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Summary:

Not too long ago, click fraud was the topic du jour, with a number of advertisers saying they were cutting back on pay per click ad spending…

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Not too long ago, click fraud was the topic du jour, with a number of advertisers saying they were cutting back on pay per click ad spending because of the possibility of fraud. But a new report from click fraud tracker Click Forensics says click fraud rates have declined nearly 25 percent over the last year. The average click fraud rate was 12.7 percent last quarter, down from 16.2 percent during the same period a year ago.

Obviously, click fraud hasn’t gone away. Just over a month ago, Microsoft (NSDQ: MSFT) filed its first ever click fraud lawsuit, targeting a group that allegedly drained the ad budgets of rivals by bombarding rival ads with clicks.

Still, the Microsoft lawsuit appears to have been an exception in a sector that was heavy litigation by the major players a few years ago. What’s driving the fall? Click Forensics says ad networks are getting better at detecting and blocking invalid traffic sources (Via Andy Beal’s Marketing Pilgrim).

  1. David Lewenz Tuesday, July 28, 2009

    Click fraud is not as rampant as Google placing local adds in markets that are not relevant to the advertiszer. I have found on numerous occasions, local adds misplaced in the wrong cities.

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  2. Advertisers not talking about click fraud does not equals click fraud is on the decline. I wish most fraud would end if people "talked about it" as well as I wish my front yard tree grow lollipops..

    If I'm correct, this may correlate to the trend of pay-per-click decline in business over the past year. Click fraud is real and I believe it is not only underreported by the media, the media has a collusionary role.

    The only person who get stuck with the bill is the advertiser. The ad networks and the publishers stand to generate revenue based on the click and will push the burden of click fraud proof to the advertiser.

    Media has financial motive to ignore click fraud issue as well as the ad networks. It is the advertisers who better smarten up and realize who is footing the bill of click fraud…

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