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How click fraud is affecting the online advertising industry

Click fraud is a common form of fraud that victimizes pay per click advertisers on the internet. The term refers to a person, or sometimes a script or robot, who clicks on ads in order to generate revenue or to damage an advertiser, but has no legitimate interest in the offer being promoted.The motivation behind click fraud is purely for financial benefits.

It can be as small scale as a first time web master clicking the contextual ads on his website, or a large multi-national organization running scripts and hiring workers to click on advertisements. In other instances, it may be competing companies clicking on advertisements in the search engines in order to drive up the advertising expenses of their competition. In nearly all cases, the motivation for click fraud falls under one of the following reasons:

* Internet publishers wanting to generate revenue for themselves by fraudulently clicking on advertisements, or encouraging others to click on ads when they visit the website.

* Internet advertisers wanting to cause financial harm to competitors by intentionally clicking on their advertisements and driving up the cost of advertising.

* Ignorance or misapprehension. Newcomers and young individuals are unaware of the damage they are causing to advertisers when they click on an advertisement they are actually not interested in. They don't realize that the sponsors have to pay out of their pockets for each click. Sponsors have a lot of competitors and usually pay 0.20$ - 1$ for one click. If all these clicks don't convert into customers who really are interested in the website or product, false clicks could eventually drive them out of business.

* Support or charity. Online surfers who like a certain website sometimes feel the need to give back to the owner of the website. They do that by clicking advertisements on that particular page in belief they are helping out the webmaster but in fact are harming the advertiser and his budget.

* In rare cases, the advertising company themselves may be involved in click fraud to drive up their own revenue. This type of fraud is usually exclusive to small time ad networks, and generally isn't a problem if you are advertising with a reputable company.

Where Click Fraud Occurs

The majority of click fraud occurs on websites that display contextual advertisements such as Google Adsense. The reasons for this are simple enough to figure out. The owner of the website gets paid every time that someone clicks on one of his ads. People realize that they can make quite a bit of money if they can find a way to get a large number of clicks to their advertisements. Click fraud can also occur on the search results pages in the major search engines. This form of click fraud is usually someone who is trying to do financial damage to their competitors. In other cases, click fraud may occur across large networks of websites. These are underground ad clicking networks who commit click fraud on a large scale. The overwhelming majority of click fraud occurs on publishers websites, and not in the search engines themselves. There is much more of a financial motivation when publishers can be paid for having people click on their advertisements.

Article Source: http://www.articlemanual.com

Urban is an expert in fraud investigation, SEO, online marketing and business. This article is just an excerpt of Click Fraud. To read the detailed and full version go to PPC Scam.

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