Google loses $1 billion US a year to click fraud

womend · 03-04-2007, 03:39 AM

Google Incorporated claims the company loses about $1 billion US a year to "click fraud" and similar scams on its ad service. Special software that can click on an ad repeatedly can be used to inflate a rival company's advertising costs or boost a site operator's own revenue gained from displaying the ads. Advertisers have been asking Google for a clearer picture of the reach and effectiveness of their ads. Google does not charge its advertisers for clicks it determines to be invalid, effectively cutting into the company's revenue.

"Our invalid clicks rate has remained in the range of less than 10 per cent of all clicks every quarter since we launched AdWords in 2002. Click fraud protection is something we take very seriously, and it requires a great deal of research and development to do effectively. [The] figures illustrate the significant level of proactive protection we provide, and how this has resulted in minimizing the actual impact of click fraud on advertisers," wrote Shuman Ghosemajumder, Google's business product manager for trust and safety, on the company's Inside AdWords blog late Thursday.

News source: CBC News

detoam · 03-04-2007, 04:37 AM

Excellent. The amount that they pay to people for using their sites for ads is very much minimal. I am happy that they are getting screwed.

jumpenjuhosaphat · 03-04-2007, 04:43 AM

Google isn't the ones losing, its the advertisers and the publishers. In fact, if a publisher makes false clicks, it either costs the advertiser, or it costs no one. In the case of honest publishers, sometimes I get clicks that are probably honest clicks, but I don't get paid for every one of them, in fact I'd say I only get paid for about half of them. So how can Google say they are losing anything, they are ripping the advertisers and the publishers, they don't lose a thing, they only profit from undetected click fraud.

ev8321 · 03-04-2007, 07:46 AM

jumpenjuhosaphat you are spot on. Google doesn't lose anything. 1 billion lost from their advertisers.

womend · 03-04-2007, 12:10 PM

1 billion is lot, I believe they don't like click fraud, if they did, they would never ban thousands of suspicous website publishers, even if they could add millions to their revenue.

ev8321 · 03-04-2007, 12:18 PM

Yeh womend i no! Imagine how many people would pay to advertise with google when they knew they were getting screwed. NONE.
That's why they have to try and stay on top of click fraud. Good on em for banning the cheats.

jumpenjuhosaphat · 03-04-2007, 12:32 PM

Yeah, it is good that they ban the cheats, but I personally think they are screwing me. About half of the clicks my sites produce don't get paid. I think that Google is getting paid for them, just not me.

I wrote them the last time that it got really bad, the next day my earnings tripled, and they stayed that way for almost a month, then earnings went down again. I personally don't trust anyone that isn't willing to share with you the information that your site's visitors create. Why isn't it my business what ads my customers are clicking on? I just don't trust Google.

midlandi · 03-04-2007, 01:57 PM

Interesting article womend, thanks for sharing this.
Rep added

womend · 03-04-2007, 02:21 PM

Thx midlandi

I love how Google is still denying that click-fraud is a very big problem

jumpenjuhosaphat · 03-04-2007, 02:28 PM

Google will deny it till the end, it's not really a big problem for them though, they just like to pretend that it is.

midlandi · 03-04-2007, 02:29 PM

Trouble is they dot loose it we do surely as we pay for it?

Zack · 03-04-2007, 04:05 PM

I thought that this might fit in better in the Google > Adsense forums. That is a lot of money lost from advertisers, but the publishers are reaping the benefits I suppose. I don't know about Google that much, I usually use my YPN account.
Zack

dustin323 · 03-04-2007, 05:18 PM

Well that is the problem with PPC. I guess someone could get someone banned from AdSense by clicking their ads repeatedly all day.

ev8321 · 03-05-2007, 01:56 AM

you can;t dustin323 you will be banned straight away.
They can tell if its the same person clicking on the ads. Unless you fly around the world. Yeh right

swazi · 03-05-2007, 08:10 AM

Even the losses are that big, the business if very profitable, so they have nothing to complain about.

03-04-2007, 03:39 AM	#1
womend Newcomer Join Date: Mar 2007 Posts: 38	Google loses $1 billion US a year to click fraud Google Incorporated claims the company loses about $1 billion US a year to "click fraud" and similar scams on its ad service. Special software that can click on an ad repeatedly can be used to inflate a rival company's advertising costs or boost a site operator's own revenue gained from displaying the ads. Advertisers have been asking Google for a clearer picture of the reach and effectiveness of their ads. Google does not charge its advertisers for clicks it determines to be invalid, effectively cutting into the company's revenue. "Our invalid clicks rate has remained in the range of less than 10 per cent of all clicks every quarter since we launched AdWords in 2002. Click fraud protection is something we take very seriously, and it requires a great deal of research and development to do effectively. [The] figures illustrate the significant level of proactive protection we provide, and how this has resulted in minimizing the actual impact of click fraud on advertisers," wrote Shuman Ghosemajumder, Google's business product manager for trust and safety, on the company's Inside AdWords blog late Thursday. News source: CBC News __________________ Please, apply the signature policy

03-04-2007, 04:37 AM	#2
detoam Junior Guru Join Date: Feb 2007 Location: Canada Posts: 663	Re: Google loses $1 billion US a year to click fraud Excellent. The amount that they pay to people for using their sites for ads is very much minimal. I am happy that they are getting screwed. __________________

