The 1st step to eradicating the problem is identifying and tracking examples of click fraud is. Click fraud is an enormous drain on the resources of advertisers operating on a national and international scale. Also estimated to occupy around 30% of all pay per click advertising spent.
One way in which Search Engines and other pay per click program providers have attempted to curb the growing click fraud problem is through introducing IP address repetition algorithms. These formulae are designed to pick up on suspicious click patterns emanating from a singular IP address. As well as identifying potential fraudsters at source, this can help to uncover the existence of click farms and competitor-led sabotage.
Anyway, there is an array of problems with this method of attempting to identify the fraudsters. So, fraudsters logging on through a dialup modem, DSL line or cable modem can almost completely bypass this check, as with every new online session, a new IP address is generated. Cookie and session tracking are other methods by which search engines can attempt to uncover potential fraudulent activity, but for the fraudsters there are ways around these. More software is developed which profiles and reports on the browsing habits of each click-through to enable companies to track and monitor suspicious behavior.
Prompting Google to offer $90million as a potential settlement the problem of click fraud recently hit the headlines with a class action raised against Google. Maybe an acceptance of their responsibilities, Google's offer goes some way to suggest the extent of click fraud.
The first of self-help remedies that can be implemented to keep an organization out of trouble is remedies the reliance on search engine optimization and organic listings. It could eventually realize a ranking that another site is willing to pay $2.50 a click for, if a site is well and fully optimized. With organically high rankings there is no click through rates. The costs associated with PPC are not applicable. Although the process is significantly more laborious and takes significantly longer to see results, the SEO process is much cheaper in the long run, and with an estimated 25-30% of all clicks being performed fraudulently, an organically high listing can save money which would otherwise be drained by click fraud for more beneficial reinvestment.
Surely click fraud will follow suit, as the pay per click advertising market continues to grow and expand. Unless an effective means of preventing click fraud is developed and successfully implemented, buyers will steadily lose confidence in the advertising medium and turn to more effective.
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