Google agrees to pay $90 mln in click fraud suit

Discussion in 'Google' started by woodside, Mar 8, 2006.

  1. Dekker

    Dekker Peon

    Messages:
    4,185
    Likes Received:
    287
    Best Answers:
    0
    Trophy Points:
    0
    #21
    well someone above there said 90 million is pennies compared to what it'd cost if their algorithms were divulged, that's their business.
     
    Dekker, Mar 8, 2006 IP
  2. mehbooba

    mehbooba Peon

    Messages:
    260
    Likes Received:
    11
    Best Answers:
    0
    Trophy Points:
    0
    #22
    Google agrees to pay $90 mln in click fraud suit
    Wed Mar 8, 2006 7:04 PM ET

    SAN DIEGO (Reuters) - Web search leader Google Inc. said on Wednesday it had agreed to pay up to $90 million to settle a class action lawsuit over advertising fraud by outside parties on its site, in a bid to put the controversy behind it.

    The settlement stems from a lawsuit filed by Lane's Gifts earlier this year in an Arkansas state court and is designed to settle all outstanding claims against Google for fraud committed using its pay-per-click ad system back to 2002, it said.

    The $90 million would involve legal fees and credits -- rather than any cash payments -- to all advertisers who apply to be part of the class settlement, once the judge certifies the agreement, Google spokesman Steve Langdon said.

    The case covers all advertisers using Google's pay-per-click advertising system back to February 2002 through the date when the judge certifies the case. The final settlement hearing is expected to take place in coming weeks.

    The vast majority of Google's revenues, or around 97 percent, are the result of pay-per-click ads, which critics say can be vulnerable to fraud.

    Bearish analysts have harped on the threat of click fraud as the single greatest risk to Google's advertising-dependent business model, although the company has downplayed the risk, saying only a small percentage of search ads are fraudulent.

    http://today.reuters.com/news/newsa...695_RTRUKOC_0_US-GOOGLE-CLICKFRAUD.xml&rpc=23
     
    mehbooba, Mar 9, 2006 IP
  3. Will.Spencer

    Will.Spencer NetBuilder

    Messages:
    14,789
    Likes Received:
    1,040
    Best Answers:
    0
    Trophy Points:
    375
    #23
    http://www.foxnews.com/story/0,2933,187284,00.html

    SAN FRANCISCO — Google Inc. has agreed to pay up to $90 million to settle a lawsuit alleging the online search engine leader overcharged thousands of advertisers who paid for bogus sales referrals generated through a ruse known as "click fraud."

    ...
     
    Will.Spencer, Mar 9, 2006 IP
  4. Mong

    Mong ↓↘→ horsePower

    Messages:
    4,789
    Likes Received:
    734
    Best Answers:
    0
    Trophy Points:
    235
    #24
    It is good thing but it will assert more pressure on New comers specially MSN.
    BTW how they will compensate sufferers?
    And how Google calculated that amount? ... :)
     
    Mong, Mar 9, 2006 IP
  5. SumitBahl

    SumitBahl Reign of Chaos

    Messages:
    5,170
    Likes Received:
    596
    Best Answers:
    0
    Trophy Points:
    310
    #25
    Thats a big blow for Google, i think from now on their fraud click checking dept. would be more strict.
     
    SumitBahl, Mar 9, 2006 IP
  6. EGS

    EGS Notable Member

    Messages:
    6,078
    Likes Received:
    438
    Best Answers:
    0
    Trophy Points:
    290
    #26
    That's a very..VERY large sum that advertisers have lost due to click fraud. Google will definately be getting more strict IMO.
     
    EGS, Mar 9, 2006 IP
  7. T0PS3O

    T0PS3O Feel Good PLC

    Messages:
    13,219
    Likes Received:
    777
    Best Answers:
    0
    Trophy Points:
    0
    #27
    $90,000,000 at say $0.05 a click = 1,800,000,000 clicks.

    Crikey. Must be a bit of hurt money in there as well.
     
    T0PS3O, Mar 9, 2006 IP
  8. GeorgeB.

    GeorgeB. Notable Member

    Messages:
    5,695
    Likes Received:
    288
    Best Answers:
    0
    Trophy Points:
    280
    #28
    They suck already anyway. I had a site get over 100 clicks yesterday and made less than $5. Either they are disallowing some of those clicks or they are just paying less.
     
