Online Advertisers Insist 'Click Fraud' Now A Big Problem

Investor's Business Daily ^ | 3/27/2006 | BY PETE BARLAS

[CAWats]

Clarence Briggs is mad.

A U.S. Army veteran and chief executive of a Web services company, Briggs uses stark language to describe his experiences with those who launch click fraud schemes on search engines.

"These people bleed you but they don't want to kill you because if they kill you, they can't continue to bleed you, can they?" he said. "I'm telling you, something isn't right."

Click fraud is a way to scam revenue from companies that place ads with search engine such as Google. (GOOG)

A December survey of 553 online advertisers and marketing firms by the Search Engine Marketing Professionals Organization found that 16% call click fraud a serious threat.

"Companies have been victimized," said Greg Sterling, an analyst for research firm Kelsey Group.

But it's hard, if not impossible, to quantify. Perhaps the best indication of the extent of this problem took place earlier this month. That's when Google proposed to pay $90 million to settle a class action suit brought by advertisers who said they've been victims of click fraud. The offer is pending.

The plaintiffs include Arkansas-based mail-order retailer Lane's Gifts and Collectibles. They say they intend to file similar suits against Yahoo (YHOO) and other search engines.

[glorgau]

From th earticle:
McKelvey says he paid as much as $20 a click to get high rankings for his ads on Google and Yahoo.

$20 is pretty darn expensive for an unverifiable click. It's like leaving $20s out on your doorstep.

[stylin19a]

ok kids...read the article, then remember to use it on DNC ads; Chillary ads, etc....