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Harry Joiner Harry Joiner   Bio
10.24.06

Nevermind the Click Fraud

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It sounds like a late night infomercial biz-op:"Now! Make $300 a year working from your kitchen table in your underwear!"....

Yesterday's Washington Post has an interesting article about about click fraud -- and what Google and Yahoo are doing about it.  Google estimates that less that 10 percent of its Adwords clicks are fraudulent, while some industry experts peg the problem at 15-30%.  Regardless, it's big money for professional click fraud artists -- and even the FBI is said to be getting involved.

The article tells of a lady in Iowa getting addicted to earning a half-cent for every ad she clicks, reporting that she makes $300 a year.  By my math, that's 60,000 clicks a year -- or 164 clicks per day.  In America, you can make more than that flipping burgers.  But in India, where much of the click fraud is originating, $300/year might be good money.  Whatever.  Fraud is fraud.

Two things for marketers ...

Thing 1:  Until this mess gets straightened out, you marketers RELAX.  It's not like most of you know what you are doing in the area of paid search, so is click fraud really the source of your problems?  No.  Remember, this problem effects everyone, and marketing effectiveness is relative.  Your job is to outrun your competitors, and the PPC track is slick for everyone.  So shaddap.

Thing 2:  Regarding his company's advertising nearly a century ago, John Wanamaker commented "Half the money I spend on advertising is wasted; the trouble is I don't know which half."  At least with paid search, even the most dire prediction is that 70% of of your advertising is working.

Try that with a space ad, a TV spot, or a blimp.



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Comments

Shaddap? Don't worry??

If my client made a print buy and later discovered that 30% of the magazines went out the door without the client's ad in place, I'm certain that "don't worry" would be an ill-received response.

The problem isn't that 70% of the advertising "is working" (it's not, and you know it).

It's that the PPC providers profit from click fraud, consistently underestimate its presence, and have little incentive (or interest) in fixing it.


Posted by: Copywriter Underground | 10.24.06

Everything you said is right. But what are you gonna do? Not use PPC? It's a great alternative to traditional media. That's my point.

Posted by: Harry Joiner | 10.26.06

Waaaay more than 30% of the exposures in most (if not all) print buys are totally wasted...on people who have no interest in what is being sold in the ad.

Are these print buys still a good thing? Yes...if they bring in more revenue than they cost!

The same is true of Adwords...or whatever...as long as the roi is positive...be happy!

If there were no click fraud, cost per click would go up because sales per click would go up...which would justify higher bids for terms.

Posted by: David Flash | 10.27.06

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