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June 30, 2005

Google sued by 'click-fraud' opportunist

'Fails to protect its customers'

GOOGLE COULD soon find itself in the dock, after a company that makes online marketing tools filed a lawsuit against the darlings of Wall Street this week.

Click Defense Inc says Google fails to protect its advertisers - of which Click Defense is one- from what it calls 'click fraud'.

It says competitors engage in the practice of clicking on Google ads knowing full well that the advertiser has to cough up real wonga to the searching and advertisng company for every click it generates.

Click Defense chief, Scott Boyenger, says his company has logged click fraud rates of as high as 38 percent.

The company also happens to make software that guards against this sort of thing.

A Google spokesman told Reuters the company believes the suit to be "without merit" and will contest it vigourously.

Click Defense hasn't yet repsonded to our request for a comment.

By INQUIRER staff: Thursday 30 June 2005, 15:18
http://www.theinquirer.net/?article=24308

Posted by Hans A. Koch at 03:18 PM | Comments (0)

Interview over Click Fraud

Wired Magazine Asked Me For An Interview, Over Click Fraud at Google

Good. Let me email you questions to start, and I’ll follow up with a phone call.

1. What’s your name?

Larry Wingo, I started advertising with Google in October, 2004.


2. Profession?

I’m a real estate broker

Does your company have a website we can link to?

I’m not looking for customers for this interview.

3. Phone # (switchboard and direct line) and work address.

4. What does your company do specifically. What types of clients do you have?

I’m in real estate finance, only. My ads with Google-the-Goliath were for the most difficult type of real estate loans, ‘hard money’ loans.

5. What exactly was your relationship to Google?

I was one of their stoolies. I placed my trust in their advertising program and found out why advertisers can’t trust the Goliath, Google. They use a checkbox, which is checked by default and without adequate explanation to clients, like me. Then they turn your account over to a pack of thieves who trick people into clicking on your ads. The crooks make money and the Goliath makes money and everyone is wearing a smile, except the stoolie. We pick up the tab. I’m not alone. I found Ameriquest’s ads on the porno site too. I even took a picture of it and saved it on my computer. I’m going to use it for evidence, when I find someone doing a ‘CLASS ACTION LAWSUIT’ against the Google Goliath. If we can’t bring them down, maybe we can tarnish their reputation enough to make investors skiddish about the ‘bubble bursting’. Everyone on Wallstreets says the profits and stock’s value don’t jive and there’s going to be a ‘Day of Reckoning’. I want to be part of it.

You paid for search ads?

I allowed Google to use boxes, checked by default, which is deceptive and dishonest, to start with, no explanations to tell me that crooked programmers could use redirects to trick clicks and force me to pay the bill. My ad costs quadrupled and the calls dropped to zero. I knew something was up, so I started digging. Fortunately, I have an unusual name and I was able to gather a lot of evidence that they were dupping me. I reported it to Google and since they own the search engine that produced all the evidence, all the evidence vanished! Poof! But I was one step ahead of them. I saved it on my computer and today, it’s on a disk, so they can’t get to it. Cha! Cha! Cha!

Someone was spamming your company name?

Spamming???? I never used the word ‘spamming’. What does spamming mean to you? This is a lot more harmful than mere spam. They stole money, right out of my account. I’m sure I’m not the only one. I may be one of the few who discovered it and reported it to them, but remember, they’re making money too. What if the police got paid, every time there’s a home burglary? Would home breakins increase? Of course they would! Duhhhhhhhhh!!! If the police profit, when crimes are committed, police will look the other way too! No surprise that Google can’t catch them. With all their brilliance, they can’t catch clever programmers. I don’t buy it. The crooks are affiliated with Google. That makes Google corrupt and a co-conspirator. The first contribution that Google made was the default checkboxes on AdSense. That sets up anyone who is unsuspecting to take it in the shorts, when the crooks get ahold of that URL.

I’m not clear exactly what your beef with Google is. Please explain clearly, step by step.

I got screwed! Google allows their affiliates to rewrite my ads, offering loans that I don’t make. The crooks redirect clicks so that viewers are tricked into clicking on my ad. I’m not a programmer. I don’t know how they did it, but when I do a search for hard money and I see a URL, click on it and look at where I am, it’s not a match. The URL I was supposed to get isn’t where I am. That’s crooked! That’s a redirect! Somebody has to pay for that click and for me, I was offering up to $4 a click. If Google give 80% to the crook, then the crook has a huge incentive to try to get $3.20 one million times a day. Wouldn’t you, if you had no ethics? Why should Google catch them? Google is making money too. Everybody wins and the customer is unaware. The customer might notice that his bills are quadruple and there aren’t any calls, but what do you do, quit advertising? Most people are not too good on the computer. They’re never figure it out. That’s why I have to speak out. I got it! I discovered the corruption and I want to expose them. I already called Ameriquest and informed them. I got a call from a Google thug who didn’t threaten me directly, but he let me know that I was cutting into his game and that I better stop. He tried to persuade me that it was Overture who did this to Ameriquest. But I directed him to the web page and showed him the ‘Google Search’ at the bottom of the page. Then I hung up on him.

Start with when all this started and provide details. Walk me through the whole thing.

What do I have to do, take you there? Google wiped out as much evidence as they could. There’s big money here. Like Charles Ponzi, they don’t want the bubble to burst, just yet. They want to make some money, first.

6. Tell me about your interactions with Google. Again, step by step: explain. What did you and the Google operator talk about?

You call companies today and what do you get? Recorded messages about how important your call is to them, but nobody ever picks up the phone. When I put my account on ‘Pause’ I got an email from someone, but when I replied, I got an autosponder. What kind of service is that? Most of the time, they send out automatic replies that have absolutely nothing to do with your email. It’s written by an algorithm and it isn’t AI. It isn’t even an intelligent response. I got very bad service from Google and I had to stop telling people what a great company it is, because it no longer is useful to me, except as a search engine, perhaps. The lambs go into the slaughterhouse and you know what happens to them there. If you don’t know a lot about what Google is doing, you’re going to get screwed. If you complain, they get rid of you, like eBay does.

OK, that’s a start.

And thanks. Look forward to reading what you have to say.

Now, let me ask you a few questions. What is your affiliation with Google? Why are you concerned? Do you have Google ads on your websites? Are you collecting information to hand to Google, in their defense? Do you have any affiliation with any law firm representing Google on any suit?

Larry Wingo
310 530-1555

Date: Fri, 22 Jul 2005 17:54:32 -0400
Subject: Re: Wired: feedback: Story: Click Fraud: Problem and Paranoia
From: "Adam L. Penenberg" Add to Address BookAdd to Address Book
To: "Larry Wingo"
Good. Let me email you questions to start, and I’ll follow up with a phone call.

1. What’s your name?

2. Profession? Does your company have a website we can link to?

3. Phone # (switchboard and direct line) and work address.

4. What does your company do specifically. What types of clients do you have?

5. What exactly was your relationship to Google? You paid for search ads? Someone was spamming your company name? I’m not clear exactly what your beef with Google is. Please explain clearly, step by step. Start with when all this started and provide details. Walk me through the whole thing.

6. Tell me about your interactions with Google. Again, step by step: explain. What did you and the Google operator talk about?

OK, that’s a start.

And thanks. Look forward to reading what you have to say.


On 7/22/05 5:43 PM, "Larry Wingo" wrote:

Yes!


