Identifying and tracking examples of fraudulent clicks is the first step to fixing the problem. Click fraud is an enormous drain on advertisers' resources both 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 fraudulent clicks is by implementing IP repeat algorithms. These patterns are designed to pick up suspicious click patterns originating from a single 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, there are a number of problems with this method of trying to identify fraudsters. 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 on the browsing habits of each click to allow companies to track and monitor suspicious behavior, although many might find this intrusive and inefficient as anything on a small scale is likely to go unnoticed. on the huge coverage of advertising on the Internet.
The issue of click fraud recently made headlines with 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 gives 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 implemented 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 for which another website is willing to pay $2.50 per click. 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, organically high listing can save money that would otherwise be drained by fraudulent clicks for more profitable reinvestment.
Year after year, as the pay-per-click advertising market continues to grow and expand, click fraud is sure to follow. If an effective way to prevent click fraud is not 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 impact search engines and potentially threaten the online economy as a whole.
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