Why You Should Seek Expert Help:
Click Fraud is Rampant in the Industry
1. Google admitted in filings of its recent IPO, “We are exposed to the risk of fraudulent clicks on our ads. We have regularly paid refunds related to fraudulent clicks and expect to do so in the future. If we are unable to stop this fraudulent activity, these refunds may increase. If we find new evidence of past fraudulent clicks, we may have to issue refunds retroactively of amounts previously paid to our Google Network members”
2. You’ve probably already read the India Times Article, “A growing number of housewives, college graduates, and even working professionals across metropolitan cities are rushing to click paid Internet ads to make $100 to $200 (up to Rs 9,000) per month,”
3. In the same article, clickers say they get paid $7 for every $50 earned through clicks.
4. There are accounts of the same type of activity in several other countries, not just India.
5. All PPCs have found fraud and given advertisers refunds.
6. Countless advertisers complain about the PPCs not returning phone calls, being severely backlogged on fraud claims, not returning emails, (These are months in a lot of cases that they wait with absolutely no response)
7. When click fraud happens, PPCs get half of the revenue.
8. Millions of dollars, government interaction, and a collective consciousness that “HATES” spam can’t stop it. The pros still get in.
9. Lots of dollars have been spent by search engines to avoid search engine spam, The pros still get it.
10. Countless advertisers report spikes in traffic from 50 clicks a day to 3000 a day until their funds are depleted. Other cases are not so obvious.
In our opinion, if you truly understand technology, you understand that this problem can never be fully stopped. The reason is, the pros can put together sophisticated software programs that simulate human behavior, good enough that software programs can’t detect it. The better we get at identifying and preventing it, the better they’ll get at doing it. It will be a cat and mouse game, just like SPAM.
Detect Click Fraud news
By the same token, PPCs have a vested interest in DOWNPLAYING the problem. Think about it, if word got out that click fraud was an extreme problem, this would cause a series of events that would result in PPCs losing a lot of money. Advertisers would become gun shy, and the bidding wars would slow down, driving down advertiser expenditures.
So, the PPCs have a vested interest in downplaying the problem. No one is saying they are criminals, or doing it maliciously.
The point is that advertisers should NOT leave the only detecting of fraudulent clicks to the PPCs. Even if none of them are dishonest, you are still allowing them to be the only ones to put measures in place to stop people from making them more money.
Allowing the PPCs to be the only measure to keep track of fraud is the equivalent of saying to your credit card company, “Go ahead and bill me, but don’t worry about sending me a statement. I trust you.” Who would do that? Well, in this case, many people are doing that.
The People Doing It
There are 2 groups of people that comprise the majority of people you need to worry about.
1. Competitors
2. PPC Content Partners
How They’re Doing It:
1. People in foreign countries clicking on your ads.
2. Spiders, Crawlers, Bots, Trojans
The People Doing It
Competitors
Let say you are bidding against someone for the term – insurance. Competitors have been known to use several methods of driving up the bid costs, so their competitors will be forced to lower their bids. The malicious company can either keep their same bid and have the number 1 ranking or lower their bid and still have the number one ranking. Click here to find out how they’re doing it.
PPC Content Partners
These content partners receive usually 50% of what the advertiser pays on every click. The PPC Engine receives the other 50%. It is EXTREMELY lucrative for these content partners (Remember it’s on pace to be a $3 BILLION industry in 2004.) Some of these content partners give in to the temptation to make easy and malicious millions by hiring people in other countries to click on ads orcreate sophisticated software programs to click on company ads.
How They’re Doing It
People in Foreign Countries Clicking on Ads
There are accounts of people in foreign countries randomly clicking on websites and generating income for themselves by doing so. An India Times Article states, “A growing number of housewives, college graduates, and even working professionals across metropolitan cities are rushing to click paid Internet ads to make $100 to $200 (up to Rs 9,000) per month.” In the same article, clickers say they get paid $7 for every $50 earned through clicks.