"Adam L. Penenberg" wrote:

Would you be willing to do an interview with me about your Google
experience? I think it would make a good column for me and provide a public
service. What do you think?
--a

On 7/19/05 7:51 PM, "Larry Wingo" wrote:

> I'm looking for a new search engine to run ads on, because in my opinion,
> Google is now run by a bunch of crooks. The service is absolutely terrible,
> in every category. I just got off the phone with Heather W. Several times,
> I complained that her voice was cutting out. You would think that Google
> could afford better equipment for their representatives. On June 20th, I
> spoke to Heather. She didn't give me her last name, but gave me a number to
> call. Like so many companies, Google uses an automated system. The recording
> asks for the last name of the person youâ€Å¡re trying to reach. If Google
> representatives don't give their last names, how can anyone reach them? Is
> this the plan? Less work that way? Sure seems like it. The result is poor
> service.
>
> I'm in finance and I work with some very wealthy clients. I don't need bad
> publicity, bu my ad campain was dragged through the mud, when their affiliates
> tricked people into clicking on my link, by offerring loan programs that I
> don't offer and my ads were even shown on porno sites. That's all I need is
> to have one of my $40 million clients discover that I'm advertising on porno
> sites. So I complained to Google and all those links disappeared, but I kept
> the evidence on my computer and I can substantiate my claims, concretely. If
> you're suing Google, in a class action lawsuit, I'd like to participate.
>
> I complained to my credit card company and they reversed the charge, for one
> month only, but I was overcharged over a period of a few months. During that
> time, my bill quadrupled and I wasnâ€Å¡t getting any calls. That's why I got
> suspicious and started checking into it. I found porno sites, featuring my
> ads, along with Countrywide, Ameriquest and others. The Ameriquest ad was
> adjacent to "Anal Sex". Imagine that! At the bottom of the page, "Google
> Search". That proves to me that it's a Google affliliate, not an Overture
> affiliate, as some Google people have claimed. I called Citifinancial and
> others to inform them. Some responded by raising complaints, as I did, but
> the ads are still there, today. Some have been removed also, like
> http://sexgirlspics.com
> If you click on this link, you'll find it's gone. So is this one...
> www.granny-sex-tgp.com/
> The perpetrators have moved on, like charletons in the old west, selling snake
> oil, who would just set up shop in another small town. The computer
> programmers who fool their viewers into clicking on our ads will obtain
> another domain and be right back in business, tomorrow. Do you think Google
> is going to crack down on them if theyâ€Å¡re making money from the fraud? Not if
> you know about human motivation, greed and if you "follow the money".
>
> Most small advertisers want to reach prospective customers from a small radius
> and for me, that circle is about 120 miles, but the IP address locates AOL
> customers, who live in California, with Texas or Virginia. That's because of
> a rotary system. A user doesn't know where it will appear they are located.
> When I used a radius, I received few clicks, so I paid extra to advertise
> nationally. Then my clickthrough ratio suffered. There is a lot wrong with
> the Google system and it's not all about crooks running the "medicine show".
> Some of it is incompetence and normal "growing pains".
>
> When you're given a phone number by a Google representative and the options
> given don't allow you to reach the rep, something's wrong. When I complained,
> the Google rep who heard my complaint said heâ€Å¡d do something about it. I
> asked if I can have Heather's last name and he refused. He said that nobody
> gives their last name. I asked, Then why does the telepone message ask the
> caller to punch in the first letters of the last name? Are you aware of that?
> I asked Heather if she ever thought of calling herself and going through the
> system she put me and her other customers through. She hasnâ€Å¡t. She added
> that she hasn't had any complaints. I said, "No wonder! Your customers can't
> reach you. Did you ever wonder why no one calls you back?"
>
> So, with my ads rewritten and my good name dragged through the mud with
> association with porno sites and no way to complain to Google that results in
> anything, but an autosponder, I went to my credit card company and made my
> complaint there. American Express was truly American and they expressed my
> ire with a chargeback. Ah hah! The good guys won, right? No. Google
> promptly cancelled my ads! They give me bad service and if I don't like it,
> they simply cancel my account and cut me off from the world of search engine
> advertising. This kind of power reminds me of the days when Bill Gates
> controlled the world and if you said anything publically about him, he could
> crush you and your entire company would suffer the consequences.
>
> The people at Google don't care about their customers. If they did, they'd be
> more responsive to legitimate complaints about their systems. It used to be a
> great company, but I'm predicting that there will be a sharp decline in the
> stock's value.
>
> Join me in a class action lawsuit against them!
>
> Larry Wingo of Torrance, California
> 310 530-1555
>
> Sites I had to exclude...
>
> Edit existing excluded sites for Campaign #1
> select all Showing 1-20 of 20 sites.
> crazyfinder.com
> newestsearch.com
> www.801zerodown.com
> www.granny-sex-tgp.com/
> freshsearch.net
> page-private-mortgage-investor.html
> www.again2002.co.kr
> www.onlineloan411.com
> hard-money.fastfind.me.uk/
> search.ezanga.com
> www.fast-search-engine.com
> www.pingposh.com
> hard.money.loan.hippo.info
> sexgirlspics.com
> www.fhamortgage-203kloans.net
> www.rightonblog.net/
> ms-directory.org
> tomatosearch.com
> www.gp32.co.kr
> www.search2find.net

I had a problem with Google and I tried to resolve it, but the bureaucracy there prohibits dissension. Google impedes any contact with them. They don’t volunteer their email address or any phone numbers at all. If you click on ‘Contact Us’, you get the run around.

My web pages have been removed from Google’s web searches, because I complained about their system. I have proof that they allowed my web pages to be advertised on porno sites and I’m not the only advertiser that was advertised there. I found many prominent companies there too. One example is Ameriquest Mortgage. I informed them and Google didn’t like it. I tried to warn others on the internet and Google, who sort of controls the press, zapped my web pages from their search results.

We’ve seen this before. This is what happens when too much power falls into the hands of one entity, like a dictator. Power corrupts and absolute power corrupts, absolutely. Dictators always try to get control of the press so they don’t have to read anything bad about themselves. Google has too much power, being the preeminent search engine gives them enough power, but add to that the control of the search results and you have tyranny, not unlike the Bill Gates tyranny that Google replaces.

I have some very large clients. The net worth of one investor is $40 million. He is doing business with me. I don’t want my name associated with porno sites. It’s not funny to search my name and find it associated with granny-sex-pictures.com. If this happened to you, I’m sure you’d protest too, if you could. How do you reach them? Google doesn’t allow advertisers to protest, so I contacted my credit card company and explained that Google dragged my reputation through the mud. Google even allowed their affiliates to rewrite my ads and offer loans that I don’t make. This is in violation of California Real Estate law and American Express reversed the charges for that month. Google responded by cutting off my ads. They gave me an ultimatum. Pay them for trashing my name and putting my license at risk or lose the account. I stood on principal and forfeited the account. Now, I’m taking my protest to the internet. The only thing is, they control the press there!

Don’t let this happen to you. If they drag your name through the mud and put your license at risk, just pay them, because it doesn’t pay to stand up against the Goliath Google.

Larry Wingo
310 530-1555

Yeah, I may pay them too keep them quiet, but they are charging me and I have never used them. This is the second time they have charged my credit card and I had the past one cancelled because of them and they found me again. So I am gettting charged over $800 for NOTHING and have to fight with my credit card company AGAIN and they may wonder why I want the charges from the same company taken off my bill as I had never even heard of them before they billed me. For what I can tell this is a complete scam and will lock people in no matter if they ever contacted them or not. I for one am interested in finding all that have been screwed by them and getting our rights back.

For being such a large business productive they seem to be doing things that will bring it to the ground. I for one could care less as long as they stop charging me for NOTHING. I just found out what they did after the second time I have been charged so I know for a fact I did not otherize them to bill my card for one red cent, let alone for $800.

This is my 2 cents which from Google would cost me a cool $1,000,000 probably the way they do business.

Kevin

Thu, 30 Jun 2005 15:25:55 GMT
Google Sued For Ignoring Click Fraud

http://www.kbcafe.com/adwords/?guid=20050630082555

Posted by Hans A. Koch at 10:14 AM | Comments (0)

Click fraud lawsuit targets Google

A seller of online marketing tools said Wednesday it sued Google, charging that the Web search giant has failed to protect users of its advertising program from click fraud, costing them at least $5 million.

Click Defense filed its lawsuit, which also seeks class action status, Friday in U.S. District Court in San Jose, Calif.

Click fraud is not "fraud" as defined under the law. Rather, it is an industry term used to describe the deliberate clicking on Web search ads by users with no plans to do business with the advertiser. Rival companies might employ people or machines to do this because the advertiser has to pay the Web search provider for each click.

Users of Google's popular Web search advertising program pay a set amount--varying from pennies to well over $1--for each click, though in rare instances, the payment is as much as $95.

Click fraud can run up thousands of dollars in advertiser costs or benefit a Web site operator that gets a cut of advertising revenue from Internet search providers.

"We believe the suit is without merit and we will defend ourselves against it vigorously," a Google spokesman said.

Google, which had first-quarter net revenue of $1.3 billion, makes virtually all of its money from search ads.

