Click Fraud and How to Counteract It in Ad Campaigns

Pay-Per-Click Search Engine Marketing Excerpt Part 1
By: Boris Mordkovich and Eugene Mordkovich

Unfortunately for any advertiser or businessperson, whether they are online or offline, fraud is a component they must all deal with, in one form or another. With offline businesses, it’s usually in the form of shoplifting or mysteriously disappearing inventory. With online business, however, the fastest-growing type of fraud concerns a phenomenon called “click fraud.”

On its most basic level, click fraud is defined as any click that is maliciously made on an advertiser’s PPC ad with the intent of depleting the amount of money in the advertiser’s account.

As a simple example, let’s assume you have a pay-per-click ad set up on Google and your keyword bid is $1 per visitor. Therefore, each time someone clicks on your ad on the results page for that specific keyword, your account is charged $1. If the amount of money in your account equals $1,000, then you can have 1,000 clicks on your ad before your account is depleted of funds.

If someone decides to target your ad via click fraud, they can use various methods to arrange to have your ad clicked on repeatedly until your $1,000 is gone. This can occur within a matter or minutes, or over a number of days or weeks, depending on what method is used and how blatant the fraudsters are about the process.

Obviously, this is an incredibly destructive type of fraud, especially since it occurs online, where many people feel they are acting anonymously. Some click fraud campaigns do not even try to hide their location or identity if they make a lightning attack on your ad; instead they wait and change their online “identity” after they had made a significant dent in your account, if not having drained it altogether.

Posted in: Click Fraud,Pay Per Click