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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Market indexes 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. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.