The company, whose stock earlier this week briefly topped $300 after debuting at $85 in August, has previously said that click fraud is not material to its results and that it has technology and teams working to prevent it.

Google and its top rival, Yahoo, have declined to say what percentage of clicks would fall under click fraud. The figure most cited by independent firms that track the practice is around 20 percent.

Scott Boyenger, chief executive of Colorado-based Click Defense, said in an e-mail that his company's tracking system has detected click fraud rates of as high as 38 percent. The company sells software to prevent click fraud.

Google and Yahoo, which is not named in the lawsuit, let advertisers set per-click pricing by allowing them to bid on key words that launch ads when Web users enter matching search queries.

For example, when Web users type "laptop computer" into Google.com, they will see search results as well as a section of ads from laptop makers or sellers.

Google has said it credits advertisers who have fallen prey to click fraud, but Click Defense charges that the company has not done enough to warn advertisers about the risks it presents or to protect them against it.

Click Defense, which advertises on Google.com, is among a new crop of companies that aim to help identify and stop click fraud. Its rivals include Alchemist Media and ClickDetective.

Digital marketing companies aQuantive and DoubleClick also have units that help advertisers tackle click fraud.

http://news.zdnet.com/2100-9588_22-5769677.html
Published on ZDNet News: June 30, 2005, 5:52 AM PT

Posted by Hans A. Koch at 05:52 AM | Comments (0)

June 24, 2005

Paid Search Engine is Flawed

Consider this:

5-20% of clicks are believed to be fraudulent

I read this recently in an article about paid search engine listing - you know the ones, the “Google Ads” that every other site (mine included ...hey, I’ve earned $41.26 this year so far!) now has plastered on their pages...

If you are prepared to accept that possibly one-in-five clicks (remember, you pay for each click) are fake then go for it.

But if you’re like me, you might just realise that what was once a good marketing avenue is slowly degrading away to ruin. Unless, of course, Google can prove to us all that they have the “click fraud” problem under control.

June 24th, 2005
http://www.homeofficevoice.com/2005/06/24/paid-search-engine-is-flawed/

Posted by Hans A. Koch at 09:08 AM | Comments (0)

June 23, 2005

VBW Targeted! - Banned from Ad Sense

Yes, we were maliciously targeted. Someone nearly caused my Google Adsense Account to be permanently banned.

We were in fact banned by adsense. But I'll get to that a little later.

On Saturday, June 11th, I saw my adsense clicks more then double. As I looked further, all of the increase was here on VBW, but the traffic hadn't increased substantially. This trend continued and on Sunday I emailed the Ad Sense Support Team alerting them to what I was seeing.

This trend continued, with my overall clicks 3 times the normal rate during the next few days. I had not heard back from Google, so I sent another email on Thursday.

Then - It happened. I got this email on Sunday:

It has come to our attention that invalid clicks have been generated on the ads on your web pages. We have therefore disabled your Google Adsense account. Please understand that this step was taken in an effort to protect the interest of the Ad Words advertisers.

A publisher's site may not have invalid clicks on any ad(s), including
but not limited to clicks generated by a publisher on his own web
pages, clicks generated through the use of robots, automated clicking
tools, or any other deceptive software.

Practices such as these are in violation of the Google Adsense Terms
and Conditions and program polices, which can be viewed at:

https://www.google.com/adsense/localized-terms?hl=en_US
https://www.google.com/adsense/policies?hl=en_US

Publishers disabled for invalid click activity are not allowed further
participation in Adsense and do not receive any further payment. The
earnings on your account will be properly returned to the affected
advertisers.

Sincerely,

The Google Adsense Team

For the record, I have clicked my own ad once in all the time I have been running adsense ads. That was completely by accident, months ago. I emailed them right away with my confession. I have never asked anyone to click my ads either.

Naturally, I was quite upset. I wont reveal what I earn via adsense but its a big part of my income. Beside the loss, was the knowledge that someone had targeted this site and managed to get me banned from Ad Sense.

After I calmed down a bit, I wrote to Ad Sense. I first explained that I have never violate the TOS nor clicked any of my own ads. I further explained that I had reported the unusually high clicks twice. I also pointed out my IP address and told them they needed to check their records as they would find no clicks from that IP. I commented on how it was unfair to penalize publishers for click fraud when they have nothing to do with the attack, and have no way to control or stop such an attack. I also started searching and sent similar emails to everyone from Google I could find. I even wrote to the guy that writes the Google Blog. LOL I was desperate for someone to help.

Not expecting a positive response, since I had never heard of anyone ever being reinstated, I began searching for viable alternatives. What I found was quite disappointing. There are others out there who can deliver ads, but they have few advertisers, so it doesn't do much good when the same ad runs on every page. I chose one just to try and placed it on one of my sites that usually earns $xx.xx a day. I made less then $1 a day with the new program.

Then, I got this email a few days after I had been banned:

Thank you for your email regarding your Adsense account.

As you know, Google treats instances of invalid click activity very seriously. We have reviewed your circumstances and determined that you are not responsible for the most recent activity. We have reinstated your account, effective immediately. However, there will be a delay before ads start running on your web site. It may take up to 48 hours before all of our servers are informed of the change.

Thank you for clarifying your situation. We appreciate your patience, and apologize for any inconvenience. If you have any questions, please feel free to respond to this email.

Sincerely,

The Google Adsense Team

WOW!!!

I was amazed and delighted. Kudos to Google for actually looking into the matter and making the right decision! It restored my faith in Google, which had been shaken with the events of the prior week or two. All I can hope now is that they have a way to catch whoever would do something like this.

Many times in the past I've read posts on other forums where people complained they had been banned unfairly. I have seen many posts regarding things of this nature, and never found one to indicate anyone was ever reinstated. To be honest and frank, I generally figured them to be BS. Kids trying to outsmart the system or something of the sort. I have a new appreciation now.

I was lucky. Somehow I caught the right ear at Google and was reinstated. People who do things like this threaten the whole contextual advertising system. It costs Ad Words advertisers money, and causes publishers a means of support. To me, this kind of click fraud is the worst of all. Its malicious and intended to cost someone their livelihood. I see sites all the time that say "Help us by clicking the ads" and that's wrong too. But I suspect its usually done by people who don't know better. What happened to me, was an attempt to cause me harm. Luckily, Google didn't ignore my pleas, and saw the right thing to do.

http://www.vbwebmaster.com/forums/showthread.php?t=862
Posted by: Joeychgo - vbwebmaster.com Administrator

Posted by Hans A. Koch at 07:57 AM | Comments (0)

VeriClix: Free Click Fraud Monitoring

VeriClix has launched a free service to monitor and audit clicks from paid search with Google, Overture and Kanoodle. This sounds great. Everyone would like to know how much fraud there is in paid search and everyone should know their own numbers.

Why is VeriClix doing this? Is it out of the goodness of their hearts? Is it to help the world? I think they have to have a way to make money from this.

Why We Do It
You already pay for pay per click campaigns - you shouldn't have to pay to monitor for fraud. VeriClix is fully sponsored by relevant industry advertisers which allows us to provide a full featured, professional service at no cost to the user. VeriClix gives you the knowledge of exactly how your advertising dollars are being spent up to the second - the way it should be.

I don't know if I but that. My first impression is that they plan on using it in one of two ways:

1. They are gathering and selling the information. Do you want to know what keywords your competitor is bidding on? There are other forms they can repackage the data that aren't as bad but they won't make the news.
2. They are gathering and using the data. They can look at your click data and see what types of sites they should build and the keywords they may want to use. It is more useful to get the keywords aggregated into clusters (most likely logical since advertisers pay for the clicks and should have themes to their sites).

I could easily debunk my own theories by reading the terms and conditions. Those should tell me how the information can be used. The only problem is, I can't find T&Cs on the site.

I've seen a little online about the founders, Jeff Martin and Mike Waltman. I may get a lot of negative comments.

I think that the best improvement that they can add to VeriClix is to add a Privacy Policy and T&Cs so that it is clear how they plan on using the information. Until then, I don't know how anyone can sign up for this.

Posted to SEM and PPC on June 23, 2005 at 03:38PM

I asked.

http://forums.searchenginewatch.com/showthread.php?p=51944#post51944
Posted by Jonathan (Trust) at 04:58PM on Jun 23, 2005

We burned the midnight oil and have published our privacy policy. We aren't lawyers, but I think we covered most people's concerns.

