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  • Digg It - Click Fraud: A Guide to Protecting Your Pay-Per-Click Campaign

    Click fraud is the latest 'hot topic' circulating the online marketing arena, but what is it? And how does it affect you as a merchant running a pay-per-click campaign?

    Spending on Internet advertising is growing faster than any other sector of the advertising industry and is expected to surge from $12.5 billion last year to $29 billion by 2010 in the U.S. alone, accordin
    According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
    g to the researcher eMarketer Inc. With around 50% of this spending being spent on pay-per-click (PPC) advertising.

    Here we offer you a complete guide as to what this phenomenon is, who is likely to commit such an act, how to identify & prevent click fraud and how to best report instances of suspected click fraud on your PPC campaign.

    What is Click Fraud?

    Accordi
    ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

    Examples of combination products may in
    g to Wikipedia "Click fraud is a type of internet crime that occurs in pay per click online advertising when a person, automated script, or computer program imitates a legitimate user of a web browser clicking on an ad, for the purpose of generating a charge per click without having actual interest in the target of the ad's link"

    Click Fraud is estimated to range from 5%
    lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

    15% of pay-per-click traffic (some estimates are as high as 20% - 35%) although Google estimates click fraud at only 2% due to the rigorous detection methods they claim are in place.

    In a recent study by Click Forensics, click fraud reached a new high of 14.2% in the last quarter of 2006 with the average rate of click fraud on 'content networks' as high as 19.2% for the
    here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
    ame quarter.

    So who is likely to commit Click Fraud?

    The click fraud villain is most likely to fall into one of three categories:

    • Online vandals with nothing better to do than cause a nuisance
    • A competitor clicking on your search network PPC ads, with the sole intention of increasing your cost-per-acquisition (CPA). This could be interpreted a
    d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

    Combination pro
    click fraud, although currently the search engines do not consider this kind of activity as click fraud
  • Search Engine advertising affiliates who generate self-income from fraudulent clicks on 'content network' adverts displayed on their own websites. This practice, at it's extreme, involves the use of unscrupulous 'paid to read' or PTR sites, which are basically
  • ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
    click-fraud rings, some with hundreds or thousands of participants, paid to click on your ads with no regard for your return on investment (ROI) as the advertiser

    What are the Search Engines doing about it?

    Both Google and Yahoo claim that they filter out most fraudulent clicks. The costs involved for these clicks are either not charged or are reimbur
    easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
    ed to advertisers who have been wrongly billed.

    To combat click fraud Google applies four layers of fraud detection:

    1. Automatic detection - this filters clicks from both the search and content networks in real-time with the goal of removing them before their existence is ever shown to the advertiser
    2. The "Flagging system" - an automatic process to remov
    nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
    invalid AdSense clicks
  • The "Manual review" - this process has more than two-dozen Google employees tasked with manually reviewing and removing any suspicious AdSense clicks
  • If the first three layers of protection fail then the fourth and final layer of click fraud detection falls to the advertiser and 3rd party click fraud detection companies. Google r
  • and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
    fers to this layer as "requested investigations"

    Googles main aim is that the first three layers of filtering will identify all invalid and fraudulent clicks. These layers currently filter more than 98% of invalid clicks.

    And should you be in any doubt, both Google and Yahoo have, in the past, released the following statements:

    "We think cli
    ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
    k fraud is a serious but manageable issue" says John Slade, Yahoo's senior director for global product management.

    "Google strives to detect every invalid click that passes through its system" says Shuman Ghosemajumder, the Google manager for trust and safety. "It's absolutely in our best interest for advertisers to have confidence in this industry."
    ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

    Following aspects would a
    ckquote>

    As a positive for the future, Google is currently testing a cost-per-action (CPA) platform, which should effectively deal with click fraud. With CPA ads you don't pay by the click but instead pay when the customer reaches a certain goal: buys a product, fills an enquiry, etc.

    How to identify click fraud on your pay-per-click campaign

    Before you can even
    dd to the challenges in developing combination products:

    Which markets to tap where the combination products can do fairly well?
    Which combination prod
    ontemplate identifying click fraud you must have effective tracking tools implemented on your website and, if possible, access to your server logs. With tracking tools in place, the most obvious way of spotting click fraud is to simply observe any spikes in traffic where there is no particular shift in your conversions.

    Once identified, these spikes can then be analysed b
    cts are meaningful and rational?
    Which therapeutic categories to select?
    Which Combinations can address unmet needs of the patients?
    Do combin
    looking for repeated clicks from sources that look similar. This similarity could be an IP address or an IP range; it could be a combination of IP range; browser version; operating system. Basically look for data in groups that looks fraudulent.

    If all this is just 'a bit too heavy' for you then there are a number of companies out there that can help.

    • AdWatch
    tions increase the patient compliance?
    What would be the developing cost?
    How to tackle the risks encountered during combination product developmen
    r - claims to able to spot click fraud so that you can report it. Covers other aspects of PPC marketing, by helping you track your ROI, email success, etc.
  • Click Auditor - offers the ability to check whether your competitors IP is the one performing any abusive clicking, and says it will stealthily gather your competitors IP addresses for this purpose.
  • t?

    As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
    lickSentinel - focuses on helping you get refunds on fraudulent clicks, as requesting a refund from your PPC provider can often be very difficult for the un-initiated.
  • Click Tracks - reportedly has automatic click fraud reporting along with other click tracking (analytics) tools.


  • Reporting suspected Click Fraud

    When reporting suspected click
    ping new procedures for reviewing their safety, efficacy and quality.

    Professional from academic institutions, pharmaceutical industries, health care indust
    fraud, you must include as much captured data as possible to increase your likelihood of obtaining a refund or credit.

    The following guidelines are recommended:

    • Clearly state, at the very beginning of your claim, that you are reporting suspected click fraud
    • Provide a full explanation to support your claim
    • Include your account details (do not
    y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
    include your password or payment information)
  • State the exact keyword, ad and campaign where you suspect click fraud has occurred
  • State the exact time, date and IP address of each instance of suspected click fraud. This data can be gleaned from your server logs or 3rd party tracking tool
  • Finally, state whether you are requesting a refund, cred
  • .

    As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
    t or investigation

    If you were using any software tools, such as those highlighted earlier, to help you track and report click fraud then include any reports generated by these in your claim.

    Lowering the risk of Click Fraud happening to you!

    Always bear in mind that your PPC objective is to get conversions and not just clicks.

    The more you have rese
    elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

    Companies that provide selfless information through particip
    rched the demographics of your intended client base the better your chance of avoiding click fraud. Are your clients from a specific country or location? When are they likely to search for your product or service? What are the key search-terms they are using?

    With demographic data in-hand you can target your ad campaigns more effectively and lower your risk of click fraud


    tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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