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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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