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35% of pay-per-click fraud?

Posted by: Ivana Strahija on August 8, 2006

Google warns that recent announcements about almost 35% of pay-per-clicks being fraudulent
is an exaggerated number.
"We believe the methodology behind that particular estimate is flawed -- and that many who have cited the figure have done so irresponsibly by using it differently than it is characterized in the report.", says Google in its report released today. The study points out that many of 'estimators' are in fact businesses who develop software to stop pay-per-click fraud, which might be one of the reasons why the numbers are so high.

Furthermore, Google objects to a small number of cases studied and inaccurate counts of clicks (for example some of them are made by hitting the back button). The announcements of high pay-per-click fraud numbers also do not mention whether or not an advertiser is billed for these presumably fraudulent clicks.

As Google's Shuman Ghosemajumder, Business Product Manager for Trust & Safety, states: "As I mentioned above, it’s very possible that clicks recorded in an advertiser's logs have already been caught by Google’s detection systems and not charged. (I should also note that when invalid clicks are detected and discarded before they are charged to an advertiser they are also not recorded as revenue.)"

Last week Google, Yahoo and some other search engines announced that they are going to team up with Interactive Advertising Bureau and the Media Rating Council to form a Click Measurement Working Group, which should give answers to what exactly are valid and invalid clicks.
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