Google agrees to pay $90m in PPC fraud

[Badger]

San Francisco, March 9. (AP): Google Inc. has agreed to pay up to USD 90 million to settle a lawsuit alleging the online search engine leader overcharged thousands of advertisers who paid for bogus sales referrals generated through a ruse known as "click fraud."

The proposed settlement, announced by the company yesterday, would apply to all advertisers in Google's network during the past four years. Any Web site showing improper charges dating back to 2002 will be eligible for an account credit that could be used towards future ads distributed by Google.

The total value of the credits available to advertisers will be lower than USD 90 million because part of that amount will be used to cover the fees of lawyers who filed the case last year in Arkansas state court. The proposed settlement still requires final court approval.

The lawsuit, filed by Lane's Gifts and Collectibles on behalf of all Google advertisers, revolves around one of the most sensitive subjects facing Google and Yahoo Inc., which runs the Internet's second largest marketing network.

Yahoo, which is also named in the suit, said yesterday that it intends to fight the lawsuit's allegations.

Mountain View, California-based Google makes virtually all of its money from text-based advertising links that trigger commissions each time they are clicked on.

Besides enriching Google, the system has been a boon for advertisers, whose sales have been boosted by an increased traffic from prospective buyers.

Associated Press

 

[Masahiro]

Good news.

All I can hope is that Google do what some of the other networks are doing, and ask you to verify your click if you have clicked on the same ad more than once.

I have never advertised on Google [but I have tried Kanoodle, and I estimate around 60% of the traffic was click fraud], but as a publisher, I don't want people trying to get me banned from Google.

 

[GoPC]

How in the WORLD are they determining what IS or is NOT click fraud?

Think about this for a second... A suit was brought against Google for Click Fraud. That would imply, due to the fact that Google is settling, that Google KNEW and CONDONED the alleged click fraud.

In fact, one my conclude from the annoucement that Google itself was guilty of click fraud.

This suit smells bad to me. Google either has some very precise way of tracking what is click fraud and chose to do nothing about it (for which they are now liable) or Google didn't have a way to monitor it effectively denoting negligence (for which they are now liable).

However, this all means ONE thing... YOU ADSENSE IS GOING TO BE OVER SCRUTINIZED.

For all their miraculous technology and Billions of dollars and super secret search databased on each one of us and their super secret "click fraud detector kit", they haven't simply thought of logging your own IP address and setting a DO NOT PAY code for when an ad is clicked through your own address?

I mean I can't possibly be the only one not to see the obvious stupidity here that is causing SO MUCH heartache.

They are ALREADY tracking you clicking your own ads and they are already tracking an overabundance of clicks from one IP and so on... why not simply USE that information to regulate the offense.

After all, I see ads pop up all the time on my sites that I would LOVE to click through to see more information. But I can't because Google will AXE me for doing exactly what a paying advertiser WANTS... me to click his ad and perhaps BUY something.

Now that the precedence is set, we should very shortly see an advertiser suing google for prohibiting the tens of thousands of Adsense users from viewing their ads and therefore costing these advertisers potential revenue.

XXX Million Adsense member views multiplied say a 10% click through rate and a %1 puerchase rate... that is costing Adsense Advertisers Millions of Dollars in revenues every year!

So while we see Google settling for $90 Mill for users clicking their own ads I predecit we will see Google also settling for another $XX Mill for NOT letting potential customers click the very same ads.

Why? Because Google had a method in place to PROPERLY regulate click fraud yet CHOSE not to. That is negligence and that is why they are paying up.

And who wins? Who looses?

You and I, my friend... WE DO.

GoPC

 

[abhinav]

How in the WORLD are they determining what IS or is NOT click fraud?

Think about this for a second... A suit was brought against Google for Click Fraud. That would imply, due to the fact that Google is settling, that Google KNEW and CONDONED the alleged click fraud.

In fact, one my conclude from the annoucement that Google itself was guilty of click fraud.

This suit smells bad to me. Google either has some very precise way of tracking what is click fraud and chose to do nothing about it (for which they are now liable) or Google didn't have a way to monitor it effectively denoting negligence (for which they are now liable).

However, this all means ONE thing... YOU ADSENSE IS GOING TO BE OVER SCRUTINIZED.

For all their miraculous technology and Billions of dollars and super secret search databased on each one of us and their super secret "click fraud detector kit", they haven't simply thought of logging your own IP address and setting a DO NOT PAY code for when an ad is clicked through your own address?

I mean I can't possibly be the only one not to see the obvious stupidity here that is causing SO MUCH heartache.

They are ALREADY tracking you clicking your own ads and they are already tracking an overabundance of clicks from one IP and so on... why not simply USE that information to regulate the offense.

After all, I see ads pop up all the time on my sites that I would LOVE to click through to see more information. But I can't because Google will AXE me for doing exactly what a paying advertiser WANTS... me to click his ad and perhaps BUY something.

