Click Fraud as high as 50%
A new study by ClickLabs says fraudulent clicks from PPC search engines can reach as high as 50%. I personally think that's high when we're talking about Google and Overture, but I guess it could be that high for some keywords. In other search engines like Ah-ha, Kanoodle (and a lot of smaller ppc search engines), I'm sure it's closer to 90% or higher on some keyword searches. I just finished a test on Kanoodle that sent me over 700 clicks and not one single sale. This is for the same keywords that is getting a 2-3% conversion rate on Google and Overture traffic. I just can't fathom how these other search engines convert at such lower rate (0%) unless there is a high percentage of fraudulent traffic.
The problem with PPC fraud goes back to the business model of these PPC search engines. Almost every single one of them has an affiliate and/or partner program that pays a percentage of click revenue to their partners. This creates a huge incentive to cheat the system. There are some big cheaters, I'm sure, but most of them are only makeing a few hundred bucks a month in fraudulent clicks, so it's easy to stay off the fraud radar, but when you add up all the thousands of little guys that are generating fraudulent traffic , it adds up to big bucks. The search engines have very little incentive to catch fraudsters because they'd see a huge drop in revenue if they cut out all that fraudulent traffic. Google and Overture seem to do a better job than most at catching fraud (although they still get some), but that's probably just because they have such a huge source of legitimate traffic that generates revenue for them, they can afford to cut out some junk traffic now for long-term advertiser satisfaction.
Read the article from Internetretailer.com
The problem with PPC fraud goes back to the business model of these PPC search engines. Almost every single one of them has an affiliate and/or partner program that pays a percentage of click revenue to their partners. This creates a huge incentive to cheat the system. There are some big cheaters, I'm sure, but most of them are only makeing a few hundred bucks a month in fraudulent clicks, so it's easy to stay off the fraud radar, but when you add up all the thousands of little guys that are generating fraudulent traffic , it adds up to big bucks. The search engines have very little incentive to catch fraudsters because they'd see a huge drop in revenue if they cut out all that fraudulent traffic. Google and Overture seem to do a better job than most at catching fraud (although they still get some), but that's probably just because they have such a huge source of legitimate traffic that generates revenue for them, they can afford to cut out some junk traffic now for long-term advertiser satisfaction.
Read the article from Internetretailer.com
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