"Why is VeriClix doing this? Is it out of the goodness of their hearts? Is it to help the world?"

VeriClix was built to try and level the playing field for the advertisers. No, we don't think we're curing cancer but we are trying to help support our industry which has been very good to us.

"I think they have to have a way to make money from this."

Sure, if many sponsors want to advertise on VeriClix then I presume we could reach a point to where all of the costs for keeping the services running are covered and there is enough funds for R&D that perhaps one day Mike and I could do VeriClix full time. Now thats a reward.
Posted by Jeff Martin at 10:42PM on Jun 24, 2005

Jeff, thanks for your comment. I was about to commend you on your efforts until I looked at the sponsor sites.

CPA Pro and SBD Pro are virtually identical sites (in look-and-feel and navigation if not content). The funny thing is, they are registered to different people in different parts of Florida. The two people named on the registration are Pete Townsend and Jimmy Jones (sound fishy yet?) The sites have no contact information. The blogs on both are written by Lisa Banks, a freelance copywriter (she does have a link for that on the bottom of one of the sites).

I have found that when things don't add up, there is something wrong. This is one of those cases. You are planning on making money off of your service (or at least break even) I am forced to stick with my original conclusions that it is through the data and not sponsorships. The partners listed won't be able to support this service if it gets any volume and bettter sponsors won't sign up if they do this simple analysis of the existing sponsors.

As I always write, pick your partners wisely.
Posted by David Lewis at 04:36PM on Jun 25, 2005

David, sometimes a [insert item here] is just a [insert same item here].

If you don’t want to use this free service that’s fine. We aren’t out to get people to pay us money to use VeriClix and we aren’t out to underhandedly make a buck by selling out people and their data (as noted in our official privacy policy; which could lead to nasty lawsuits like the PPC networks are involved in).

CPA Pro and SBD Pro are sites that Mike's full time gig owns and I’m keeping them there because I like Mike’s boss. The freelance copywriter, Lisa, works for Mike’s boss as well. People have donated time and effort into getting VeriClix up and running and this is us saying thanks (Thanks!).

If you want to wear the tinfoil hat, that’s your right and God bless you. However, we have stated why VeriClix exists. You focus seems to be money (as well may be other folks trying to sell a click fraud service) while ours is: (1) giving something back to an industry that has been good to us and (2) to help many of our friends who are in this industry. As I said, if VeriClix gains many, many sponsors that allow Mike and I to do it full time then that’s a reward we would look forward to.

This will be my last post here as I have stated who we are and why were doing what we are doing. Anyone still focused on a conspiracy theory probably couldn’t be swayed from that ideology (after all who really shot JFK??). If our privacy policy and public statement aren’t enough, then why would anyone else’s be?
Posted by Jeff Martin at 10:50PM on Jun 25, 2005

Jeff, thanks for stopping by. While a rose may be a rose, a cigar often isn't just a cigar.

What you fail to note while flinging insults at me is that you took action based on my article. Your site was deficient. It had no privacy policy. This left your motives open to interpretation (BTW, I'm wearing a Cal baseball cap) as you and Mike are experienced enough on the Internet to know that you need a Privacy Policy if you are collecting information. It was obviously important enough that you and Mike "burned the midnight oil" after reading Revenews and you used your privacy policy as your link twice above. All I can say is "You're welcome!"

Note that transparency (not just a Privacy Policy) will always help and avoid tinfoil hats. Your partner's boss' lack of transparency (I'm guessing his name isn't Pete Townsend or Jimmy Jones and that he doesn't live in both Miami and Tampa) doesn't reflect well on your site and leaves your site open to questions (especially when combined with the former lack of a Privacy Policy or apparent business model). If all is as you say (and I hope it is), I wish you and Mike the best of luck. As I said in the original article, transparency in paid search and the truth about paid search will be a great thing for all of us in the industry.


Since you asked, it was the Mob who killed JFK. Ballot boxes were stuffed in the 1960 election. The US did land men on the moon. There are no aliens among us (although Mark Jeffrey did a great job writing about them in "The Pocket and the Pendant" (www.pocketandpendant.com)). Oh, and watch out for the Illuminati... or was it the Discordians?

Posted by David Lewis at 09:10AM on Jun 26, 2005

http://www.revenews.com/davidlewis/archives/000766.html

Posted by Hans A. Koch at 03:38 AM | Comments (0)

The click, the fraud and the ugly side of search

ANALYSIS: Victim of click fraud? Only analytics can save us now, writes Mike Grehan
There may be multi-million dollar companies who aren’t crying about it, but they’re sure pissed off about it. And to some of them it might just be another bunch of spread sheets and budgets. But to the smaller advertisers, this is their livelihood. They can’t afford to bleed 10,000 dollars a month!
Mike Grehan
Mike Grehan

 

Los Angeles based search engine marketing expert Jessie Stricchiola, CEO of Alchemist Media Inc. seems to have inherited the position of industry pay-per-click (PPC) fraud champion since she first wrote about it back in 2002.

Having recently been subjected to click fraud on a minor scale personally, and on a much larger scale with two of my clients, I contacted Jessie to get her expert opinion on just how big the whole click fraud issue is.
 

And to find out what can be done to detect it and attempt to prevent it, if anything at all.

There’s a lot more to click fraud than just the act of somebody clicking on another advertiser’s advert at a search engine.
 

It’s actually much more complex and devious.

Generally speaking, there are two different kinds of click fraud (there’s also "impression" fraud which affects only Google advertisers and differs from pure click fraud).
 

On the "click" side it occurs, primarily, from two different sources: competitors and affiliates.
 

So identifying click fraud begins with being aware of how different it can look depending on its source.

And then, the whole murky issue breaks down from there to search clicks, as in those invalid clicks on PPC adverts which show up at the search engine interface, and content clicks, those which are invalid clicks on search engine adverts distributed around other partner web sites e.g. Google’s AdSense programme.

So, what do we, the under attack honest advertisers, do to find out if we are haemorrhaging our hard earned budget to fraudsters and not customers?

"The ability to identify click fraud in the early stages depends on the amount of data you can get your hands on. And without using anything other than the reporting mechanism given to you for free by the PPC engines, you’re not really going to be aware of anything" says Jessie.

“You need to have access to log and/or visitor data. It’s about looking at your log files using a log analytics application. Or you need to be looking at your traffic from a third party traffic analysis application [e.g. web analytics vendor]. Or from a third party campaign management/traffic analysis tool.” [e.g. PPCBoss]

And even though, when you do the most basic analysis, you’re likely to spot that, Overture, for instance, is charging for a lot less traffic in their management area, than you see in your logs (so they are filtering out some clicks they deem invalid) you still need to look deeper to spot ongoing click fraud activity.

Key to the success of spotting click fraud is the ability to track unique URL's.
 

So it's essential to hard code an ID for the PPC engine, as well as the keyword ID into the URLs of your landing pages.

Perhaps, the most obvious example of spotting click fraud, is simply by observing any spikes in traffic.
 

If you're used to checking your stats at the PPC engine management area and seeing an average of, say, 30 clicks per day on a specific keyword, and that then changes for no known reason to over 130 clicks per day, then that’s a certain indicator in itself.

Beyond that, Jessie recommends looking for patterns.
 

"Start to look for, say, repeated clicks from sources that look similar. This could be an IP address or an IP range. It could be a combination of IP range; browser version; operating system. If it’s not the IP range, you may detect clicks from the same geographical region i.e. the clicks are all in the same time frame. You really have to look for data in groups which happens to look suspect.”

There are other reasons that you may be seeing strange activity adds Jessie: “It could be a new competitor, so take a look and see if somebody new has jumped into the mix and started clicking on your ads. It could be affiliate fraud, in which case there may be a new affiliate partner in there, or there could be a new content partner. And as you know, many AdSense content partners just generate clicks to make money for themselves.”

Someone who experienced this first hand, is Jake Baillie, Product manager for Toronto based True Local.

He arrived at work one morning to discover that, a popular search term his company had been bidding on, which averaged 60 clicks per day, had already registered 3,800 clicks by mid morning.

Fortunately for True Local, Jake is a highly regarded, professional search engine marketer.
 

