Google And The Click Fraud Menace


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  • Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.
  • Google And The Click Fraud Menace

    1. 1. Google and the ‘Click Fraud’ Menace<br />
    2. 2. Web search companies were being accused of overcharging for invalid clicks<br />
    3. 3. Introduction<br />Cost per click : 2002<br />Value of total settlement : US$ 90million <br />Comment by Yahoo about their click protection system<br />Settlement amount : US $90million low as compared to companies total revenues $6.1billion , income $1.5billion<br />
    4. 4. Background<br /><ul><li> In 1994, internet advertising began worldwide.
    5. 5. Internet is only electronic ad supported medium to record revenue of $5.9 Billion in Q1 ’10, whereas in 2002 annual revenue was $ 6.1 Billion.</li></li></ul><li>© IAB Revenue Report 2009<br />
    6. 6. Internet Advertising<br />Internet medium opened up possibilities<br />Digital advertising<br />IA Target specific<br />Ad tools used<br />PPC<br />Top Players<br />
    7. 7. Google’s AdWords Program<br />Advertisers to bid for keywords<br />Highest bidder’s ad placed on highest point<br />Nominal one-time activation fee<br />Cost-per-click (CPC) pricing<br />Cost-per-impression (CPM) pricing<br />
    8. 8. Google’s AdSense Program<br />Program for websites to display relevant Google ads on its content pages<br />Google’s technology would match website content with relevant ads<br />Fee paid by the advertiser shared by<br /> Google and the website publisher<br />Global business could display local advertising with no additional effort<br />
    9. 9. Google(figures in US$ Million)<br />Yahoo!(figures in US$ Million)<br />
    10. 10. Market shareOnline search engine companies <br />(<br />
    11. 11. Phenomenon of fraud case <br /><ul><li> Click fraud refers to clicking of online ads on purpose without a genuine intention of buying or knowing more about the product or service.
    12. 12. Invalid clicks done manually or through software programs called ‘online bots’.
    13. 13. Firm’s competitors generating invalid clicks.</li></li></ul><li>Click fraud continued <br /><ul><li> Another form of click fraud-through Google Ad sense program
    14. 14. In order to remain undetected, the perpetrators of click fraud closely simulated genuine human visitor behavior.
    15. 15. Click fraud caused an increase in the cost per click for keywords.
    16. 16. Search engine based their keyword pricing on the popularity of the search term and how many people were competing for it.</li></li></ul><li>QUANTIFYING CLICK FRAUD<br />The massive threat or opportunity was already identified by the giants like Google and Yahoo.<br />Dec 2004 Google’s CFO George<br /> Reyes admitted the threat to Google’s business.<br />Analysts found it tough to figure out the actual number of click frauds taking place.<br /> Vice President of Coremetrics admitted the cost of search advertising that went up due to this due to the PPC programs.<br />In Aug 2005, research report by estimated that as much as 29.5 % of PPC clicks could be fraudulent.<br />
    17. 17. QUANTIFYING CLICK FRAUD Contd..<br />Most analysts however estimate it to be in the range of 5% - 20% on the internet adds.<br />In April 2006, the click Fraud Network which prepared a click fraud index estimated an industry wide average to be 13.7%, whereas for well known search engines like Google and Yahoo it was around 12.1.<br />Advertisers and analysts felt the need of an individual organization to access and coordinate the level of fraudulence to counter it.<br />
    18. 18. The Bi-directional aspect:<br />Massive losses for the industries like Google and<br /> Yahoo.<br />Huge opportunity for hackers and other fraudulence creators to earn quick bucks.<br />Researchers at “Trend Micro” by studying the cybercriminal model authenticated that a medium sized ‘botnet’ could earn hackers millions of $$ a year.<br />Example :<br /> - Search related to facebook ------ $ 0.0072.<br /> - Search related to Loans or ------- $ 2.<br /> Home Based Business<br /> Opportunities<br />
    19. 19. Combating Click Fraud:<br />Shuman Ghosemajumder, Business Product Manager for trust and safety at Google stated several factors:-<br /> - Duplicate IP address.<br /> - User session information.<br /> - Network information.<br /> - Geo-targeting and browser information.<br />Through a sophisticated team comprising of PhDs in AI, Machine Learning & Statistics.<br />In Nov 2004, Google filed a case against Auctions Expert International LLC for fraudulent clicking of text based adds on company websites.<br />
    20. 20. FUTURE OUTLOOK<br />Closely monitor customer conversion ratio with corresponding changes in the pay per click ratio<br />Installation of fraud tracking tools<br />Blogs, images, press releases and video content became popular<br />Consulting services and software products were offered<br />Absence of clear standards for determining what a fraudulent click was<br />
    21. 21. Contd…<br />Lack of third party clearing house<br />One solution was to have an independent auditor<br />Slowdown in search advertising revenue growth by 2010<br />
    22. 22. Thank you…<br />