| One of the most popular forms of Internet advertising | | | | rushing to click paid Internet ads to make $100 to $200 |
| is pay-per-click (PPC). Merchants place ads with | | | | per month."How serious is the problem? It's hard to |
| search engines like Google or MSN and the ad | | | | judge exactly, but click fraud is commonly estimated at |
| appears whenever someone enters a relevant | | | | 20% to 35% of all PPC ad campaigns.A recently |
| search.If the ad is clicked the merchant pays a fee - | | | | launched lawsuit alleges that Google is aware of the |
| anywhere from 5 cents to $100. It's a fabulous idea - | | | | magnitude of click fraud and does not do enough to |
| ad campaigns targeted at your most likely | | | | alert advertisers of the problem.The class action suit |
| customers.It's such a fabulous idea that Google, the | | | | launched by Click Defence says that "Google has an |
| king of PPC, grossed $1.24 billion in the first 3 months | | | | inherent conflict of interest in preventing click fraud |
| of this year - most of it from advertising | | | | since it derives the same amount of income from |
| revenue.Watch out, though. There's trouble in PPC land. | | | | each fraudulent click as it does from each legitimate |
| The flip side to PPC is a phenomenon called "click | | | | click."The $10 million lawsuit quotes Google Chief |
| fraud" or "click spam."There are two types of click | | | | Financial Officer George Reyes as saying that click |
| fraud. The first type occurs when someone maliciously | | | | fraud is "the biggest threat to the Internet |
| clicks on your PPC ad to drive up your advertising | | | | economy."Click Defense is a Colorado company |
| costs. It could be a competitor or a disgruntled former | | | | specializing in click fraud detection. They claim that |
| employee.The second type of fraud involves clicking | | | | they themselves became a victim of click fraud when |
| on affiliate ads to generate income. Affiliate ads are | | | | they advertised with Google's Adwords program this |
| placed on third party web sites and each time | | | | year.They are seeking damages for breach of |
| someone clicks on an affiliate ad the web site owner | | | | contract, negligence, unjust enrichment, and unfair |
| receives a commission.Industry observers believe that | | | | business practices.A Google spokesman said that the |
| affiliate click fraud is the biggest problem of the two. | | | | case is unmerited and that Google will defend itself |
| Either way, the result is the same - advertising budget | | | | "vigorously."Copyright 2005 by Ross MacIverThis |
| depletion with little gain for the merchant.Either type of | | | | article may be redistributed freely on the Internet or in |
| click fraud can be accomplished with the use of | | | | ezines as long as the resource box and hyperlinks |
| automated "robots" or by hiring an army of workers. | | | | remain intact.Ross MacIver is the director of Best |
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