CLICK FRAUD INTRODUCTION Click Fraud is getting worse each day Threatens the ROI of PPC Ad Click Fraud Index – 16.2% of clicks are fraudulent Experts should help advertisers ensure high click quality
CLICK FRAUD PAY PER CLICK Whenever an ad displayed by a search engine is clicked, the advertiser pays a small fee for each click. Most often, the link directs the potential buyer to the advertiser’s website.
CLICK FRAUD INVALID CLICKS Advertisers should not be paying for Non-malicious clicks Clicks from spiders indexing sites Human or bot clicks for testing ad campaign Clicks from outside geo-targeted regions
CLICK FRAUD What is Click Fraud ? According to Laudon & Laudon (2010), “Click Fraud occurs when an individual or computer program fraudulently clicks on an online ad without any intention of learning more about the advertiser or making a purchase.” Advertisers are considered to be victims when they are paying for clicks that do not convert.
CLICK FRAUD Who is committing Click Fraud ? It is usually competitors who hire experts to fraudulently click on the company’s ads. CF may be perpetrated either through Clickfarm or by using Clickbots.
CLICK FRAUD Why commit Click Fraud ? “Fraudsters” tries to generate revenue and profit for themselves or 2) hurt a competitor by depleting their ad budget and improving their own adposition 3) weaken companies by driving up their marketing cost or increase cost of acquisition
CLICK FRAUD Recent Statistics Image Credit: Click Forensics ClickForensics quoted: “In Q3 2010, the countries outside North America with significant Cost Per Click traffic producing the greatest volume of click fraud were Japan, The Netherlands, The Philippines and China, respectively.”
CLICK FRAUD Recent Statistics Image Credit: Click Forensics Click Forensics reported that during Q3 of 2010 , “The overall industry average click fraud rate was 22.3 percent”; this is up from 18.6 in Q2 of 2010.
CLICK FRAUD Types of Click Fraud Two primary types Publisher Click Fraud Competitor Click Fraud
CLICK FRAUD ClickForensics’s Seven Ways to Stop Click Fraud 1. Prevent low-quality sites from displaying your ads. 2. Monitor who is clicking on your ads and the quality of conversion against your daily spend. 3. Only display your ads to the geo-location you are targeting. 4. Monitor the time of the day you are receiving poor quality traffic. 5. Identify competitors and block domains and IP addresses and establish special landing pages. 6. Find the keywords that are attracting the fraud or low quality traffic to the site. 7. Engage with an independent click auditing expert.