Jun
16th

Microsoft Drops the Hammer on Click Fraud

Posted by Nick on June 16, 2009 at 1:48 pm

061609_clickfraud.pngIt looks like Microsoft is taking some action against click fraud, filing its first lawsuit for the crime against three people in Vancouver and a few other unnamed parties.

While the software developer and recent parent to Bing is seeking $750,000 in damages, one of its major reasons for filing the lawsuit is that it wants to be more active on the enforcement side of fraud cases. They want to create a deterrent for would-be participants in click fraud. In a recent NYT article, Tim Cranton, associate general counsel for Microsoft said:

“We think there’s a good place for enforcement, basically to say, ‘You think this is a game, cat and mouse, back and forth. At some point, once we figure out who you are, we’re going to hold you accountable for it, it’s going to be expensive, and we’re going to deter you from doing it because you’re ripping off advertisers and people online.’ “

Whoa. He sounds pretty serious. You hear that scammers? Microsoft click-police are on patrol and out to get you! And why shouldn’t they? The article goes on to say that there are already stiff legal penalties for wire and mail fraud. Why not click fraud? Good point.

This certainly won’t be the last click fraud lawsuit filed by Microsoft, or other search engines for that matter, but it will at least help set a legal precedent.

What does this mean for all those Bing paid ads? It means the streets might be a little safer, at least for those navigating through Microsoft’s neighborhood.

While most, if not all, PPC managers run some sort of click fraud monitoring system already, it’s nice to see the search engines actively pursuing some click-justice on behalf of its users. They’re lending a helping hand to make the online ad space friendlier. It’s anything but a “Problem Solved!” type of situation for PPC managers battling click fraud, but at least it’s a step in the right direction.

Image: 365_299 – Compute this! by Guin’s View

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Apr
27th

Click Fraud Down But Not Out

Posted by Mike on April 27, 2009 at 3:11 pm

There is no question that tough economic times have led to companies examining ways that they can make the most of their online advertising budget. One thing that any paid search advertiser should be concerned about is wasting money on fraudulent clicks. Click fraud can drain money from budgets that are already stretched to the limit, and in some cases, may lead to exiting online advertising all together.

Thankfully, it seems that click fraud is once again on the decline after reaching an all-time high of 17.1% in the fourth quarter of 2008. According to research by Click Forensics, a traffic quality management company, click fraud declined to 13.8% in the first quarter of 2009.

0427009clickfraud.jpg

“It appears that the drop in keyword Cost Per Clicks (CPCs) and the progress Yahoo! and Google made blocking click fraud from botnet sources contributed to the decline in the overall click fraud rate this quarter,” said Tom Cuthbert, president of Click Forensics.

Although the recent declines are certainly a welcome sight to anyone involved in online advertising, it is by no means a reason to let one’s guard down and not carefully monitor click traffic. What steps can you take to combat click fraud, you ask?

  1. Monitor your traffic for abnormal spikes in click volume. Careful logging and analysis of traffic trends in your online ad campaigns will help you quickly spot any suspicious activity and block offending sources — before things get out of hand.
  2. Alert your search engine representative of suspected fraud and request a refund of click charges. Following the first step (above) makes this one much easier because you’ll have all the information necessary to prove your case when speaking with a search engine representative.
  3. Hire professionals (like Oneupweb) to manage your online marketing initiatives. There is simply no substitute for experience when it comes to knowing what signs to look for when identifying click fraud. An experienced paid search manager that monitors your campaigns on a daily basis, along with our click monitoring tool, will leave your mind at ease knowing you are only paying for legitimate clicks.

Hopefully the downward trend in click fraud will continue in coming quarters. There is no surefire way to completely eliminate click fraud, but by following the steps above, you will improve your chances of mitigating the effect that it can have on your bottom line and the overall success of your online advertising initiatives.

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