Blog Post

Click Fraud at $800 Million Last Year

This report is creating more than a few ripples among the online portals, who have been coy till now to talk too much about click fraud in contextual advertising…Online advertisers paid more than $800 million (14.5 percent of total clicks) last year for fraudulent clicks and more than a quarter of them have reduced their spending as a result, according to Outsell.
Outsell, which interviewed more than 400 online advertisers, said 75 per cent of them reported experiencing fraudulent clicks.
SFGate: Outsell found that 7 percent of advertisers request a refund, netting an average of $9,507. Unsolicited refunds were paid to 4.2 percent of advertisers, with an average of $9,444 coming from Google and $4,068 from Yahoo.
Outsell analyst Chuck Richard said that dissatisfaction with click-based advertising is fueling the drive to cost per action, which would require advertisers to pay only when a consumer clicks on an ad and then buys a product or asks for a brochure.