Click Fraud in Pay Per Click Advertising

Click Fraud in Pay Per Click Advertising

For any advertiser running pay per click advertising, whether they be a local dentist or a major corporation like MiillerCoors and AIG, click fraud has always been a major concern but seldom something that was acted upon – until now.

According to the Association of National Advertisers (ANA), businesses are losing $6.3 billion a year to so-called “click fraud.” Wikipedia defines click fraud as a type of fraud that occurs on the Internet in pay-per-click (PPC) advertising when a person, automated script, or computer program imitates a legitimate user of a web browser by clicking on an ad for the purpose of generating a charge per click without having an actual interest in the target of the ad’s link. The report by the ANA has prompted advertisers to fight back against click fraud.

A growing number of companies like MillerCoors and AIG are now starting to force websites and search engines to more aggressively combat click fraud by demanding proof that their ads have been seen by real people and adding clauses into their contracts stipulating that they will only pay for ads that were clicked on by humans.

“We don’t want to be paying for non-human traffic,” said Mark Clowes, global head of advertising at American International Group Inc , the largest commercial insurer in the country.

According to eMarketer U.S digital advertising revenue is slated to reach $59 billion this year. And a lot of that is through pay per click advertising. Of course some publishers are not happy with the shift as it shifts fraud costs from advertisers to them; however, it does give them an urgent reason to minimize click fraud as much as possible.

Other publishers have been aggressively working to combat click fraud for years. These publishers include Google, Facebook, Microsoft, Yahoo and AOL. Within Google’s Ad Traffic Quality Resource Center there is an entire section dedicated to click fraud and Google’s proactive and reactive measures to prevent it.

Click fraud will continue to be a major priority moving forward especially for the major search engines like Google, Yahoo and Bing who rely on the steady stream of income from pay per click advertising.

About Alan Moore: Alan started his career in 1999 as an Marketing Consultant and is the owner of www.ExtraPatients.com. Over the years, he has migrated his focus of expertise to everything digital. His mission is to help you increase your revenues and decrease unproductive advertising expenses through proven, online marketing strategies. He manages over $3,600,000 in yearly marketing budgets and has worked with local businesses, agencies and the US government. Give him a call to schedule a Free Online Marketing Consultation for your practice.

To read more of the article that inspired this blog, please visit:http://news.yahoo.com/online-ad-revenue-risk-war-click-fraud-110615289–finance.html