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Wednesday, July 26, 2006

Google Opens Up On Click Fraud

Starting today Google will reveal to AdWords advertisers the amount of clicks that the company considers to be fraudulent. Coming clean (as much as Google's estimates are accurate) is an important step in regaining trust from advertisers, but it could also complicate the company's settlement agreement.

Google's $90 million click fraud settlement was challenged, and an Arkansas judge is considering whether or not to invalidate the agreement. If Google's stats indicate that 10 percent or more of current clicks are fraudulent, then some advertisers are going to be upset with receiving just a few pennies from the settlement.

Last week an independent consultant studied Google's click fraud efforts and determined that their actions were "reasonable." Reasonableness is in the eye of the beholder, as using the best available technology could be viewed as reasonable even if it is ineffective, while others might view spending millions on better technology as reasonable.

Technology-driven CPA alternatives will like make PPC campaigns mostly obsolete within a few years, but for now, advertisers will continue to overpay while Google continues to walk a tightrope.

By Jason Dowdell at 01:30 PM | Comments (0)

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