Comments on: A quick note on Click Fraud

By: Antonio Howell

Antonio Howell — Mon, 28 Aug 2006 11:09:21 +0000

You lost me at “A quick note”….

By: totoro

totoro — Mon, 28 Aug 2006 11:09:21 +0000

You are right. Google CEO Eric Schmidt believes there is a “perfect economic solution” to click fraud: “let it happen.”

I have my doubts though.

By: iNDi

iNDi — Mon, 28 Aug 2006 11:09:21 +0000

Mark, I completely agree. This is a HUGE risk for Google, and I’m not sure whether it was stated on their 10K or not. Word is that they are easily giving refunds as to avoid a class action. They’re too big now not to be on the class action radar screens — especially given Eric Schmidt’s recent statements.

Do you have a position in Google? Any chance on openly calling for a short?

By: Andrew Beckman

Andrew Beckman — Mon, 28 Aug 2006 11:09:21 +0000

Mark, let’s look at a clickstream parameter numbers for a corvette dealer in Dallas who is advertising on Google Adwords. They have the CPC, Cost per App, and a Cost per sell from App. The latter should not change if the sales people are following up on info requests on a timely manner for the prospect. The main factor that needs to be watched closely is the cost per application, which if you keep the same landing page in place the conversion percentage will create a baseline range. If this percentage on sporadic days has a sharp decline, this is a red flag to analyze the IP’s and the exact keyword searches attached to them. If monitored correctly, and click fraud is found, you can take your dispute to the big 3 (Google, Yahoo, and MSN) and get a refund. This is an annoying process no doubt, but if you can get refunded on those clicks, you are defusing the clickfraudsters…

By: Sylvia Paull

Sylvia Paull — Mon, 28 Aug 2006 11:09:21 +0000

I agree with you completely, Mark. I know you’re really smart and probably don’t care, but it would really help if you used apostrophes with words like it’s when you mean it is. I don’t think eliminating the use of apostrophes in verb contractions is a self-correcting feature of the English language. But, hey, maybe you’re upgrading that too.

By: Tim

Tim — Mon, 28 Aug 2006 11:09:21 +0000

So why is this Google’s problem? If Disney and GM aren’t policing or analyzing where their marketing dollars are going and instead calling it a “cost of doing business,” what’s the problem?

Eric Schmidt is saying, it if advertisers were doing there part and analyzing their clicks, they wouldn’t bid as high for keywords. If advertisers all of a sudden realize that the majority of their clicks are fraudulent, they don’t bid for google ad words anymore. Sounds like market forces at work.

By: Andrew Beckman

Andrew Beckman — Mon, 28 Aug 2006 11:09:15 +0000

Tim, you raised two issues in the world of Search Marketing

1) TradeMark Name Advertising. Advertising on your own or competitive trademarks work great on post click conversions, and companies need to do a better job of getting competitors off of their trademark names by going to Yahoo, Google, etc and having those companies accounts disabled for those keyword phrases.
2) Tracking and Measuring ROI. Most companies put their ads up across the internet without using any form of Web Analytic or conversion tracking tools. They never get a true read on where their marketing dollars are spent on. This is why outsourcing marketing initiatives makes sense for some companies.

By: Chas

Chas — Mon, 28 Aug 2006 11:09:15 +0000

I don’t think eliminating the use of apostrophes in verb contractions is a self-correcting feature of the English language.

By: ben

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By: Chic

Chic — Mon, 28 Aug 2006 11:09:11 +0000

I think Eric Schmidt is right about the economic theory, however he should have said the problem will self adjust, not self correct. Meaning, advertisers will adjust their prices over the long term.