So it didn’t take him too long to smell a rat.
 

However, a less seasoned online marketer may have just thought they were having a good day!

The first thing Jake spotted was that, these were content clicks, not search clicks.
 

"Google breaks out search clicks, but they don’t break out content clicks. As soon as I became aware of that, I went to our own reporting system and saw that the clicks were all around this one term and that they had come from somewhere in Google’s network."

With some more detective work using a list of open proxy servers Jake was able to eliminate those in the first steps.
 

Open proxy servers are used by those involved in click fraud to be able to relay traffic anonymously.
 

And usually, if you can prove that the clicks are coming from an open proxy server, it can be much of an open and closed case with the search engines.

The next thing Jake did, was to look at all of the referrer data he had available and discovered that they were coming from three main AdSense pages that, as he says "were not above board."

These are pages which were designed specifically for adverts and not for end users.
 

And this is strictly against Google’s AdSense terms of service.

So, what do you do next?
 

Contact the search engine and pass on the evidence, of course. At this point, you may be thinking, shouldn’t it be the other way around, “surely a search engine could spot that kind of fraudulent activity and notify me.”

It has to be said, there are many people in the industry who hold a very cynical view about the amount of time and technology search engines are likely to employ for this type of monitoring.
 

Let's face it, click fraud is bad news for the advertiser, but it’s still pouring millions into search engine bank accounts.
 

So, is it feasible that they really would want to put such a concerted effort into something, which effectively, helps them make less money?

In Jake’s case, he presented them with refined data which he’d pulled together himself. Once Google had analysed the data, they got back to him (within five days) and agreed that it was fraudulent activity and agreed to a refund.

I have to say, in my further conversations with both Jessie and Jake, we were all agreed that, as Jake put it "there’s an insane number of PPC advertisers who don’t bother tracking. They don’t bother using unique URLs for monitoring and ROI purposes."
 

So, the fact remains, if you don’t spot it and it slips under the wire at search engines, that "blissful ignorance" probably amounts to many millions of dollars.

Jim Banks is the owner of Web Diversity one of the fastest growing search advertising agencies in the UK.
 

He understands that click fraud is a problem which is not going to go away very soon.
 

However, from his own experience, it is more of a problem in certain sectors than it is in others.

“In some sectors we have no problem at all with click fraud. In our experience, it tends to be more in the higher value keywords in travel and finance, those areas.”

But, as both Jessie and Jake have shown, when it comes to spotting the elements of fraud, you really have to be the vigilant one.
 

Jim agrees: "We had a situation with a client in the financial services sector. It’s part of our service to our clients to monitor for unusual activity, as everything we do is based around ROI. So we look at everything where clicks are concerned, the time of the day, the day of the week etc. etc. With this particular client, we came to the conclusion that most people in the UK who apply for a loan are insomniacs, because the abnormal traffic was occurring between midnight and 7.00 in the morning!"

As with Jake, Jim was able to go to the search engine, in this case Espotting, present them with the evidence and they were happy to acknowledge and refund.

There’s a lot of publicity surrounding the reported case of Google filing a law suit against a fraudulent AdSense publisher.
 

They’re happy to use that example as a possible deterrent to future fraudsters.
 

And also promote the anti-fraud technology they have developed in-house.

However, the general consensus from people I’ve spoken with is that it’s possibly much more of posturing exercise for Google.
 

As Jim Banks pointed out, it’s more likely a case of the publisher doing a very bad job of click fraud, than being captured by Google’s high end technology.

Mike Grehan is the author of Search Engine Marketing: The essential best practice guide.

By Editorial
23-06-2005 02:30 PM

http://www.netimperative.com/2005/02/01/click_fraud

Posted by Hans A. Koch at 02:30 AM | Comments (0)

June 22, 2005

Click Fraud A threat to AdSense and other advertising services

This is additional material for readers of Make Easy Money with Google: Using the AdSense Advertising Program.

In Chapter 2 of Make Easy Money with Google I discuss what click fraud is and two common scenarios where it occurs. Advertising services are very concerned with click fraud, of course. Click fraud causes advertisers to lose faith in pay-per-click advertising.

How do we know they're concerned? Because they're talking about click fraud in public! The quote at the top of the page comes from the CNN/Money news report Google CFO: Click fraud a big threat. When the CFO talks like this, it means that the company is taking the threat of click fraud quite seriously.

Three Types of Click Fraud

Even though I only talked about two click fraud scenarios in the book, there are actually three basic types of click fraud. I use the following terminology to distinguish the different kinds of click fraud when discussing the topic with others:

* Enriching click fraud occurs when AdSense publishers click ads (or hire or otherwise entice others to do so) on their own sites to increase their AdSense earnings.
* Depleting click fraud occurs when a competitor actively targets another company's ads and click on them to deplete that company's ad budget.
* Disbarring click fraud occurs when someone uses fraudulent clicks to force a publisher out of the AdSense program.

Each type of click fraud is problematic, but the last one is particularly pernicious for AdSense publishers. If someone gets expelled from the AdSense program because they were engaging in enriching click fraud then they're getting what they deserve. An AdSense publisher expelled through no fault of their own — because they were specifically targeted by a competitor or someone with a beef against them — is truly unfortunate. While Google does not generally terminate publishers without first warning them, there have been publishers who've been banned and yet claim total innocence.
How to Handle Click Fraud

There is, unfortunately, not much you can do as an AdSense publisher to prevent click fraud by others, even when they're using your site to do it. Here are a few things you can do, however:

* Monitor your AdSense earnings regularly for suspicious activity. This is a no-brainer: every AdSense publisher I know checks their earnings on a regular basis. Once you've been in the program for a while, you should have a good feel for what's normal for your site. Increased traffic by itself is not an indication of click fraud, especially if you've been actively trying to promote the site, but watch out for high CTRs (clickthrough rates).
* Save your server logs. You should have the ability to see the raw Web server logs for your site to see who's accessing the site and which pages they're accessing. Suspicious activity warrants a good look through these logs for unusual behaviors. Again, this is something you're probably doing anyhow, to see where your traffic is coming from.
* Report your suspicions to the AdSense support team. If you think there's been click fraud, email adsense-support@google.com to let them know. They may not get back to you for a while, but they will investigate. Chances are they'll come calling on you anyhow, so it's best to be upfront about your suspicions.
* Temporarily turn off the advertisements if necessary. If there are no ads on your pages, your site can't be used to commit click fraud. Not a great solution, but it may save you from disbarment.

Whatever you do, of course, don't engage in click fraud yourself.

This site has been the subject of click fraud, though I can't tell if it's for depleting or disbarring purposes. All I know is that every few days the home page gets accessed at regular intervals (about every 20 seconds) by machines across the Internet. I noticed this initially because my CTRs went through the roof. After reporting it to Google, my solution has been to turn ads off the home page when there is no referrer header telling me how the browser has made it to my site. This seems to work well. It is, however, annoying for an AdSense book site to be subjected to this — which makes me think it's disbarring click fraud.

Eric Giguere
June 22, 2005

http://www.makeeasymoneywithgoogle.com/click-fraud.html

Posted by Hans A. Koch at 09:40 AM | Comments (0)

Survey: The Problem of Click Fraud

Topic: Click Fraud — Our research indicates that as much as 30% of paid search traffic may be fraudulent. We recently released the audio recording of our clinic on this topic. You can listen to a recording of this clinic here: Click Fraud (Windows Media Audio) http://meclabs.com/cgi-bin/pl/pl.cgi?c5w Click Fraud (RealMedia) http://meclabs.com/cgi-bin/pl/pl.cgi?c5r Topic: click fraud — Our research indicates that as much as 30% of paid search traffic may be fraudulent.

We recently released the audio recording of our clinic on this topic. You can listen to a recording of this clinic here:

click fraud (Windows Media Audio)
http://meclabs.com/cgi-bin/pl/pl.cgi?c5w

click fraud (RealMedia)
http://meclabs.com/cgi-bin/pl/pl.cgi?c5r

This research brief will answer the following questions:

  1. What is click fraud?
  2. How significant is the problem of click fraud?
  3. How do you avoid click fraud?

Findings

1. What is click fraud?

click fraud is generally defined as any paid-for click that originates in a malicious attempt to drain an advertiser's budget. Especially for high-priced search terms, advertisers will sometimes attempt to drive up their competitors' marketing costs by clicking on their ads.

click fraud is sometimes also motivated by revenue generated by pay-per-click (PPC) engines' affiliate networks. Here, an affiliate is driven by simple greed to run up multiple fraudulent clicks.

