Wednesday, April 26, 2006

Google ClickFraud Settlement Issues

I'm sure most of you noticed MarketingShift now has a new sponsor and as a result of talking with this sponsor I decided to do a bit of research on the landmark Google clickfraud class action lawsuit, especially the settlement portion, to get up to speed. To be quite honest I was shocked at what I found in my own research and in speaking with our own advertiser as well as other industry experts.

Anyone that has ever advertised with Google using AdWords should be made fully aware of the following issues surrounding the clickfraud class action settlement Google has entered into. This stuff is just ridiculous if you ask me.

Google Click Fraud Settlement Facts You Should Know
1.) $90 million is minuscule relative to current estimates of the amount of click fraud over the last four years. In fact, taking the most conservative estimates, over the last four years, click fraud resulted in more than $5 billion of losses to advertisers and probably more like $10 billion. Taking out the $30 million that is being used for attorney fees, Google is going to the figure that this firm believes Google is only going to be liable for $60 million.

2.) Under the terms of the settlement, the fox is left guarding the henhouse – Google decides whether and to what extent an advertiser has been defrauded.

3.) Under the terms of the settlement, advertisers will forever lose their right to claim for their rights if they don’t make a claim within 60 days of the settlement. If they opt-out, they will have a period of years to make a claim.

4.) Under the terms of the settlement, even if an advertiser makes a claim in time and even if Google accepts that claim, the advertiser will only be able to recover 0.05% of the money which they lost. That means that if Google agrees that an advertiser has lost $10,000 to click fraud, that advertiser will only be entitled to receive 5 DOLLARS.

5.) Under the terms of the settlement, Google will not have to pay cash. Instead, the settlement requires that the advertiser continue to advertise with Google in order to receive any benefit. Once Google agrees that an advertiser is owed money, Google will issue a coupon for 0.05% of that amount for future advertising with Google.

I highly recommend going to the AdWords forum and doing some of your own research with other AdWords advertisers and looking at the question / answers Google has already posted on Click Fraud in AdWords and actively monitor your campaign and getting up to speed on their terminology.

Posted By Jason Dowdell at 11:20 AM
Permanent Link: Google ClickFraud Settlement Issues | Comments (1)

(1) Comments on Google ClickFraud Settlement Issues

Click Fraud is an interesting topic - one which both clicktracks and adwatcher will stop, one which will cost you an estimated 20% of your ad budget.
This is an interesting article with valuable information. I have used both clicktracks and adwatcher to prevent clickfraud. What we and many other webmasters are starting to do is invest our marketing dollars into clicktracks, adwatcher or other ad tracker software.
If you are looking for more information on adwatcher or clicktracks i recommend you take a look at: http://www.trackingsoftwarereviews.com they have full reviews on both clicktracks and adwatcher!

Mike Baker

Comments by Mike Baker : Sunday, August 06, 2006 at 03:55 PM

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