Click fraud is the practice of clicking on pay-per click advertisements to intentionally increase the advertiser’s cost.  In essence, companies are intentionally clicking on its competitors advertisements for the purpose of increasing it competitors advertising cost.  Click fraud is accomplished by:

• using online robots that are programmed to click on advertisers links that are displayed on the Web sites or listed in search queries,

• employing low-cost workers in China, India and other countries for the purpose of clicking on advertisers links, and

• employees of companies click on competitors ads for the purpose of depleting their marketing budgets and skewing search results.

As a result of such fraudulent actions some search engine providers, like Google, are providing some form of restitution to advertiser by promising refunds for fraudulent clicks.  While Google has the budget to sustain such refunds, what about search engine providers with a smaller budget.  Many are calling for the Federal Trade Commission to take action. However, at this time, the FTC declines to address the issue.  Eileen Harrington, director of marketing practices for the FTC, states that although the agency is always interested in the integrity of advertising, “click fraud ‘isn’t the most direct form of consumer fraud,’ since ‘consumer aren’t directly affected.”

Fighting Click Fraud

Fighting Click Fraud is not an easy task.  The problem is learning how to detect Click Fraud.  Nevertheless you have three options to fight click fraud:

• Hire a click fraud consultant

• Purchase click fraud software program

• Create your own tracking system and fight

Regardless of the method you use to detect click fraud you want to make sure that the information you receive is thorough.  The information should legitimately point to questionable clicking traffic.  Information relating to click trafficking should be document via handwritten notes email exchanges, highlighted reports, etc.  

If you believe that you have detected Click Fraud you might consider the following actions:

1. Find a competitor who is experiencing similar activity.  Bring a claim as a team makes a strong case.

2. Inform your Keyword Advertising agent of the suspected activity.

3. Continue monitoring your click activity.

REFERENCES:

• Jessie C. Stricchiola, Click Fraud – An Overview, at http://www.alchemistmedia.com/CPC_Click_Fraud.htm (last visited Apr. 11, 2005).

• Grant Crowell, Search Engines and Legal Issues, at http://searchenginewatch.com/searchday/article.php/3485021 (Feb. 23, 2005).