From scraper sites, to click fraud to trojan horses, looks like the most profitable money making mechanism, aka AdSense might be facing some tough times. Paul Kedrosky predicts that the situation will come to a head in 2006 sometime.
With some estimating that in certain categories click-fraud accounts for as much as 20% of fees, this is a stock-schwacking issue, one that threatens the core of Google’s advertising business.
He might be lowballing.Wired Magazine just released an article, which estimates that in some cases the fraud runs as high as 30%.
In a widely cited recent study, MarketingExperiments.com, an online marketing research outfit, reported that “as much as 29.5 percent”
But the problems won’t stop here! TechShout reports
a new, deceptive Trojan Horse program has surfaced. The program is engineered to produce fake Google ads that are formatted to look like legitimate ones.
TechShout folks say that Google AdSense team confirmed the existence of these problems. The bottom line is that like Microsoft (in OS), Google is going to have to the bear the cross of being a dominant player in the “text ads” space.