Emma Connors and Mark Jones have written about click fraud in today’s Australian Financial Review. Unfortunately the article cannot be viewed online for free. They write that Nielsen/NetRatings is starting research into this issue in Australia. They are going to look at the behaviour of IP addresses, exactly what I said in the same article!

Also quoted is ClickSentinel, which claims that 30% of clicks are fraudulent. I wonder if Shuman Ghosemajumder’s team at Google will look into this claim next. 🙂

This 17-page report from Google’s click quality team makes a lot of sense. Look at the US search engine conference speaker list for the past three years and witness the same names saying much the same things. Most of them represented click fraud detection services. I don’t blame them for promoting their services and I don’t claim to know how good they all were. There had been this figure of 30% click fraud bandied around as an industry norm. I have not seen this in the few accounts I have access to but I am not in a position to guess what it might be.

The Google report on third-party click fraud auditing is critical of poorly substantiated estimates of click fraud. Quote:

Over the last year, these estimates have received widespread media coverage. A different kind of report (from Outsell, Inc.) has also been widely cited for estimating the scope of the problem. But in fact that report did not measure click fraud ? it was an opinion survey of advertisers asking them to guess at the extent of the problem. Thus the report?’s conclusions about the percentage of fraud and financial loss for the industry are essentially a poll of the perception of the size of the problem (with the backdrop of the previous coverage of high estimates) rather than actual size of the problem. This is analogous to estimating crime rates in a country by asking some residents how much crime they think there is, and averaging those guesses to state that number is the actual rate.

The main problem seems to be fictitious clicks of two kinds:

• • Fictitious clicks due to detection of page reloads as ad clicks.

• Fictitious clicks due to conflation across advertisers and ad networks.

The page-reloading behaviour problem is handled very nicely by Visitlab (now defunct). Their reporting shows a visitor’s path through the site and shows the initial paid click and subsequent traversals of the same page as internal clicks. A poorly designed click fraud detection mechanism might show each reload as a separate click.

In the early days of Visitlab, such clicks showed as multiple (suspicious) clicks but no more.

I have not seen the second kind of problem, where each click goes through a third party audit service and clicks within the site are counted, as are clicks arising on another advertiser service such as Overture/Yahoo.

This was seen two days ago at a publisher site and the AdSense is still showing regular ads. Search for the text you can see in the image and find the URL.

It is heartening to read about the formation of a working group comprising the major PPC ad companies including Ask.com, Google, LookSmart, Microsoft and Yahoo!. They will initially define Click Measurement Guidelines, thereby defining a click.

Although this is a start, I’d like to see a consortium of such companies team up with other major web sites such as Amazon and eBay to develop what I loosely refer to as an “IP address score”. It would be a multidimensional, not flat numeric, score, and be available to consortium members to use as an additional input to their own proprietary click quality algorithms. It could have other uses outside this click fraud space.

eMarketer cites a company that is offering a $495, 27-page report on how much money is being lost to click fraud. I think there is money to be made is by writing about the click fraud threat. Now why didn’t I think of that?

At least we agree that there is growing apathy towards CF in advertiser land.

Bruce Schneier has discovered two of the four or five kinds of click fraud as seen in this YAOAACF (Yet Another Obligatory Article About Click Fraud). Nothing new there, but he mentions fraud in online gaming activities and cost-per-action (CPA) ads.

Ah well, that should fulfil July’s quota of click fraud articles.