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PPC and Fraud

Discussion in 'Pay Per Click Advertising' started by GuyFromChicago, Mar 23, 2004.

  1. #1
    The recent
     
    GuyFromChicago, Mar 23, 2004 IP
  2. digitalpoint

    digitalpoint Overlord of no one Staff

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    #2
    There is no way to prevent fraud 100%. The best they can do is fight it.

    There will be fraud in any industry, but since it's generally across the board, the fraud increases the total click-throughs, but decreasing the conversion rates as a whole.

    Since the market itself dictates the bid pricing, so the fraud clicks in the end drive click-through pricing down.

    - Shawn
     
    digitalpoint, Mar 23, 2004 IP
  3. tphyahoo

    tphyahoo Peon

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    #3
    There was a long thing about this on slashdot. Sorry, I don't have the link. But the thing that struck me most strongly, if I remember right, was something about proving you're a human before viewing the ad. I believe you do this by being shown a picture of a randomly generated word like

    go7garka

    in a font that is all screwy and warped, not machine readable, but human readable. (A real life example of this, is when you apply for a yahoo email account.) You would type the word, and then be allowed to view the ad.

    If clickthrough fraud became a serious problem, which is a real possibility in my view, this would be the solution I would favor. A bit inconvenient for the user, but not that bad. And after all, if having to prove his identity is such a hardship that they don't want to bother, maybe he wasn't such a valuable customer and you would rather save the money for the click.

    I am sort of paranoid by nature and would favor a solution like this. I'm not an expert, but my impression is that ip spoofing is pretty hard to prevent, and you only need one good scamsketeer who knows how to program to sell it to a couple of spammers, then the fraud speads like a virus and the fraud gets copied again and again. The feds just arrested a guy who tried to do this with google, but how long before the next guy comes up with the program, but this time does it right and goes to the Russian spammers first. Probably happened already.

    Best regards,

    Thomas.
     
    tphyahoo, Mar 24, 2004 IP
  4. digitalpoint

    digitalpoint Overlord of no one Staff

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    #4
    I really doubt they would implement something like that. Google (and advertisers) want it to be easy for user's to click through. Not requiring them to fill out a form in order to click an ad.

    - Shawn
     
    digitalpoint, Mar 24, 2004 IP
  5. digitalpoint

    digitalpoint Overlord of no one Staff

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    #5
    Another thing is in order to do it in large volumes without being detected, you would need thousands (or millions) of IP addresses. Google of course can see if a single IP address is making many clicks and flag them as fraudulent clicks.

    The programming code needed to make the clicks would be the easy part... getting an army of computers around the world to execute that code is the more difficult part.

    Another flag that could be seen by Google would be the click-through ratio. Obviously very high click-through ratios is another flag. And so would very high impressions per IP address. So really you would need like 10 machines doing an impression for every one doing a click-through.

    - Shawn
     
    digitalpoint, Mar 24, 2004 IP
  6. GuyFromChicago

    GuyFromChicago Permanent Peon

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    #6
    Yea, typing a code before you could click on an ad would quickly dimish the number of click throughs. Imagine if every site on the interent required a code (just for example) to access it...what a nightmare.
     
    GuyFromChicago, Mar 24, 2004 IP
  7. compar

    compar Peon

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    #7
    Other than being able to harm you competitor there is no advantage to being able to do a lot of AdWord click throughs. You can't make any money that way. The only people to gain is Google itself and the person who pays is the advertiser.

    However with AdSense it is an entirely different thing. Now for every false click through some web owner is getting part of Googles income. The advertisor still suffers because he pays for both the AdWord click through and the AdSense click through.

    But suddenly there is a payoff for the fraudulent clicker. I can't see any high volume false click program succeeding, but a network of reciprocal clickers would probably work. You make a deal with a few other web masters such that you will click on their site 'x' times per day and they will click on yours. You couldn't make big money but depending on the number of AdSense ads you run and the number of reciprocal arrangements you setup you could make a few extra bucks a day and probably never be detected.
     
    compar, Mar 24, 2004 IP
  8. GuyFromChicago

    GuyFromChicago Permanent Peon

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    #8
    I've always wondered...

    Do you think Google prevents "day after day" clicks on the same ads from the same IP address? At what point does Google consider a click fraudulent?
     
    GuyFromChicago, Mar 27, 2004 IP
  9. OnSpec

    OnSpec Peon

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    #9
    However, at some point the cost/benefit cross factors in. At that point the market will decide whether it's worth the time and effort (roi) to continue.
     
