Definition
Click fraud is a type of Internet crime that targets online advertisers. In the execution of this offense, pay per click ads are clicked on to artificially increase the click through rate. Every time the ad is clicked on, the advertiser pays; thus, they are paying for nothing. Click fraud can be used to generate revenue from content match PPC ads, which give a share of their click cost to the website hosting the content. Fraudsters also drive competitors out of the market by wasting their advertising dollars on non-converting clicks, or using up a competitor’s entire daily budget in order to make ads disappear. It is enough of a problem that it is illegal in the U.S. and U.K. and considered a felony in nearly all jurisdictions. Many individuals have been arrested for this offense.
How is Click Fraud is Committed?
There is the automated type of PPC click fraud in which software is specifically designed to emulate humans’ behavior – it sends out robots or “bots” to click on paid listings. Some criminals, both competitors and affiliates, use proxy servers that make it possible for their fraudulent activity to go undetected by filters. This artificial click generation is the most difficult to combat.
There are some click fraud rings that actually hire low-cost employees to click on ads and text links as their entire job. These operations are often found in China, India and other foreign countries, though it happens right here in the U.S. as well. These groups are easier to nab, since the clicks can be traced back to their identifiable IP addresses.
Another common form of AdWords click fraud comes from tricksters establishing dummy Web addresses that display nothing but lists of recycled paid ads. When some unsuspecting Internet user clicks on these ads, marketers get billed no matter where the clicks originate from. These publishers, acting as middlemen, set it up so they get a share of these spuriously generated revenues.
What are the PPC companies doing about click fraud?
Big guns, like Google and Yahoo! are reassuring customers that there is no reason to fret because they have sophisticated algorithms in place that enable them to detect click fraud. They keep the details under wraps so illicit clickers can’t use the information to undermine the system.
To further click fraud protection, Google has also put in place a new pricing plan that is more specific about what they will charge for. Instead of just a click, certain actions are defined, such as purchases or form fill-outs. This is an excellent way for advertisers and publishers to have more control over their marketing budgets.
What should you do about click fraud?
First and foremost, to combat Google click fraud, you should pay close attention to your online campaigns throughout the year – being aware that something is amiss is the first step to preventing it from becoming a disaster. Track all your clicks and check those sites that produce high click rates but no sales or desired actions. If you suspect click fraud, don’t hesitate to contact the search engines. You are likely to be refunded.
How we can help
Call Web.com Search Agency to begin your PPC campaign and be found on the first page of Google today. We will help you combat AdSense click fraud.
Tags: click fraud, pay per click fraud
