A survey about fraudulent clicks on online advertisements by research company Outsell, Inc. offers insight into a serious problem faced by online advertisers. The report exposes one of the most detailed looks at the massive headache that Google, Yahoo and other search engines have faced for years. The fact is that online advertisers have long complained that major search engine companies don't do enough to combat the click fraud practice. Here's some of the findings from the report:
-Revenue lost by Google, Yahoo and other Web sites, as a result: $500 million
-Clicks believed by advertisers to be fraudulent: 14.6 percent
-Money paid by advertisers for bogus clicks: $800 million (2005)
-Advertisers who said they were victims of click fraud: 75%
-Advertisers who said they reduced click-based advertising or plan to: 37%
-Advertisers who request refunds because of fraud: 7%
-Average refund: $9,507
Ok, this has been going on for a long time. I competely agree with Scott Karp and Brian Clark in thier blogs on this topic and Brian's view that Affilate Marketing is on a major comeback. My company and my clients have been using Adsense for years and it needs serious attention from Google. In the meantime, we'll manage it as best we can as we find more creative ways to market.
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