‘Pay-per-click (PPC) advertising models, which compensate networks or their affiliates each time a user clicks on a link, were always considered to be something of an honor system. But new data coming to light this week reveals that PPC fraud is far more significant than many industry observers would have imagined.
According to research released by Web analytics provider Clicklab, fraudulent clicks can account for more than 50 percent of all advertising fees attributable to certain categories.
The data provides a rare public snapshot into a segment of the industry that is controlled and rarely disclosed by companies that manage their own proprietary databases. And while a big player like Google, for example, does not disclose its fraud rates, the problem is significant enough that Google underlined it in its IPO filing with the Securities and Exchanges Commission as a potential risk that investors should worry about.’
Read More at