Most PPC search engines have systems in place that identify click fraud and then subsequently do not charge the advertiser for the fraudulent clicks. Google, the largest PPC-driven engine, seems to be able to detect rapid, successive clicking from the same person or IP address. However, individuals or organizations conducting click fraud are using more advanced cloaking technologies that may circumvent these preventive systems.

Google often issues refunds and adjustments based on reported click fraud. The company has also recently implemented more advanced human-based and technology-driven click fraud detection mechanisms.

In the majority of click fraud cases that we have investigated, we have found that click-fraud criminals are using rolling-IP distributed attacks from multiple countries. In addition, it appears that they may have organized human click-fraud campaigns using low-cost third-world labor.

On Google, "impression fraud" is another equally problematic form of click fraud. Impression fraud occurs when criminals manipulate the number of page impressions for a given search term. When an advertiser's relative click-through rate (CTR) decreases, his or her search term can be suspended because of low CTR performance. This creates a window of opportunity for other advertisers. By committing impression fraud, they are able to obtain higher search rankings at lower costs due to the crippled competition.

The revenue that is generated by click fraud varies greatly depending on whom you ask. However it is widely believed that if click fraud were completely eliminated, all of the major PPC engines would suffer a significant blow to revenues and share prices. It is important, however, that these PPC companies realize that maintaining the trust of their advertisers is vital to the long-term health of the industry.

2. How significant is the problem of click fraud?

SEMPO (Search Engine Marketing Professional Organization) recently did a study that shows that many advertisers don't recognize click fraud as a significant problem:

Survey: The Problem of click fraud
Statement All Advertisers Advertisers of < 500 Employees Advertisers of 500+ Employees Agencies
This is a significant problem we have tracked 6% 10% 0% 4%
It is a moderate problem we have tracked 19% 21% 15% 30%
We have not tracked it much, but we are worried about it 45% 36% 58% 43%
It is not a significant concern 26% 28% 23% 23%
Never heard of it before 5% 5% 4% 0%

Check boxWhat You Need To UNDERSTAND: Of those who recognize that click fraud may be a significant problem (70%) only 25% of all advertisers have tracked click fraud.

Source: http://www.sempo.org/press/click-fraud.php

To further illustrate the current perception regarding click fraud, we have included a number of excerpted quotes from industry experts and the major press:

"Search engine traffic is among the most valuable traffic to a web marketer due to the state of mind of a searcher. click fraud, charging marketers for poor quality non-converting clicks, could poison the well..."

-Kevin Lee
SEMPO.org

"click fraud is the biggest threat to the Internet economy..."

-George Reyes
Chief Financial Officer
Google, Inc.

(As quoted in the Wall Street Journal)

"Anyone who says this is not a real challenge is kidding you..."

-John Slade,
Senior Director of Product Management
Yahoo, Inc.

(As quoted in the Wall Street Journal)

We decided to test click fraud. In an attempt to "defraud" Google's AdSense system (the content-based, affiliate-driven element of AdWords), we created a search term that would not receive any other bids. In this way, we could rest assured that our "fraud" would only hurt ourselves.

We bid on the term "daurf kcilc" ("click fraud" spelled backwards) and created an ad:

*********************************
The Latest Spy Equipment

Bug Your Neighbor

Literally

www.marketplacesnapshot.com
*********************************

We then attempted to create an AdSense page that would serve this ad:

http://www.marketplacesnapshot.com/duarfkcilc.html

However, we never managed to get the AdSense account to serve our ad for "daurf kcilc", even though it was the only ad for that search term.

So we moved on to just searching for "daurf kcilc" on Google's main site. Now we were able to pull up our ad and attempt to run up fraudulent clicks. Here are the results of those efforts:

Attempted click fraud on Google AdWords
click fraud Attempt Successive Clicks Clicks Registered by Google
Individual clicking on the ad 10 0
Individual clicking on the ad with Anonymizer 10 1
Clicking on the ad with a different computer, same IP address 10 1
Clicking on the ad with a different computer, different IP address 10 1

Check boxWhat You Need To UNDERSTAND: Based on this test, it does not appear that a competing individual or company could do too much damage to someone simply by clicking on your ad over and over.

These results were encouraging. However, they do not address the larger problem of individuals or companies defrauding the PPC system with more sophisticated software or organizational efforts (such as third-world labor).

South African search firm Incubeta.com has developed a unique click-tracking tool that creates and measures a unique click ID for each click. This ID is created based on a number of characteristics that they believe to be statistically significant. This tool was used in creating the three campaigns below.

Specifics of these tested campaigns included:

Documented click fraud
for Three Google AdWords Campaigns
  Campaign A Campaign B Campaign C
Total Clicks 34,763 12,790 4,184
Duplicate Clicks 10,268 1,257 349
Alleged click fraud 29.5% 9.8% 8.3%
Clicks Billed By Google 34,758 12,671 4,130
Google Credits - 5 - 119 - 54
Non-Credited Fraudulent Clicks 10,263 1,138 295
Cost to Advertiser $15,394.50 $284.50 $29.50

Check boxWhat You Need To UNDERSTAND: This random sample showed as much as 29.5% fraud. Fraud increased as the bid price increased. Google only seemed to detect a very small percentage of fraud.

KEY POINT: Data indicates that the potential for significant click fraud increases proportionately to the bid price.

This data clearly indicates that click fraud may be a larger problem than the major online search engines admit. Until more information becomes available, PPC advertisers will have to remain vigilant against the dangers of PPC fraud.

3. How do you avoid click fraud?

A business owner can combat click fraud and impression fraud in a number of ways:

  1. Carefully monitor rapid drops in website conversion with corresponding spikes in paid search traffic. This type of rapid change in metrics could indicate someone or something is manipulating your search campaign. Large amounts of click traffic with no new sales or leads often indicate click fraud, particularly if you have historical data that shows a higher average website conversion rate from the same core search terms.
  2. Implement a click-fraud tracking tool. There are several monitoring tools that will look for irregular patterns in your click traffic and flag potential fraud. We have listed a number of these tools in the Literature Review at the end of this report.
  3. Be aware of impression fraud. Pay attention to the search terms that have been deactivated in your Google account because of apparent low conversion. If the campaigns have been running for some time successfully and suddenly some of your key terms have been deactivated, it may indicate impression fraud.
  4. Report any click fraud to Google so that their fraud team can attempt to identify the source of the fraud. Google has various click fraud screening tools that monitor all click traffic, and they have even more advanced screening tools that their staff uses to identify the source of click fraud. Like SPAM, we believe much of the click fraud comes from just a handful of criminals.
  5. Monitor your overall site traffic on a daily basis. By utilizing an accurate web analytics tool you can monitor the quality of your overall traffic and infer potential problems based on trends.
  6. The more a PPC engines depends on affiliates for its traffic, the more susceptible it will be to fraud. Traffic quality tends to be better on Google, Yahoo!, and Lycos, for example, because each of these sites has its own branded destination where consumers go to search. However, smaller PPC engines often rely exclusively on partner sites for traffic.

Until more conclusive data becomes available, marketers must remain vigilant against the ongoing potential of lost marketing revenue to click fraud. The aforementioned techniques will help you combat click fraud, which will enable your PPC campaigns to produce the optimum return on investment for your company.

We will continue to evaluate click fraud and will release further research as it becomes available.

 

As part of our research on this topic, we have prepared a review of the best Internet resources on this topic.

Rating System

These sites were rated for usefulness and clarity, but alas, the rating is purely subjective.

* = Decent | ** = Good | *** = Excellent | **** = Indispensable

Credits:

  1. Editor — Flint McGlaughlin
  2. Writer — Brian Alt
  3. Contributors — Jalali Hartman
  4. HTML Designer — Cliff Rainer

 

June 22 Clinic Notes

NOTES:

We will be adding notes here throughout the conference. Please refresh this page when instructed to do so.