    GeorgeB., Mar 9, 2006 IP
  9. T0PS3O

    T0PS3O Feel Good PLC

    Messages:
    13,219
    Likes Received:
    777
    Best Answers:
    0
    Trophy Points:
    0
    #29
    T0PS3O, Mar 9, 2006 IP
  10. mad4

    mad4 Peon

    Messages:
    6,986
    Likes Received:
    493
    Best Answers:
    0
    Trophy Points:
    0
    #30
    The fact that a number has been put on this settlement indicates that google know how much they have earned from fraudulent clicks.

    Hopefully in the future they will err on the side of the advertiser rather than themselves.
     
    mad4, Mar 9, 2006 IP
  11. Dekker

    Dekker Peon

    Messages:
    4,185
    Likes Received:
    287
    Best Answers:
    0
    Trophy Points:
    0
    #31
    i'm wondering if we'll see more banned sites?
     
    Dekker, Mar 9, 2006 IP
  12. tzimisce

    tzimisce Guest

    Messages:
    437
    Likes Received:
    9
    Best Answers:
    0
    Trophy Points:
    0
    #32
    Yeah I read about this a few hours ago on Yahoo news. If it gets court approval it is a semi class action suit so it will be interesting.

    This may lead to more lawsuits for Google involving the same issue. Their stock has already been hit as well.

    I personally think unless companies like Google, MSN and Yahoo can provide exact tracking of who clicks on the ad (say IP address) their may be no future in PPC advertising. It is crazy that people hand over large sums of money hopeing that these companies (with the most to gain) will regulate themselves.
     
    tzimisce, Mar 9, 2006 IP
  13. gford

    gford Peon

    Messages:
    1,188
    Likes Received:
    33
    Best Answers:
    0
    Trophy Points:
    0
    #33
    I think lots of publishers will be seeing less $$$. Ashame the 1% who cheat via click fraud screw over all the honest folk.
     
    gford, Mar 9, 2006 IP
  14. Seiya

    Seiya Peon

    Messages:
    4,666
    Likes Received:
    404
    Best Answers:
    0
    Trophy Points:
    0
    #34
    Probably a weeks earning for them. Or else they would of fought it like Yahoo
     
    Seiya, Mar 9, 2006 IP
  15. T0PS3O

    T0PS3O Feel Good PLC

    Messages:
    13,219
    Likes Received:
    777
    Best Answers:
    0
    Trophy Points:
    0
    #35
    They'll probably start selling fraud insurance soon to make up for it.
     
    T0PS3O, Mar 9, 2006 IP
  16. Christopher

    Christopher Peon

    Messages:
    482
    Likes Received:
    21
    Best Answers:
    0
    Trophy Points:
    0
    #36
    Except click frauder's would be targetting higher paying keywords. Still, it's a pretty impressive number of fraudulant clicks.
     
    Christopher, Mar 9, 2006 IP
  17. NetMidWest

    NetMidWest Peon

    Messages:
    1,677
    Likes Received:
    151
    Best Answers:
    0
    Trophy Points:
    0
    #37
    I bet the lawyers get 50%.

    If everyone who does not feel it is worth going it alone applies, each would get...

    hmmm....

    1 free click. :D
     
    NetMidWest, Mar 9, 2006 IP
  18. mad4

    mad4 Peon

    Messages:
    6,986
    Likes Received:
    493
    Best Answers:
    0
    Trophy Points:
    0
    #38
    I would much prefer to buy unique users rather than clicks. If they tracked it by IP and cookie and guaranteed unique users rather than just PPC (PPU maybe?) then they could charge a premium for it.
     
    mad4, Mar 9, 2006 IP
  19. Dekker

    Dekker Peon

    Messages:
    4,185
    Likes Received:
    287
    Best Answers:
    0
    Trophy Points:
    0
    #39
    rofl rofl rofl

    did they says credits?

    doesn't that just work out to be in google's favor anyways?
     
    Dekker, Mar 9, 2006 IP
  20. dsm56

    dsm56 Active Member

    Messages:
    863
    Likes Received:
    27
    Best Answers:
    0
    Trophy Points:
    78
    #40
    I actually dont know what is so fraud about MFA sites (ones with absolutely no content on them).

    Imagine this scenario.
    Someone type in "fast car mods in blue city in england"
    and some random page comes up which someone made for adsense and it breaks TOS.

    However, the dumb user clicks on adsense, earning the guy some money. They go to a site with car mods, who paid for the user via adwords.

    Now this would be counted as fraud right? Except a user who was looking for car mods in their area has found a website that sells them. So they still got the business.

    Can someone explain why people consider this gross misconduct and click fraud?
     
    dsm56, Mar 9, 2006 IP