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BizReport : Research archives : July 23, 2009

Click Fraud drops 3+% year over year

Mixed news from Click Forensics today. In their Q2 2009 report, the company found that click fraud has dropped to 12.7%, down from 13.8% in Q1 and down from 16.2% year on year (Q2 2008). Much of the decline is due to better monitoring from advertising networks, however the news isn't all rosy - because click fraud is becoming more insidious.

by Kristina Knight

Researchers found that scripted programs conducting click fraud increased and the incidents of publisher collusion fraud each rose for the quarter.

"The increased diligence of online ad networks to detect and block invalid traffic sources has contributed to the decline in the overall click fraud rate this quarter," said Tom Cuthbert, president of Click Forensics. "However, increasingly sophisticated attacks, such as publisher collusion fraud, continue to be a concern. Ad networks should pay close attention to such threats in the coming months."

Collusion fraud, unknown by many PPC marketers, happens with publishers use rotated IP addresses, botnets or even hire people to click paid search advertisements on their sites. These fraudulent clicks are hard to find because of the different IP addresses, botnets and people used to click. In many cases this type of fraud isn't detected because the traffic isn't seen as an anomaly. The clicks are used to inflate publishers' commissions.

This month Click Forensics introduced their Block List to help marketers figure out and combat collusion fraud.

Tags: Block List, botnets, Click Forensics, click fraud, collusion fraud, fraudulent clicks, pay per click, PPC advertising, search engine marketing, search marketing

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