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February 12, 2005

How big a problem is click fraud, really?

search engines — by TDavid @ 2:32 am PST

When buying clicks from places like Google Adwords, part of the understanding needs to be that some of those clicks will be bogus.

The ruse has different twists, but the end result is usually the same: Merchants are billed for fruitless traffic generated by someone who repeatedly clicks on an advertiser’s Web link with no intention of ever buying anything. Harrison figures she has spent about 200 hours documenting the mischief that drained her budget and diverted customers to a competitor, costing her an estimated $100,000 in sales.

One has to wonder how much effort is being put in to combat this type of fraud? It’s a difficult problem and it seems if advertisers complain, then they can get refunded after an investigation, but what’s the long term solution?

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