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May 19, 2007
New Research Says Click Fraud is 10-15% of Click Traffic
There is some new research out from Fair Isaac that it says shows click fraud represents 10-15% of advertisers' billed traffic. Nicely timed to make ad-network buyers sweat.Fair Isaac Corporation ... today announced preliminary results of its research study into click fraud in pay-per-click (PPC) advertising. Early results indicate that fraudulent clicks can amount to 10-15 percent of advertisers' billed click traffic. The study applied Fair Isaac's market-proven artificial intelligence and fraud-fighting technologies to assess the scope of the problem and test effective ways to expose fraudulent clicks.If anyone has the full paper, or the company's presentation slides from the InterACT conference last week, please send them by.The announcement was made at Fair Isaac's annual InterACT conference in San Francisco, where Fair Isaac presented a session on its research into click fraud. The company launched the study in summer 2006 with support from the Search Engine Marketing Professional Organization (SEMPO). SEMPO members and non-member pay-per-click advertisers contributed anonymous click-stream data to the study in exchange for analysis of their search engine advertising and potential click fraud.
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It's too bad that advertisers must obsess on click-fraud while simultaneously making too much money to drop the program.
If click-fraud is a more or less constant number and not a one-time bomb dropped by a competitor it is not significant.
ROI is much easier for the advertiser to measure and makes the rate of click fraud irrelevant. The rate of click-fraud is very important to Google but is just an intermediate number to the click customer.
You may find this response from Shuman Ghosemajumder interesting. He's an employee at Google who works on click fraud issues.
http://shumans.com/articles/000053.php