Now that the precedence is set, we should very shortly see an advertiser suing google for prohibiting the tens of thousands of Adsense users from viewing their ads and therefore costing these advertisers potential revenue.

XXX Million Adsense member views multiplied say a 10% click through rate and a %1 puerchase rate... that is costing Adsense Advertisers Millions of Dollars in revenues every year!

So while we see Google settling for $90 Mill for users clicking their own ads I predecit we will see Google also settling for another $XX Mill for NOT letting potential customers click the very same ads.

Why? Because Google had a method in place to PROPERLY regulate click fraud yet CHOSE not to. That is negligence and that is why they are paying up.

And who wins? Who looses?

You and I, my friend... WE DO.

GoPC

How in the WORLD are they determining what IS or is NOT click fraud?

Think about this for a second... A suit was brought against Google for Click Fraud. That would imply, due to the fact that Google is settling, that Google KNEW and CONDONED the alleged click fraud.

In fact, one my conclude from the annoucement that Google itself was guilty of click fraud.

This suit smells bad to me. Google either has some very precise way of tracking what is click fraud and chose to do nothing about it (for which they are now liable) or Google didn't have a way to monitor it effectively denoting negligence (for which they are now liable).

However, this all means ONE thing... YOU ADSENSE IS GOING TO BE OVER SCRUTINIZED.

For all their miraculous technology and Billions of dollars and super secret search databased on each one of us and their super secret "click fraud detector kit", they haven't simply thought of logging your own IP address and setting a DO NOT PAY code for when an ad is clicked through your own address?

I mean I can't possibly be the only one not to see the obvious stupidity here that is causing SO MUCH heartache.

They are ALREADY tracking you clicking your own ads and they are already tracking an overabundance of clicks from one IP and so on... why not simply USE that information to regulate the offense.

After all, I see ads pop up all the time on my sites that I would LOVE to click through to see more information. But I can't because Google will AXE me for doing exactly what a paying advertiser WANTS... me to click his ad and perhaps BUY something.

Now that the precedence is set, we should very shortly see an advertiser suing google for prohibiting the tens of thousands of Adsense users from viewing their ads and therefore costing these advertisers potential revenue.

XXX Million Adsense member views multiplied say a 10% click through rate and a %1 puerchase rate... that is costing Adsense Advertisers Millions of Dollars in revenues every year!

So while we see Google settling for $90 Mill for users clicking their own ads I predecit we will see Google also settling for another $XX Mill for NOT letting potential customers click the very same ads.

Why? Because Google had a method in place to PROPERLY regulate click fraud yet CHOSE not to. That is negligence and that is why they are paying up.

And who wins? Who looses?

You and I, my friend... WE DO.

GoPC

Well truly said....it really is the truth.

 

[Jarodboy]

$90M??!!
That's a LOT of money...I wonder how much they earn just by adsense

 

[abhinav]

$90M??!!
That's a LOT of money...I wonder how much they earn just by adsense

more then a Billion may be......

 

[linker]

For all their miraculous technology and Billions of dollars and super secret search databased on each one of us and their super secret "click fraud detector kit", they haven't simply thought of logging your own IP address and setting a DO NOT PAY code for when an ad is clicked through your own address?

They do this already...

I think the biggest issue around the click fraud thing is competitors clicking publishers ads over and over to drive up the costs for the competitor...

I am sure everyone here has clicked there own ads by accident when working on a website, it happens to me every now and then and I see the clicks and $0.00 revenue reported...

Google is not worried about a few clicks here and there, it is the hundreds-thousands of clicks a day on one or two particular ads for the same or same block of IP addresses that throws up the red flag...

 

[edit]

can anyone explain why adsense publishers always say "I would love to click my own ads because im interested in the ad but I cant because google won't let me".

Maybe its just my pages but the address for the ad is right below the actual advertisement. I guess nobody types anymore to get to webpages and just clicks everything?

 

[GoPC]

Yeah, we're all a bunch of lazy butts....

Seriously though, how HARD would it be, considering the technology behind Google Adsense, to simply allow site owners to click their own ads and NOT be counted for it and NOT be penalized for it and NOT charge the Advertiser for it? After all, that's FREE CLICKTHROUGH for the Advertiser and GOOD positive PR for Google. FREE leads.

Simple, elegant solution that would eliminate the ONE thing that the industry is so completely obsessed with USER Click Fraud when we all know (cough) that the real problem is competitor click fraud (ahem).

If it's THAT big of a deal... big enough to have a garrison of black suited googlites summon up the powers of banishment for lowely domain owners, how better would those resources be spent if insignificant site owners were simply dealth with electronically?

Maybe that's why Google has bent to the Fraud Charges... because they are depending on other people taking action... like domain owners typing in their own ads. Lack of action on the Part of Google to protect its advertising partners? Hmmm...? Maybe?



GoPC

 

[bojianh]

i wonder what cut of advertiser's earnings they grab?