Study: Click fraud closed 2008 at all-time high

Botnets increasingly used to perpetrate click fraud, Click Forensics reports.

(Credit: Click Forensics)

Thanks in part to armies of compromised computers, click fraud reached an all-time high in the fourth quarter.

Click fraud lets Web sites increase revenue from ads supplied by services such as Google's AdSense or the Yahoo Publisher Network, though those companies take measures to screen out bogus links so advertisers don't have to pay. But that doesn't stop people from trying, according to a new report from Click Forensics, a company that monitors for click fraud and sells detection services.

"The overall industry average click fraud rate grew to 17.1 percent for the fourth quarter of 2008. That's up from 16.0 percent in the third quarter of 2008 and from the 16.6 percent rate reported for the fourth quarter of 2007," the company said Wednesday.

Humans can click on ads, but increasingly fraudsters turn to botnets, the swarms of computers taken over through remote attacks that can do fraudsters' bidding without computer users' knowledge.

"Traffic from botnets was responsible for 31.4 percent of all click fraud traffic in the fourth quarter of 2008. That's up from the 27.6 percent rate reported for the third quarter of 2008 and the 22.0 percent rate reported for the fourth quarter of 2007," Click Forensics said.

[sechr]

Knowing how much fraud is out there doesn't tell us anything about what we need to do. It's more important to know how much are we paying for it or how much affects our cost-per-click rates. For all we know, click fraud detection companies are contributing to these increasing numbers, if only to cause panic in the marketplace and get people to use their tools. Tell me that Google is charging me for more fraud than previously, or tell me that it's killing my CTRs, or that my CPC is artificially inflated by Google to pay for the cost of detecting and scrubbing clicks from our accounts. Now I know I have to do something. Tell me that click fraud grew ten percent in the past year but it all got detected, and there's not much for me to do :).

[imhodudes]

It's ridiculous to put a link on the world's internet, and when someone individually or programatically clicks on it, call if fraud. What user signs an agreement with google that they will only click on ads under predetermined circumstances?

[wolivere]

This is the crux of the issue in our society, so many feel they are entitled. Be it torrent'ing software to fraud. They justify by saying arguing the point you have put out there.

When people enter a business, or take on any activity. They typically make an assumption that the "Spirit" of what they are attempting to do will be upheld. That people will be moral and just. But, then from the other side you have those who feel they are entitled. So they feel, that there moral right is to everything for free unless its locked in a safe with two world dictionary sets of rules and regulations stipulating the conditions on which the product or service should be used.

What I find amazing is how much fraud there is out there today. Its not only the old world gray markets you need to be on your toes about, but it is now part of every day normal life. You need to stay on your toes and trust no one.

[EcuadorHomesOnline]

It's the website owners, who earn money for every click on their website - and they DO enter an agreement with Google which says they will not click on the ads on their own website - even if it's just for "testing".

[BCF1968]

Ummm when I as an advertiser have to pay for each time I get my ad gets cliked yes if you have a bot or a human click my ad without having real interest in my product that is fraud. It costs me REAL money. why should I ave to pay hundreds if not thousands dollars un-necessarilly because someone wants to be a jerk? That's taking food off MY table and take offense to that.

[kieranmullen]

Advertisers should not use the content network option in Google... Just base it off of search results...

[Harrison912]

As a web site owner of safety and security products, I am concerned about click fraud. That's one of the reasons I do very little PPC campaigns. Thanks, Stephen, for this info but I have to agree with sechr, there isn't anything actionable for us to do about it.