy, the post office to send stuff out, and hopes for enough responses to the campaign to generate the profit. If the campaign fails, maybe the ad agency receives some flack. But the post office is not going to refund money because several hundred of the recipients happened to work for a competitor, or because a third of the envelopes were discarded unopened.

    So where did this concept of one click one sale, or one click one payment. What happened to the concept of sponsoring good content in the hopes of generating a connection to potential customers. By all accounts TV and print ads are increasingly worthless. Can web ads be any worse? Could the problem be that the ad agencies or advertisers are not taking time to understand the medium? Are all web advertisers so fly by night that they need a sale today because tomorrow they will have run off to tahiti with the receipts?

    • I agree... I always found it amusing that web addresses are all over the place on billboards, magazines and newspapers, but I have to click on a web advertisement to figure out what company is peddling what.

      When you see an "Eat at Joe's" sign next to a train station that you walk through every day, you're more likely to eat there. Likewise, there needs to be a category of web advertisement that builds a brand based on a logo or catchy graphic.

      Hell... drug companies advertise and sell drugs without even te
  • I've never liked the pay-per-click model.

    It only really has value to a few select portals that have market share. Everybody else gets screwed. The pay-per-click model also compensates for advertisers' lack of innovation or foresight. If their ad message sucks, they don't pay, yet they consume prime real estate that could be better served by a more thoughtful advertiser unwilling to merely randomy throw money around in impractical bid amounts. So with this model, web sites lose revenue because of an adv
  • It seems almost shocking to me that people are clicking on these ads, and some are actually buying the products or services.
    I guess I am just being naive and ignoring impulse shopping, but I can't imagine someone seeing an ad and actually purchasing a product without putting any real thought into it.
    I am so thankful for things like Adblock, it helps bring back some sanity to the web.
  • by Spy der Mann (805235) <[moc.liamg] [ta] [todhsals.nnamredyps]> on Monday January 17 2005, @10:44PM (#11391931) Homepage Journal
    >click fraud is the bane of the search advertising industry

    Click fraud is the bane of the USELESS CLICK-THRU ADVERTISING industry. Use targetted banners, of both online and offline products. Get smarter, dammit.

    If I see a coke ad on a hot sunny day, i'm more eager to buy it than to click a stupid "punch the monkey" ad.

    How about this. In say, long scientific article, who the heck will pay attention to a banner on the top of the page, rather than in the middle?

    Common sense, boys. You wanted instant revenue. There's no such thing.
  • Bill Gross's new startup Snap.com [snap.com] has a great new advertising model that solves the click fraud program.

    They offer traditonal online advertising options such as charging for the number of times a listing is displayed, and a pay-per-click model (That Gross originally pioneered with Overture).

    Snap's big contribution to online advertising is "Pay-Per-Action". They track a user's click-stream from their search engine, to the site, and track a user's movements there. So a bookseller can agree to pay 2% of
  • CPM has the benefit of costing bandwidth. To show 100,000 CPM, it requires 100,000 pageviews. Provided the image is loaded off a 3rd party's server, you can check the IP, referrer (not a dummy page, but actual page on the site), and rate.

    Affiliate doesn't get as many clicks... but actually translates into cash.

    Problem is, per click is cheap. They hand out a penny (or fraction) each time they get a click. Easy to track, monitor.

    But not an effective business practice.

    IMHO these companies weren't well
  • by WoTG (610710) on Monday January 17 2005, @11:26PM (#11392148) Homepage Journal
    I've used google adwords for a couple small campaigns. I suspect that I've been a victim of "click fraud" on the content network -- that's where your ads appear on third party websites. However, on the Google search network, the only entity who directly benefits from clicks is Google themselves. I'm pretty comfortable with the traffic I get from the search clicks.
  • by ajs318 (655362) <[ku.oc.dohshtrae] [ta] [2pser_ds]> on Tuesday January 18 2005, @09:09AM (#11394409)
    Paying just to get people to click on your advert, regardless of whether or not they actually buy anything, is a broken business model.

    As far as I am concerned -- and I am sure I am not the only one who feels this way -- every single advertisement anyone tries to show me is unwanted. In fact, I may well decide never to buy any product or service from that company just on general principle. After all, I know that company spends money on advertising which they could spend on making a better product. So if you have ever spent a single penny trying to show me an advertisement, then you have wasted that money. Harsh? Maybe, but that's the way you turn out when you were raised watching the BBC.