 

Survey: The Problem of click fraud
Statement All Advertisers Advertisers of < 500 Employees Advertisers of 500+ Employees Agencies
This is a significant problem we have tracked 6% 10% 0% 4%
It is a moderate problem we have tracked 19% 21% 15% 30%
We have not tracked it much, but we are worried about it 45% 36% 58% 43%
It is not a significant concern 26% 28% 23% 23%
Never heard of it before 5% 5% 4% 0%

Source


"Search engine traffic is among the most valuable traffic to a web marketer due to the state of mind of a searcher. click fraud, charging marketers for poor quality non-converting clicks, could poison the well,"

-Kevin Lee
SEMPO.org


click fraud is the biggest threat to the Internet economy..”

-George Reyes
Chief Financial Officer
Google, Inc.

(As quoted in the Wall Street Journal)

 

"Anyone who says this is not a real challenge is kidding you," says…”

-John Slade,
Sr. Director
Product Management
Yahoo, Inc.

(As quoted in the Wall Street Journal)

 

*********************************
The Latest Spy Equipment
Bug Your Neighbor
Literally
www.marketplacesnapshot.com
*********************************

http://www.marketplacesnapshot.com/duarfkcilc.html


 

Attempted click fraud on Google AdWords
click fraud Attempt Successive Clicks Clicks Registered by Google
Individual clicking on the ad 10 0
Individual clicking on the ad with Anonymizer 10 1
Clicking on the ad with a different computer, same IP address 10 1
Clicking on the ad with a different computer, different IP address 10 1


 

Documented click fraud
for Three Google AdWords Campaigns
  Campaign A Campaign B Campaign C
Total Clicks 34,763 12,790 4,184
Duplicate Clicks 10,268 1,257 349
Alleged click fraud 29.5% 9.8% 8.3%
Clicks Billed By Google 34,758 12,671 4,130
Google Credits - 5 - 119 - 54
Non-Credited Fraudulent Clicks 10,263 1,138 295
Cost to Advertiser $15,394.50 $284.50 $29.50

 

URLs:

1. MEC Research Partnership Application

2. http://www.clicks2customers.com/

3. http://www.keywordmax.com

4. http://www.clickauthority.com

5. http://www.clicks2customers.com/

6. http://www.clicksentinel.com


BIO:

Dr. Flint McGlaughlin

The Marketing Experiments Journal is published by Digital Trust Inc. (DTI). Dr. Flint McGlaughlin is the Director of DTI.

Dr. McGlaughlin is a pioneer in strategy and communications. His primary research is focused on discovering the most effective means to market intellectual assets across the Internet.

Dr. McGlaughlin has advised more than 1500 companies including, AT&T, The Federal Reserve, Pitney Bowes, and Merrill Lynch. He has conducted over 2000 hours of keynote speaking. He has directed the development of more than 20,000 web pages.

Dr. McGlaughlin currently serves as the Co-Executive Producer of the new FOX Family series: "Courage" - hosted by actor Danny Glover. He also serves as a senior advisor or board member to twelve growing companies, and four charitable foundations.

His writing and television production activities have, thus far, won two Tellys, an Edwin Murrough, and an Emmy.

Dr. McGlaughlin is quick to acknowledge that the research at MEC is largely dependent on the intense, focused efforts of the Lab's Leadership Team.
 

Posted by Brian Alt at June 22, 2005 02:22 PM

Posted by Hans A. Koch at 09:14 AM | Comments (0)

June 21, 2005

The real problem with Click Fraud

Another comment on Got Ads? blog regarding the Click Fraud Wired News Article

Not many people understand the real issue with click fraud - that is, it's very lucrative if you can use networks of anonymous zombie-PCs and automated software. It's also impossible to detect.

Is there any way to distinguish those clicks as fraudulent. Does google have the power in their data that they collect?

6/21/2005

Posted by Hans A. Koch at 06:14 PM | Comments (0)

June 10, 2005

Web Startups Vie To Detect 'Click Fraud'

To attract clients, Law Offices of James Sokolove, a firm based in Newton, Mass., spends more than $100,000 a month advertising on Web-search sites. But early this year, it decided Google Inc. and Yahoo Inc. weren't adequately addressing its suspicion that outsiders were maliciously clicking on its ads to drive up its search-ad bills.

So in March, the law firm hired Clicklab LLC, paying the 11-person McLean, Va., company hundreds of dollars a month to try to root out the problem. The law firm is among an increasing number of advertisers seeking help from a new set of companies that have popped up to tackle "click fraud," a term the industry uses to describe someone clicking on a Web-search ad with ill intent.

Like hundreds of thousands of other advertisers, the Sokolove firm contracts with Yahoo and Google to serve up small text ads to anyone searching the Web using certain words, such as "Vioxx" or "mesothelioma," a rare form of asbestos-linked cancer. The firm, which has affiliates throughout the country, pays the search companies a fee each time someone clicks on one of its ads. Amid heated bidding with other advertisers, primarily personal-injury law firms, for "mesothelioma," it paid around $100 a click last year.

The search-ad market is estimated at around $4 billion in the U.S. in 2004, and the vast majority of Google's revenue comes from search and similar keyword-triggered Web-site ads. But there is increasing evidence that some people are clicking on such ads either to run up fees for competitors, to boost the placement of their own ads or to make money for themselves.

The Web-search companies concede that click fraud is an issue but decline to quantify its scope; some outside estimates run as high as 20% of all clicks. Many companies complain that Google, Yahoo and other search engines are vague about how they are tackling the problem, unresponsive to questions about suspect clicks and ineffective when advertisers point out possible abuses.

E-magine Networks Inc., which spent about $500,000 on Google ads in the past 12 months, says it recently received about $15,000 in credits from Google for "invalid clicks." The Fort Lauderdale, Fla., Web-site operator believes click fraud has cost it more than that. So it recently had a start-up company called ClickFacts put some computer code on its Web sites to help track clicks.

Other advertisers have taken the issue to court. Lane's Gifts & Collectibles LLC, a Texarkana, Ark., retailer, in February filed suit in Miller County, Ark., circuit court against several search companies. The suit, which was joined by another advertiser, alleges that search companies knowingly charged for fraudulent clicks.

Sensing a business opportunity, entrepreneurs have built up a cottage industry to capitalize on search-advertiser discontent. Their services, with names such as Click Defense, ClickDetective and WhosClickingWho, generally monitor records of visitors who come to their clients' Web sites via search ads. To sniff out fraudsters, they rely on such clues as the numerical addresses that computers provide when they connect. Advertisers can take that information to the search companies to request credits to their ad budgets for fraudulent clicks.

"The market has certainly become flooded with people in this space," says Skip Pratt, general manager of PPCTrax.com, a unit of closely held Oliver Tucker Partners LLC. The Chandler, Ariz., Internet services and consulting company started its service to combat click fraud in January, after wrestling with the problem when it affected its own search advertising. It says it has about 35 clients.

Google and Yahoo acknowledge the miniboom in click-fraud services and say they are open to working with such third parties in attempting to address the issue. The information in advertisers' Web-site records "is useful to help them identify patterns," says John Slade, a senior director for product management at Yahoo's search-ad arm. He says Yahoo itself has considered providing Web-site traffic analysis similar to that offered by the third parties.

Both search companies decline to comment on specific customer complaints. "We take all incidents seriously and we make every effort to investigate each one quickly and communicate effectively with the customers," says Salar Kamangar, a Google product-management director.

Yahoo and Google each has its own complex system, honed over time, that aims to spot click fraud before an advertiser is charged. But, citing privacy issues and a desire not to alert fraudsters to the surveillance techniques, the search engines generally won't provide advertisers with details about how they handle specific suspect clicks. That can make it hard to reconcile analyses performed by third-party services with what clicks the advertiser paid for.

Advertisers on their own can monitor the effectiveness of their ads by using free services from the search companies that help determine what portion of clicks generates customer sales. They also can scour the records kept by their own Web servers. But small advertisers in particular often say they don't have the time or technical expertise to hunt for traces of click fraud with those tools.

Andrew Sweet, Web manager for the Sokolove law offices, says he tried poring over the company's Web logs but found it inefficient and inconclusive. Enter Clicklab. In evaluating each search-ad click, Clicklab examines over 30 factors, such as the country where the visitor appears to be located and the length of time spent on a client's site. Its service, inaugurated in March, starts at $100 a month.