Anonymous Proxy Servers
People use regular or anonymous proxy servers because several users use 1 IP. For example, several people can visit your website from AOL under 1 IP, so its hard to detect. However, patterns can be found that these fraudsters use frequently. Also, we have a list of anonymous proxy servers that you want to stay away from. There is no reason why anyone would use an anonymous proxy server unless their up to something fishy.
Spiders, Crawlers, Bots, Trojans
Some fraudsters write software applications that will use automated clicking methods to click on PPC listings. These applications are getting more sophisticated as companies are working to identify them. These applications are getting closer and closer to simulating human behavior, which makes them harder to detect. This is why you need an expert.
Also, Trojans are sometimes uploaded on shareware sites. When they are downloaded they stay on a person’s computer and randomly click away. Here again, would you take your own preventive measures to fight shareware, or would you use an established software
Prevent Click Fraud last news
Click Fraud FAQ news
1. Competitors sometimes attempt to deplete one another’s advertising budgets thereby making it more difficult to compete. In such cases, the fraudster is not directly making money from their fraudulent activity but they are affecting a company’s ability to be competitive by reducing their bottom line profits.
2. The second type of click fraud is performed by PPC affiliates. These are sites that act as distribution partners for the PPC companies listings. Such fraudsters attempt to inflate their commissions by artificially increasing the number of clicks on the ads displayed by their PPC affiliate site(s).
Click Fraud Case Study 2019
During the last quarter of 2003 and the first quarter of 2004 the company began to notice a rise in click expenses with no resulting increase in revenue or conversions. The initial rise in click expense was traced back to one of the major PPC companies (one that is publicly traded).
The first logical course of action was for our client to contact the PPC Company and ask for more information. Why was there an increase in clicks with no increase in revenue? Where were the clicks coming from? Was there an increase in popularity of certain keywords or was the PPC company just providing more traffic? Exactly none of these questions were answered to the satisfaction of our client and it was at this point that they knew they needed help.
A log file analysis revealed would make any Marketing Manager sick.
During the month of October 2003 SPENDonLIFE.com experienced a huge increase in click activity. On average, clicks for all keywords increased by approximately 300% with no increase in revenue and a substantial drop in conversion rates. No matter what changes were made to the bidding strategy, the website landing pages or keyword selection, SPENDonLIFE.com could not bring the campaign back in line.
After a few months a decision at SPENDonLIFE.com was made to pull the campaign temporarily but the PPC company continued to send traffic and continued to charge our client. Efforts to communicate with the PPC company’s customer service department or account manager were made in vain.
It soon became clear that SPENDonLIFE.com was due a refund. Following are a few examples of our findings.
Many of the referring URL’s no longer existed at the time of our analysis
Many of the referring URL’s were owned by the same company
The referring URL’s in question were sending more traffic than any other similar PPC company could substantiate
Some referring URL’s were sending the same visitor repeatedly in a short period of time
Many visitors to the landing pages spent a second or less on the landing page
Many clicks were from anonymous proxy servers and did not contain referring URL information
Some of the referring URL’s were sending foreign traffic which had no chance of converting into a sale
Suspicious click activity was distributed among several of the major PPC companies
Armed with a comprehensive report that detailed the above findings as well as other proprietary information, SPENDonLIFE.com began the process of securing a refund. Not only was it bad enough that SPENDonLIFE.com was being charged for something they never received, the PPC Company denied their claims. After repeated attempts to contact the PPC Company, an account manager agreed to look at the documented proof of click fraud that had been compiled. The PPC Company admitted that the traffic was probably fraud and made a small offer for a refund of approximately $13,000.
Insulted by the small offer, SPENDonLIFE.com made numerous attempts to contact the PPC company and was offered the following response from an account manager:
“The offer I communicated to you was our FINAL offer and is NOT up for negotiation. We have a binding contract that you signed which intends to enforce. If you wish to cancel your campaign, I expect a 30 day notice, as provided in our agreement.” After negotiations took place the customer was able to recover approximately $180,000 from the PPC company. This represented 95% of the detected or suspected click fraud.