Unless you have been vacationing in Bora Bora the last couple of years, you have heard of the term click fraud. In this article I will be chronicling the tale of two companies; one that recently sued Google for click fraud, and one that wouldnt dream of suing any search engine provider, let alone the biggest of them all. What is the common denominator involving both companies? They both offer click fraud solutions.
For the uninitiated, click fraud occurs when someone clicks on a pay-per-click ad maliciously, without intent to do business with the advertiser. There are two main types of click fraud. In one, a company will repeatedly click on competitors” ads to run up their advertising costs. In the other, an affiliate of an online ad network clicks on ads at its own site to increase its commission. Both people and software are used to click on ads in these schemes.
At this point I assume that some of you reading this article may be wondering why a click fraud solutions company would sue Google for click fraud. So did I when I first saw the story come over the press service. A class action lawsuit was filed in US District Court against Google alleging breach of contract, negligence, unjust enrichment, and unfair business practices – all involving charges of click fraud. This company, a click fraud protection firm, filed the suit in California in the name of an unknown number of plaintiffs for an amount not less than $5 million.
It is important to note that this company makes money by promising protection against click fraud and procuring refunds for client advertisers. The plaintiff in this lawsuit seems especially suspect considering the nature of the business it is in. That this company is accusing Google of having a financial interest in not detecting click fraud is a little bit odd since this company has a definite financial interest in nailing Google for it.
It seems like this click fraud company has a pretty ineffective fraud protection system since they are also an interested party in the suit. As an AdWords advertiser, this company counts itself among the plaintiffs deserving damages.
On the other side of the isle is another click fraud solutions provider out of the UK called Click Fraud 247, which wouldnt consider suing Google. Why? Because their solution actually works! When interviewing the founder of Click Fraud 247 (www.clickfraud247.com Ashley Woodyatt, I pointedly asked him about this other companys lawsuit. His answers to my questions were quite revealing.
I would lose all credibility as a company if I were to up and sue Google for click fraud if I claimed that I could prevent the problem, says Woodyatt, I know that my fraud solution would never allow a click problem to get out of hand as that company alleges.
When I asked Woodyatt about the fact that this company also named itself as a harmed advertiser his reaction was abrupt. For me that is huge red flag, scoffed Woodyatt. They claim to have a quality solution yet their saying that they are victims? To say that their strategy is ill advised is an understatement. Their sales people must be having a rough go of it when theyre talking to potential new clients.
Click fraud is a very serious problem, warns Woodyatt, many companies are unknowingly getting hurt by substantial fraudulent activity. It is a pity that the actions of other click fraud companies may trivialize what is a real issue. Woodyatt then went on to describe case after case where clients would come to him with considerable issues involving click fraud. His solution would solve their click fraud issues going forward but the past damage these clients had endured was daunting.
So just how big of a problem is click fraud? At this point, no one knows for sure. Estimates vary widely with some experts claiming that an astonishing 50 percent of all clicks are fraudulent. However, the general consensus is that between 10 and 20 percent of all clicks are bogus and the major pay-per-click (PPC) players have taken notice. In its IPO filing, Google acknowledged “We are exposed to the risk of fraudulent clicks on our ads. However, the PPC companies are reluctant to discuss their detection methodologies for obvious reasons.
Click fraud is “the biggest threat to the Internet economy.” Google”s chief financial officer, George Reyes, said during a December investors conference. “Something has to be done about this really, really, quickly because potentially it threatens our business model.”
There are two ways to effectively address the click fraud problem, many experts say. The search engine companies must increase their monitoring capabilities, and companies like Click Fraud 247 must continue to develop and enhance their click fraud solutions. We are always on the lookout for the next evolution of click fraud, states Woodyatt, unethical behavior and outright criminality are a fact of life and one must be vigilant.
Despite the challenges posed by the underworld of click fraud, search engine marketing continues to be of great benefit to many companies across the globe. People should not be scared away from using search engine marketing as a means to promote their services or products. They simply must find the Woodyatts of the world and protect themselves.
Bruce Prokopets
Executive Editor
Press Direct International
www.pressdirectinternational.org