Mr. Sweet says Clicklab's analysis suggests that only about 2% of the clicks on the law firm's search ads are fraudulent. Still, he believes the detection service is worth it, if only for peace of mind.

Scott Karr turned to a third-party service for similar reasons. The president of Karr Group First LLC, an online home-appraisal concern, suspects a competitor is clicking on his Google search ads to try to drain his ad budget. He recently estimated his total bill for fraudulent clicks was about $6,000. Google refunded the closely held Reynoldsburg, Ohio, company $360 for "invalid clicks."

Mr. Karr says that when he discussed the matter with Google staff, they wouldn't say what else, if anything, Google is doing about his problem. So he signed up for WhosClickingWho in April, paying a $79 monthly fee. When someone clicks multiple times on the same search ad, the service displays on that person's screen a pop-up message indicating it is tracking him or her. It also provides detailed reports advertisers can use to request refunds from ad providers. Mr. Karr recently challenged Google's billing based on WhosClickingWho data. Google replied in an email that it didn't find evidence of click fraud and that there could be a problem with the third-party service's numbers. Mr. Karr says he's sticking with the service, but now has some doubts about its value.

WhosClickingWho is a service of closely held PPC Audit Inc., a 12-person Santa Clara, Calif., company. President John Carreras launched the service in 2002 after business rivals repeatedly clicked on search ads he bought for his trade-show display business. He says WhosClickingWho now has a few hundred customers. With click-fraud detection booming, he sold his trade-show business earlier this year.

Click-fraud detection has even spread to university campuses. Mikhail Ledvich, who is 20 years old and just completed his sophomore year at Boston University, is starting a service called ClickFacts with two other Russian-born college students during their school vacation this summer. A venture-capital group is providing financial backing and advice.

Email your comments to sjeditor@dowjones.com.

--June 10, 2005

By KEVIN J. DELANEY
Staff Reporter of The Wall Street Journal.

From The Wall Street Journal Online

http://www.startupjournal.com/ecommerce/ecommerce/20050610-delaney.html

Posted by Hans A. Koch at 08:25 AM | Comments (0)

June 09, 2005

Where did all the ads go?

Pay per click fraud has been a hot topic in 2005. With rising concerns about how vast and wide it's affects are companies like VeriClix, Click Sentinel and Who's Clicking Who have sprung up over night. One of the biggest concerns is that with all this revenue flowing in through ads how do you monitor what's legit and what is fraud. You need thresholds that can be set.

Allowing the Search Engine / Pay Per Click companies to internally audit and set spam thresholds is a conflict of interests. What they deem as "tolerable fraud" translates into Millions of dollars added to their bottom line. That's Millions in stolen money out of your pocket.

So what is the solution? Well right now it's at a stale mate. Search Engines and PPC companies are quickly adding addendums to their TOS clauses which rule out fraud data from a 3rd party source. So essentially this means that that PPC companies are auditing themselves. This would be like letting Enron or Worldcom audit their own holdings.

With the rise of fame of all these start up PPC auditing companies Adwords, Yahoo Internet Marketing and the other PPC companies have got to be feeling the heat. Just recently Google Adwords stopped the PPC ads for click fraud terms in their results. This is probably just the tip of the iceberg and is a good assurance that they are feeling the heat. I wouldn't be surprised to see more fraud related headlines before the year is out.

This post was posted on June 9, 2005
http://www.seo-e.com/item-77.htm

Posted by Hans A. Koch at 02:09 PM | Comments (0)

'Click Fraud' Costly to Search Engine Advertisers

As many as 20 percent of all "clicks" on Web-search site ads are fraudulent – and those false clicks can cost an advertiser plenty.

Companies pay search firms such as Google and Yahoo a fee each time someone clicks on one of their ads, and a single click can cost $100.

But some people are maliciously clicking on ads to drive up competitors' bills.

"Click fraud" refers to the practice of "clicking on pay-per-click ads without the intent to buy advertisers' products or services," according to Clicklab LLC, a company that helps advertisers fight click fraud.

"It can be perpetrated by persons who systemically click on links, or use software to do so, to either garner profit for themselves through click commissions or to purposefully deplete the pay-per-click funds of a competitor."

The search-ad market is estimated at about $4 billion annually in the U.S.

"The Web-search companies concede that click fraud is an issue but decline to quantify its scope," the Wall Street Journal reports.

"Some outside estimates run as high as 20 percent of all clicks. Many companies complain that Google, Yahoo and other search engines are vague about how they are tackling the problem and unresponsive to questions about suspect clicks."

A Texarkana, Ark., retailer, Lane's Gifts & Collectibles LLC filed a lawsuit against several search engine companies, alleging the firms knowingly charged for fraudulent clicks. Other companies have turned to Clicklab and other anti-click-fraud services such as ClickDetective and WhosClickingWho for help.

To sniff out fraud, Clicklab examines more than 30 factors, such as the length of time spent on a client's site.

With WhosClickingWho, the service detects when someone has clicked on an ad multiple times and sends a pop-up message to the culprit warning that the service is tracking him.

Most important, the services provide reports that advertisers can use to negotiate refunds from search companies for the fraudulent clicks.

Thursday, June 9, 2005 3:24 p.m. EDT

http://www.newsmax.com/archives/ic/2005/6/9/155403.shtml

Posted by Hans A. Koch at 03:24 AM | Comments (0)

June 06, 2005

Google Sued For Ignoring Click Fraud

A class action lawsuit was filed in US District Court against Google alleging breach of contract, negligence, unjust enrichment, and unfair business practices-all involving charges of click fraud. Click Defense Inc, a click fraud protection firm, filed the suit in California in the name of an unknown number of plaintiffs for an amount not less than $5 million.

Click fraud is the term used in the Internet search industry to describe the practice of clicking on search advertisements to run up the costs on advertisers.

Companies buy an advertisement through Google's AdWords program, whereby certain keywords are purchased in order to appear in the sponsored links section of the search engine's results page.

Advertisers bid upon the search terms with the top spot going to the top bidder. Once the advertisement is in place, advertisers pay a fee to the search engine each time the ad is clicked by a searcher.

Click fraud, estimated by some to be as high as 20% of all clicks, is caused by those with a vested interest using software that clicks on the ad hundreds or thousands of times to either drain the advertising budget of a rival company, or create revenue for the seller of the ad space.

Colorado-based Click Defense, a company that specializing in procuring rebates for advertisers, says the average cost per click is 50 cents, but prime search engine real estate can go for as much as $100. Disputing the 20% estimations, Click Defense alleges that click fraud on Google is as high as 38%.

The lawsuit claims that since 99% of Google's revenue comes from advertising, Google has a huge financial interest in doing little about the instance of fraudulent clicks and criticizes the search giant for failure to disclose its own estimate of the number of fraudulent clicks.

The suit fall just short of accusing Google of physically performing the click fraud itself. The most visible allegation is the charge of negligence on the part of Google, claiming that Google isn't doing enough to prevent the problem.

Click Defense argues that the same software Google uses to track the number of clicks on an advertisement and then bill advertisers could be used to investigate and identify instances of click fraud.

Google's terms of use with AdWords promises a refund in any event of identifiable click fraud. According to Google's 2005 Annual Report, click fraud is a major concern of the search engine.

"If we fail to detect click-through fraud, we could lose the confidence of our advertisers, thereby causing our business to suffer," as stated in the report.

Google, who reported a first quarter net profit of $1.3 billion, is dismissing the claims of Click Defense.

"We believe the suit is without merit and we will defend ourselves against it vigorously," a Google spokesman told Reuters.

It is important to note that Click Defense Inc. makes money by promising protection against click fraud and procuring refunds for client advertisers. The plaintiff in this lawsuit seems especially suspect considering the nature of the business it is in.

That Click Defense is accusing Google of having a financial interest in not detecting click fraud is a little bit funny as Click Defense has a definite financial interest in nailing Google for it.

A jury has been demanded to investigate the claims and they will ultimately decide, if the case goes to trial, whether there is sufficient evidence of the charges brought against Google.

Jason L. Miller | Staff Writer | 2005-06-30

http://www.webpronews.com/insiderreports/searchinsider/wpn-49-20050630GoogleSuedForIgnoringClickFraud.html

Posted by Hans A. Koch at 10:11 AM | Comments (0)