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Pay per click (PPC) advertising continues to gain popularity in the online marketing
world as an effective and inexpensive way to drive targeted visitors to web sites.
Research firm eMarketer reported that between 2002 and 2003 the paid search listing
market grew 175 percent. Major trusted search properties such as Google, Overture,
FindWhat.com, and Kanoodle, all offer PPC campaigns in which you pay only when
someone clicks through your banner ad or link. But PPC also has an enemy--click
fraud--and understanding what it is and what to do about it should also be a key
part of your PPC campaign.
What is Click Fraud?
Click fraud is when someone or something generates illegitimate hits on your
banner or text advertisement causing you to pay for worthless clicks. AS PPC
campaigns have grown in popularity and keyword prices and bidding have become
more competetive, click fraud is on the rise.
Online marketers are becoming increasingly worried about the prospect of click
fraud. According to CNET News, some marketing executives estimate that "up
to 20 percent of fees in certain advertising categories continue to be based
on nonexistent consumers in today's search industry."
This estimate is certainly unsettling for advertisers who, recently, have been
paying hefty amounts bidding on desirable search terms. Financial analysts report
that in the year 2004 advertisers are paying an average of 45 cents per click.
Compare this to 40 cents in 2003 and 30 cents in 2002; the bidding wars continue
to rise.
Who's Doing it and Why?
Click fraud perpetrators are most often motivated by trying to increase revenues
from affiliate networks or attempting to damage competitors' revenues by forcing
them to pay for worthless clicks. The Google Adsense program, in which affiliates
receive payment for clicks whether they are real or not, has caused great concern
for Google and has intensified its focus on click fraud.
Those engaged in click fraud use a variety of techniques to generate false
clicks. Low cost international workers from all over the world are hired to
locate and click on ads. The Times of India provided investigative reporting
on payment for manual click fraud happening in India. Unethical companies may
pay their own employees to click on competitor ads. Last but not least, click
fraud can be generated by online robots programmed to click on advertiser or
affiliate ads. Some companies go to great lengths creating intricate software
that allows for this to happen.
How Can You Deter It?
Many advertisers know about the possibility of click fraud but generally haven't
done much in the past to prevent it. Some feel that if they complain to any
of the search conglomerates, it could ruin their free listings. Others feel
like the problem is beyond them.
"It is a bigger problem, but folks just don't want to take the time to
track it down because it's a complex problem," stated John Squire, of web
analytics firm Coremetrics, to CNET. "Given that some of the largest marketers
manage up to 1 million keywords in a campaign the data can be difficult to crunch."
Companies who do understand and report click fraud to search engine properties
have had success receiving refunds for fraudulent clicks. For those advertisers
who want to address the possibility of click fraud in PPC campaigns, good option
do exists. At the most basic level, advertisers can use general auditing; many
have been known to compile lists of sites that generate high numbers of clicks
but not sales. This will indeed put up a red flag.
On the other hand, because click fraud is advancing at such frequency, click
fraud detection companies and software have been popping up all over the country.
Let's take a look at some of the options:
ClickDetective - ClickDetective allows you to track return visitors to your
site and alerts you if there is evidence that your site may be under attack.
Its reports show you every click in real time rather than a summary hours later.
Who'sClickingWho.com - This fraud detector tracks all PPC search engines, detects
multiple IP's, and even pops up a "ClickMinder" after a potential
abuser clicks repeatedly over five times.
BogusClick - BogusClick can help advertisers determine competitor IP addresses,
originating PPC search engines and/or partner sites involved, as well as keywords
used.
Clicklab - Clicklab employs a score-based click fraud detection system that
applies a series of tests to each visitor session and assigns scores. Calculations
are made to indicate bad/good sessions to show an advertiser the quality of
traffic.
Click fraud is a big problem in search engine marketing that's only going to
get bigger in the future. It is wise for any online advertiser to implement
some auditing system. Why continue to waste precious campaign money?!
About the Author:
Hollis Thomases is the President of Web Ad.vantage, Inc., an online marketing
firm specializing in search engine optimization, paid search engine marketing,
and online media buying. The Web Ad.vantage Inc. site was named by Forbes magazine
one of its "Best of B2B Sites" for media and advertising. An award-winning
entrepreneur, Hollis Thomases has been honored by CNN and is also a contributing
writer to ClickZ. |
