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BizReport : Search Marketing : April 09, 2010

Reports: Click Fraud continues to be a growing problem

Although the click fraud rate is up again for the online industry as a whole, for social networks, the rate is down. A new report from Click Forensics finds that the click fraud rate on social networks is just over 11% compared to the overall click fraud rate of 17.4%.

by Kristina Knight

The Q1 2010 click fraud rate is up from just over 15% in Q4 2009.

"While a handful of suspected click fraud schemes on social networking sites have been alleged by individual advertisers, it's widely assumed that these sites are less vulnerable to click fraud schemes," said Paul Pellman, CEO of Click Forensics. "The results of our new study corroborate this by tracking a lower overall click fraud rate on social networks than we've ever tracked on traditional PPC venues. Conversely, the overall industry rate seems to be creeping higher, so we recommend marketers continue to be watchful of their campaigns."

Today Anchor Intelligence is releasing their Q1 2010 report, which shows an attempted click fraud rate of 29%, an increase of more than 30% year over year. Why the big jump? Anchor blames increased botnet activity across the globe. That activity, coupled with other fraudulent activity such as cyber attacks aimed at stealing people's identities, is a warning to brands - and consumers as well - to safeguard their information.

"As Internet usage has grown in countries lacking appropriate cybersecurity measures, more and more computers have become infected with malware and used as click fraud zombies," said Ken Miller, CEO of Anchor Intelligence.

Tags: anchor intelligence, click forensics, click fraud, click tracking, paid search, search marketing

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