Friday, February 01, 2008

No Slow Down to Click Fraud

And the bogus clicks just keep on comin'. According to Click Forensics, the fraudulent clicks online rose to 16.6 percent in Q4 of 2007, up from 14.2 percent. The really scary news is that click fraud rose to more than 28.1 percent on content networks including Google and Yahoo.

That more than a quarter of clicks are fraudulent is unacceptable to the content networks advertisers. There needs to be a strong economic incentive for the companies to develop technology to track the fraud. The FTC needs to get involved to apply pressure on these networks to stop the problem or discount their fees based on their click fraud rates.

Click fraud is hurting Ask.com ($862,000) and Miva (nearly $4 million) which this month both settled click fraud lawsuits. Penalties of an appropriate scale need to be levied
against the big networks unless they can prove that they have sufficiently addressed the problem.

Posted By John Gartner at 09:23 AM
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