Click fraud: the boring billion dollar problem
Internet advertisers last year spent upwards of $800 million on phony "clicks" according to a study released yesterday by Silicon Valley research outfit Outsell. Among other news outlets, TheGlobeandMail.com summarizes the study today, noting that the nagging problem of click fraud has shaken advertiser confidence in the fast-growing online advertising industry, and prompted many advertisers "to reduce spending with Google Inc., Yahoo Inc. and other websites."

While a satisfyingly quantitative reminder of a nagging problem -- click fraud results when publishers click on their own ads to drive illicit revenues, or when rivals click on each other's ads to increase the cost of advertising -- the Outsell study has mainly generated eye-rolling among Digg users, for whom "click fraud" is a tired issue. "I consider click fraud an inherent risk when paying for advertising," writes one. "Advertisers just need to learn to start budgeting for such things when starting online ad campaigns."
Posted by Oliver Ryan 9:29 AM 0 Comments comment | Add a Comment

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.