Click Fraud Up in Q1 2007 According to Click Forensics

SMS Text

Click Forensics, Inc. today released some new click fraud figures from Q1 2007. Key findings from data reported for Q1 2007 include:

  • The overall industry average click fraud rate was 14.8 percent for Q1 2007 versus 13.7 percent for the same quarter in 2006 and 14.2 percent for Q4 of 2006, 13.8 percent for Q3 of 2006, 14.1 percent for Q2 of 2006, respectively.
  • The average click fraud rate of pay-per-click advertisements appearing on search engine content networks was 21.9 percent, versus 19.2 percent for Q4 of 2006.
  • The industry average click fraud rate for high-priced search terms was 22.2 percent compared to 20.9 percent in Q4 2006, 20.9 in Q3 2006 and 20.2 in Q2 2006. High-priced terms are defined as terms that cost over $2.00. These high-priced terms often make up the majority of an advertiser’s total spend.

“It appears that click fraud perpetrators are becoming more sophisticated even as search providers step up their efforts to fight click fraud,” said Tom Cuthbert, president and CEO of Click Forensics, Inc. “Click fraud seems to be following a similar path as other online fraud schemes such as spam and phishing – the problem is growing as fraudsters fine tune their methods.”

Loren Baker
Loren Baker is the Founder of SEJ, an Advisor at Alpha Brand Media and runs Foundation Digital, a digital marketing strategy & development agency.
Loren Baker
Subscribe to SEJ!
Get our weekly newsletter from SEJ's Founder Loren Baker about the latest news in the industry!
  • Vygantas

    Well, that’s true.

    I know lots of sites (well not thousand or so) who ar sending fraud traffic to such a big guys like Yahoo, MIVA, etc, and they can’t catch them.

    Why? Maybe they have “poor” click log systems (I don’t know). Even my system can hun the mvery easilly, so don’t know why Yahoo for example couldn’t just ban thoose sites.

    Some time ago I thought about reporting them to Yahoo, but haven’t found any not useless way to do that.

  • Michael Temple

    Years ago I worked for a dot com company in marketing and we tried really hard to work with the early players in online advertising to base their fees on pay for performance ads. None would, they were still stuck in the old school of using impressions for a measurement of value.

    Now that so many ads are pay to click, which is similar to pay for performance advertising companies like Google and Yahoo are forced to find ways to accelerate the revenue coming in. Simply waiting for true prospects to click on an ad is not going to bring cash in fast enough.

    Therefore they display their ads that we pay for on all types of bad sites, parked domains, and other places that are designed to attract clicks, but not true prospects. Combine this with people that set up domains and processes to earn money by providing these poor clicks and you have a recipe for ongoing and increasing click fraud I think click fraud will continue being a problem until this practice stops, which I doubt it will.