Did You Know?
Marketers are at risk of soon losing over $1 billion annually through Internet "click fraud," according to SPSS (NASDAQ:SPSS), a worldwide leader in predictive analytics software.
Our Story:
We manage several six-figure PPC campaigns for our clients. Some of our campaigns are in high dollar per click marketplaces as we work with many top law firms in the U.S. We have also spent more than $300,000 of own money with Google AdWords & Yahoo (formerly Overture) for PPC marketing. We have suspected for some time that all was not right in some of our PPC campaigns. We have reported our obvious suspected "invalid clicks' and are not satisfied with the answers that we are getting back from these big engines.
No one wants to believe that Web giants like Google & Yahoo would knowingly allow fraudulent clicks to go unchecked while their advertisers continued to pay them top dollars in good faith for what they believe to be "legitimate" clicks. Both Google & Yahoo's profits have hit record numbers in recent months amid two Click Fraud Class Action lawsuits. We have found several cases of "invalid clicks" in our server logs that were as high 30% of our daily budgets. We would like to contribute to solving this problem so we can move back to "business as usual". We have posted this Website to help sort what is real and what is myth about Click Fraud.
Click Fraud Lawsuit #1: Read the Complaint PDF
The suit, filed in Arkansas , alleges that the search companies improperly charged the plaintiffs, a group of online retailers, for fraudulent clicks. The major search engines named in the suit are; GOOGLE, YAHOO, ASK JEEVES, AMERICA ONLINE, LYCOS, LOOKSMART and FINDWHAT. The suit alleges that these search engines are billing and collecting fees for PPC advertising that is not being provided to their advertisers.
Click Fraud Lawsuit #2: Read the Complaint PDF
The lawsuit, filed in U.S. District Court as a potential class action, alleges that Google has been negligent in monitoring fraudulent clicks, at a loss to its advertisers and a gain to its own bottom line. In addition to more than $10 million, the suit asks that Google be required to disclose "the true extent of click fraud" and to return any money to advertisers that resulted from the practice.
How Real is Click Fraud?
- The revenue generated by PPC advertising continues to grow at a rapid pace: from $2.5 billion in 2003, to $3.2 billion in 2004 - to what's expected to be an estimated $5 billion in by the end of 2005.
- The Federal Trade Commission estimates that more than one in 10 Americans (perhaps as many as 30 million people in this country) have fallen victim to Click Fraud.
- Last year (2004), Internet-related fraud complaints surpassed all others, comprising 55 percent of all digital complaints
- Marketers are at risk of soon losing over $1 billion annually through Internet "click fraud," according to SPSS, a worldwide provider of predictive analytics software. In December 2004, the Search Engine Marketing Professional Organization (SEMPO) found that one in five pay-per-click online advertisements are counterfeit. It is estimated that last year, click fraud cost businesses $800 million. If no action is taken, these costs are set to rise to $1.1 billion. More than 95 percent of the Fortune 1000 companies are SPSS customers.
- According to The Times of India, "A growing number of housewives, college graduates, and even working professionals across metropolitan cities are rushing to click paid Internet ads to make $100 to $200... per month".
Click Fraud Conclusions
This type of fraud affects big and small business alike, but disproportionately harms small businesses with limited advertising dollars, by making the market too expensive, or by wasting precious capital on illegitimate advertising costs. We have seen this firsthand with many of our clients. Help us get to the bottom of the "Click Fraud" controversy. If you believe that you have you been the victim of Click Fraud we encourage you to contribute to this project by reporting your fraudulent clicks to post on this Website for all to see.
We have proprietary software that we use to identify click fraud. If you would like to get a free consultation to learn about analyzing your server logs for Click Fraud please tell us more about your suspected Click Fraud. |