Google, Yahoo, MSN join forces against click fraud

CNET News reports that Google, Yahoo, and Microsoft are working with the Interactive Advertising Bureau (IAB) and the Media Rating Council to form the Click Measurement Working Group. The group will establish guidelines for definitions of click fraud and share best practices on how to detect and stop click fraud.

There is currently no generally accepted definition of an invalid click. Each search engine or ad network has their own rules and definitions. Advertisers and ad agencies don't have consistent rules either. The search engines and advertisers are in a "cat and mouse game" with the click fraudsters. The click fraudsters are constantly changing their approach and methods in order to avoid detection and fly under the radar. The search engines can't really say how they detect click fraud or the rules they use because the click fraudsters would use that information to modify their approach and avoid detection. The Click Measurement Working Group guidelines will set clear definitions for invalid clicks aka click fraud.

The search engines already catch the vast majority of obvious click fraud performed by amateurs. I believe publishing the invalid click guidelines will stop most invalid clicks perpetrated by the professional fraudsters. They will be forced to use much less effective methods and turn the frequency way down in order to avoid detection. This is good news for advertisers.

My guess is that the guidelines will provide a range of potential behaviors that could indicate an invalid click. No one measurement will definitively prove click fraud. But taken together a pattern develops that everyone can agree on.

There will always be a small amount of click fraud that avoids detection. Infrequent clicks using random methods on low dollar ads will occasionally get through. But, compared to broadcast advertising or magazine and newspaper advertising, Internet PPC (Pay Per Click) advertising is much more cost effective and trackable.

In the end, for advertisers, it all comes down to ROI on their advertising dollars. Today less than 5% of advertising budgets are being spent online. I see this percentage increasing dramatically over the next 10 years. Better rules for invalid clicks and more transparency will only accelerate the move to online advertising.

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Comments

[CPCcurmudgeon]

There are parallels between click fraud and phone fraud, especially using 1-800 and 1-900 numbers. I think much would be accomplished by bringing in some telecom experts.