    OnSpec, Mar 27, 2004 IP
  10. compar

    compar Peon

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    #10
    I'm not sure we should discuss this much further. It might appear that we are advocating this practice.
     
    compar, Mar 27, 2004 IP
  11. OnSpec

    OnSpec Peon

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    #11
    Exactly true. I ran a campaign for a major portal in the online casino sector. It basically required users to go to a landing page explaining the requirement for responsible gambling. That one intervening step drastically reduced click thru rates and the program was quickly ended.
     
    OnSpec, Mar 27, 2004 IP
  12. GuyFromChicago

    GuyFromChicago Permanent Peon

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    #12
    I think that "some point" is yesterday, today & tomorrow. Every Adwords account I manage (6 or 7 at the present time, not including my own) is analyzed at a minimum of every other week. If my clients don't see a decent ROI - ar at least a break even - they never stay with the program longer than 60 days.

    For the accounts/markets a I manage, I see new competition pop up and existing competition drop all the time.

    My "day job" involves marketing with direct mail on a very large scale. I've been doing it for about 9 years. The draw to DM is that it was always one of the most measurable forms of diret marketing. 4 - 6 weeks after a mailing you can tell with actual figures if the campaign was successful. Adwords is like electronic direct mail, without the 4 - 6 week wait.
     
    GuyFromChicago, Mar 27, 2004 IP
  13. tsptom

    tsptom Well-Known Member

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    #13
    This is something I posted in another thread but it is relavent here...

    I paid for Overture's PPC service and someone set up a links website that had links to other sites related to my site. In the first few weeks I could see in my stats that I received over 700 clicks (with overture ID's in the links) originating from this links site. I didn't think this sounded right so I contacted the owner of the site and asked what his motive was. I figured he was somehow acting as an affiliate, and he was getting paid for these clicks by Overture. He gave me a one line bogus answer and the next day the site was offline.

    I contacted Overture to find out if I was being charged for these clicks. I noticed that my overture clicks per day immediately fell by the amount I was getting from this site. So yes, I was paying for them, but Overture denied it and then they said they would pass it along to someone else to research but I didn't hear from them for weeks. So I was pissed and cancelled.

    How this third party was making money I don't know but there was an obvious motive for him to send me clicks.

    My point in my other post was that I was getting a 3 on Yahoo rank before I cancelled overture but as soon as I cancelled, I started to get a zero. (I have since reinstated the account, because it does work, and probably will continue until I can figure out this SEO myself).

    My point in this post is that overture was not there for me. I paid for their golden membership or something like that where I was supposed to get superior service etc., but they didn't seem too concerned about this potential fraud that cost me a couple hundred dollars. I guess they thought I was paying for clicks and I was getting them, regardless of how bogus they were.
     
    tsptom, Apr 17, 2004 IP
  14. CountryCheck

    CountryCheck Peon

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    #14
    Hi.

    We are looking for PPC advertisers (using Google and others) who are interested in participating in a study to determine how many fraudulent click throughs they get via anonymous proxies (aka open proxies).

    Country Check prides itself on being able to block most of these anonymous proxies and by conducting this study we hope to be able to determine the level of risk to PPC advertisers.

    The study will involve changing the url of the page that the surfer is sent to being replaced by our code which redirects allowed users through to the content while blocking those using anonymous proxies.

    By blocking anonymous proxy users, a webmaster will be able to quickly notice any possible fraudulent click throughs that they are being charged for.

    If anyone is interested, please email me at

    Cheers,

    Adam
     
    CountryCheck, May 10, 2004 IP
  15. Bernard

    Bernard Well-Known Member

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  16. disgust

    disgust Guest

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    #16
    that's not exclusive to AOL, that should happen with any dialup ISP
     
    disgust, Jun 1, 2004 IP
  17. c2q8

    c2q8 Peon

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    #17
    if your ads have only.05 to .50 USD on google no one click many time, 2nd you have to be smart, you have option in your google adword that your ads only dispaly on google, the main prob..is with adsense i think..
     
    c2q8, Jun 28, 2004 IP
  18. c2q8

    c2q8 Peon

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    #18
    2nd ly because of few the hole CPC mkt..going down..
     
    c2q8, Jun 28, 2004 IP
  19. weblaunch

    weblaunch Well-Known Member

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    #19
    I think the allegations of fraud does more than fraud itself to harm PPC programs. The potential certainly exists, but the major players like Google have mechanism in place to combat it. As an Google publisher and advertiser, I'm more concerned about these articles than the actual fraud that is being committed.
     
    weblaunch, Apr 10, 2005 IP
  20. simpseo

    simpseo Active Member

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    #20
    Comments deleted
     
    Last edited: Nov 30, 2009
    simpseo, Nov 30, 2009 IP