Click Fraud Grows by 17% in Q4 ’08

Pay-Per-Click marketing is the heart and soul of most CPA campaigns. Click fraud is an obvious concern. I wanted to give you a summary of a report which released on January 28th by Click Forensics. In the report, they state that Click Fraud has grown to 17%, but you only get that number from the body of the article. The huge graphic depicts something else. You see a sharp rise and the final Q4 number at a staggering 31%.

Botnet Click Fraud NOT Total Click Fraud

Botnet Click Fraud NOT Total Click Fraud

31%. That’s one-third.

Some marketers may have their heart skip a beat at that number. Some may look for a company to hire to help them with click fraud, such as, Click Forensics.

Hmmmm.

A closer inspection shows you that the 31% is the BotNet activity of click fraud. In other words, of all the click fraud happening world-wide, botnet click fraud is responsible for 31%. But the actual number is 17%. Meaning it isn’t one-third, but one-sixth. Half of what Click Forensics wants you to believe.

There are lies, damned lies and statistics.

I come from the school that click fraud is going to happen. Just as theft will occur if I owned a store. Spending all of my time chasing the fraud takes me away from my core business. Factor in click fraud into your business model and realize, 5 of 6 clicks are legit.

And be wary of reports such as these who try to use scare tactics so you will buy a service you don’t need.

http://news.cnet.com/8301-1009_3-10151618-83.html

6 Responses to “Click Fraud Grows by 17% in Q4 ’08”

  1. Lance says:

    Statistics don’t lie to people…people lie to people. Hehe…thanks for that Jerry.

  2. Mikael says:

    It is almost the save as when other sites are ripping off your content (through scraping or rss snippets). You can spend an awful lot of time trying it make them stop or you can just go on running your business. I chose the second option every time.

  3. Matt says:

    Hey Jerry, agreed. Was just curious- are there any stats out there on how much click fraud occurs on the content network vs bots clicking on your ads in Google and their search partners?

  4. Jerry West says:

    Hey Matt,

    None that I have seen that is accurate. The secondary search partners or even AdSense publishers tend to get clicked when there is financial incentive for the fraudster.

  5. Lee says:

    Jerry, I wonder if the arbitrage conspiracy crap had anything to do with the increase

  6. Jerry West says:

    Lee,

    Good point, but reality is the push from AC was probably barely measurable in the entire market.

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