Identifying and tracking examples of fraudulent clicks is the first step to solving the problem. Click fraud is an enormous drain on advertiser resources nationally and internationally, estimated to take up approximately 30% of all pay-per-click advertising spend. With so much at stake, it's no wonder search engines invest so much time and effort in designing solutions.
One of the ways that search engines and other PPC providers have tried to reduce the growing problem of click fraud is by implementing IP replay algorithms. These patterns are designed to pick up suspicious click patterns originating from a unique IP address, which can help detect the existence of click farms and competitor-led sabotage, as well as identify potential fraudsters at the source.
However, this method of trying to detect fraudsters presents a number of problems. First, fraudsters logging in via a dial-up modem, DSL line, or cable modem can almost completely bypass this check because a new IP address is generated with each new online session. In addition, there is a wide variety of IP spoofing software available that can again be used to "cheat" the algorithm. Cookie and session tracking are other methods that search engines can try to detect potential fraudulent activity, but again, there are ways around them for fraudsters.
More comprehensive software is being developed that profiles and reports browsing habits with every click to allow companies to track and monitor suspicious behavior, although many may find this intrusive and inefficient, as anything on a small scale is likely to go unnoticed, based on massive advertising coverage on the Internet.
The issue of click fraud recently made headlines thanks to a class-action lawsuit filed against Google that prompted Google to offer $90 million in potential settlements. Perhaps as an acceptance of their responsibility, Google's offer provides some indication of the scale of fraudulent clicks and their enormous cost to the internet economy.
There are a number of self-help measures that can be put in place to keep an organization out of trouble. The first of these means is to rely on search engine optimization and organic listings. If a website is well and fully optimized, it can eventually achieve a ranking that another website is willing to pay $2.50 per click for. Similarly, there are no click-through rates for organically high rankings, so PPC costs are not applicable. Although the process is significantly more laborious and takes significantly longer to show results, the SEO process is much cheaper in the long run and with an estimated 25-30% of all clicks done fraudulently, an organically high listing can save money that would otherwise be wasted. Fraudulent clicks for more profitable reinvestment.
As the pay-per-click advertising market continues to grow and expand year after year, click fraud is sure to follow. Until an effective way to prevent click fraud is developed and successfully implemented, buyers will continue to lose confidence in the advertising medium and switch to more efficient, less wasteful marketing methods, which would seriously affect search engines and potentially threaten the online economy. Whole.
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