Identifying and monitoring click fraud instances is the first step towards eliminating the problem. Click fraud is an enormous drain on the resources of national and international advertisers and is estimated to occupy around 30% of all pay-per-click advertising spending. With so much at stake, it's no wonder search engines spend so much time and effort developing solutions.
One of the ways Search Engines and other pay-per-click program providers are trying to curb the growing problem of click fraud is by offering IP address duplication algorithms. These formulas are designed to detect suspicious click patterns emanating from a single IP address; this can help uncover the existence of click farms and competitor-led sabotage and identify potential scammers at source.
However, there are a number of problems with this method of identifying scammers. First, scammers logging in via a dial-up modem, DSL line, or cable modem can bypass this check almost entirely, as a new IP address is created, as with every new online session. Also, a wide range of software is available for changing IP addresses that can be used to 'cheat' the algorithm again. Cookie and session tracking are other ways search engines can try to uncover possible fraudulent activity, but there are still ways for scammers to get around them.
More comprehensive software is being developed that profiles and reports the browsing habits of each click to enable companies to monitor and track suspicious behavior. Go unnoticed based on the extensive advertising coverage on the internet.
The click fraud issue recently made the headlines with a class action lawsuit against Google that prompted Google to offer $90 million as a possible settlement. Perhaps recognizing its responsibilities, Google's proposal finds a way to suggest the extent of click fraud and its huge costs to the internet economy.
While the process is significantly more laborious and takes significantly longer to see results, the SEO process is much cheaper in the long run and with an estimated 25-30% of all clicks being fraudulently performed, a high organic listing can save money, which otherwise can be drained by click fraud for more beneficial reinvestment.
Every year, as the pay-per-click advertising market continues to grow and expand, surely click fraud will do the same. Unless an effective way to prevent click fraud is developed and successfully implemented, buyers will continually lose their trust in the advertising medium and turn to more effective, less wasteful marketing methods that can severely hit search engines and potentially threaten the online economy.
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