    I won't be guilt-tripped with talk of how advertisers pay for this and pay for that. I never asked them to pay for it! I am the sole custodian of my destiny. I am not going to buy anything from anybody who advertises, period. I personally see no need to waste my bandwidth downloading an advertisement when I am only going to ignore it -- hence the Squid proxy and moderate-to-heavy use of Firefox's image blocking feature. Not just on the Internet either; I leave the room while adverts are on the TV.

    If I was feeling really malicious, I might actually write a quick perl script to put in a few hundred bogus clicks against a really egregious advertiser. But on the whole, I most probably wouldn't be bothered; it's too much effort for too little return.
    • Why would anyone do such a thing? They could easily simulate it using software. That would be cheaper for many reasons. They don't have to hire all those people. They can do it all using one or a few computers instead of many. They need a lot less space and they have smaller energy bills.
      • by shawb (16347)
        I'm not quite sure about the sweatshop type model, but I have read about a few places that have a lot of people just clicking on ads for a few hours a day. I guess it's similar to the "hit the monkey and win" type ad click racket, except people actually get paid a small amount for a lot more clicks.

        Or it could even be something like free internet access if you just click on banners for X amount of time per day. I think the reason that they don't simulate it with software is that actual people clicking
        • by britneys 9th husband (741556) on Tuesday January 18 2005, @02:57AM (#11392997) Homepage Journal
          I think you're on to something with the "hit the monkey" model. If you think about it, Google click fraud has a lot in common with crapflooding Slashdot. In both cases, you have a malicious user trying to do something (e.g. post a comment or click on an ad) far more times in a short period of time than any legitimate user ever would. It becomes a cat-and-mouse game. The difference is that with Google ads, the stakes are much higher, and the techniques used (both by the malicious users and the site trying to stop them) are more sophisticated.

          An obvious thing to look for is lots of traffic coming from the same IP or subnet. That's why Slashdot has IP bans, makes you wait 2 minutes before posting another comment, etc. Google of course can look for similar patterns. Therefore malicious users need to make their traffic look like it's coming from all over the place instead of just one computer. The GNAA used to crapflood Slashdot by compiling lists of hundreds of open proxies and writing a script to have them post comments all at once (Slashdot no longer allows open proxies to post). We can assume Google filters out ad clicks from anonymous proxies. So now the malicious users need a way to recruit hundreds of computers, preferably from lots of different subnets, and without using open proxies. You can do this by paying people to click ads from their computers, and "hit the monkey" is probably the cheapest known way to do this. If you're making more money on clicks than what you're paying your army of clickers, you'll make a profit.

          Now, I suppose you could also write an automated program to do the same thing, but that would be called a "virus" or a "worm," and these things tend to attract a lot of attention from various law enforcement agencies. Better to pay people a couple cents to hit the monkey than go to prison.
    • Re:Cycle. (Score:3, Funny)

      by Technician (215283)
      Phantom clicks > No Sales > Advertisers Decrease > Price Per Click Drops > Google goes bust > Phantom Clicks Stops...

      • by khrtt (701691) on Tuesday January 18 2005, @01:42AM (#11392761)
        Do you realize ads subsidize and offset a lot of costs for the consumer?

        Yeah, like Google and television. And not much else. Now, since we are paying for cable in any event, I doubt the cable company would have trouble surviving without the ad revenue. And as far as Google is concerned, there were search engines before anyone ever thought about running an internet company based on ad revenue. They got their money elsewhere. Also, Google is the only successful internet business with an ad-based revenue model. Dotcom is long dead, remember?

        Oh, and don't forget, it's the consumer who ends up paying for the ad campaign, which more than offsets the offsets to the costs of the consumer that you are talking about.

        If you ask me, all advertising should be made illegal. Starting with spam, of course. I doubt the economy would ever even notice. Of course, the parasites in the advertising industry will have to go find real jobs!

        OK, enough trolling, time to go read "Das Kapital".
      • Do you realize ads subsidize and offset a lot of costs for the consumer?
        Do you realise that the cost of advertising campaigns is borne by the consumer?

        The more advertisements I see, the more I come to realise the BBC really is worth the licence fee.