03-04-2007, 04:43 AM	#3
jumpenjuhosaphat Forum Admin Contributor Join Date: Jun 2006 Location: Denver Posts: 4,459	Re: Google loses $1 billion US a year to click fraud Google isn't the ones losing, its the advertisers and the publishers. In fact, if a publisher makes false clicks, it either costs the advertiser, or it costs no one. In the case of honest publishers, sometimes I get clicks that are probably honest clicks, but I don't get paid for every one of them, in fact I'd say I only get paid for about half of them. So how can Google say they are losing anything, they are ripping the advertisers and the publishers, they don't lose a thing, they only profit from undetected click fraud. __________________ Storage Sheds Lost Forum

03-04-2007, 07:46 AM	#4
ev8321 Senior Member Join Date: Oct 2006 Posts: 424	Re: Google loses $1 billion US a year to click fraud jumpenjuhosaphat you are spot on. Google doesn't lose anything. 1 billion lost from their advertisers. __________________ Funny Shit \| Crazy Shit \|Daily Funny Fix

03-04-2007, 12:10 PM	#5
womend Newcomer Join Date: Mar 2007 Posts: 38	Re: Google loses $1 billion US a year to click fraud 1 billion is lot, I believe they don't like click fraud, if they did, they would never ban thousands of suspicous website publishers, even if they could add millions to their revenue. __________________ Please, apply the signature policy

03-04-2007, 12:18 PM	#6
ev8321 Senior Member Join Date: Oct 2006 Posts: 424	Re: Google loses $1 billion US a year to click fraud Yeh womend i no! Imagine how many people would pay to advertise with google when they knew they were getting screwed. NONE. That's why they have to try and stay on top of click fraud. Good on em for banning the cheats. __________________ Funny Shit \| Crazy Shit \|Daily Funny Fix

03-04-2007, 12:32 PM	#7
jumpenjuhosaphat Forum Admin Contributor Join Date: Jun 2006 Location: Denver Posts: 4,459	Re: Google loses $1 billion US a year to click fraud Yeah, it is good that they ban the cheats, but I personally think they are screwing me. About half of the clicks my sites produce don't get paid. I think that Google is getting paid for them, just not me. I wrote them the last time that it got really bad, the next day my earnings tripled, and they stayed that way for almost a month, then earnings went down again. I personally don't trust anyone that isn't willing to share with you the information that your site's visitors create. Why isn't it my business what ads my customers are clicking on? I just don't trust Google. __________________ Storage Sheds Lost Forum

03-04-2007, 01:57 PM	#8
midlandi iWEBTOOL Moderator Contributor Join Date: Oct 2006 Posts: 2,224	Re: Google loses $1 billion US a year to click fraud Interesting article womend, thanks for sharing this. Rep added __________________ Midland Internet-Quality Hosting Damn i Dunno Free Link Directory

03-04-2007, 02:21 PM	#9
womend Newcomer Join Date: Mar 2007 Posts: 38	Re: Google loses $1 billion US a year to click fraud Thx midlandi I love how Google is still denying that click-fraud is a very big problem __________________ Please, apply the signature policy

03-04-2007, 02:28 PM	#10
jumpenjuhosaphat Forum Admin Contributor Join Date: Jun 2006 Location: Denver Posts: 4,459	Re: Google loses $1 billion US a year to click fraud Google will deny it till the end, it's not really a big problem for them though, they just like to pretend that it is. __________________ Storage Sheds Lost Forum

03-04-2007, 02:29 PM	#11
midlandi iWEBTOOL Moderator Contributor Join Date: Oct 2006 Posts: 2,224	Re: Google loses $1 billion US a year to click fraud Trouble is they dot loose it we do surely as we pay for it? __________________ Midland Internet-Quality Hosting Damn i Dunno Free Link Directory

03-04-2007, 04:05 PM	#12
Zack Junior Guru Join Date: Dec 2005 Location: North Carolina Posts: 760	Re: Google loses $1 billion US a year to click fraud I thought that this might fit in better in the Google > Adsense forums. That is a lot of money lost from advertisers, but the publishers are reaping the benefits I suppose. I don't know about Google that much, I usually use my YPN account. Zack __________________ Thumpr ~ Xcolored

03-04-2007, 05:18 PM	#13
dustin323 Member Join Date: Oct 2006 Location: Louisiana Posts: 141	Re: Google loses $1 billion US a year to click fraud Well that is the problem with PPC. I guess someone could get someone banned from AdSense by clicking their ads repeatedly all day. __________________ Hand Roasted Fair Trade Coffee

03-05-2007, 01:56 AM	#14
ev8321 Senior Member Join Date: Oct 2006 Posts: 424	Re: Google loses $1 billion US a year to click fraud you can;t dustin323 you will be banned straight away. They can tell if its the same person clicking on the ads. Unless you fly around the world. Yeh right __________________ Funny Shit \| Crazy Shit \|Daily Funny Fix

03-05-2007, 08:10 AM	#15
swazi Member Join Date: Sep 2006 Posts: 174	Re: Google loses $1 billion US a year to click fraud Even the losses are that big, the business if very profitable, so they have nothing to complain about.

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