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 as click fraud, although currently the
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  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, according 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?

  According 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% - 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 same 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 as click fraud, although currently the s
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    earcher 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?

    According 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% - 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 same 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 as click fraud, although currently the
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      a "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% - 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 same 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 as click fraud, although currently the
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        ffic (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 same 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 as click fraud, although currently the
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          ly 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 as 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 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 reimbursed 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 remove invalid AdSense clicks
          3. The "Manual review" - this process has more than two-dozen Google employees tasked with manually reviewing and removing any suspicious AdSense clicks
          4. 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 refers to this layer as "requested investigations"

          Googles main aim